Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 18, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | AFFILIATED MANAGERS GROUP, INC. | ||
Entity Central Index Key | 1004434 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $11,317,162,064 | ||
Entity Common Stock, Shares Outstanding | 54,895,148 | ||
Document Fiscal Year Focus | 2014 | ||
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $2,510.90 | $2,188.80 | $1,805.50 |
Operating expenses: | |||
Compensation and related expenses | 1,030.50 | 947.5 | 784.7 |
Selling, general and administrative | 485.5 | 427.2 | 366.9 |
Intangible amortization and impairments | 122.2 | 128.2 | 200 |
Depreciation and other amortization | 16.9 | 14 | 14.1 |
Other operating expenses | 40.6 | 37.8 | 39.4 |
Total operating expenses | 1,695.70 | 1,554.70 | 1,405.10 |
Operating income | 815.2 | 634.1 | 400.4 |
Income from equity method investments | 281.7 | 307.8 | 129.7 |
Other non-operating (income) and expenses: | |||
Investment and other income | -23.3 | -40.8 | -22 |
Interest expense | 76.6 | 87.3 | 83 |
Imputed interest expense and contingent payment arrangements | 30.1 | 31.7 | -26.1 |
Total non-operating (income) and expenses | 83.4 | 78.2 | 34.9 |
Income before income taxes | 1,013.50 | 863.7 | 495.2 |
Income taxes | 227.9 | 194.1 | 83.8 |
Net income | 785.6 | 669.6 | 411.4 |
Net income (non-controlling interests) | -333.5 | -309.1 | -237.4 |
Net income (controlling interest) | $452.10 | $360.50 | $174 |
Earnings per share - basic (in dollars per share) | $8.22 | $6.79 | $3.36 |
Earnings per share - diluted (in dollars per share) | $8.01 | $6.55 | $3.28 |
Average shares outstanding - basic (in shares) | 55 | 53.1 | 51.7 |
Average shares outstanding - diluted (in shares) | 58.4 | 56.7 | 53 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $785.60 | $669.60 | $411.40 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | -62 | -19.6 | 18.5 |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 0.3 | 1 | -0.7 |
Change in net unrealized gain (loss) on investment securities, net of tax | 3.4 | 11.5 | 13.5 |
Other comprehensive income (loss) | -58.3 | -7.1 | 31.3 |
Comprehensive income | 727.3 | 662.5 | 442.7 |
Comprehensive income (non-controlling interests) | -317.4 | -311.1 | -239.6 |
Comprehensive income (controlling interest) | $409.90 | $351.40 | $203.10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $550.60 | $469.60 |
Receivables | 425.9 | 418.4 |
Investments in marketable securities | 172.6 | 157.9 |
Other investments | 167.2 | 164.3 |
Fixed assets, net | 95.4 | 92.3 |
Goodwill | 2,652.80 | 2,341.70 |
Acquired client relationships, net | 1,778.40 | 1,460.70 |
Equity method investments in Affiliates | 1,783.50 | 1,123.30 |
Other assets | 71.7 | 90.6 |
Total assets | 7,698.10 | 6,318.80 |
Liabilities and Equity | ||
Payables and accrued liabilities | 808.3 | 514.7 |
Senior bank debt | 855 | 525 |
Senior notes | 736.8 | 340 |
Convertible securities | 303.1 | 518.7 |
Deferred income taxes | 491.7 | 456.9 |
Other liabilities | 214.5 | 177 |
Total liabilities | 3,409.40 | 2,532.30 |
Commitments and contingencies (Note 10) | ||
Redeemable non-controlling interests | 645.5 | 641.9 |
Equity: | ||
Common stock ($.01 par value, 153.0 shares authorized; 53.9 shares outstanding in 2013 and 55.8 shares outstanding in 2014) | 0.6 | 0.5 |
Additional paid-in capital | 672.2 | 479.9 |
Accumulated other comprehensive income | 31.8 | 74 |
Retained earnings | 2,163.30 | 1,711.20 |
Total stockholders' equity before treasury stock | 2,867.90 | 2,265.60 |
Less: Treasury stock, at cost (1.0 shares in 2013 and 1.2 shares in 2014) | -240.9 | -131.4 |
Total stockholders' equity | 2,627 | 2,134.20 |
Non-controlling interests | 1,016.20 | 1,010.40 |
Total equity | 3,643.20 | 3,144.60 |
Total liabilities and equity | $7,698.10 | $6,318.80 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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 | 55.8 | 53.9 |
Treasury stock, shares | 1.2 | 1 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock at Cost | Non-Controlling Interests |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $2,499.60 | $0.50 | $927.50 | $50 | $1,176.70 | ($288.70) | $633.60 |
Beginning balance (in shares) at Dec. 31, 2011 | 53.9 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 411.4 | 174 | 237.4 | ||||
Share-based compensation | 25.4 | 25.4 | |||||
Common stock issued under share-based incentive plans | 73 | -62 | 135 | ||||
Tax benefit from share-based incentive plans | 25.5 | 25.5 | |||||
Affiliate equity activity | -26 | -47.9 | 21.9 | ||||
Investments in Affiliates | 247.6 | 247.6 | |||||
Shares repurchases | -60.9 | -60.9 | |||||
Distributions to non-controlling interests | -185.5 | -185.5 | |||||
Other comprehensive income (loss) | 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 |
Ending balance (in shares) at Dec. 31, 2012 | 53.9 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 669.6 | 360.5 | 309.1 | ||||
Share-based compensation | 27.5 | 27.5 | |||||
Common stock issued under share-based incentive plans | 45.7 | -53.2 | 98.9 | ||||
Tax benefit from share-based incentive plans | 20.7 | 20.7 | |||||
Settlement of convertible securities | -130.7 | -130.7 | |||||
Forward equity | -44 | -44 | |||||
Affiliate equity activity | -195.7 | -208.9 | 13.2 | ||||
Shares repurchases | -15.7 | -15.7 | |||||
Distributions to non-controlling interests | -267.1 | -267.1 | |||||
Other comprehensive income (loss) | -7.1 | -5.1 | -2 | ||||
Ending Balance at Dec. 31, 2013 | 3,144.60 | 0.5 | 479.9 | 74 | 1,711.20 | -131.4 | 1,010.40 |
Ending balance (in shares) at Dec. 31, 2013 | 53.9 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 785.6 | 452.1 | 333.5 | ||||
Share-based compensation | 29.3 | 29.3 | |||||
Common stock issued under share-based incentive plans | -5.3 | -134.4 | 129.1 | ||||
Tax benefit from share-based incentive plans | 60.2 | 60.2 | |||||
Settlement of convertible securities (in shares) | 1.9 | ||||||
Settlement of convertible securities | 276.5 | 0.1 | 276.4 | ||||
Forward equity | -45 | -45 | |||||
Affiliate equity activity | 28.6 | 5.8 | 22.8 | ||||
Investments in Affiliates | 235 | 235 | |||||
Shares repurchases | -238.6 | -238.6 | |||||
Distributions to non-controlling interests | -569.4 | -569.4 | |||||
Other comprehensive income (loss) | -58.3 | -42.2 | -16.1 | ||||
Ending Balance at Dec. 31, 2014 | $3,643.20 | $0.60 | $672.20 | $31.80 | $2,163.30 | ($240.90) | $1,016.20 |
Ending balance (in shares) at Dec. 31, 2014 | 55.8 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow from (used in) operating activities: | |||
Net income | $785.60 | $669.60 | $411.40 |
Adjustments to reconcile Net income to net cash flow from operating activities: | |||
Intangible amortization and impairments | 122.2 | 128.2 | 200 |
Depreciation and other amortization | 16.9 | 14 | 14.1 |
Deferred income tax provision | 62.8 | 27.7 | 11.1 |
Imputed interest expense and contingent payment arrangements | 30.1 | 31.7 | -26.1 |
Income from equity method investments, net of amortization | -281.7 | -307.8 | -129.7 |
Distributions received from equity method investments | 366.9 | 226.6 | 104.7 |
Share-based compensation and Affiliate equity expense | 113.7 | 84.1 | 69.3 |
Other non-cash items | 11.4 | 20 | 24.3 |
Changes in assets and liabilities: | |||
(Increase) decrease in receivables | 26.5 | -101.8 | -41.6 |
Increase in other assets | -7.1 | -12.8 | -4.7 |
Increase in payables, accrued liabilities and other liabilities | 144.9 | 177.6 | 0.4 |
Cash flow from operating activities | 1,392.20 | 957.1 | 633.2 |
Cash flow from (used in) investing activities: | |||
Investments in Affiliates | -1,245 | -26.3 | -797.4 |
Purchase of fixed assets | -19.2 | -24 | -20 |
Purchase of investment securities | -21.2 | -11.4 | -19.1 |
Sale of investment securities | 17.3 | 11.4 | 34.2 |
Cash flow used in investing activities | -1,268.10 | -50.3 | -802.3 |
Cash flow from (used in) financing activities: | |||
Borrowings of senior debt | 1,746.50 | 760 | 970 |
Repayments of senior debt and convertible securities | -1,020.60 | -1,201.30 | -555 |
Issuance of common stock | 41.4 | 48.2 | 73.4 |
Repurchase of common stock | -190.8 | -15.7 | -60.9 |
Note and contingent payments | 14.4 | -41 | -3.6 |
Distributions to non-controlling interests | -569.4 | -267.1 | -181.4 |
Affiliate equity issuances and repurchases | -65.7 | -118.1 | -107.9 |
Excess tax benefit from share-based compensation | 61.5 | 17.3 | 22 |
Settlement of forward equity sale agreement | -45 | -44 | 0 |
Other financing items | -5.2 | -7.4 | -10.4 |
Cash flow from (used in) financing activities | -32.9 | -869.1 | 146.2 |
Effect of foreign exchange rate changes on cash and cash equivalents | -10.2 | 1.5 | 3.8 |
Net increase (decrease) in cash and cash equivalents | 81 | 39.2 | -19.1 |
Cash and cash equivalents at beginning of period | 469.6 | 430.4 | 449.5 |
Cash and cash equivalents at end of period | 550.6 | 469.6 | 430.4 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 67.9 | 87.4 | 79.8 |
Income taxes paid | 110.7 | 82.8 | 51.6 |
Supplemental disclosure of non-cash financing activities: | |||
Settlement of 2006 junior convertible securities | 217.8 | 0 | 0 |
Stock issued under other incentive plans | 63.6 | 1.3 | 0.5 |
Stock received in settlement of liability | 44.7 | 0.5 | 0.1 |
Payables recorded for Share repurchases | 47.8 | 0 | 0 |
Payables recorded for Affiliate equity repurchases | 21.5 | 4 | 10.6 |
Payables recorded under contingent payment arrangements | $0 | $0 | $28.90 |
Business_and_Summary_of_Signif
Business and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
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 typically 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. 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 in any increases or decreases in the margin 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. | ||
(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 Affiliate partners 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 Affiliate partners 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. In cases where AMG applies the equity method of accounting, it typically does not have an obligation to repurchase equity interests. 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 (e.g. 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.g. approval of annual operating budgets, major financings, selection of senior management). | ||
(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 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 Investment and other income 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) | Fair Value Measurements | |
The Company determines the fair value of certain investment securities and other financial and non-financial assets and liabilities. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, utilizing a hierarchy of three different valuation techniques: | ||
Level 1 - Unadjusted quoted market prices for identical instruments in active markets; | ||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and | ||
Level 3 - Prices reflect the Company's own assumptions concerning unobservable inputs to the valuation model. These inputs require significant management judgment and reflect the Company's assumptions that market participants would use in pricing the asset or liability. | ||
(i) | 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 to seven years. 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 income taxes because these taxes generally represent the Company's share of the taxes incurred by the Affiliate. | ||
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 Affiliate 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 related to our senior bank debt are amortized over the remaining term of the credit facility and term loan. 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 utilizes 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. | ||
From time to time, the Company's Affiliates use foreign currency forward contracts to hedge the risk of currency exchange rate movements. In entering into these contracts, the Affiliates intend to offset cash flow gains and losses on projected foreign currency-denominated revenues and expenses as a result of variability in foreign currency exchange rates. | ||
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 Investment and other income. 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. | ||
(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 a liability 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. Intangible-related deferred tax liabilities are not recorded on U.S. basis differences related to the Company's foreign investments in corporate stock because of the permanent nature of the Company's investments. | ||
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 foreign, 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) | 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. | ||
(r) | Revenue Recognition | |
The Company's consolidated revenue primarily represents advisory fees billed 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. | ||
(s) | 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 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. | ||
(t) | 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. | ||
(u) | 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 investment products that are registered abroad. Revenue in the High Net Worth distribution channel is earned from relationships with ultra-high and high net worth 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. | ||
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 margin beyond the Company's Owners' Allocation as an operating expense. Unless specific to a distribution channel, all other operating and non-operating expenses have been allocated to segments based on the proportion of cash flow distributions reported by Affiliates in each segment. | ||
(v) | Recent Accounting Developments | |
In April 2014, the Financial Accounting Standards Board (the "FASB") issued an update to the guidance for discontinued operations accounting and reporting. The new guidance amends the definition of discontinued operations and requires entities to provide additional disclosures regarding disposal transactions that do not meet the discontinued operations criteria. The new guidance is effective for interim and fiscal periods beginning after December 15, 2014. The Company does not expect this guidance to have a significant impact on the Consolidated Financial Statements. | ||
In May 2014, the FASB issued a final standard on revenue from contracts with customers. The new standard provides a comprehensive model for revenue recognition. The new standard is effective for interim and fiscal periods beginning after December 15, 2016. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. | ||
In November 2014, the FASB issued an update to the guidance for hybrid financial instruments. The new guidance requires entities to determine the nature of the host contract by considering all stated and implied substantive terms and features of a hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. The new guidance is effective for interim and fiscal periods beginning after December 15, 2015. The Company does do not expect this guidance to have a significant impact on its Consolidated Financial Statements. | ||
In February 2015, the FASB issued a new standard that amended the current consolidation guidance. The new standard changes the analysis required to determine whether an entity is a variable interest entity and should be consolidated. The new standard is effective for interim and fiscal periods beginning after December 15, 2015, and early adoption is permitted. The Company is evaluating the impact of this new standard on its Consolidated Financial Statements. |
Investments_in_Marketable_Secu
Investments in Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Investments in Marketable Securities | Investments in Marketable Securities | |||||||||||||||
Investments in marketable securities at December 31, 2013 and 2014 were $157.9 million and $172.6 million, respectively. 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, 2013 and 2014: | ||||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
31-Dec-13 | 31-Dec-14 | 31-Dec-13 | December 31, 2014 | |||||||||||||
Cost | $ | 103.2 | $ | 125.6 | $ | 17.9 | $ | 19.5 | ||||||||
Unrealized Gains | 33.3 | 42.8 | 4.6 | 2.9 | ||||||||||||
Unrealized Losses | (1.1 | ) | (18.1 | ) | (0.0 | ) | (0.1 | ) | ||||||||
Fair Value | $ | 135.4 | $ | 150.3 | $ | 22.5 | $ | 22.3 | ||||||||
There were no significant realized gains or losses on investments classified as available-for-sale for the year ended December 31, 2013. For the year ended December 31, 2014, there were $3.4 million of realized gains on investments classified as available-for-sale. |
Other_Investments
Other Investments | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014 | ||||||||||||||||
Variable Interest Entities | ||||||||||||||||
Variable Interest Entities | Variable Interest Entities | |||||||||||||||
The Company's Affiliates act as the investment manager for certain VIEs. Affiliates are entitled to receive management fees and may be eligible, under certain circumstances, to receive performance fees. The Affiliates' exposure to risk in these entities is generally limited to any equity investment and any uncollected management or performance fees, neither of which were material at December 31, 2013 and 2014. 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. | ||||||||||||||||
The net assets and liabilities of these unconsolidated VIEs and the Company's maximum risk of loss are as follows: | ||||||||||||||||
31-Dec-13 | 31-Dec-14 | |||||||||||||||
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 | $ | 8,112.70 | $ | 1.7 | $ | 8,550.40 | $ | 1.2 | ||||||||
Senior_Bank_Debt
Senior Bank Debt | 12 Months Ended |
Dec. 31, 2014 | |
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, 2013 and 2014, the Company had outstanding borrowings under the credit facility of $525.0 million and $605.0 million, respectively, and the weighted-average interest rate on outstanding borrowings was 1.95% and 1.40%, respectively. The Company pays commitment fees on the unused portion of its credit facility. In 2013 and 2014 these fees amounted to $3.2 million and $2.8 million, respectively. | |
On April 15, 2014, the Company entered into a $250.0 million five-year senior unsecured term loan, which matures in 2019. The Company pays interest at specified rates (based on either the LIBOR rate or the prime rate as in effect from time to time). Subject to certain conditions, the Company may borrow up to an additional $100.0 million. As of December 31, 2014, the Company had outstanding borrowings under the term loan of $250.0 million, and the weighted-average interest rate on outstanding borrowings was 1.48%. | |
The credit facility and term loan contain financial covenants with respect to leverage and interest coverage, as well as customary affirmative and negative covenants, including limitations on priority indebtedness, liens, cash dividends, asset dispositions, fundamental corporate changes and certain customary events of default. |
Senior_Notes
Senior Notes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Senior Notes | Senior Notes | |||||||||||
At December 31, 2014, the Company had three senior notes outstanding. The principal terms of these notes are summarized below. | ||||||||||||
2022 | 2024 | 2042 | ||||||||||
Senior | Senior | Senior | ||||||||||
Notes | Notes | Notes | ||||||||||
Issue date | Oct-12 | Feb-14 | Aug-12 | |||||||||
Maturity date | Oct-22 | Feb-24 | Aug-42 | |||||||||
Potential Call Date | Oct-15 | Any Time (1) | Aug-17 | |||||||||
Par value (in millions) | $ | 140 | $ | 400 | $ | 200 | ||||||
Call Price | At Par | As Defined (1) | At Par | |||||||||
Stated coupon | 5.25 | % | 4.25 | % | 6.375 | % | ||||||
Coupon frequency | Quarterly | Semi-annually | Quarterly | |||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | The 2024 senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. | |||||||||||
On February 13, 2015, the Company issued $350.0 million aggregate principal amount of 3.50% senior notes due 2025 (the "2025 senior notes"). The unsecured 2025 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. |
Convertible_Securities
Convertible Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Convertible Securities | Convertible Securities | |||||||||||||||
In 2013, the Company settled $460.0 million principal amount outstanding of our 3.95% senior convertible securities due 2038 (“2008 senior convertible securities”). 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. | ||||||||||||||||
On February 13, 2014, the Company delivered a notice to redeem all $300.0 million principal amount of its outstanding junior convertible trust preferred securities issued in 2006 ("2006 junior convertible securities"). In lieu of redemption, substantially all holders of the 2006 junior convertible securities elected to convert their securities into a defined number of shares. The Company issued 1.9 million shares of its common stock and recognized a loss of $18.8 million, which is included in Imputed interest expense and contingent payment arrangements. All of the Company's 2006 junior convertible securities have been canceled and retired. | ||||||||||||||||
At December 31, 2014, the Company had junior convertible trust preferred securities outstanding that were issued in 2007 ("2007 junior convertible securities"). | ||||||||||||||||
The carrying values of the Company's convertible securities are as follows: | ||||||||||||||||
31-Dec-13 | 31-Dec-14 | |||||||||||||||
Carrying | Principal amount | Carrying | Principal amount | |||||||||||||
Value | at maturity | Value | at maturity | |||||||||||||
Junior convertible securities: | ||||||||||||||||
2007 junior convertible securities(1) | $ | 301.2 | $ | 430.8 | $ | 303.1 | $ | 430.8 | ||||||||
2006 junior convertible securities | 217.5 | 300 | — | — | ||||||||||||
Total junior convertible securities | $ | 518.7 | $ | 730.8 | $ | 303.1 | $ | 430.8 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | The carrying value is accreted to the principal amount at maturity over a remaining life of 23 years. | |||||||||||||||
The 2007 junior convertible securities bear interest at 5.15% per annum, payable quarterly in cash. Each $50 security is convertible, at any time, into 0.25 shares of the Company's common stock, which represents a conversion price of $200 per share. Holders of the securities have no rights to put these securities to the Company. Upon conversion, holders will receive cash or shares of the Company's common stock, or a combination therefore, at the Company's election. The Company may redeem the 2007 junior convertible securities if the closing price of its common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. 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 $8.7 million. 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. |
Forward_Equity_Sale_Agreement
Forward Equity Sale Agreement | 12 Months Ended |
Dec. 31, 2014 | |
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. During 2014, the Company net settled $70.2 million notional amount of forward equity contracts at an average share price of $198.71. At December 31, 2014, the Company had $252.8 million remaining notional amount that were available to sell under the forward equity agreement. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 and its Affiliates seek to offset exposure to foreign currency exchange rates by entering into interest rate hedging contracts and foreign currency forward contracts, respectively. | |||||||||||||
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 interest rate 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, 2014, the Company had posted collateral of $2.4 million related to its interest rate swap contracts. | |||||||||||||
In 2014, one of the Company's Affiliates entered into foreign currency forward contracts relating to projected expenses denominated in pound sterling (GBP) and projected revenues denominated in euro (EUR): | |||||||||||||
Paying | Receiving | Start Date | Expected Settlement | ||||||||||
Counterparty C | $ | 21.9 | £ | 13.5 | Sep-14 | Monthly 2015 | |||||||
Counterparty C | € | 28 | $ | 34.3 | Dec-14 | Quarterly 2015 | |||||||
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 | 2012 | 2013 | 2014 | ||||||||||
Interest rate swaps | $ | (1.1 | ) | $ | 1.5 | $ | 1.1 | ||||||
Treasury rate locks | 0 | 0 | 0 | ||||||||||
Foreign currency forward contracts | — | — | (0.5 | ) | |||||||||
Total | $ | (1.1 | ) | $ | 1.5 | $ | 0.6 | ||||||
At December 31, 2013 and 2014, the fair values of the Company's interest rate swaps ($2.5 million and $1.4 million, respectively) are presented within Other liabilities and its foreign currency forward contracts ($0.5 million at December 31, 2014) are presented within Other assets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
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. Managements is not aware of any significant violations of such financial requirements occurring during the period. | |
The Company has committed to co-invest in certain investment partnerships. As of December 31, 2014, these unfunded commitments were $67.8 million and may be called in future periods. In connection with a past acquisition agreement, the Company is contractually entitled to reimbursement from a prior owner for $21.1 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 $276.0 million through 2017. As of December 31, 2014, the Company expects to make payments of $75.0 million ($17.5 million in 2015) to settle obligations related to consolidated Affiliates and may make payments of up to $201.0 million related to the Company's equity method investments. The net present value of the expected payments for consolidated Affiliates totals $59.3 million as of December 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | 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(2) | |||||||||||||||||||||||||
Contingent payment arrangements | $ | 50.2 | $ | — | $ | — | $ | 50.2 | |||||||||||||||||
Obligations to related parties | 76.9 | — | — | 76.9 | |||||||||||||||||||||
Interest rate swaps | 2.5 | — | 2.5 | — | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 59.1 | $ | 59.1 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 22.3 | 22.3 | — | — | |||||||||||||||||||||
Available for sale securities | 150.3 | 150.3 | — | — | |||||||||||||||||||||
Other investments | 167.2 | 13.6 | 19.4 | 134.2 | |||||||||||||||||||||
Financial Liabilities(2) | |||||||||||||||||||||||||
Contingent payment arrangements | $ | 59.3 | $ | — | $ | — | $ | 59.3 | |||||||||||||||||
Obligations to related parties | 93.1 | — | — | 93.1 | |||||||||||||||||||||
Interest rate swaps | 1.4 | — | 1.4 | — | |||||||||||||||||||||
Foreign currency forward contracts | 0.5 | — | 0.5 | — | |||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Principally investments in equity securities. | ||||||||||||||||||||||||
-2 | Amounts are presented within Other liabilities in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||
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 adjusted for current period calls and distributions. | |||||||||||||||||||||||||
Interest rate swaps and foreign currency forward contracts use model-derived valuations in which all significant inputs are observable in active markets to determine the fair value of these derivatives. | |||||||||||||||||||||||||
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 significant transfers of financial assets or liabilities from Level 1 to Level 2 in 2014 or 2013. | |||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | |||||||||||||||||||||||||
The following table presents the changes in Level 3 assets and liabilities for the years ended December 31, 2013 and 2014: | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | ||||||||||||||||||||
Balance, beginning of period | $ | 118.9 | $ | 31 | $ | 77.8 | $ | 131.8 | $ | 50.2 | $ | 76.9 | |||||||||||||
Net gains/losses | 12.3 | (1) | 19.2 | (2) | 6.2 | (3) | 11.4 | (1) | 9.1 | (2) | 5.5 | (3) | |||||||||||||
Purchases and issuances | 18 | — | 62.9 | 17.4 | — | 96.7 | |||||||||||||||||||
Settlements and reductions | (17.4 | ) | — | (70.0 | ) | (26.4 | ) | — | (86.0 | ) | |||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance, end of period | $ | 131.8 | $ | 50.2 | $ | 76.9 | $ | 134.2 | $ | 59.3 | $ | 93.1 | |||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 16.5 | $ | 19.2 | $ | 2.2 | $ | 17.1 | $ | 9.1 | $ | (0.1 | ) | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||
-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 the Company's Level 3 financial liabilities: | |||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Valuation | Unobservable Input | Fair Value at | Range at December 31, 2013 | Fair Value at | Range at December 31, 2014 | ||||||||||||||||||||
Techniques | December 31, 2013 | December 31, 2014 | |||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 50.2 | 3% - 11% | $ | 59.3 | 6% | |||||||||||||||||
Discount rates | 14% - 18% | 15% | |||||||||||||||||||||||
Affiliate equity repurchase obligations | Discounted cash flow | Growth rates | 4 | 8% | 21.5 | 5% - 9% | |||||||||||||||||||
Discount rates | 15% | 15% - 16% | |||||||||||||||||||||||
Investments in Certain Entities that Calculate Net Asset Value | |||||||||||||||||||||||||
The Company uses 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, 2013 and 2014, the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | |||||||||||||||||||||
Commitments | Commitments | ||||||||||||||||||||||||
Private equity(1) | $ | 131.8 | $ | 62.9 | $ | 134.2 | $ | 67.8 | |||||||||||||||||
Other funds(2) | 82.3 | — | 75.8 | — | |||||||||||||||||||||
$ | 214.1 | $ | 62.9 | $ | 210 | $ | 67.8 | ||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | These funds primarily invest in a broad range of private equity funds, as well as make 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, receivables, and payables 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 has 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-13 | 31-Dec-14 | ||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Fair Value Hierarchy | |||||||||||||||||||||
Senior notes | $ | 340 | $ | 325 | $ | 736.8 | $ | 786.2 | Level 2 | ||||||||||||||||
Convertible securities | 518.7 | 963.9 | 303.1 | 532.1 | Level 2 | ||||||||||||||||||||
Business_Combinations
Business Combinations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Business Combinations | Business Combinations | |||||||||||
The Company completed majority investments in three new Affiliates. SouthernSun Asset Management, LLC ("SouthernSun") was completed on March 31, 2014, River Road Asset Management, LLC ("River Road") was completed on June 30, 2014 and Veritas Asset Management, LLP ("Veritas") was completed on October 31, 2014. The Company completed its purchase price allocations for these new Affiliates by using a financial model that includes assumptions of market performance, net client cash flows and discount rates. There were no significant differences between the provisional and final purchase price allocations. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life. | ||||||||||||
The purchase price allocation for these investments is as follows: | ||||||||||||
SouthernSun | River Road | Veritas | ||||||||||
Consideration paid | $ | 109.9 | $ | 132.4 | $ | 319.9 | ||||||
Non-controlling interests | 74 | 35.8 | 125.2 | |||||||||
Enterprise value | $ | 183.9 | $ | 168.2 | $ | 445.1 | ||||||
Acquired client relationships | $ | 125.3 | $ | 64.1 | $ | 275.6 | ||||||
Deferred income taxes | — | — | (35.7 | ) | ||||||||
Tangible assets, net | 6.3 | 4.5 | 12.6 | |||||||||
Goodwill | 52.3 | 99.6 | 192.6 | |||||||||
$ | 183.9 | $ | 168.2 | $ | 445.1 | |||||||
The excess of the enterprise value over the net assets acquired was recorded as goodwill and the segment allocation is as follows: | ||||||||||||
SouthernSun | River Road | Veritas | ||||||||||
Institutional | 37 | % | 31 | % | 24 | % | ||||||
Mutual Fund | 23 | % | 51 | % | 76 | % | ||||||
High Net Worth | 40 | % | 18 | % | — | % | ||||||
Unaudited pro-forma financial results are set forth below assuming these investments occurred on January 1, 2013, the revenue sharing arrangement had been in effect for the entire period and after making certain pro-forma adjustments. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 (Unaudited) | 2014 (Unaudited) | |||||||||||
Revenue | $ | 2,353.50 | $ | 2,644.90 | ||||||||
Net income (controlling interest) | 382.3 | 474.9 | ||||||||||
Earnings per share (basic) | $ | 7.2 | $ | 8.63 | ||||||||
Earnings per share (diluted) | $ | 6.94 | $ | 8.4 | ||||||||
The unaudited pro-forma financial results are not necessarily indicative of the financial results had the investments been consummated at the beginning of the periods presented, nor are they necessarily indicative of the financial results expected in future periods. The unaudited pro-forma financial results do not include the impact of transaction and integration related costs or benefits that may be expected to result from these investments. | ||||||||||||
The Company's investments in SouthernSun, River Road and Veritas contributed $72.2 million and $8.5 million to the Company's revenue and earnings, respectively, during 2014. |
Goodwill_and_Acquired_Client_R
Goodwill and Acquired Client Relationships | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill and Acquired Client Relationships | Goodwill and Acquired Client Relationships | |||||||||||||||||||
The following tables presents the change in goodwill and components of intangible assets of the Company's Affiliates that are consolidated during 2013 and 2014: | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
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 | ||||||||||||
Goodwill acquired | 97.2 | 208.1 | 39.2 | 344.5 | ||||||||||||||||
Foreign currency translation | (14.4 | ) | (10.9 | ) | (8.1 | ) | (33.4 | ) | ||||||||||||
Balance, as of December 31, 2014 | $ | 1,159.10 | $ | 1,125.30 | $ | 368.4 | $ | 2,652.80 | ||||||||||||
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, 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 | |||||||||
New Investments | 220.3 | — | 220.3 | 244.7 | 465 | |||||||||||||||
Amortization and impairments | — | (122.2 | ) | (122.2 | ) | — | (122.2 | ) | ||||||||||||
Foreign currency translation | (4.7 | ) | — | (4.7 | ) | (20.4 | ) | (25.1 | ) | |||||||||||
Transfers and other | — | — | — | — | — | |||||||||||||||
Balance, as of December 31, 2014 | $ | 1,255.10 | $ | (565.0 | ) | $ | 690.1 | $ | 1,088.30 | $ | 1,778.40 | |||||||||
For the Company's Affiliates that are consolidated, definite-lived acquired client relationships are amortized over their expected useful lives. As of December 31, 2014, 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 $120 million for each of the next five years, assuming no additional investments in new or existing Affiliates. | ||||||||||||||||||||
During 2013 and 2014, the Company completed impairment assessments on its goodwill and definite-lived and indefinite-lived acquired client relationships and no impairments were indicated. |
Equity_Method_Investments_in_A
Equity Method Investments in Affiliates | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Equity Investments in Affiliates | Equity Method Investments in Affiliates | |||||||||||
On April 1, 2014, the Company completed its investment in EIG Global Energy Partners, LLC ("EIG"). The Company completed its purchase price allocation using a financial model that included assumptions of market performance, net client flows and discount rates and resulted in $215.2 million being allocated to definite-lived acquired client relationships. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life. | ||||||||||||
On December 26, 2014, the Company completed an additional investment in AQR Capital Management Holdings, LLC. The Company's provisional purchase price allocation was measured using a financial model that includes assumptions of expected market performance, net client flows and discount rates and resulted in $122.2 million and $90.0 million being allocated to definite-lived and indefinite-lived acquired client relationships, respectively. This provisional amount may be revised upon completion of the final valuation. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15-year life. | ||||||||||||
The intangible assets at the Company's equity method Affiliates consist of definite-lived and indefinite-lived acquired client relationships and goodwill. As of December 31, 2014, the definite-lived relationships were being amortized over a weighted average life of approximately fourteen years. The Company recognized amortization expense for these relationships of $41.7 million for the year ended December 31, 2013, as compared to $32.3 million for the year ended December 31, 2014. Assuming no additional investments in new or existing Affiliates, the Company estimates the annual amortization expense attributable to its current equity-method Affiliates to be approximately $32 million for each of the next five years. | ||||||||||||
The following table presents summarized financial information for Affiliates accounted for under the equity method. | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Revenue(1) | $ | 1,005.40 | $ | 1,589.60 | $ | 1,869.30 | ||||||
Net income | 783.3 | 1,321.90 | 253.8 | |||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Assets(2) | $ | 19,139.70 | $ | 34,729.20 | ||||||||
Liabilities and Non-controlling interest(2) | 17,763.50 | 33,048.60 | ||||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. | |||||||||||
-2 | Assets consist primarily of investment securities in consolidated investment partnerships. These partnerships are generally held by investors that are unrelated to the Company. | |||||||||||
The Company's share of undistributed earnings from equity method investments totaled $133.9 million as of December 31, 2014. |
Fixed_Assets_and_Lease_Commitm
Fixed Assets and Lease Commitments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fixed Assets and Lease Commitments [Abstract] | ||||||||
Fixed Assets and Lease Commitments | Fixed Assets and Lease Commitments | |||||||
Fixed assets consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Building and leasehold improvements | $ | 78.5 | $ | 84.1 | ||||
Equipment | 36.5 | 38.3 | ||||||
Furniture and fixtures | 15.4 | 17.5 | ||||||
Land and improvements | 18.9 | 18.7 | ||||||
Software | 30.6 | 40.8 | ||||||
Fixed assets, at cost | 179.9 | 199.4 | ||||||
Accumulated depreciation and amortization | (87.6 | ) | (104.0 | ) | ||||
Fixed assets, net | $ | 92.3 | $ | 95.4 | ||||
The Company and its Affiliates lease office space and equipment for their operations. At December 31, 2014, 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 | ||||||||
2015 | $ | 33.8 | ||||||
2016 | 28.8 | |||||||
2017 | 25.2 | |||||||
2018 | 22.8 | |||||||
2019 | 21.6 | |||||||
Thereafter | 69.4 | |||||||
Consolidated rent expense for 2012, 2013 and 2014 was $30.5 million, $30.3 million and $30.5 million, respectively. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities | Payables and Accrued Liabilities | |||||||
Payables and accrued liabilities consisted of the following: | ||||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Accrued compensation and distributions | $ | 211.4 | $ | 491.3 | ||||
Unsettled fund share payables | 84.6 | 78.3 | ||||||
Accrued income taxes | 73 | 59.8 | ||||||
Accrued share repurchases | — | 47.8 | ||||||
Accrued professional fees | 33.4 | 26.9 | ||||||
Other | 112.3 | 104.2 | ||||||
$ | 514.7 | $ | 808.3 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
The Company's Affiliates generally pay quarterly distributions to Affiliate management owners. Distributions paid to Affiliate management owners were $181.4 million, $267.1 million and $569.4 million for the years ended December 31, 2012, 2013 and 2014, respectively. | |
The Company periodically issues Affiliate equity interests to and repurchases Affiliate equity interests from its Affiliate partners. The amount paid for repurchases was $8.0 million, $36.9 million, and $32.6 million for the years ended December 31, 2012, 2013 and 2014, respectively. The total amount received for issuances was $3.3 million, $2.5 million, and $11.0 million for the years ended December 31, 2012, 2013 and 2014, respectively. | |
The Company may record amounts receivable and payable to Affiliate partners in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. 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 $21.8 million and $20.8 million at December 31, 2013 and 2014, respectively, and is included in Other assets. The total payable was $56.8 million and $88.6 million as of December 31, 2013 and 2014, respectively, and is included in Other liabilities. The total amount received for such receivables was $7.1 million, $6.9 million, and $9.7 million for the years ended December 31, 2012, 2013 and 2014, respectively. The total amount paid for such liabilities was $23.3 million, $5.5 million, and $4.4 million for the years ended December 31, 2012, 2013, 2014, respectively. | |
Certain investment partnerships on the Company's balance sheet are co-invested in by a prior owner. The Company has reflected the prior owner's interest in these partnerships as either a liability in Other liabilities or as a Non-controlling interest, depending on the structure of the investment. The total liability was $72.9 million and $71.6 million at December 31, 2013 and 2014, respectively. The total non-controlling interest was $22.2 million and $13.5 million at December 31, 2013 and 2014, respectively. | |
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, 2014 | ||||||||
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. As of December 31, 2014, there were approximately 1.0 million remaining shares available for repurchase under outstanding programs. 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 | |||||||
2012 | 0.6 | $ | 107.44 | |||||
2013 | 0.1 | 184.89 | ||||||
2014 | 1.2 | 204.72 | ||||||
The Company has repurchased an additional 0.3 million shares from January 1 through February 18, 2015. | ||||||||
Financial Instruments | ||||||||
The Company's junior convertible 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, 2014 | |||||||||
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. | |||||||||
Share-Based Incentive Compensation | |||||||||
A summary of recent share-based compensation expense is as follows: | |||||||||
Period | Share-Based | Tax Benefit | |||||||
Compensation | |||||||||
Expense | |||||||||
2012 | $ | 25.4 | $ | 9.6 | |||||
2013 | 27.5 | 10.6 | |||||||
2014 | 29.3 | 11.3 | |||||||
The cash received for options exercised was $48.2 million and $41.4 million during the years ended December 31, 2013 and 2014, respectively. The actual tax benefit recognized from share-based incentive plans and the excess tax benefit classified as a financing cash flow were $20.7 million and $17.3 million and $60.2 million and $61.5 million during the years ended December 31, 2013 and 2014, respectively. | |||||||||
There was $79.3 million and $56.8 million of unrecognized compensation expense related to share-based compensation arrangements as of December 31, 2013 and 2014, respectively. The unrecognized compensation expense at December 31, 2014 will be recognized over a weighted average period of approximately three years (assuming no forfeitures). | |||||||||
Stock Options | |||||||||
The Company granted stock options with fair values of $2.5 million, $1.0 million, and $0.6 million in 2012, 2013 and 2014, 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, 2014 | 3 | $ | 77.71 | ||||||
Options granted | 0 | 204.99 | |||||||
Options exercised | (0.7 | ) | 60.47 | ||||||
Options forfeited | (0.0 | ) | 81.5 | ||||||
Unexercised options outstanding—December 31, 2014 | 2.3 | 83.42 | 2.7 | ||||||
Exercisable at December 31, 2014 | 2.1 | 80.92 | 2.6 | ||||||
For the period January 1 through February 18, 2015, 0.5 million outstanding options have been exercised. | |||||||||
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, 2012, 2013 and 2014 was $40.43, $61.82 and $60.20 per option, respectively, based on the weighted-average grant date assumptions stated below. | |||||||||
For the Years Ended December 31, | |||||||||
2012 | 2013 | 2014 | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||
Expected volatility(1) | 36.8 | % | 34.4 | % | 29.7 | % | |||
Risk-free interest rate(2) | 0.7 | % | 1.5 | % | 1.8 | % | |||
Expected life of options (in years)(3) | 5 | 5 | 5 | ||||||
Forfeiture rate(3) | 1.4 | % | 0 | % | 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, 2012, 2013 and 2014 was $86.8 million, $77.4 million and $92.6 million, respectively. As of December 31, 2014, the intrinsic value of exercisable options outstanding was $272.9 million and 3.5 million options are available for future grant under the Company's option plans. | |||||||||
Restricted Stock | |||||||||
The Company has granted service-based awards with fair values of $18.1 million, $34.1 million, and $8.0 million in 2012, 2013 and 2014, respectively. These awards were valued based on the closing price of the Company's common stock on the date of grant and contain 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. | |||||||||
In 2013, the Company granted awards that vest when a 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 fair value of the awards was $19.4 million and will be recognized as compensation over a service period of 4 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, 2014, the Company has 1.7 million shares available for grant under its plans. | |||||||||
The following table summarizes the transactions of the Company's restricted stock: | |||||||||
Restricted | Weighted | ||||||||
Stock | Average | ||||||||
Grant Date | |||||||||
Value | |||||||||
Unvested units—January 1, 2014 | 0.5 | $ | 176.38 | ||||||
Units granted | 0 | 190.42 | |||||||
Units vested | (0.1 | ) | 131.42 | ||||||
Units forfeited | (0.0 | ) | 173.77 | ||||||
Unvested units—December 31, 2014 | 0.4 | 182.83 | |||||||
Affiliate_Equity
Affiliate Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 expense is as follows: | ||||||||||||
Period | Affiliate Equity Expense | Tax Benefit | ||||||||||
2012 | $ | 60.4 | $ | 17 | ||||||||
2013 | 72.3 | 21.7 | ||||||||||
2014 | 84.4 | 18.2 | ||||||||||
Affiliate equity expense attributable to the non-controlling interests was $16.3 million, $15.9 million and $37.0 million in 2012, 2013 and 2014, respectively. As of December 31, 2013 and 2014, the Company had $68.2 million and $71.1 million, respectively, of unrecognized Affiliate equity expense, which will be recognized over a weighted average period of approximately four years (assuming no forfeitures). Of this unrecognized compensation expense, $32.1 million and $41.6 million is attributable to the non-controlling interest, respectively. | ||||||||||||
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: | ||||||||||||
2013 | 2014 | |||||||||||
Balance, as of January 1 | $ | 477.5 | $ | 641.9 | ||||||||
Transactions in Redeemable non-controlling interests | (52.5 | ) | (61.7 | ) | ||||||||
Changes in redemption value | 216.9 | 65.3 | ||||||||||
Balance, as of December 31 | $ | 641.9 | $ | 645.5 | ||||||||
During the years ended 2012, 2013 and 2014, the Company acquired interests from, and transferred interests to, Affiliate management partners. 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Net income (controlling interest) | $ | 174 | $ | 360.5 | $ | 452.1 | ||||||
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | (44.0 | ) | (74.0 | ) | (33.3 | ) | ||||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 130 | $ | 286.5 | $ | 418.8 | ||||||
Benefit_Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
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 2012, 2013 and 2014 were $12.7 million, $14.1 million and $17.2 million, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Controlling Interests: | ||||||||||||
Current tax | $ | 61 | $ | 153.1 | $ | 149.8 | ||||||
Intangible-related deferred taxes | 22.7 | 38.1 | 47.8 | |||||||||
Other deferred taxes | (12.1 | ) | (6.2 | ) | 15.8 | |||||||
Total controlling interests | 71.6 | 185 | 213.4 | |||||||||
Non-controlling Interests: | ||||||||||||
Current tax | $ | 11.7 | $ | 13.3 | $ | 15.3 | ||||||
Deferred taxes | 0.5 | (4.2 | ) | (0.8 | ) | |||||||
Total non-controlling interests | 12.2 | 9.1 | 14.5 | |||||||||
Provision for income taxes | $ | 83.8 | $ | 194.1 | $ | 227.9 | ||||||
Income before income taxes (controlling interest) | $ | 245.6 | $ | 545.5 | $ | 665.5 | ||||||
Effective tax rate attributable to controlling interests(1) | 29.2 | % | 33.9 | % | 32.1 | % | ||||||
_______________________________________________________________________________ | ||||||||||||
-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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Current: | ||||||||||||
Federal | $ | 14.5 | $ | 104.1 | $ | 93.8 | ||||||
State | 14.2 | 21.1 | 27.1 | |||||||||
Foreign | 44 | 41.2 | 44.2 | |||||||||
Total current | 72.7 | 166.4 | 165.1 | |||||||||
Deferred: | ||||||||||||
Federal | 19.8 | 38.1 | 72.5 | |||||||||
State | 4.6 | 8.9 | 1.1 | |||||||||
Foreign | (13.3 | ) | (19.3 | ) | (10.8 | ) | ||||||
Total deferred | 11.1 | 27.7 | 62.8 | |||||||||
Provision for income taxes | $ | 83.8 | $ | 194.1 | $ | 227.9 | ||||||
The components of income before income taxes consisted of the following: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Domestic | $ | 238.6 | $ | 604 | $ | 784.1 | ||||||
International | 256.6 | 259.7 | 229.5 | |||||||||
$ | 495.2 | $ | 863.7 | $ | 1,013.60 | |||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Tax at U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit(1) | 3.5 | 2.8 | 2.1 | |||||||||
Non-deductible expenses | 0.7 | 0.3 | 0.3 | |||||||||
Valuation allowance(1) | (4.7 | ) | (0.3 | ) | — | |||||||
Effect of Non-US operations | (3.3 | ) | (2.5 | ) | (5.3 | ) | ||||||
Effect of changes in tax law, rates | (2.0 | ) | (1.4 | ) | — | |||||||
Effect of income from non-controlling interests | (12.2 | ) | (11.4 | ) | (9.6 | ) | ||||||
17 | % | 22.5 | % | 22.5 | % | |||||||
_______________________________________________________________________________ | ||||||||||||
-1 | State income taxes includes changes related to state valuation allowances. Valuation allowance includes changes in federal valuation allowances. | |||||||||||
In 2012, the Company reduced its valuation allowance $11.5 million for its foreign loss carryforwards and realized a deferred tax benefit of $7.3 million from the revaluation of its deferred taxes from a reduction in corporate tax rates in the United Kingdom. | ||||||||||||
In 2013, the Company realized deferred tax benefits of $5.9 million and $11.2 million on investments in foreign subsidiaries that became permanent in duration and from the revaluation of its deferred taxes from a reduction in corporate tax rates in the United Kingdom, respectively. | ||||||||||||
In 2014, the Company reduced its valuation allowance $6.5 million for state net operating loss carryforwards and realized a deferred tax benefit of $24.5 million on investments in foreign subsidiaries that became permanent in duration. | ||||||||||||
These changes decreased the controlling interest effective tax rate 6.7%, 2.7% and 4.7% in the years ended December 31, 2012, 2013 and 2014, 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, 2014, the amount of such temporary difference was approximately $139.4 million. The deferred taxes not recognized at December 31, 2014 for this temporary difference are approximately $52.4 million. | ||||||||||||
The components of deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred Tax Assets | ||||||||||||
State net operating loss carryforwards | $ | 29.3 | $ | 15.2 | ||||||||
Deferred compensation | 29.1 | 26.8 | ||||||||||
Tax benefit of uncertain tax positions | 16.2 | 16 | ||||||||||
Accrued expenses | 17.6 | 19.6 | ||||||||||
Foreign loss carryforwards | 9.1 | 11.5 | ||||||||||
Other | — | 1.4 | ||||||||||
Total deferred tax assets | 101.3 | 90.5 | ||||||||||
Valuation allowance | (36.6 | ) | (18.4 | ) | ||||||||
Deferred tax assets, net of valuation allowance | $ | 64.7 | $ | 72.1 | ||||||||
Deferred Tax Liabilities | ||||||||||||
Intangible asset amortization | $ | (241.3 | ) | $ | (270.9 | ) | ||||||
Convertible securities interest | (144.7 | ) | (92.5 | ) | ||||||||
Non-deductible intangible amortization | (101.5 | ) | (126.4 | ) | ||||||||
Deferred revenue | (32.1 | ) | (74.0 | ) | ||||||||
Other | (2.0 | ) | — | |||||||||
Total deferred tax liabilities | (521.6 | ) | (563.8 | ) | ||||||||
Net deferred tax liability | $ | (456.9 | ) | $ | (491.7 | ) | ||||||
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, 2014, the Company has state net operating loss carryforwards which expire over an 18-year period and foreign loss carryforwards which expire over a 20-year period. The Company has established a valuation allowance to offset these carryforwards because of the uncertainty of realizing their full value. | ||||||||||||
In 2012 and 2013, the Company reduced its valuation allowance $11.5 million and $1.6 million, respectively from improved projections of taxable income. | ||||||||||||
In 2014, the Company reduced its valuation allowance $15.7 million on state net operating loss carryforwards from improved projections of taxable income, and increased state uncertain tax positions by $9.2 million for a net $6.5 million state tax benefit. | ||||||||||||
The Company had uncertain tax positions of $22.6 million, $20.4 million and $28.8 million as of December 31, 2012, 2013 and 2014, respectively. These amounts included $2.2 million, $1.7 million and $1.6 million of interest and related charges, respectively. At December 31, 2012, 2013 and 2014, these liabilities also included $19.4 million, $17.2 million and $26.4 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Balance, as of January 1 | $ | 21.2 | $ | 22.6 | $ | 20.4 | ||||||
Additions based on current year tax positions | 5.9 | 4.1 | 2.6 | |||||||||
Additions based on prior years' tax positions | 5.2 | — | 10.8 | |||||||||
Reductions for prior years' tax provisions | (5.4 | ) | (0.1 | ) | — | |||||||
Reductions related to lapses of statutes of limitations | (4.6 | ) | (5.4 | ) | (4.1 | ) | ||||||
Additions (reductions) related to foreign exchange rates | 0.3 | (0.8 | ) | (0.9 | ) | |||||||
Balance, as of December 31 | $ | 22.6 | $ | 20.4 | $ | 28.8 | ||||||
During 2012, uncertain tax positions 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. During 2014, uncertain tax positions increased $10.8 million, principally for the uncertain nature of several of its state net operating loss carryforwards. 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 2009. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Numerator | ||||||||||||
Net income (controlling interest) | $ | 174 | $ | 360.5 | $ | 452.1 | ||||||
Interest expense on convertible securities, net of taxes | — | 10.5 | 15.2 | |||||||||
Net income (controlling interest), as adjusted | $ | 174 | $ | 371 | $ | 467.3 | ||||||
Denominator | ||||||||||||
Average shares outstanding (basic) | 51.7 | 53.1 | 55 | |||||||||
Effect of dilutive instruments: | ||||||||||||
Stock options and other awards | 1.3 | 1.3 | 1.2 | |||||||||
Forward sale | — | 0.3 | 0 | |||||||||
Junior convertible securities | — | 2 | 2.2 | |||||||||
Average shares outstanding (diluted) | 53 | 56.7 | 58.4 | |||||||||
During the years ended December 31, 2012, 2013 and 2014, the Company repurchased approximately 0.6 million, 0.1 million and 1.2 million shares of common stock, respectively, at an average share price of $107.44, $184.89 and $204.72, 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Stock options and other awards | 0.7 | 0.1 | 0 | |||||||||
Senior convertible securities | 3.6 | 2.1 | — | |||||||||
Junior convertible securities | 4.2 | 2.2 | 0.4 | |||||||||
Forward equity sales | 0.2 | — | — | |||||||||
As discussed further in Note 20, 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, 2014 | ||||||||||||||||
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, 2012 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | 18.5 | $ | — | $ | 18.5 | ||||||||||
Change in net realized and unrealized gain (loss) on derivative securities | (1.1 | ) | 0.4 | (0.7 | ) | |||||||||||
Change in net unrealized gain (loss) on investment securities | 21.6 | (8.1 | ) | 13.5 | ||||||||||||
Other comprehensive income (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 gain (loss) on derivative securities | 1.5 | (0.5 | ) | 1 | ||||||||||||
Change in net unrealized gain (loss) on investment securities | 19.5 | (8.0 | ) | 11.5 | ||||||||||||
Other comprehensive income (loss) | $ | 1.4 | $ | (8.5 | ) | $ | (7.1 | ) | ||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (62.0 | ) | $ | — | $ | (62.0 | ) | ||||||||
Change in net realized and unrealized gain (loss) on derivative securities | 0.6 | (0.3 | ) | 0.3 | ||||||||||||
Change in net unrealized gain (loss) on investment securities | 5.6 | (2.2 | ) | 3.4 | ||||||||||||
Other comprehensive income (loss) | $ | (55.8 | ) | $ | (2.5 | ) | $ | (58.3 | ) | |||||||
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, 2013 | $ | 56.6 | $ | (1.9 | ) | $ | 19.5 | $ | 74.2 | |||||||
Other comprehensive income (loss) before reclassifications | (62.0 | ) | 0.3 | 1.3 | (60.4 | ) | ||||||||||
Amounts reclassified from other comprehensive income | — | 0 | 2.1 | 2.1 | ||||||||||||
Net other comprehensive income (loss) | (62.0 | ) | 0.3 | 3.4 | (58.3 | ) | ||||||||||
Balance, as of December 31, 2014 | $ | (5.4 | ) | $ | (1.6 | ) | $ | 22.9 | $ | 15.9 | ||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2013 and 2014. | ||||||||||||||||
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 | ||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter (1) | Quarter (1) | Quarter | |||||||||||||
Revenue | $ | 593.1 | $ | 636.3 | $ | 640.3 | $ | 641.2 | ||||||||
Operating income | 193.9 | 198.4 | 224.2 | 198.7 | ||||||||||||
Income before income taxes | 208.2 | 239.1 | 253.4 | 312.8 | ||||||||||||
Net income (controlling interest) | 77.2 | 99.1 | 103.2 | 172.6 | ||||||||||||
Earnings per share (diluted) | $ | 1.4 | $ | 1.75 | $ | 1.82 | $ | 3.02 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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. The following table summarizes the Company's financial results for each of the distribution channels: | ||||||||||||||||
Statements of Income | ||||||||||||||||
As of and for the Year Ended December 31, 2012 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 861.3 | $ | 774.4 | $ | 169.8 | $ | 1,805.50 | ||||||||
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 | ||||||||||||
As of and for the Year Ended December 31, 2013 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 948.7 | $ | 1,023.00 | $ | 217.1 | $ | 2,188.80 | ||||||||
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 | ||||||||||||
As of and for the Year Ended December 31, 2014 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 1,022.80 | $ | 1,242.60 | $ | 245.5 | 2,510.90 | |||||||||
Net income (controlling interest) | 227 | 180.1 | 45 | 452.1 | ||||||||||||
Total assets | 3,739.80 | 3,082.00 | 876.3 | 7,698.10 | ||||||||||||
Goodwill | 1,159.10 | 1,125.30 | 368.4 | 2,652.80 | ||||||||||||
Equity method investments in Affiliates | 1,533.80 | 150.3 | 99.4 | 1,783.50 | ||||||||||||
In 2012, 2013 and 2014, revenue attributable to clients domiciled outside the U.S. was approximately 41%, 38% and 37% of total revenue, respectively. |
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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, | ||||||||||||||||||||
2014 | $ | 36.6 | $ | — | $ | — | $ | 18.2 | $ | 18.4 | ||||||||||
2013 | 21.3 | 16.9 | — | 1.6 | 36.6 | |||||||||||||||
2012 | 35.6 | — | — | 14.3 | 21.3 | |||||||||||||||
Other Allowances(1) | ||||||||||||||||||||
Year Ending December 31, | ||||||||||||||||||||
2014 | $ | 8.8 | $ | 4.7 | $ | — | $ | 1.4 | $ | 12.1 | ||||||||||
2013 | 8.4 | 2.8 | — | 2.4 | 8.8 | |||||||||||||||
2012 | 9.6 | 0.1 | — | 1.3 | 8.4 | |||||||||||||||
_______________________________________________________________________________ | ||||||||||||||||||||
-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, 2014 | ||
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. | ||
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 Affiliate partners 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 Affiliate partners 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. In cases where AMG applies the equity method of accounting, it typically does not have an obligation to repurchase equity interests. 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 (e.g. 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.g. approval of annual operating budgets, major financings, selection of senior management). | ||
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 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 Investment and other income 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. | ||
Fair Value Measurements | Fair Value Measurements | |
The Company determines the fair value of certain investment securities and other financial and non-financial assets and liabilities. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, utilizing a hierarchy of three different valuation techniques: | ||
Level 1 - Unadjusted quoted market prices for identical instruments in active markets; | ||
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and | ||
Level 3 - Prices reflect the Company's own assumptions concerning unobservable inputs to the valuation model. These inputs require significant management judgment and reflect the Company's assumptions that market participants would use in pricing the asset or liability. | ||
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 to seven years. 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 income taxes because these taxes generally represent the Company's share of the taxes incurred by the Affiliate. | ||
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 Affiliate 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 related to our senior bank debt are amortized over the remaining term of the credit facility and term loan. 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 utilizes 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. | ||
From time to time, the Company's Affiliates use foreign currency forward contracts to hedge the risk of currency exchange rate movements. In entering into these contracts, the Affiliates intend to offset cash flow gains and losses on projected foreign currency-denominated revenues and expenses as a result of variability in foreign currency exchange rates. | ||
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 Investment and other income. 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. | ||
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 a liability 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. Intangible-related deferred tax liabilities are not recorded on U.S. basis differences related to the Company's foreign investments in corporate stock because of the permanent nature of the Company's investments. | ||
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 foreign, 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. | ||
Concentration of Credit Risk | 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. | ||
Revenue Recognition | Revenue Recognition | |
The Company's consolidated revenue primarily represents advisory fees billed 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. | ||
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 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. | ||
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. | ||
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 investment products that are registered abroad. Revenue in the High Net Worth distribution channel is earned from relationships with ultra-high and high net worth 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. | ||
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 margin beyond the Company's Owners' Allocation as an operating expense. Unless specific to a distribution channel, all other operating and non-operating expenses have been allocated to segments based on the proportion of cash flow distributions reported by Affiliates in each segment. | ||
Recent Accounting Developments | Recent Accounting Developments | |
In April 2014, the Financial Accounting Standards Board (the "FASB") issued an update to the guidance for discontinued operations accounting and reporting. The new guidance amends the definition of discontinued operations and requires entities to provide additional disclosures regarding disposal transactions that do not meet the discontinued operations criteria. The new guidance is effective for interim and fiscal periods beginning after December 15, 2014. The Company does not expect this guidance to have a significant impact on the Consolidated Financial Statements. | ||
In May 2014, the FASB issued a final standard on revenue from contracts with customers. The new standard provides a comprehensive model for revenue recognition. The new standard is effective for interim and fiscal periods beginning after December 15, 2016. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. | ||
In November 2014, the FASB issued an update to the guidance for hybrid financial instruments. The new guidance requires entities to determine the nature of the host contract by considering all stated and implied substantive terms and features of a hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. The new guidance is effective for interim and fiscal periods beginning after December 15, 2015. The Company does do not expect this guidance to have a significant impact on its Consolidated Financial Statements. | ||
In February 2015, the FASB issued a new standard that amended the current consolidation guidance. The new standard changes the analysis required to determine whether an entity is a variable interest entity and should be consolidated. The new standard is effective for interim and fiscal periods beginning after December 15, 2015, and early adoption is permitted. The Company is evaluating the impact of this new standard on its Consolidated Financial Statements. |
Investments_in_Marketable_Secu1
Investments in Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2013 and 2014: | |||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
31-Dec-13 | 31-Dec-14 | 31-Dec-13 | December 31, 2014 | |||||||||||||
Cost | $ | 103.2 | $ | 125.6 | $ | 17.9 | $ | 19.5 | ||||||||
Unrealized Gains | 33.3 | 42.8 | 4.6 | 2.9 | ||||||||||||
Unrealized Losses | (1.1 | ) | (18.1 | ) | (0.0 | ) | (0.1 | ) | ||||||||
Fair Value | $ | 135.4 | $ | 150.3 | $ | 22.5 | $ | 22.3 | ||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 are as follows: | |||||||||||||||
31-Dec-13 | 31-Dec-14 | |||||||||||||||
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 | $ | 8,112.70 | $ | 1.7 | $ | 8,550.40 | $ | 1.2 | ||||||||
Senior_Notes_Tables
Senior Notes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Summary of Principal Terms of Senior Notes | At December 31, 2014, the Company had three senior notes outstanding. The principal terms of these notes are summarized below. | |||||||||||
2022 | 2024 | 2042 | ||||||||||
Senior | Senior | Senior | ||||||||||
Notes | Notes | Notes | ||||||||||
Issue date | Oct-12 | Feb-14 | Aug-12 | |||||||||
Maturity date | Oct-22 | Feb-24 | Aug-42 | |||||||||
Potential Call Date | Oct-15 | Any Time (1) | Aug-17 | |||||||||
Par value (in millions) | $ | 140 | $ | 400 | $ | 200 | ||||||
Call Price | At Par | As Defined (1) | At Par | |||||||||
Stated coupon | 5.25 | % | 4.25 | % | 6.375 | % | ||||||
Coupon frequency | Quarterly | Semi-annually | Quarterly | |||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | The 2024 senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. |
Convertible_Securities_Tables
Convertible Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Carrying Value of Convertible Securities | The carrying values of the Company's convertible securities are as follows: | |||||||||||||||
31-Dec-13 | 31-Dec-14 | |||||||||||||||
Carrying | Principal amount | Carrying | Principal amount | |||||||||||||
Value | at maturity | Value | at maturity | |||||||||||||
Junior convertible securities: | ||||||||||||||||
2007 junior convertible securities(1) | $ | 301.2 | $ | 430.8 | $ | 303.1 | $ | 430.8 | ||||||||
2006 junior convertible securities | 217.5 | 300 | — | — | ||||||||||||
Total junior convertible securities | $ | 518.7 | $ | 730.8 | $ | 303.1 | $ | 430.8 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | The carrying value is accreted to the principal amount at maturity over a remaining life of 23 years. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 Foreign Currency Forward Contracts | In 2014, one of the Company's Affiliates entered into foreign currency forward contracts relating to projected expenses denominated in pound sterling (GBP) and projected revenues denominated in euro (EUR): | ||||||||||||
Paying | Receiving | Start Date | Expected Settlement | ||||||||||
Counterparty C | $ | 21.9 | £ | 13.5 | Sep-14 | Monthly 2015 | |||||||
Counterparty C | € | 28 | $ | 34.3 | Dec-14 | Quarterly 2015 | |||||||
Schedule 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 | 2012 | 2013 | 2014 | ||||||||||
Interest rate swaps | $ | (1.1 | ) | $ | 1.5 | $ | 1.1 | ||||||
Treasury rate locks | 0 | 0 | 0 | ||||||||||
Foreign currency forward contracts | — | — | (0.5 | ) | |||||||||
Total | $ | (1.1 | ) | $ | 1.5 | $ | 0.6 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Schedule of Fair Value of Financial Assets and 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-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | 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(2) | |||||||||||||||||||||||||
Contingent payment arrangements | $ | 50.2 | $ | — | $ | — | $ | 50.2 | |||||||||||||||||
Obligations to related parties | 76.9 | — | — | 76.9 | |||||||||||||||||||||
Interest rate swaps | 2.5 | — | 2.5 | — | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||
Cash equivalents | $ | 59.1 | $ | 59.1 | $ | — | $ | — | |||||||||||||||||
Investments in marketable securities(1) | |||||||||||||||||||||||||
Trading securities | 22.3 | 22.3 | — | — | |||||||||||||||||||||
Available for sale securities | 150.3 | 150.3 | — | — | |||||||||||||||||||||
Other investments | 167.2 | 13.6 | 19.4 | 134.2 | |||||||||||||||||||||
Financial Liabilities(2) | |||||||||||||||||||||||||
Contingent payment arrangements | $ | 59.3 | $ | — | $ | — | $ | 59.3 | |||||||||||||||||
Obligations to related parties | 93.1 | — | — | 93.1 | |||||||||||||||||||||
Interest rate swaps | 1.4 | — | 1.4 | — | |||||||||||||||||||||
Foreign currency forward contracts | 0.5 | — | 0.5 | — | |||||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | Principally investments in equity securities. | ||||||||||||||||||||||||
-2 | Amounts are presented within Other liabilities in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||
Schedule of Changes in Level 3 Financial Assets and Liabilities | The following table presents the changes in Level 3 assets and liabilities for the years ended December 31, 2013 and 2014: | ||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | ||||||||||||||||||||
Balance, beginning of period | $ | 118.9 | $ | 31 | $ | 77.8 | $ | 131.8 | $ | 50.2 | $ | 76.9 | |||||||||||||
Net gains/losses | 12.3 | (1) | 19.2 | (2) | 6.2 | (3) | 11.4 | (1) | 9.1 | (2) | 5.5 | (3) | |||||||||||||
Purchases and issuances | 18 | — | 62.9 | 17.4 | — | 96.7 | |||||||||||||||||||
Settlements and reductions | (17.4 | ) | — | (70.0 | ) | (26.4 | ) | — | (86.0 | ) | |||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance, end of period | $ | 131.8 | $ | 50.2 | $ | 76.9 | $ | 134.2 | $ | 59.3 | $ | 93.1 | |||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 16.5 | $ | 19.2 | $ | 2.2 | $ | 17.1 | $ | 9.1 | $ | (0.1 | ) | ||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||
-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 the Company's Level 3 financial liabilities: | ||||||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||||
Valuation | Unobservable Input | Fair Value at | Range at December 31, 2013 | Fair Value at | Range at December 31, 2014 | ||||||||||||||||||||
Techniques | December 31, 2013 | December 31, 2014 | |||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 50.2 | 3% - 11% | $ | 59.3 | 6% | |||||||||||||||||
Discount rates | 14% - 18% | 15% | |||||||||||||||||||||||
Affiliate equity repurchase obligations | Discounted cash flow | Growth rates | 4 | 8% | 21.5 | 5% - 9% | |||||||||||||||||||
Discount rates | 15% | 15% - 16% | |||||||||||||||||||||||
Schedule of Investments | The following table summarizes, as of December 31, 2013 and 2014, the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | ||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | |||||||||||||||||||||
Commitments | Commitments | ||||||||||||||||||||||||
Private equity(1) | $ | 131.8 | $ | 62.9 | $ | 134.2 | $ | 67.8 | |||||||||||||||||
Other funds(2) | 82.3 | — | 75.8 | — | |||||||||||||||||||||
$ | 214.1 | $ | 62.9 | $ | 210 | $ | 67.8 | ||||||||||||||||||
_______________________________________________________________________________ | |||||||||||||||||||||||||
-1 | These funds primarily invest in a broad range of private equity funds, as well as make 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 Financial Liabilities not Carried at Fair Value | he carrying amount of cash, cash equivalents, receivables, and payables 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 has 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-13 | 31-Dec-14 | ||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Fair Value Hierarchy | |||||||||||||||||||||
Senior notes | $ | 340 | $ | 325 | $ | 736.8 | $ | 786.2 | Level 2 | ||||||||||||||||
Convertible securities | 518.7 | 963.9 | 303.1 | 532.1 | Level 2 | ||||||||||||||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Schedule of Purchase Price Allocation for Investments | The purchase price allocation for these investments is as follows: | |||||||||||
SouthernSun | River Road | Veritas | ||||||||||
Consideration paid | $ | 109.9 | $ | 132.4 | $ | 319.9 | ||||||
Non-controlling interests | 74 | 35.8 | 125.2 | |||||||||
Enterprise value | $ | 183.9 | $ | 168.2 | $ | 445.1 | ||||||
Acquired client relationships | $ | 125.3 | $ | 64.1 | $ | 275.6 | ||||||
Deferred income taxes | — | — | (35.7 | ) | ||||||||
Tangible assets, net | 6.3 | 4.5 | 12.6 | |||||||||
Goodwill | 52.3 | 99.6 | 192.6 | |||||||||
$ | 183.9 | $ | 168.2 | $ | 445.1 | |||||||
Schedule of Goodwill Allocation by Segment | The excess of the enterprise value over the net assets acquired was recorded as goodwill and the segment allocation is as follows: | |||||||||||
SouthernSun | River Road | Veritas | ||||||||||
Institutional | 37 | % | 31 | % | 24 | % | ||||||
Mutual Fund | 23 | % | 51 | % | 76 | % | ||||||
High Net Worth | 40 | % | 18 | % | — | % | ||||||
Schedule of Unaudited Pro Forma Financial Results | Unaudited pro-forma financial results are set forth below assuming these investments occurred on January 1, 2013, the revenue sharing arrangement had been in effect for the entire period and after making certain pro-forma adjustments. | |||||||||||
For the Years Ended December 31, | ||||||||||||
2013 (Unaudited) | 2014 (Unaudited) | |||||||||||
Revenue | $ | 2,353.50 | $ | 2,644.90 | ||||||||
Net income (controlling interest) | 382.3 | 474.9 | ||||||||||
Earnings per share (basic) | $ | 7.2 | $ | 8.63 | ||||||||
Earnings per share (diluted) | $ | 6.94 | $ | 8.4 | ||||||||
Goodwill_and_Acquired_Client_R1
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Changes in Goodwill | The following tables presents the change in goodwill and components of intangible assets of the Company's Affiliates that are consolidated during 2013 and 2014: | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
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 | ||||||||||||
Goodwill acquired | 97.2 | 208.1 | 39.2 | 344.5 | ||||||||||||||||
Foreign currency translation | (14.4 | ) | (10.9 | ) | (8.1 | ) | (33.4 | ) | ||||||||||||
Balance, as of December 31, 2014 | $ | 1,159.10 | $ | 1,125.30 | $ | 368.4 | $ | 2,652.80 | ||||||||||||
Schedule of Changes in, and the Components of, Acquired Client Relationships | ||||||||||||||||||||
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, 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 | |||||||||
New Investments | 220.3 | — | 220.3 | 244.7 | 465 | |||||||||||||||
Amortization and impairments | — | (122.2 | ) | (122.2 | ) | — | (122.2 | ) | ||||||||||||
Foreign currency translation | (4.7 | ) | — | (4.7 | ) | (20.4 | ) | (25.1 | ) | |||||||||||
Transfers and other | — | — | — | — | — | |||||||||||||||
Balance, as of December 31, 2014 | $ | 1,255.10 | $ | (565.0 | ) | $ | 690.1 | $ | 1,088.30 | $ | 1,778.40 | |||||||||
Equity_Method_Investments_in_A1
Equity Method Investments in Affiliates (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Revenue(1) | $ | 1,005.40 | $ | 1,589.60 | $ | 1,869.30 | ||||||
Net income | 783.3 | 1,321.90 | 253.8 | |||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Assets(2) | $ | 19,139.70 | $ | 34,729.20 | ||||||||
Liabilities and Non-controlling interest(2) | 17,763.50 | 33,048.60 | ||||||||||
_______________________________________________________________________________ | ||||||||||||
-1 | Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. | |||||||||||
-2 | Assets consist primarily of investment securities in consolidated investment partnerships. These partnerships are generally held by investors that are unrelated to the Company. |
Fixed_Assets_and_Lease_Commitm1
Fixed Assets and Lease Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fixed Assets and Lease Commitments [Abstract] | ||||||||
Schedule of Fixed Assets | Fixed assets consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Building and leasehold improvements | $ | 78.5 | $ | 84.1 | ||||
Equipment | 36.5 | 38.3 | ||||||
Furniture and fixtures | 15.4 | 17.5 | ||||||
Land and improvements | 18.9 | 18.7 | ||||||
Software | 30.6 | 40.8 | ||||||
Fixed assets, at cost | 179.9 | 199.4 | ||||||
Accumulated depreciation and amortization | (87.6 | ) | (104.0 | ) | ||||
Fixed assets, net | $ | 92.3 | $ | 95.4 | ||||
Schedule of Aggregate Future Minimum Payments for Operating Leases | At December 31, 2014, 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 | ||||||||
2015 | $ | 33.8 | ||||||
2016 | 28.8 | |||||||
2017 | 25.2 | |||||||
2018 | 22.8 | |||||||
2019 | 21.6 | |||||||
Thereafter | 69.4 | |||||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Liabilities | Payables and accrued liabilities consisted of the following: | |||||||
December 31, | ||||||||
2013 | 2014 | |||||||
Accrued compensation and distributions | $ | 211.4 | $ | 491.3 | ||||
Unsettled fund share payables | 84.6 | 78.3 | ||||||
Accrued income taxes | 73 | 59.8 | ||||||
Accrued share repurchases | — | 47.8 | ||||||
Accrued professional fees | 33.4 | 26.9 | ||||||
Other | 112.3 | 104.2 | ||||||
$ | 514.7 | $ | 808.3 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 | |||||||
2012 | 0.6 | $ | 107.44 | |||||
2013 | 0.1 | 184.89 | ||||||
2014 | 1.2 | 204.72 | ||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
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 | |||||||||
2012 | $ | 25.4 | $ | 9.6 | |||||
2013 | 27.5 | 10.6 | |||||||
2014 | 29.3 | 11.3 | |||||||
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, 2014 | 3 | $ | 77.71 | ||||||
Options granted | 0 | 204.99 | |||||||
Options exercised | (0.7 | ) | 60.47 | ||||||
Options forfeited | (0.0 | ) | 81.5 | ||||||
Unexercised options outstanding—December 31, 2014 | 2.3 | 83.42 | 2.7 | ||||||
Exercisable at December 31, 2014 | 2.1 | 80.92 | 2.6 | ||||||
Schedule of Assumptions Used to Determine Fair Value of Options Granted | 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, 2012, 2013 and 2014 was $40.43, $61.82 and $60.20 per option, respectively, based on the weighted-average grant date assumptions stated below. | ||||||||
For the Years Ended December 31, | |||||||||
2012 | 2013 | 2014 | |||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||
Expected volatility(1) | 36.8 | % | 34.4 | % | 29.7 | % | |||
Risk-free interest rate(2) | 0.7 | % | 1.5 | % | 1.8 | % | |||
Expected life of options (in years)(3) | 5 | 5 | 5 | ||||||
Forfeiture rate(3) | 1.4 | % | 0 | % | 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, 2014 | 0.5 | $ | 176.38 | ||||||
Units granted | 0 | 190.42 | |||||||
Units vested | (0.1 | ) | 131.42 | ||||||
Units forfeited | (0.0 | ) | 173.77 | ||||||
Unvested units—December 31, 2014 | 0.4 | 182.83 | |||||||
Affiliate_Equity_Tables
Affiliate Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Affiliate Equity | ||||||||||||
Summary of Affiliate Equity Expense | A summary of Affiliate equity expense is as follows: | |||||||||||
Period | Affiliate Equity Expense | Tax Benefit | ||||||||||
2012 | $ | 60.4 | $ | 17 | ||||||||
2013 | 72.3 | 21.7 | ||||||||||
2014 | 84.4 | 18.2 | ||||||||||
Schedule of the Changes in Redeemable Non-controlling Interests | The following table presents the changes in Redeemable non-controlling interests during the period: | |||||||||||
2013 | 2014 | |||||||||||
Balance, as of January 1 | $ | 477.5 | $ | 641.9 | ||||||||
Transactions in Redeemable non-controlling interests | (52.5 | ) | (61.7 | ) | ||||||||
Changes in redemption value | 216.9 | 65.3 | ||||||||||
Balance, as of December 31 | $ | 641.9 | $ | 645.5 | ||||||||
Schedule of the Effect of Changes in the Company'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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Net income (controlling interest) | $ | 174 | $ | 360.5 | $ | 452.1 | ||||||
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | (44.0 | ) | (74.0 | ) | (33.3 | ) | ||||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 130 | $ | 286.5 | $ | 418.8 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income Tax Provision Attributable to Controlling and 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Controlling Interests: | ||||||||||||
Current tax | $ | 61 | $ | 153.1 | $ | 149.8 | ||||||
Intangible-related deferred taxes | 22.7 | 38.1 | 47.8 | |||||||||
Other deferred taxes | (12.1 | ) | (6.2 | ) | 15.8 | |||||||
Total controlling interests | 71.6 | 185 | 213.4 | |||||||||
Non-controlling Interests: | ||||||||||||
Current tax | $ | 11.7 | $ | 13.3 | $ | 15.3 | ||||||
Deferred taxes | 0.5 | (4.2 | ) | (0.8 | ) | |||||||
Total non-controlling interests | 12.2 | 9.1 | 14.5 | |||||||||
Provision for income taxes | $ | 83.8 | $ | 194.1 | $ | 227.9 | ||||||
Income before income taxes (controlling interest) | $ | 245.6 | $ | 545.5 | $ | 665.5 | ||||||
Effective tax rate attributable to controlling interests(1) | 29.2 | % | 33.9 | % | 32.1 | % | ||||||
_______________________________________________________________________________ | ||||||||||||
-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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Current: | ||||||||||||
Federal | $ | 14.5 | $ | 104.1 | $ | 93.8 | ||||||
State | 14.2 | 21.1 | 27.1 | |||||||||
Foreign | 44 | 41.2 | 44.2 | |||||||||
Total current | 72.7 | 166.4 | 165.1 | |||||||||
Deferred: | ||||||||||||
Federal | 19.8 | 38.1 | 72.5 | |||||||||
State | 4.6 | 8.9 | 1.1 | |||||||||
Foreign | (13.3 | ) | (19.3 | ) | (10.8 | ) | ||||||
Total deferred | 11.1 | 27.7 | 62.8 | |||||||||
Provision for income taxes | $ | 83.8 | $ | 194.1 | $ | 227.9 | ||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Domestic | $ | 238.6 | $ | 604 | $ | 784.1 | ||||||
International | 256.6 | 259.7 | 229.5 | |||||||||
$ | 495.2 | $ | 863.7 | $ | 1,013.60 | |||||||
Schedule of Effective Income Tax Rate Computed 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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Tax at U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit(1) | 3.5 | 2.8 | 2.1 | |||||||||
Non-deductible expenses | 0.7 | 0.3 | 0.3 | |||||||||
Valuation allowance(1) | (4.7 | ) | (0.3 | ) | — | |||||||
Effect of Non-US operations | (3.3 | ) | (2.5 | ) | (5.3 | ) | ||||||
Effect of changes in tax law, rates | (2.0 | ) | (1.4 | ) | — | |||||||
Effect of income from non-controlling interests | (12.2 | ) | (11.4 | ) | (9.6 | ) | ||||||
17 | % | 22.5 | % | 22.5 | % | |||||||
Schedule of Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: | |||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred Tax Assets | ||||||||||||
State net operating loss carryforwards | $ | 29.3 | $ | 15.2 | ||||||||
Deferred compensation | 29.1 | 26.8 | ||||||||||
Tax benefit of uncertain tax positions | 16.2 | 16 | ||||||||||
Accrued expenses | 17.6 | 19.6 | ||||||||||
Foreign loss carryforwards | 9.1 | 11.5 | ||||||||||
Other | — | 1.4 | ||||||||||
Total deferred tax assets | 101.3 | 90.5 | ||||||||||
Valuation allowance | (36.6 | ) | (18.4 | ) | ||||||||
Deferred tax assets, net of valuation allowance | $ | 64.7 | $ | 72.1 | ||||||||
Deferred Tax Liabilities | ||||||||||||
Intangible asset amortization | $ | (241.3 | ) | $ | (270.9 | ) | ||||||
Convertible securities interest | (144.7 | ) | (92.5 | ) | ||||||||
Non-deductible intangible amortization | (101.5 | ) | (126.4 | ) | ||||||||
Deferred revenue | (32.1 | ) | (74.0 | ) | ||||||||
Other | (2.0 | ) | — | |||||||||
Total deferred tax liabilities | (521.6 | ) | (563.8 | ) | ||||||||
Net deferred tax liability | $ | (456.9 | ) | $ | (491.7 | ) | ||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Balance, as of January 1 | $ | 21.2 | $ | 22.6 | $ | 20.4 | ||||||
Additions based on current year tax positions | 5.9 | 4.1 | 2.6 | |||||||||
Additions based on prior years' tax positions | 5.2 | — | 10.8 | |||||||||
Reductions for prior years' tax provisions | (5.4 | ) | (0.1 | ) | — | |||||||
Reductions related to lapses of statutes of limitations | (4.6 | ) | (5.4 | ) | (4.1 | ) | ||||||
Additions (reductions) related to foreign exchange rates | 0.3 | (0.8 | ) | (0.9 | ) | |||||||
Balance, as of December 31 | $ | 22.6 | $ | 20.4 | $ | 28.8 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Numerator | ||||||||||||
Net income (controlling interest) | $ | 174 | $ | 360.5 | $ | 452.1 | ||||||
Interest expense on convertible securities, net of taxes | — | 10.5 | 15.2 | |||||||||
Net income (controlling interest), as adjusted | $ | 174 | $ | 371 | $ | 467.3 | ||||||
Denominator | ||||||||||||
Average shares outstanding (basic) | 51.7 | 53.1 | 55 | |||||||||
Effect of dilutive instruments: | ||||||||||||
Stock options and other awards | 1.3 | 1.3 | 1.2 | |||||||||
Forward sale | — | 0.3 | 0 | |||||||||
Junior convertible securities | — | 2 | 2.2 | |||||||||
Average shares outstanding (diluted) | 53 | 56.7 | 58.4 | |||||||||
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, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Stock options and other awards | 0.7 | 0.1 | 0 | |||||||||
Senior convertible securities | 3.6 | 2.1 | — | |||||||||
Junior convertible securities | 4.2 | 2.2 | 0.4 | |||||||||
Forward equity sales | 0.2 | — | — | |||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2012 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | 18.5 | $ | — | $ | 18.5 | ||||||||||
Change in net realized and unrealized gain (loss) on derivative securities | (1.1 | ) | 0.4 | (0.7 | ) | |||||||||||
Change in net unrealized gain (loss) on investment securities | 21.6 | (8.1 | ) | 13.5 | ||||||||||||
Other comprehensive income (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 gain (loss) on derivative securities | 1.5 | (0.5 | ) | 1 | ||||||||||||
Change in net unrealized gain (loss) on investment securities | 19.5 | (8.0 | ) | 11.5 | ||||||||||||
Other comprehensive income (loss) | $ | 1.4 | $ | (8.5 | ) | $ | (7.1 | ) | ||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | ||||||||||||||
Foreign currency translation adjustment | $ | (62.0 | ) | $ | — | $ | (62.0 | ) | ||||||||
Change in net realized and unrealized gain (loss) on derivative securities | 0.6 | (0.3 | ) | 0.3 | ||||||||||||
Change in net unrealized gain (loss) on investment securities | 5.6 | (2.2 | ) | 3.4 | ||||||||||||
Other comprehensive income (loss) | $ | (55.8 | ) | $ | (2.5 | ) | $ | (58.3 | ) | |||||||
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, 2013 | $ | 56.6 | $ | (1.9 | ) | $ | 19.5 | $ | 74.2 | |||||||
Other comprehensive income (loss) before reclassifications | (62.0 | ) | 0.3 | 1.3 | (60.4 | ) | ||||||||||
Amounts reclassified from other comprehensive income | — | 0 | 2.1 | 2.1 | ||||||||||||
Net other comprehensive income (loss) | (62.0 | ) | 0.3 | 3.4 | (58.3 | ) | ||||||||||
Balance, as of December 31, 2014 | $ | (5.4 | ) | $ | (1.6 | ) | $ | 22.9 | $ | 15.9 | ||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2013 and 2014. | |||||||||||||||
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 | ||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter (1) | Quarter (1) | Quarter | |||||||||||||
Revenue | $ | 593.1 | $ | 636.3 | $ | 640.3 | $ | 641.2 | ||||||||
Operating income | 193.9 | 198.4 | 224.2 | 198.7 | ||||||||||||
Income before income taxes | 208.2 | 239.1 | 253.4 | 312.8 | ||||||||||||
Net income (controlling interest) | 77.2 | 99.1 | 103.2 | 172.6 | ||||||||||||
Earnings per share (diluted) | $ | 1.4 | $ | 1.75 | $ | 1.82 | $ | 3.02 | ||||||||
_______________________________________________________________________________ | ||||||||||||||||
-1 | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Information | ||||||||||||||||
As of and for the Year Ended December 31, 2012 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 861.3 | $ | 774.4 | $ | 169.8 | $ | 1,805.50 | ||||||||
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 | ||||||||||||
As of and for the Year Ended December 31, 2013 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 948.7 | $ | 1,023.00 | $ | 217.1 | $ | 2,188.80 | ||||||||
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 | ||||||||||||
As of and for the Year Ended December 31, 2014 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 1,022.80 | $ | 1,242.60 | $ | 245.5 | 2,510.90 | |||||||||
Net income (controlling interest) | 227 | 180.1 | 45 | 452.1 | ||||||||||||
Total assets | 3,739.80 | 3,082.00 | 876.3 | 7,698.10 | ||||||||||||
Goodwill | 1,159.10 | 1,125.30 | 368.4 | 2,652.80 | ||||||||||||
Equity method investments in Affiliates | 1,533.80 | 150.3 | 99.4 | 1,783.50 | ||||||||||||
Business_and_Summary_of_Signif2
Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Channel | |
Segment Information [Abstract] | |
Number of operating segments | 3 |
Number of principal distribution channels | 3 |
Office Equipment and Furniture and Fixtures | Minimum | |
Fixed Assets | |
Estimated useful life | 3 years |
Office Equipment and Furniture and Fixtures | Maximum | |
Fixed Assets | |
Estimated useful life | 10 years |
Computer software | Minimum | |
Fixed Assets | |
Estimated useful life | 3 years |
Computer software | Maximum | |
Fixed Assets | |
Estimated useful life | 7 years |
Building | |
Fixed Assets | |
Estimated useful life | 39 years |
Investments_in_Marketable_Secu2
Investments in Marketable Securities (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cost of investments in marketable securities, gross unrealized gains and losses | ||
Total investment | $172.60 | $157.90 |
Realized gains (losses) on available-for-sale securities | $3.40 | $0 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities - Summary of the Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) (Equity Securities, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Securities | ||
Available-for-Sale | ||
Cost | $125.60 | $103.20 |
Unrealized Gains | 42.8 | 33.3 |
Unrealized Losses | -18.1 | -1.1 |
Fair Value | 150.3 | 135.4 |
Trading | ||
Cost | 19.5 | 17.9 |
Unrealized Gains | 2.9 | 4.6 |
Unrealized Losses | -0.1 | 0 |
Fair Value | $22.30 | $22.50 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (Sponsored Investment Funds, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Sponsored Investment Funds | ||
Variable Interest Entities | ||
Unconsolidated VIE net assets | $8,550.40 | $8,112.70 |
Carrying value and maximum exposure to loss | $1.20 | $1.70 |
Senior_Bank_Debt_Details
Senior Bank Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Apr. 15, 2014 | |
Debt Instrument | |||
Principal amount at maturity | $430,800,000 | $730,800,000 | |
Term loan outstanding | 855,000,000 | 525,000,000 | |
Senior Unsecured Revolving Credit Facility | |||
Debt Instrument | |||
Maximum borrowing capacity | 1,250,000,000 | ||
Line of credit facility amount outstanding | 605,000,000 | 525,000,000 | |
Weighted average interest rate | 1.40% | 1.95% | |
Commitment fee amount | 2,800,000 | 3,200,000 | |
Senior Unsecured Term Loan | |||
Debt Instrument | |||
Principal amount at maturity | 250,000,000 | ||
Debt instrument term | 5 years | ||
Maximum borrowing capacity, additional amount | 100,000,000 | ||
Term loan outstanding | $250,000,000 | ||
Weighted average interest rate on amount outstanding | 1.48% |
Senior_Notes_Details
Senior Notes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 13, 2015 |
senior_note | |||
Debt Disclosure [Abstract] | |||
Number of senior notes outstanding | 3 | ||
Debt Instrument | |||
Principal amount at maturity | $430.80 | $730.80 | |
Subsequent Event | Senior Notes | 2025 Senior Notes | |||
Debt Instrument | |||
Principal amount at maturity | $350 | ||
Stated interest rate | 3.50% |
Senior_Notes_Summary_of_Princi
Senior Notes - Summary of Principle Terms of Senior Notes (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument | ||
Par value (in millions) | $430.80 | $730.80 |
2022 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | 140 | |
Stated coupon | 5.25% | |
2024 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | 400 | |
Stated coupon | 4.25% | |
2042 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $200 | |
Stated coupon | 6.38% |
Convertible_Securities_Details
Convertible Securities (Details) (USD $) | 12 Months Ended | 0 Months Ended |
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 13, 2014 |
Debt Instrument | ||
Shares issued in conversion | 1.9 | |
Loss recognized on conversion of debt securities | $18,800,000 | |
2038 Senior Convertible Notes | ||
Debt Instrument | ||
Repurchased face amount | 460,000,000 | |
Stated interest rate | 3.95% | |
Repurchase amount | 641,300,000 | |
2006 Junior Convertible Securities | ||
Debt Instrument | ||
Outstanding principal of junior convertible trust preferred securities | 300,000,000 | |
2007 Junior Convertible Securities | ||
Debt Instrument | ||
Stated interest rate | 5.15% | |
Principal amount at maturity | 50 | |
Conversion ratio (in shares) | 0.25 | |
Conversion price (in usd per share) | 200 | |
Redemption closing price trigger | 260 | |
Number of trading days closing price has exceeded threshold | 20 | |
Consecutive trading days | 30 days | |
Deferred tax liability | 8,700,000 | |
Common Stock | ||
Debt Instrument | ||
Shares issued in conversion | 1.9 |
Convertible_Securities_Schedul
Convertible Securities - Schedule of Carrying Value of Convertible Securities (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument | ||||
Carrying value | 303.1 | $518.70 | ||
Principal amount at maturity | 430.8 | 730.8 | ||
Junior Convertible Trust Preferred Securities | ||||
Debt Instrument | ||||
Debt instrument term | 23 years | |||
2007 Junior Convertible Securities | ||||
Debt Instrument | ||||
Carrying value | 303.1 | [1] | 301.2 | [1] |
Principal amount at maturity | 430.8 | [1] | 430.8 | [1] |
2006 Junior Convertible Securities | ||||
Debt Instrument | ||||
Carrying value | 0 | 217.5 | ||
Principal amount at maturity | 0 | $300 | ||
[1] | The carrying value is accreted to the principal amount at maturity over a remaining life of 23B years |
Forward_Equity_Sale_Agreement_
Forward Equity Sale Agreement (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 |
Forward Equity Sale Agreement | |||
Notional amount sold | $77 | ||
Average share price (in dollars per share) | $185.56 | ||
Derivative remaining notional amount | 252.8 | ||
Equity Contract | |||
Forward Equity Sale Agreement | |||
Notional amount | 70.2 | ||
Amended and Restated Forward Equity Sale Agreement | |||
Forward Equity Sale Agreement | |||
Notional amount sold | 147.2 | ||
Average share price (in dollars per share) | $198.71 | $121.37 | |
Notional amount | $400 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Interest Rate Swap | ||
Derivatives, Fair Value | ||
Collateral posted | $2.40 | |
Interest Rate Swap | Other Liabilities | ||
Derivatives, Fair Value | ||
Fair value of derivative assets | 1.4 | 2.5 |
Foreign Currency Forward Contract | Other Assets | ||
Derivatives, Fair Value | ||
Amount of derivative gain (loss) reported | $0.50 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of Interest Rate Swap Agreements (Details) (Interest Rate Swap, USD $) | Dec. 31, 2011 |
In Millions, unless otherwise specified | |
Counterparty A Paying 1.67% Interest | |
Derivative | |
Notional amount | $25 |
Paying | 1.67% |
Counterparty A Paying 1.65% Interest | |
Derivative | |
Notional amount | 25 |
Paying | 1.65% |
Counterparty B Paying 1.59% Interest | |
Derivative | |
Notional amount | 25 |
Paying | 1.59% |
Counterparty B Paying 2.14% Interest | |
Derivative | |
Notional amount | $25 |
Paying | 2.14% |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Derivative Financial Instruments - Schedule of Foreign Currency Contracts (Details) (Counterparty C, Foreign Currency Forward Contract) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
In Millions, unless otherwise specified | Paying | Paying | Receiving | Receiving |
USD ($) | EUR (€) | USD ($) | GBP (£) | |
Derivative | ||||
Notional amount | $21.90 | € 28 | $34.30 | £ 13.5 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Schedule of Derivative Instrument Gains and (Losses) before Taxes (Details) (Cash Flow Hedges, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) | |||
Amount of derivative gain (loss) reported | $0.60 | $1.50 | ($1.10) |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) | |||
Amount of derivative gain (loss) reported | 1.1 | 1.5 | -1.1 |
Treasury Rate Lock | |||
Derivative Instruments, Gain (Loss) | |||
Amount of derivative gain (loss) reported | 0 | 0 | 0 |
Foreign Currency Forward Contract | |||
Derivative Instruments, Gain (Loss) | |||
Amount of derivative gain (loss) reported | ($0.50) | $0 | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2015 |
Commitments and Contingencies | ||
Co-investment commitments in partnership | $67.80 | |
Acquisition agreements contingency liability | 276 | |
Expected payments to settle contingent obligations | 75 | |
Expected payments related to equity method investments | 201 | |
Net present value of expected payments to settle contingent obligations | 59.3 | |
Forecast | ||
Commitments and Contingencies | ||
Expected payments to settle contingent obligations | 17.5 | |
Prior Owner | Pantheon | ||
Commitments and Contingencies | ||
Reimbursable amount of investment commitments | $21.10 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | |
Significant transfers between Level I and Level II | $0 |
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, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Investments in marketable securities | ||||
Other investments | $210 | $214.10 | ||
Fair Value Measured on a Recurring Basis | Level 1 | ||||
Financial Assets | ||||
Cash equivalents | 59.1 | 39 | ||
Investments in marketable securities | ||||
Trading securities | 22.3 | [1] | 22.5 | [1] |
Available-for-sale securities | 150.3 | [1] | 135.4 | [1] |
Other investments | 13.6 | 14.1 | ||
Financial Liabilities | ||||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | 0 | ||
Interest rate swaps | 0 | 0 | ||
Forward currency forward contracts | 0 | [2] | ||
Fair Value Measured on a Recurring Basis | Level 2 | ||||
Financial Assets | ||||
Cash equivalents | 0 | 0 | ||
Investments in marketable securities | ||||
Trading securities | 0 | [1] | 0 | [1] |
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other investments | 19.4 | 18.4 | ||
Financial Liabilities | ||||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | 0 | ||
Interest rate swaps | 1.4 | 2.5 | ||
Forward currency forward contracts | 0.5 | [2] | ||
Fair Value Measured on a Recurring Basis | Level 3 | ||||
Financial Assets | ||||
Cash equivalents | 0 | 0 | ||
Investments in marketable securities | ||||
Trading securities | 0 | [1] | 0 | [1] |
Available-for-sale securities | 0 | [1] | 0 | [1] |
Other investments | 134.2 | 131.8 | ||
Financial Liabilities | ||||
Contingent payment arrangements | 59.3 | [2] | 50.2 | [2] |
Obligations to related parties | 93.1 | 76.9 | ||
Interest rate swaps | 0 | 0 | ||
Forward currency forward contracts | 0 | [2] | ||
Fair Value | Fair Value Measured on a Recurring Basis | ||||
Financial Assets | ||||
Cash equivalents | 59.1 | 39 | ||
Investments in marketable securities | ||||
Trading securities | 22.3 | [1] | 22.5 | [1] |
Available-for-sale securities | 150.3 | [1] | 135.4 | [1] |
Other investments | 167.2 | 164.3 | ||
Financial Liabilities | ||||
Contingent payment arrangements | 59.3 | [2] | 50.2 | [2] |
Obligations to related parties | 93.1 | 76.9 | ||
Interest rate swaps | 1.4 | 2.5 | ||
Forward currency forward contracts | $0.50 | [2] | ||
[1] | Principally investments in equity securities. | |||
[2] | Amounts are presented within Other liabilities in the accompanying Consolidated Balance Sheets. |
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, 2014 | Dec. 31, 2013 | ||
Other Investments | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | $131.80 | $118.90 | ||
Net gains/losses | 11.4 | [1] | 12.3 | [1] |
Purchases and issuances | 17.4 | 18 | ||
Settlements and reductions | -26.4 | -17.4 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 134.2 | 131.8 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | 17.1 | 16.5 | ||
Contingent Payment Arrangements | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | 50.2 | 31 | ||
Net gains/losses | 9.1 | [2] | 19.2 | [2] |
Purchases and issuances | 0 | 0 | ||
Settlements and reductions | 0 | 0 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 59.3 | 50.2 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | 9.1 | 19.2 | ||
Obligations to Related Parties | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | 76.9 | 77.8 | ||
Net gains/losses | 5.5 | [3] | 6.2 | [3] |
Purchases and issuances | 96.7 | 62.9 | ||
Settlements and reductions | -86 | -70 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | 93.1 | 76.9 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | ($0.10) | $2.20 | ||
[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. | |||
[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, 2014 | Dec. 31, 2013 |
Contingent Payment Arrangements | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | 59.3 | 50.2 |
Contingent Payment Arrangements | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 6.00% | 3.00% |
Discount rate (as a percent) | 15.00% | 14.00% |
Contingent Payment Arrangements | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 6.00% | 11.00% |
Discount rate (as a percent) | 15.00% | 18.00% |
Affiliate Equity Repurchase Obligations | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | 21.5 | 4 |
Affiliate Equity Repurchase Obligations | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 5.00% | 8.00% |
Discount rate (as a percent) | 15.00% | 15.00% |
Affiliate Equity Repurchase Obligations | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 9.00% | 8.00% |
Discount rate (as a percent) | 16.00% | 15.00% |
Fair_Value_Measurements_Schedu3
Fair Value Measurements - Schedule of Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
NAV of investments at fair value | ||||
Fair value | $210 | $214.10 | ||
Unfunded commitments | 67.8 | 62.9 | ||
Private Equity Fund-of-Funds | ||||
NAV of investments at fair value | ||||
Fair value | 134.2 | [1] | 131.8 | [1] |
Unfunded commitments | 67.8 | [1] | 62.9 | [1] |
Other Funds | ||||
NAV of investments at fair value | ||||
Fair value | 75.8 | [2] | 82.3 | [2] |
Unfunded commitments | $0 | [2] | $0 | [2] |
[1] | These funds primarily invest in a broad range of private equity funds, as well as make 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 Financial Liabilities not Carried at Fair Value (Details) (Level 2, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $786.20 | $325 |
Convertible securities | 532.1 | 963.9 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 736.8 | 340 |
Convertible securities | $303.10 | $518.70 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Business Acquisition | |
Amortization period for tax deductible goodwill | 15 years |
New Affiliates | |
Business Acquisition | |
New affiliate investments contributed revenue | 72.2 |
New affiliate investments contributed earnings | 8.5 |
Business_Combinations_Schedule
Business Combinations - Schedule of Purchase Price Allocation for Investments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition | |||
Goodwill | $2,652.80 | $2,341.70 | $2,355.20 |
SouthernSun | |||
Business Acquisition | |||
Consideration paid | 109.9 | ||
Non-controlling interests | 74 | ||
Enterprise value | 183.9 | ||
Acquired client relationships | 125.3 | ||
Deferred income taxes | 0 | ||
Tangible assets, net | 6.3 | ||
Goodwill | 52.3 | ||
Total | 183.9 | ||
River Road | |||
Business Acquisition | |||
Consideration paid | 132.4 | ||
Non-controlling interests | 35.8 | ||
Enterprise value | 168.2 | ||
Acquired client relationships | 64.1 | ||
Deferred income taxes | 0 | ||
Tangible assets, net | 4.5 | ||
Goodwill | 99.6 | ||
Total | 168.2 | ||
Veritas | |||
Business Acquisition | |||
Consideration paid | 319.9 | ||
Non-controlling interests | 125.2 | ||
Enterprise value | 445.1 | ||
Acquired client relationships | 275.6 | ||
Deferred income taxes | -35.7 | ||
Tangible assets, net | 12.6 | ||
Goodwill | 192.6 | ||
Total | $445.10 |
Business_Combinations_Schedule1
Business Combinations - Schedule of Goodwill Allocation by Segment (Details) | Dec. 31, 2014 |
SouthernSun | Institutional | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 37.00% |
SouthernSun | Mutual Fund | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 23.00% |
SouthernSun | High Net Worth | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 40.00% |
River Road | Institutional | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 31.00% |
River Road | Mutual Fund | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 51.00% |
River Road | High Net Worth | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 18.00% |
Veritas | Institutional | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 24.00% |
Veritas | Mutual Fund | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 76.00% |
Veritas | High Net Worth | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 0.00% |
Business_Combinations_Schedule2
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, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Revenue | $2,644.90 | $2,353.50 |
Net income (controlling interest) | $474.90 | $382.30 |
Earnings per sharebbasic (in dollars per share) | $8.63 | $7.20 |
Earnings per sharebdiluted (in dollars per share) | $8.40 | $6.94 |
Goodwill_and_Acquired_Client_R2
Goodwill and Acquired Client Relationships (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | ||
Asset impairment charges | $0 | $0 |
Acquired Client Relationships | ||
Goodwill | ||
Weighted average life | 10 years | |
Future annual amortization expense | $120,000,000 | |
Number of future annual periods of amortization expense presented | 5 years |
Goodwill_and_Acquired_Client_R3
Goodwill and Acquired Client Relationships - Schedule of Changes in Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in goodwill | ||
Balance at the beginning of the period | $2,341.70 | $2,355.20 |
Goodwill acquired | 344.5 | 0 |
Foreign currency translation | -33.4 | -13.5 |
Balance at the end of the period | 2,652.80 | 2,341.70 |
Institutional | ||
Changes in goodwill | ||
Balance at the beginning of the period | 1,076.30 | 1,078.50 |
Goodwill acquired | 97.2 | 0 |
Foreign currency translation | -14.4 | -2.2 |
Balance at the end of the period | 1,159.10 | 1,076.30 |
Mutual Fund | ||
Changes in goodwill | ||
Balance at the beginning of the period | 928.1 | 939.5 |
Goodwill acquired | 208.1 | 0 |
Foreign currency translation | -10.9 | -11.4 |
Balance at the end of the period | 1,125.30 | 928.1 |
High Net Worth | ||
Changes in goodwill | ||
Balance at the beginning of the period | 337.3 | 337.2 |
Goodwill acquired | 39.2 | 0 |
Foreign currency translation | -8.1 | 0.1 |
Balance at the end of the period | $368.40 | $337.30 |
Goodwill_and_Acquired_Client_R4
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, 2014 | Dec. 31, 2013 |
Net Book Value | ||
Net book value balance at the end of the period | $1,778.40 | $1,460.70 |
Acquired Client Relationships | ||
Definite-lived | ||
Gross book value balance at the beginning of the period | 1,039.50 | 1,109.60 |
Accumulated amortization balance at the beginning of the period | -442.8 | -383.5 |
Net book value balance at the beginning of the period | 596.7 | 726.1 |
New Investments | 220.3 | 0 |
Amortization and impairments | -122.2 | -128.2 |
Foreign currency translation | -4.7 | -1.2 |
Transfers and other | 0 | -68.9 |
Net book value balance at the end of the period | 690.1 | 596.7 |
Accumulated amortization, transfers and other | 0 | 68.9 |
Net book value, transfers and other | 0 | 0 |
Gross book value balance at the end of the period | 1,255.10 | 1,039.50 |
Accumulated amortization balance at the end of the period | -565 | -442.8 |
Indefinite-lived | ||
Net book value balance at the beginning of the period | 864 | 859.4 |
New investments | 244.7 | 0 |
Amortization and Impairment | 0 | 0 |
Foreign currency translation | -20.4 | 4.6 |
Transfers and other | 0 | 0 |
Net book value balance at the end of the period | 1,088.30 | 864 |
Net Book Value | ||
Net book value balance at the beginning of the period | 1,460.70 | 1,585.50 |
New investments | 465 | 0 |
Amortization and Impairment | 122.2 | 128.2 |
Foreign currency translation | -25.1 | 3.4 |
Total, transfers and other | 0 | 0 |
Net book value balance at the end of the period | $1,778.40 | $1,460.70 |
Equity_Method_Investments_in_A2
Equity Method Investments in Affiliates (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 01, 2014 | Dec. 26, 2014 |
Schedule of Equity Method Investments | |||||
Amortization period for tax deductible goodwill | 15 years | ||||
Amortization expense during the period | $122.20 | $128.20 | $200 | ||
Undistributed earnings from equity method investments | 133.9 | ||||
Amortization expense, year 1 | 32 | ||||
Amortization expense, year 2 | 32 | ||||
Amortization expense, year 3 | 32 | ||||
Amortization expense, year 4 | 32 | ||||
Amortization expense, year 5 | 32 | ||||
Acquired Client Relationships Under Equity Method Investments | |||||
Schedule of Equity Method Investments | |||||
Weighted average life | 14 years | ||||
Amortization expense during the period | 32.3 | 41.7 | |||
EIG Global Energy Partners, LLC | Acquired Client Relationships Under Equity Method Investments | |||||
Schedule of Equity Method Investments | |||||
Definite-lived acquired client relationships | 215.2 | ||||
Amortization period for tax deductible goodwill | 15 years | ||||
AQR Capital Management Holdings, LLC | Acquired Client Relationships Under Equity Method Investments | |||||
Schedule of Equity Method Investments | |||||
Definite-lived acquired client relationships | 122.2 | ||||
Indefinite-lived acquired client relationships | $90 | ||||
Amortization period for tax deductible goodwill | 15 years |
Equity_Method_Investments_in_A3
Equity Method 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Revenue | $1,869.30 | [1] | $1,589.60 | [1] | $1,005.40 | [1] |
Net income | 253.8 | 1,321.90 | 783.3 | |||
Assets | 34,729.20 | [2] | 19,139.70 | [2] | ||
Liabilities and Non-controlling interest | $33,048.60 | [2] | $17,763.50 | [2] | ||
[1] | Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. | |||||
[2] | Assets consist primarily of investment securities in consolidated investment partnerships. These partnerships are generally held by investors that are unrelated to the Company. |
Fixed_Assets_and_Lease_Commitm2
Fixed Assets and Lease Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed Assets and Lease Commitments [Abstract] | |||
Consolidated rent expense | $30.50 | $30.30 | $30.50 |
Fixed_Assets_and_Lease_Commitm3
Fixed Assets and Lease Commitments - Schedule of Fixed Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fixed assets | ||
Fixed assets, at cost | $199.40 | $179.90 |
Accumulated depreciation and amortization | -104 | -87.6 |
Fixed assets, net | 95.4 | 92.3 |
Building and Leasehold Improvements | ||
Fixed assets | ||
Fixed assets, at cost | 84.1 | 78.5 |
Equipment | ||
Fixed assets | ||
Fixed assets, at cost | 38.3 | 36.5 |
Furniture and Fixtures | ||
Fixed assets | ||
Fixed assets, at cost | 17.5 | 15.4 |
Land and Improvements | ||
Fixed assets | ||
Fixed assets, at cost | 18.7 | 18.9 |
Software | ||
Fixed assets | ||
Fixed assets, at cost | $40.80 | $30.60 |
Fixed_Assets_and_Lease_Commitm4
Fixed Assets and Lease Commitments - Schedule of Aggregate Future Minimum Payments for Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Fixed Assets and Lease Commitments [Abstract] | |
2015 | $33.80 |
2016 | 28.8 |
2017 | 25.2 |
2018 | 22.8 |
2019 | 21.6 |
Thereafter | $69.40 |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued compensation and distributions | $491.30 | $211.40 |
Unsettled fund share payables | 78.3 | 84.6 |
Accrued income taxes | 59.8 | 73 |
Accrued share repurchases | 47.8 | 0 |
Accrued professional fees | 26.9 | 33.4 |
Other | 104.2 | 112.3 |
Accounts payable and accrued liabilities | $808.30 | $514.70 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliate Partners | |||
Related Party Transactions | |||
Distributions paid to Affiliate management owners | $569.40 | $267.10 | $181.40 |
Amount paid for affiliate equity interest repurchases | 32.6 | 36.9 | 8 |
Amount received for affiliate equity issuances | 11 | 2.5 | 3.3 |
Affiliate Partners | Other Assets | |||
Related Party Transactions | |||
Receivables from related parties | 20.8 | 21.8 | |
Notes receivable from related parties | 9.7 | 6.9 | 7.1 |
Affiliate Partners | Other Liabilities | |||
Related Party Transactions | |||
Payable to related parties | 88.6 | 56.8 | |
Notes payable to related parties | 4.4 | 5.5 | 23.3 |
Prior Owner | Other Liabilities | |||
Related Party Transactions | |||
Investment partnerships with prior owners | 71.6 | 72.9 | |
Prior Owner | Non-Controlling Interests | |||
Related Party Transactions | |||
Investment partnerships with prior owners | $13.50 | $22.20 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 2 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 18, 2015 | |
Stockholders' equity | ||||
Common stock, shares authorized | 153,000,000 | 153,000,000 | ||
Share repurchase activity | ||||
Shares repurchased (in shares) | 1,200,000 | 100,000 | 600,000 | |
Average price (in usd per share) | $204.72 | $184.89 | $107.44 | |
Preferred Stock | ||||
Stockholders' equity | ||||
Preferred stock, shares authorized | 5,000,000 | |||
Common Stock | ||||
Share repurchase activity | ||||
Shares repurchased (in shares) | 1,200,000 | 100,000 | 600,000 | |
Average price (in usd per share) | $204.72 | $184.89 | $107.44 | |
Voting Common Stock | ||||
Stockholders' equity | ||||
Common stock, shares authorized | 150,000,000 | |||
Share repurchase activity | ||||
Stock repurchase program, remaining shares authorized for repurchase | 1,000,000 | |||
Class B Non-Voting Common Stock | ||||
Stockholders' equity | ||||
Common stock, shares authorized | 3,000,000 | |||
Subsequent Event | Common Stock | ||||
Share repurchase activity | ||||
Shares repurchased (in shares) | 300,000 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Options (Details) (USD $) | 12 Months Ended | 2 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 18, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Cash received from stock options exercised | $41.40 | $48.20 | ||
Tax benefit realized from exercise of stock options | 60.2 | 20.7 | ||
Excess tax benefit from share-based compensation | 61.5 | 17.3 | 22 | |
Total compensation cost not yet recognized | 56.8 | 79.3 | ||
Weighted average period for recognition (in years) | 3 years | |||
Options available for future grant under the Company's option plans (in shares) | 1.7 | |||
Stock Options and Other Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair value of stock options granted | 0.6 | 1 | 2.5 | |
Options exercised | -0.7 | |||
Weighted average fair value of options granted (in usd per share) | $60.20 | $61.82 | $40.43 | |
Exercises in period total intrinsic value | 92.6 | 77.4 | 86.8 | |
Intrinsic value of exercisable options | $272.90 | |||
Options available for future grant under the Company's option plans (in shares) | 3.5 | |||
Stock Options and Other Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 3 years | |||
Expiration period following grant date | 7 years | |||
Stock Options and Other Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Vesting period | 5 years | |||
Expiration period following grant date | 10 years | |||
Subsequent Event | Stock Options and Other Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options exercised | 0 |
ShareBased_Compensation_Restri
Share-Based Compensation - Restricted Stock (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average period for recognition (in years) | 3 years | ||
Restricted stock available for future grant under the Company's option plans (in shares) | 1.7 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award fair value | $8 | $34.10 | $18.10 |
Vesting period | 6 years | ||
Market condition 1 percentage | 15.00% | ||
Market condition 2 percentage | 25.00% | ||
Market condition 3 percentage | 35.00% | ||
Expected volatility | 31.60% | ||
Risk-free interest rate | 2.00% | ||
Dividend yield | 0.00% | ||
Fair value of restricted stock awards | $19.40 | ||
Weighted average period for recognition (in years) | 4 years | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 3 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period | 8 years |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Recent Share-Based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense | $29.30 | $27.50 | $25.40 |
Tax benefit | $11.30 | $10.60 | $9.60 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of Transactions of the Company's Stock Options (Details) (Stock Options and Other Awards, USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Stock Options and Other Awards | |
Stock Options | |
Stock options outstanding at the beginning of the period (options) | 3 |
Options granted | 0 |
Options exercised | -0.7 |
Options forfeited | 0 |
Stock options outstanding at the end of the period (options) | 2.3 |
Exercisable stock options, at the end of the period (options) | 2.1 |
Weighted Average Exercise Price | |
Stock options outstanding, at the beginning of the period (in usd per option) | $77.71 |
Options granted | $204.99 |
Options exercised | $60.47 |
Options forfeited | $81.50 |
Stock options outstanding, at the end of the period (in usd per option) | $83.42 |
Exercisable stock options, at the end of the period (in usd per option) | $80.92 |
Weighted Average Remaining Contractual Life (years) | |
Stock options outstanding, at the end of the period (in years) | 2 years 8 months 24 days |
Exercisable stock options, at the end of the period (in years) | 2 years 7 months 12 days |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Assumptions Used to Determine Fair Value of Options Granted (Details) (Stock Options and Other Awards) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Stock Options and Other Awards | ||||||
Assumptions used to determine fair value of options granted | ||||||
Dividend yield | 0.00% | 0.00% | 0.00% | |||
Expected volatility | 29.70% | [1] | 34.40% | [1] | 36.80% | [1] |
Risk-free interest rate | 1.80% | [2] | 1.50% | [2] | 0.70% | [2] |
Expected life of options (in years) | 5 years | [3] | 5 years | [3] | 5 years | [3] |
Forfeiture rate | 0.00% | [3] | 0.00% | [3] | 1.40% | [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_Summar1
Share-Based Compensation - Summary of Transactions of the Company's Restricted Stock (Details) (Restricted Stock, USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock | |
Restricted Stock | |
Units outstanding at the beginning of the period | 0.5 |
Units granted | 0 |
Units vested | -0.1 |
Units forfeited | 0 |
Units outstanding at the end of the period | 0.4 |
Weighted Average Grant Date Value | |
Units outstanding at the beginning of the period (in dollars per share) | $176.38 |
Units granted | $190.42 |
Units vested | $131.42 |
Units forfeited | $173.77 |
Units outstanding at the end of the period (in dollars per share) | $182.83 |
Affiliate_Equity_Details
Affiliate Equity (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliate Equity | |||
Affiliate equity compensation expense attributable to noncontrolling interest | $37 | $15.90 | $16.30 |
Compensation expenses related to Affiliate equity | 71.1 | 68.2 | |
Weighted average period of recognition | 4 years | ||
Compensation expenses related to Affiliate equity, attributable to controlling interest | $41.60 | $32.10 |
Affiliate_Equity_Summary_of_Af
Affiliate Equity - Summary of Affiliate Equity Expense (Details) (Affiliate Partners, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliate Partners | |||
Affiliate Equity | |||
Affiliate equity expense | $84.40 | $72.30 | $60.40 |
Tax benefit | $18.20 | $21.70 | $17 |
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, 2014 | Dec. 31, 2013 |
Changes in redeemable non-controlling interests during the period | ||
Beginning balance | $641.90 | $477.50 |
Transactions in Redeemable non-controlling interests | -61.7 | -52.5 |
Changes in redemption value | 65.3 | 216.9 |
Ending balance | $645.50 | $641.90 |
Afilliate_Equity_Schedule_of_t
Afilliate Equity - Schedule of the Effect of Changes in the Company'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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Affiliate Equity [Abstract] | |||||||||||||
Net income (controlling interest) | $172.60 | $103.20 | [1] | $99.10 | [1] | $77.20 | $158.20 | $75.20 | $64.70 | $62.40 | $452.10 | $360.50 | $174 |
Increase (decrease) in controlling interest paid-in capital from the sale of Affiliate equity | -33.3 | -74 | -44 | ||||||||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $418.80 | $286.50 | $130 | ||||||||||
[1] | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
plan | |||
Compensation and Retirement Disclosure [Abstract] | |||
Number of defined contribution plans | 3 | ||
Consolidated expenses related to benefit plans | $17.20 | $14.10 | $12.70 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Deferred tax benefit due to re-valuation of deferred taxes from a change in enacted tax rates in the United Kingdom | ($11.20) | ($7.30) | |
Deferred tax benefits from change in permanent status of foreign subsidiaries | 24.5 | 5.9 | |
Increase (decrease) in effective tax rate due to changes in enacted tax rate in the U.K. and deferred tax assets allowance, percentage | -6.70% | ||
Increase (decrease) in effective tax rate due to changes in enacted tax rates in the U.K. and permanent status of foreign subsidiaries, percentage | -2.70% | ||
Increase (decrease) in effective tax rate due to changes in deferred tax assets allowance and permanent status of foreign subsidiaries | -4.70% | ||
Temporary difference due to repatriation of assets from a sale or liquidation of the subsidiary | 139.4 | ||
Amount of deferred taxes not recognized | 52.4 | ||
State net operating loss carryforwards, expiration period | 18 years | ||
Foreign operating loss carryforwards, expiration period | 20 years | ||
Liability for uncertain tax positions including interest and related charges | 28.8 | 20.4 | 22.6 |
Accrued income tax interest and related charges | 1.6 | 1.7 | 2.2 |
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 26.4 | 17.2 | 19.4 |
Reductions for prior years' tax provisions | 0 | 0.1 | 5.4 |
Additions based on prior years' tax positions | $10.80 | $0 | $5.20 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Tax Provision Attributable to Controlling and Non-Controlling Interests (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income tax provision | ||||||
Current tax | $165.10 | $166.40 | $72.70 | |||
Deferred taxes | 62.8 | 27.7 | 11.1 | |||
Provision for income taxes | 227.9 | 194.1 | 83.8 | |||
Controlling Interests | ||||||
Income tax provision | ||||||
Current tax | 149.8 | 153.1 | 61 | |||
Intangible-related deferred taxes | 47.8 | 38.1 | 22.7 | |||
Other deferred taxes | 15.8 | -6.2 | -12.1 | |||
Provision for income taxes | 213.4 | 185 | 71.6 | |||
Income before income taxes (controlling interest) | 665.5 | 545.5 | 245.6 | |||
Effective tax rate attributable to controlling interests | 32.10% | [1] | 33.90% | [1] | 29.20% | [1] |
Non-Controlling Interests | ||||||
Income tax provision | ||||||
Current tax | 15.3 | 13.3 | 11.7 | |||
Deferred taxes | -0.8 | -4.2 | 0.5 | |||
Provision for income taxes | $14.50 | $9.10 | $12.20 | |||
[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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $93.80 | $104.10 | $14.50 |
State | 27.1 | 21.1 | 14.2 |
Foreign | 44.2 | 41.2 | 44 |
Total current | 165.1 | 166.4 | 72.7 |
Deferred: | |||
Federal | 72.5 | 38.1 | 19.8 |
State | 1.1 | 8.9 | 4.6 |
Foreign | -10.8 | -19.3 | -13.3 |
Total deferred | 62.8 | 27.7 | 11.1 |
Provision for income taxes | $227.90 | $194.10 | $83.80 |
Income_Taxes_Schedule_of_Compo
Income Taxes - Schedule of Components of Income before Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $784.10 | $604 | $238.60 |
International | 229.5 | 259.7 | 256.6 |
Total | $1,013.60 | $863.70 | $495.20 |
Income_Taxes_Schedule_of_Effec
Income Taxes - Schedule of Effective Income Tax Rate Computed Using Income before Income Taxes and Applying U.S. Federal Income Tax Rate (Details) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
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(1) | 2.10% | [1] | 2.80% | [1] | 3.50% | [1] |
Non-deductible expenses | 0.30% | 0.30% | 0.70% | |||
Valuation allowance(1) | 0.00% | [1] | -0.30% | [1] | -4.70% | [1] |
Effect of Non-US operations | -5.30% | -2.50% | -3.30% | |||
Effect of changes in tax law, rates | 0.00% | -1.40% | -2.00% | |||
Effect of income from non-controlling interests | -9.60% | -11.40% | -12.20% | |||
Total effective income tax rate | 22.50% | 22.50% | 17.00% | |||
[1] | State income taxes includes changes related to state valuation allowances. Valuation allowance includes changes in federal valuation allowances. |
Income_Taxes_Schedule_of_Compo1
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ||
State net operating loss carryforwards | $15.20 | $29.30 |
Deferred compensation | 26.8 | 29.1 |
Tax benefit of uncertain tax positions | 16 | 16.2 |
Accrued expenses | 19.6 | 17.6 |
Foreign loss carryforwards | 11.5 | 9.1 |
Other | 1.4 | 0 |
Total deferred tax assets | 90.5 | 101.3 |
Valuation allowance | -18.4 | -36.6 |
Deferred tax assets, net of valuation allowance | 72.1 | 64.7 |
Deferred Tax Liabilities | ||
Intangible asset amortization | -270.9 | -241.3 |
Convertible securities interest | -92.5 | -144.7 |
Non-deductible intangible amortization | -126.4 | -101.5 |
Deferred revenue | -74 | -32.1 |
Other | 0 | -2 |
Total deferred tax liabilities | -563.8 | -521.6 |
Net deferred tax liability | ($491.70) | ($456.90) |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Beginning balance | $20.40 | $22.60 | $21.20 |
Additions based on current year tax positions | 2.6 | 4.1 | 5.9 |
Additions based on prior years' tax positions | 10.8 | 0 | 5.2 |
Reductions for prior years' tax provisions | 0 | -0.1 | -5.4 |
Reductions related to lapses of statutes of limitations | -4.1 | -5.4 | -4.6 |
Additions (reductions) related to foreign exchange rates | -0.9 | -0.8 | 0.3 |
Ending balance | $28.80 | $20.40 | $22.60 |
Income_Taxes_Income_Taxes_Valu
Income Taxes Income Taxes - Valuation Allowance (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance due to foreign tax credit carryforwards | ($6.50) | ($1.60) | ($11.50) |
Operating Loss Carryforwards | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance due to foreign tax credit carryforwards | -15.7 | ||
Increase in State Uncertain Tax Positions | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in valuation allowance due to foreign tax credit carryforwards | $9.20 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Shares repurchased (in shares) | 1.2 | 0.1 | 0.6 |
Average price (in usd per share) | $204.72 | $184.89 | $107.44 |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Numerator | |||||||||||||
Net income (controlling interest) | $172.60 | $103.20 | [1] | $99.10 | [1] | $77.20 | $158.20 | $75.20 | $64.70 | $62.40 | $452.10 | $360.50 | $174 |
Interest expense on convertible securities, net of taxes | 15.2 | 10.5 | 0 | ||||||||||
Net income (controlling interest), as adjusted | $467.30 | $371 | $174 | ||||||||||
Denominator | |||||||||||||
Average shares outstanding - basic (in shares) | 55 | 53.1 | 51.7 | ||||||||||
Effect of dilutive instruments: | |||||||||||||
Stock options and other awards (in shares) | 1.2 | 1.3 | 1.3 | ||||||||||
Forward sale (in shares) | 0 | 0.3 | 0 | ||||||||||
Junior convertible securities (in shares) | 2.2 | 2 | 0 | ||||||||||
Average shares outstanding - diluted (in shares) | 58.4 | 56.7 | 53 | ||||||||||
[1] | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options and Other Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0.1 | 0.7 |
Senior Convertible Securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 2.1 | 3.6 |
Junior Convertible Trust Preferred Securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.4 | 2.2 | 4.2 |
Forward Equity Sales | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0.2 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Pre-Tax | |||
Foreign currency translation adjustment | ($62) | ($19.60) | $18.50 |
Change in net realized and unrealized gain (loss) on derivative securities | 0.6 | 1.5 | -1.1 |
Change in net unrealized gain (loss) on investment securities | 5.6 | 19.5 | 21.6 |
Other comprehensive income (loss) | -55.8 | 1.4 | 39 |
Other Comprehensive Income (Loss), Tax Expenses | |||
Change in net realized and unrealized gain (loss) on derivative securities | -0.3 | -0.5 | 0.4 |
Change in net unrealized gain (loss) on investment securities | -2.2 | -8 | -8.1 |
Other comprehensive income (loss) | -2.5 | -8.5 | -7.7 |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation adjustment | -62 | -19.6 | 18.5 |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 0.3 | 1 | -0.7 |
Change in net unrealized gain (loss) on investment securities | 3.4 | 11.5 | 13.5 |
Other comprehensive income (loss) | ($58.30) | ($7.10) | $31.30 |
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, 2014 |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance at the beginning of the period | $74.20 |
Other comprehensive income (loss) before reclassifications | -60.4 |
Amounts reclassified from other comprehensive income | 2.1 |
Net other comprehensive income (loss) | -58.3 |
Balance at the end of the period | 15.9 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance at the beginning of the period | 56.6 |
Other comprehensive income (loss) before reclassifications | -62 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income (loss) | -62 |
Balance at the end of the period | -5.4 |
Realized and Unrealized Losses on Derivative Securities | |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance at the beginning of the period | -1.9 |
Other comprehensive income (loss) before reclassifications | 0.3 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income (loss) | 0.3 |
Balance at the end of the period | -1.6 |
Unrealized Gain (Loss) on Investment Securities | |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance at the beginning of the period | 19.5 |
Other comprehensive income (loss) before reclassifications | 1.3 |
Amounts reclassified from other comprehensive income | 2.1 |
Net other comprehensive income (loss) | 3.4 |
Balance at the end of the period | $22.90 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Results of Operations(Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Revenue | $641.20 | $640.30 | [1] | $636.30 | [1] | $593.10 | $594 | $551.60 | $541 | $502.20 | $2,510.90 | $2,188.80 | $1,805.50 |
Operating income | 198.7 | 224.2 | [1] | 198.4 | [1] | 193.9 | 153.1 | 169.1 | 161.4 | 150.5 | 815.2 | 634.1 | 400.4 |
Income before income taxes | 312.8 | 253.4 | [1] | 239.1 | [1] | 208.2 | 336.6 | 187.4 | 172.4 | 167.3 | 1,013.50 | 863.7 | 495.2 |
Net income (controlling interest) | 172.6 | 103.2 | [1] | 99.1 | [1] | 77.2 | 158.2 | 75.2 | 64.7 | 62.4 | 452.1 | 360.5 | 174 |
Earnings per share - diluted (in dollars per share) | $3.02 | $1.82 | [1] | $1.75 | [1] | $1.40 | $2.79 | $1.37 | $1.18 | $1.15 | $8.01 | $6.55 | $3.28 |
EIG Global Energy Partners, LLC | |||||||||||||
Income before income taxes | 1.7 | [1] | 1.6 | [1] | |||||||||
Net income (controlling interest) | $1.10 | [1] | $1 | [1] | |||||||||
Earnings per share - diluted (in dollars per share) | $0.02 | $0.02 | [1] | ||||||||||
[1] | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
Segment_Information_Details
Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Channel | |||
Segment | |||
Segment Reporting [Abstract] | |||
Number of operating segments | 3 | ||
Number of principal distribution channels | 3 | ||
Revenue attributable to clients domiciled outside the United States (as a percent) | 37.00% | 38.00% | 41.00% |
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, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Segment Reporting Information | |||||||||||||
Revenue | $641.20 | $640.30 | [1] | $636.30 | [1] | $593.10 | $594 | $551.60 | $541 | $502.20 | $2,510.90 | $2,188.80 | $1,805.50 |
Net income (controlling interest) | 172.6 | 103.2 | [1] | 99.1 | [1] | 77.2 | 158.2 | 75.2 | 64.7 | 62.4 | 452.1 | 360.5 | 174 |
Total assets | 7,698.10 | 6,318.80 | 7,698.10 | 6,318.80 | 6,187.10 | ||||||||
Goodwill | 2,652.80 | 2,341.70 | 2,652.80 | 2,341.70 | 2,355.20 | ||||||||
Equity method investments in Affiliates | 1,031.30 | 1,123.30 | 1,031.30 | 1,123.30 | 1,783.50 | ||||||||
Institutional | |||||||||||||
Segment Reporting Information | |||||||||||||
Revenue | 1,022.80 | 948.7 | 861.3 | ||||||||||
Net income (controlling interest) | 227 | 219.9 | 126 | ||||||||||
Total assets | 3,739.80 | 3,196.50 | 3,739.80 | 3,196.50 | 3,176.50 | ||||||||
Goodwill | 1,159.10 | 1,076.30 | 1,159.10 | 1,076.30 | 1,078.50 | ||||||||
Equity method investments in Affiliates | 879.6 | 942.6 | 879.6 | 942.6 | 1,533.80 | ||||||||
Mutual Fund | |||||||||||||
Segment Reporting Information | |||||||||||||
Revenue | 1,242.60 | 1,023 | 774.4 | ||||||||||
Net income (controlling interest) | 180.1 | 103.4 | 27.3 | ||||||||||
Total assets | 3,082 | 2,448.40 | 3,082 | 2,448.40 | 2,354.80 | ||||||||
Goodwill | 1,125.30 | 928.1 | 1,125.30 | 928.1 | 939.5 | ||||||||
Equity method investments in Affiliates | 81.2 | 77.7 | 81.2 | 77.7 | 150.3 | ||||||||
High Net Worth | |||||||||||||
Segment Reporting Information | |||||||||||||
Revenue | 245.5 | 217.1 | 169.8 | ||||||||||
Net income (controlling interest) | 45 | 37.2 | 20.7 | ||||||||||
Total assets | 876.3 | 673.9 | 876.3 | 673.9 | 655.8 | ||||||||
Goodwill | 368.4 | 337.3 | 368.4 | 337.3 | 337.2 | ||||||||
Equity method investments in Affiliates | $70.50 | $103 | $70.50 | $103 | $99.40 | ||||||||
[1] | In the fourth quarter of 2014, the Company finalized its purchase price allocation for its investment in EIG. The final purchase price allocation resulted in a change in Income from equity method investments and Intangible-related deferred taxes in the second and third quarters of 2014. Income before taxes decreased $1.6 million and $1.7 million in the second and third quarters, respectively, Net income (controlling interest) decreased $1.0 million and $1.1 million in the second and third quarters, respectively, and Earnings per share (diluted) decreased $0.02 in both periods. |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Tax Valuation Allowance | ||||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||||
Balance at the beginning of the period | $36.60 | $21.30 | $35.60 | |||
Additions charged to costs and expenses | 0 | 16.9 | 0 | |||
Additions charged to other accounts | 0 | 0 | 0 | |||
Deductions | 18.2 | 1.6 | 14.3 | |||
Balance at the end of the period | 18.4 | 36.6 | 21.3 | |||
Other Allowances | ||||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||||
Balance at the beginning of the period | 8.8 | [1] | 8.4 | [1] | 9.6 | [1] |
Additions charged to costs and expenses | 4.7 | [1] | 2.8 | [1] | 0.1 | [1] |
Additions charged to other accounts | 0 | [1] | 0 | [1] | 0 | [1] |
Deductions | 1.4 | [1] | 2.4 | [1] | 1.3 | [1] |
Balance at the end of the period | $12.10 | [1] | $8.80 | [1] | $8.40 | [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. |