Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | AFFILIATED MANAGERS GROUP, INC. | |
Entity Central Index Key | 1004434 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,723,845 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $635 | $593.10 |
Operating expenses: | ||
Compensation and related expenses | 252.8 | 235.7 |
Selling, general and administrative | 108.7 | 122.3 |
Intangible amortization and impairments | 27.8 | 27.4 |
Depreciation and other amortization | 4.4 | 3.8 |
Other operating expenses | 9.9 | 9.9 |
Total operating expenses | 403.6 | 399.1 |
Operating income | 231.4 | 194 |
Income from equity method investments | 53.1 | 46.2 |
Other non-operating (income) and expenses: | ||
Investment and other income | -0.8 | -8.2 |
Interest expense | 22.2 | 17.6 |
Imputed interest expense and contingent payment arrangements | -27.2 | 22.5 |
Total non-operating (income) and expenses | -5.8 | 31.9 |
Income before income taxes | 290.3 | 208.3 |
Income taxes | 69.6 | 48.9 |
Net income | 220.7 | 159.4 |
Net income (non-controlling interests) | -92.7 | -82.2 |
Net income (controlling interest) | $128 | $77.20 |
Average shares outstanding—basic (in shares) | 54.8 | 53.7 |
Average shares outstanding—diluted (in shares) | 57.8 | 55.2 |
Earnings per share—basic (in dollars per share) | $2.34 | $1.44 |
Earnings per share—diluted (in dollars per share) | $2.28 | $1.40 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $220.70 | $159.40 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | -60.1 | -8.8 |
Change in net realized and unrealized gain on derivative securities, net of tax | 2.7 | 0.2 |
Change in net unrealized gain (loss) on investment securities, net of tax | 8.7 | -13.8 |
Other comprehensive loss | -48.7 | -22.4 |
Comprehensive income | 172 | 137 |
Comprehensive income (non-controlling interests) | -78.6 | -82.4 |
Comprehensive income (controlling interest) | $93.40 | $54.60 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $438.20 | $550.60 |
Receivables | 514 | 425.9 |
Investments in marketable securities | 192.9 | 172.6 |
Other investments | 158 | 167.2 |
Fixed assets, net | 94.9 | 95.4 |
Goodwill | 2,621.20 | 2,652.80 |
Acquired client relationships, net | 1,724.70 | 1,778.40 |
Equity method investments in Affiliates | 1,678 | 1,783.50 |
Other assets | 72 | 71.7 |
Total assets | 7,493.90 | 7,698.10 |
Liabilities and Equity | ||
Payables and accrued liabilities | 577.2 | 808.3 |
Senior bank debt | 535 | 855 |
Senior notes | 1,084.20 | 736.8 |
Convertible securities | 303.6 | 303.1 |
Deferred income taxes | 524.6 | 491.7 |
Other liabilities | 181.3 | 214.5 |
Total liabilities | 3,205.90 | 3,409.40 |
Redeemable non-controlling interests | 743.2 | 645.5 |
Equity: | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 519.2 | 672.2 |
Accumulated other comprehensive income (loss) | -2.8 | 31.8 |
Retained earnings | 2,291.30 | 2,163.30 |
Total stockholders' equity before treasury stock | 2,808.30 | 2,867.90 |
Less: Treasury stock, at cost | -250.5 | -240.9 |
Total stockholders' equity | 2,557.80 | 2,627 |
Non-controlling interests | 987 | 1,016.20 |
Total equity | 3,544.80 | 3,643.20 |
Total liabilities and equity | $7,493.90 | $7,698.10 |
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 | Noncontrolling Interest |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2013 | $3,144.60 | $0.50 | $479.90 | $74 | $1,711.20 | ($131.40) | $1,010.40 |
Beginning Balance (in shares) at Dec. 31, 2013 | 53.9 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 159.4 | 77.2 | 82.2 | ||||
Share-based compensation | 6.5 | 6.5 | |||||
Common stock issued under share-based incentive plans | -37.7 | -67.5 | 29.8 | ||||
Tax benefit from share-based incentive plans | 33.1 | 33.1 | |||||
Settlement of senior convertible securities (in shares) | 1.9 | ||||||
Settlement of senior convertible securities | 276.5 | 0.1 | 276.4 | ||||
Forward equity | -9.4 | -9.4 | |||||
Investments in Affiliates | 78.9 | 78.9 | |||||
Affiliate equity activity | -34.8 | -27.4 | -7.4 | ||||
Distributions to non-controlling interests | -219 | -219 | |||||
Other comprehensive income (loss) | -22.4 | -22.6 | 0.2 | ||||
Ending Balance at Mar. 31, 2014 | 3,375.70 | 0.6 | 691.6 | 51.4 | 1,788.40 | -101.6 | 945.3 |
Ending Balance (in shares) at Mar. 31, 2014 | 55.8 | ||||||
Beginning Balance at Dec. 31, 2014 | 3,643.20 | 0.6 | 672.2 | 31.8 | 2,163.30 | -240.9 | 1,016.20 |
Beginning Balance (in shares) at Dec. 31, 2014 | 55.8 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 220.7 | 128 | 92.7 | ||||
Share-based compensation | 8 | 8 | |||||
Common stock issued under share-based incentive plans | 40.1 | -100.3 | 140.4 | ||||
Tax benefit from share-based incentive plans | 34.5 | 34.5 | |||||
Affiliate equity activity | -88.4 | -95.2 | 6.8 | ||||
Share repurchases | -150 | -150 | |||||
Distributions to non-controlling interests | -114.6 | -114.6 | |||||
Other comprehensive income (loss) | -48.7 | -34.6 | -14.1 | ||||
Ending Balance at Mar. 31, 2015 | $3,544.80 | $0.60 | $519.20 | ($2.80) | $2,291.30 | ($250.50) | $987 |
Ending Balance (in shares) at Mar. 31, 2015 | 55.8 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flow from (used in) operating activities: | ||
Net income | $220.70 | $159.40 |
Adjustments to reconcile Net income to net Cash flow from operating activities: | ||
Intangible amortization and impairments | 27.8 | 27.4 |
Depreciation and other amortization | 4.4 | 3.8 |
Deferred income tax provision | 34.1 | 15.1 |
Imputed interest expense and contingent payment arrangements | -27.2 | 22.5 |
Income from equity method investments, net of amortization | -53.1 | -46.2 |
Distributions received from equity method investments | 153.8 | 208.2 |
Share-based compensation and Affiliate equity expense | 17.3 | 14.1 |
Other non-cash items | 2.7 | 8.8 |
Changes in assets and liabilities: | ||
Increase in receivables | -72.4 | -66.5 |
(Increase) decrease in other assets | -5.6 | 1.9 |
Decrease in payables, accrued liabilities and other liabilities | -183.4 | -50.8 |
Cash flow from operating activities | 119.1 | 297.7 |
Cash flow from (used in) investing activities: | ||
Investments in Affiliates | 0 | -108.9 |
Purchase of fixed assets | -4.7 | -4.1 |
Purchase of investment securities | -1.4 | -2.5 |
Sale of investment securities | 1.8 | 1.2 |
Cash flow used in investing activities | -4.3 | -114.3 |
Cash flow from (used in) financing activities: | ||
Borrowings of senior debt | 523.3 | 696.5 |
Repayments of senior debt and convertible securities | -496 | -425.6 |
Issuance of common stock | 43.6 | 6.8 |
Repurchase of common stock | -197.8 | 0 |
Note and contingent payments | 5.9 | 5.1 |
Distributions to non-controlling interests | -114.6 | -219 |
Affiliate equity issuances and repurchases | -13.1 | 0.2 |
Excess tax benefit from share-based compensation | 34.5 | 33.1 |
Other financing items | -3.3 | -3 |
Cash flow from (used in) financing activities | -217.5 | 94.1 |
Effect of foreign exchange rate changes on cash and cash equivalents | -9.7 | 0 |
Net decrease in cash and cash equivalents | -112.4 | 277.5 |
Cash and cash equivalents at beginning of period | 550.6 | 469.6 |
Cash and cash equivalents at end of period | 438.2 | 747.1 |
Supplemental disclosure of non-cash financing activities: | ||
Settlement of 2006 junior convertible securities | 0 | 217.8 |
Stock issued under other incentive plans | 9.5 | 61.6 |
Stock received in settlement of liability | 3.1 | 44 |
Payables recorded for Affiliate equity repurchases | $12.90 | $55.20 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The consolidated financial statements of Affiliated Managers Group, Inc. (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results have been included. All intercompany balances and transactions have been eliminated. Certain reclassifications have been made to the prior period's financial statements to conform to the current period's presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for any other period or for the full year. The Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 includes additional information about its operations, financial position and accounting policies, and should be read in conjunction with this Quarterly Report on Form 10-Q. | |
All amounts in these notes, except per share data in the text and tables herein, are stated in millions unless otherwise indicated. |
Recent_Accounting_Developments
Recent Accounting Developments | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Developments | Recent Accounting Developments |
In February 2015, the Financial Accounting Standard Board (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. | |
In April 2015, the FASB issued a new standard aimed at reducing diversity in the presentation of debt issuance costs. The new standard requires debt issuance costs to be presented on the balance sheet as a deduction from the related debt. The new standard is effective for interim and fiscal periods beginning after December 15, 2015, and early adoption is permitted. The Company does not anticipate that this new standard will have a material impact on its financial position, results of operations or cash flows. |
Investments_in_Marketable_Secu
Investments in Marketable Securities | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Investments in Marketable Securities | Investments in Marketable Securities | |||||||||||||||
Investments in marketable securities at December 31, 2014 and March 31, 2015 were $172.6 million and $192.9 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, 2014 and March 31, 2015: | ||||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
December 31, | March 31, | December 31, | March 31, | |||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Cost | $ | 125.6 | $ | 123.1 | $ | 19.5 | $ | 21.9 | ||||||||
Unrealized Gains | 42.8 | 49.8 | 2.9 | 3.5 | ||||||||||||
Unrealized Losses | (18.1 | ) | (5.0 | ) | (0.1 | ) | (0.4 | ) | ||||||||
Fair Value | $ | 150.3 | $ | 167.9 | $ | 22.3 | $ | 25 | ||||||||
There were no significant realized gains or losses on investments classified as available-for-sale for the three months ended March 31, 2014 and 2015. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Variable Interest Entities | ||||||||||||||||
Variable Interest Entities | Variable Interest Entities | |||||||||||||||
The Company's consolidated Affiliates act as investment managers for certain investment funds that are considered variable interest entities ("VIEs"). These 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, 2014 and March 31, 2015. These Affiliates do not have any investment performance guarantees to these VIEs. | ||||||||||||||||
Consolidated 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 relevant fund's assets under management. Since these Affiliates' variable interests will not absorb the majority of the variability of the VIE'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-14 | 31-Mar-15 | |||||||||||||||
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 | $ | 8,550.40 | $ | 1.2 | $ | 6,525.70 | $ | 1.2 | ||||||||
Senior_Debt
Senior Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Senior Debt | Debt |
On February 13, 2015, the Company issued $350.0 million aggregate principal amount of 3.50% senior unsecured notes due 2025 (the “2025 senior notes”). The 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. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||||||
From time to time, the Company seeks to offset its exposure to changing interest rates under its debt financing arrangements and certain of its Affiliates seek to offset their exposure to changing foreign currency rates on projected expenses and revenues by entering into derivative contracts. | |||||||||||||||||||||
The following table summarizes the interest rate swap agreements outstanding at March 31, 2015: | |||||||||||||||||||||
Fair Value(1) | |||||||||||||||||||||
Notional | Paying | Receiving | Start Date | Expiration Date | 31-Dec-14 | 31-Mar-15 | |||||||||||||||
Amount | |||||||||||||||||||||
Counterparty A | $ | 25 | 1.67 | % | 3-Month LIBOR | Oct-10 | Oct-15 | $ | 0.3 | $ | 0.2 | ||||||||||
Counterparty A | $ | 25 | 1.65 | % | 3-Month LIBOR | Oct-10 | Oct-15 | 0.3 | 0.2 | ||||||||||||
Counterparty B | $ | 25 | 1.59 | % | 3-Month LIBOR | Oct-10 | Oct-15 | 0.2 | 0.1 | ||||||||||||
Counterparty B | $ | 25 | 2.14 | % | 3-Month LIBOR | Oct-10 | Oct-17 | 0.6 | 0.7 | ||||||||||||
__________________________ | |||||||||||||||||||||
-1 | Aggregate fair values of $1.4 million and $1.2 million at December 31, 2014 and March 31, 2015, respectively, are presented within Other liabilities. The Company posted collateral with its counterparties of $2.4 million. | ||||||||||||||||||||
The Company’s Affiliates entered into foreign currency forward contracts to hedge projected revenues and expenses denominated in currencies other than their functional currency. The following table summarizes the foreign currency forward contracts outstanding at March 31, 2015: | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Paying | Receiving | Start Date | Expected Settlement | December 31, 2014 (1) | March 31, 2015 (2) | ||||||||||||||||
Counterparty C | € 21.00 | $25.70 | Dec-14 | Quarterly 2015 | $ | 0.3 | $ | 3.2 | |||||||||||||
Counterparty C | $11.30 | £7.0 | Sep-14 | Monthly 2015 | (0.8 | ) | (0.9 | ) | |||||||||||||
__________________________ | |||||||||||||||||||||
-1 | Aggregate fair value of $(0.5) million is presented within Other assets. | ||||||||||||||||||||
-2 | Fair value of $3.2 million is presented within Other assets and $(0.9) million is presented within Other liabilities. These amounts are expected to be reclassified into earnings within the next twelve months. | ||||||||||||||||||||
During the three months ended March 31, 2015, the Company realized $0.3 million of gains and $0.6 million of losses upon the settlement of certain foreign currency forward contracts. Such realized gains and losses are presented gross in the Consolidated Statements of Income within Revenue and Operating Expenses, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
The Company has committed to co-invest in certain investment partnerships. As of March 31, 2015, these unfunded commitments were $66.4 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 $19.3 million of these commitments if they are called. | |
Under past acquisition agreements, the Company is contingently liable, upon achievement of specified financial targets, to make payments of up to $276.0 million through 2017. As of March 31, 2015, the Company expects to make payments of $34.9 million and $22.5 million to settle obligations related to consolidated and equity method Affiliates, respectively. In 2015, we expect to make payments of $40.0 million associated with these contingent arrangements. The net present value of the expected payments for consolidated Affiliates totals $31.5 million as of March 31, 2015. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||
Cash equivalents | $ | 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 | ||||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 59.3 | $ | — | $ | — | $ | 59.3 | ||||||||||||||||||
Obligations to related parties(2) | 93.1 | — | — | 93.1 | ||||||||||||||||||||||
Interest rate swaps | 1.4 | — | 1.4 | — | ||||||||||||||||||||||
Foreign currency forward contracts | 0.5 | — | 0.5 | — | ||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||
Cash equivalents | $ | 35 | $ | 35 | $ | — | $ | — | ||||||||||||||||||
Investments in marketable securities(1) | ||||||||||||||||||||||||||
Trading securities | 25 | 25 | — | — | ||||||||||||||||||||||
Available-for-sale securities | 167.9 | 167.9 | — | — | ||||||||||||||||||||||
Other investments | 158 | 14.2 | 10 | 133.8 | ||||||||||||||||||||||
Foreign currency forward contracts | 3.2 | — | 3.2 | — | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 31.5 | $ | — | $ | — | $ | 31.5 | ||||||||||||||||||
Obligations to related parties(2) | 86.1 | — | — | 86.1 | ||||||||||||||||||||||
Interest rate swaps | 1.2 | — | 1.2 | — | ||||||||||||||||||||||
Foreign currency forward contracts | 0.9 | — | 0.9 | — | ||||||||||||||||||||||
__________________________ | ||||||||||||||||||||||||||
(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 fair value. | ||||||||||||||||||||||||||
It is the Company's policy to value financial assets or liabilities transferred as of the beginning of the period in which the transfer occurs. There were no transfers of financial assets or liabilities between Level 1 and Level 2 in the three months ended March 31, 2014 and 2015, respectively. | ||||||||||||||||||||||||||
Level 3 Financial Assets and Liabilities | ||||||||||||||||||||||||||
The following table presents the changes in Level 3 assets and liabilities for the three months ended March 31, 2014 and 2015: | ||||||||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | |||||||||||||||||||||
Balance, beginning of period | $ | 131.8 | $ | 50.2 | $ | 76.9 | $ | 134.2 | $ | 59.3 | $ | 93.1 | ||||||||||||||
Net gains/losses | 5.8 | (1) | 3 | (2) | 2.5 | (3) | (4.2 | ) | (1) | (27.8 | ) | (2) | (0.1 | ) | (3) | |||||||||||
Purchases and issuances | 3.7 | — | 59.4 | 2.5 | — | 16.8 | ||||||||||||||||||||
Settlements and reductions | (5.4 | ) | — | (6.9 | ) | (5.2 | ) | — | (23.7 | ) | ||||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | 6.5 | — | — | ||||||||||||||||||||
Balance, end of period | $ | 135.9 | $ | 53.2 | $ | 131.9 | $ | 133.8 | $ | 31.5 | $ | 86.1 | ||||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 6.9 | (1) | $ | 3 | (2) | $ | 0.9 | (3) | $ | (1.2 | ) | (1) | $ | (27.8 | ) | (2) | $ | (4.0 | ) | (3) | |||||
___________________________ | ||||||||||||||||||||||||||
(1) | Gains and losses on Other investments are recorded in Investment and other income. | |||||||||||||||||||||||||
(2) | Accretion and changes to 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 | Fair Value at | Range at | Fair Value at March 31, 2015 | Range at March 31, 2015 | |||||||||||||||||||||
Techniques | Input | December 31, | 31-Dec-14 | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 59.3 | 6% | $ | 31.5 | 5% | ||||||||||||||||||
Discount rates | 15% | 13% - 15% | ||||||||||||||||||||||||
Affiliate equity obligations | Discounted cash flow | Growth rates | 21.5 | 5% - 9% | 16.8 | 1% - 10% | ||||||||||||||||||||
Discount rates | 15% - 16% | 12% - 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, 2014 and March 31, 2015, the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: | ||||||||||||||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | ||||||||||||||||||||||
Commitments | Commitments | |||||||||||||||||||||||||
Private equity funds(1) | $ | 134.2 | $ | 67.8 | $ | 133.8 | $ | 66.4 | ||||||||||||||||||
Other funds(2) | 75.8 | — | 87.8 | — | ||||||||||||||||||||||
$ | 210 | $ | 67.8 | $ | 221.6 | $ | 66.4 | |||||||||||||||||||
___________________________ | ||||||||||||||||||||||||||
(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, which is generally up to 15 years. | |||||||||||||||||||||||||
(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-14 | 31-Mar-15 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Fair Value Hierarchy | ||||||||||||||||||||||
Senior notes | $ | 736.8 | $ | 786.2 | $ | 1,084.20 | $ | 1,136.10 | Level 2 | |||||||||||||||||
Convertible securities | 303.1 | 532.1 | 303.6 | 525.6 | Level 2 | |||||||||||||||||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||
Consolidated Affiliates | ||||||||||||||||||||
The following tables present the change in goodwill and components of acquired client relationships during the three months ended March 31, 2015: | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
Balance, as of December 31, 2014 | $ | 1,159.10 | $ | 1,125.30 | $ | 368.4 | $ | 2,652.80 | ||||||||||||
Goodwill acquired | — | — | — | — | ||||||||||||||||
Foreign currency translation | (17.9 | ) | (3.5 | ) | (10.2 | ) | (31.6 | ) | ||||||||||||
Balance, as of March 31, 2015 | $ | 1,141.20 | $ | 1,121.80 | $ | 358.2 | $ | 2,621.20 | ||||||||||||
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, 2014 | $ | 1,255.10 | $ | (565.0 | ) | $ | 690.1 | $ | 1,088.30 | $ | 1,778.40 | |||||||||
New investments | — | — | — | — | — | |||||||||||||||
Intangible amortization and impairments | — | (27.8 | ) | (27.8 | ) | — | (27.8 | ) | ||||||||||||
Foreign currency translation | (5.1 | ) | — | (5.1 | ) | (20.8 | ) | (25.9 | ) | |||||||||||
Balance, as of March 31, 2015 | $ | 1,250.00 | $ | (592.8 | ) | $ | 657.2 | $ | 1,067.50 | $ | 1,724.70 | |||||||||
Definite-lived acquired client relationships are amortized over their expected useful lives. As of March 31, 2015, these relationships were being amortized over a weighted average life of approximately ten years. The Company recognized amortization expenses for these relationships of $27.4 million and $27.8 million for the three months ended March 31, 2014 and 2015, respectively. Based on relationships existing as of March 31, 2015, the Company estimates that its consolidated annual amortization expense will be approximately $120.0 million for each of the next five years, assuming no additional investments in new or existing Affiliates. | ||||||||||||||||||||
Equity Method Investments in Affiliates | ||||||||||||||||||||
The intangible assets at the Company's equity method Affiliates consist of definite-lived and indefinite-lived acquired client relationships and goodwill. As of March 31, 2015, the definite-lived relationships were being amortized over a weighted average life of approximately 14 years. The Company recognized amortization expense for these relationships of $5.4 million and $8.8 million for the three months ended March 31, 2014 and 2015, respectively. Based on relationships existing as of March 31, 2015, the Company estimates the annual amortization expense will be approximately $34.0 million in 2015 and $32.0 million in each of 2016, 2017, 2018 and 2019. There were no significant changes to goodwill during the three months ended March 31, 2015. | ||||||||||||||||||||
On December 26, 2014, the Company completed an additional investment in AQR Capital Management Holdings, LLC. The Company's purchase price allocation is provisional and may be revised upon completion. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||
A summary of share-based compensation is as follows: | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2015 | ||||||||
Share-based compensation | $ | 6.5 | $ | 8 | |||||
Tax benefit | 2.5 | 3.1 | |||||||
There was $56.8 million and $95.9 million of unrecognized share-based compensation as of December 31, 2014 and March 31, 2015, respectively, which will be recognized over a weighted-average period of approximately three years (assuming no forfeitures). | |||||||||
Stock Options | |||||||||
The following table summarizes the transactions of the Company's stock options: | |||||||||
Stock Options | Weighted Average | Weighted Average | |||||||
Exercise Price | Remaining | ||||||||
Contractual Life | |||||||||
(years) | |||||||||
Unexercised options outstanding—December 31, 2014 | 2.3 | $ | 83.42 | ||||||
Options granted | 0 | 197.79 | |||||||
Options exercised | (0.7 | ) | 65.72 | ||||||
Options forfeited | (0.0 | ) | 101.29 | ||||||
Unexercised options outstanding—March 31, 2015 | 1.6 | 91.37 | 2.7 | ||||||
Exercisable at March 31, 2015 | 1.4 | 88.6 | 2.6 | ||||||
As of March 31, 2015, 0.1 million options outstanding have expiration dates prior to the end of 2015. | |||||||||
Restricted Stock | |||||||||
The following table summarizes the transactions of the Company's restricted stock units: | |||||||||
Restricted | Weighted | ||||||||
Stock | Average | ||||||||
Grant Date | |||||||||
Value | |||||||||
Unvested units—December 31, 2014 | 0.4 | $ | 182.83 | ||||||
Units granted | 0.3 | 197.91 | |||||||
Units vested | (0.1 | ) | 166.56 | ||||||
Units forfeited | (0.0 | ) | 190.65 | ||||||
Unvested units—March 31, 2015 | 0.6 | 192.06 | |||||||
Of the 0.3 million units granted in January 2015, 0.2 million contained service-based vesting conditions and the remaining 0.1 million vest if both a requisite service period and certain performance conditions have been satisfied. The fair value of the awards were based on the closing price of the Company's common stock on the date of grant and will be recognized as compensation over a service period of four years. |
Affiliate_Equity
Affiliate Equity | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Affiliate Equity [Abstract] | ||||||||
Affiliate Equity | Affiliate Equity | |||||||
A summary of Affiliate equity expense is as follows: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Affiliate equity expense | $ | 14.8 | $ | 9.3 | ||||
Tax benefit | 2.9 | 1.5 | ||||||
Affiliate equity expense attributable to the non-controlling interests was $7.2 million and $5.3 million in the three months ended March 31, 2014 and 2015, respectively. As of December 31, 2014 and March 31, 2015, the Company had $71.1 million and $77.9 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 expense, $41.6 million and $50.5 million was attributable to the non-controlling interests, respectively. | ||||||||
The Company has a conditional right to call and holders of non-controlling interests have a conditional right to put their equity interests at certain intervals. The current redemption value of these interests has been presented as Redeemable non-controlling interests on the 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: | ||||||||
Redeemable Non-controlling Interests | ||||||||
Balance, as of December 31, 2014 | $ | 645.5 | ||||||
Transactions in Redeemable non-controlling interests | (12.2 | ) | ||||||
Changes in redemption value | 109.9 | |||||||
Balance, as of March 31, 2015 | $ | 743.2 | ||||||
During the three months ended March 31, 2014 and 2015, the Company acquired interests from, and transferred interests to, Affiliate management. The following schedule discloses the effect of changes in the Company's ownership interest in its Affiliates on the controlling interest's equity: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Net income (controlling interest) | $ | 77.2 | $ | 128 | ||||
Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity | (16.3 | ) | (3.0 | ) | ||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 60.9 | $ | 125 | ||||
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Controlling interests: | ||||||||
Current tax | $ | 30.3 | $ | 32 | ||||
Intangible-related deferred taxes | 16.9 | 20.4 | ||||||
Other deferred taxes | (1.6 | ) | 13.9 | |||||
Total controlling interests | 45.6 | 66.3 | ||||||
Non-controlling interests: | ||||||||
Current tax | $ | 3.5 | $ | 3.5 | ||||
Deferred taxes | (0.2 | ) | (0.2 | ) | ||||
Total non-controlling interests | 3.3 | 3.3 | ||||||
Provision for income taxes | $ | 48.9 | $ | 69.6 | ||||
Income before income taxes (controlling interest) | $ | 122.8 | $ | 194.3 | ||||
Effective tax rate attributable to controlling interest(1) | 37.1 | % | 34.1 | % | ||||
__________________________ | ||||||||
-1 | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). | |||||||
The Effective tax rate attributable to controlling interest was 37.1% and 34.1% for the three months ended March 31, 2014 and 2015, respectively. The decrease resulted primarily from the 2014 restructuring of certain non-U.S. entities and an indefinite reinvestment of $6.3 million of non-U.S. earnings in the three months ended March 31, 2015. | ||||||||
As of March 31, 2015, the Company carried a liability for uncertain tax positions of $27.7 million, including $1.8 million for interest and related charges. At March 31, 2015, this liability also included $25.5 million for tax positions that, if recognized, would affect the Company's effective tax rate. | ||||||||
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. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings Per Share | |||||||
The calculation of basic earnings per share is based on the weighted average number of shares of the Company's common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share, but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company's common stock. The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders. | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Numerator | ||||||||
Net income (controlling interest) | $ | 77.2 | $ | 128 | ||||
Convertible securities interest expense, net | — | 3.8 | ||||||
Net income (controlling interest), as adjusted | $ | 77.2 | $ | 131.8 | ||||
Denominator | ||||||||
Average shares outstanding (basic) | 53.7 | 54.8 | ||||||
Effect of dilutive instruments: | ||||||||
Stock options and restricted stock | 1.3 | 0.8 | ||||||
Forward equity | 0.2 | — | ||||||
Junior convertible securities | — | 2.2 | ||||||
Average shares outstanding (diluted) | 55.2 | 57.8 | ||||||
The diluted earnings per share calculations in the table above exclude restricted stock units for which performance or market conditions have not yet been met and the anti-dilutive effect of the following shares: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Stock options and restricted stock | 0.3 | 0.1 | ||||||
Junior convertible securities | 3.7 | — | ||||||
Comprehensive_Income
Comprehensive Income | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income | |||||||||||||||||||||||
The following table shows the tax effects allocated to each component of Other comprehensive income: | ||||||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||
Pre-Tax | Tax Benefit | Net of Tax | Pre-Tax | Tax Benefit | Net of Tax | |||||||||||||||||||
(Expense) | (Expense) | |||||||||||||||||||||||
Foreign currency translation adjustment | $ | (8.8 | ) | $ | — | $ | (8.8 | ) | $ | (60.1 | ) | $ | — | $ | (60.1 | ) | ||||||||
Change in net realized and unrealized gain (loss) on derivative securities | 0.3 | (0.1 | ) | 0.2 | 2.8 | (0.1 | ) | 2.7 | ||||||||||||||||
Change in net unrealized gain (loss) on investment securities | (22.2 | ) | 8.4 | (13.8 | ) | 14.2 | (5.5 | ) | 8.7 | |||||||||||||||
Other comprehensive loss | $ | (30.7 | ) | $ | 8.3 | $ | (22.4 | ) | $ | (43.1 | ) | $ | (5.6 | ) | $ | (48.7 | ) | |||||||
The components of Accumulated other comprehensive income, net of taxes, are as follows: | ||||||||||||||||||||||||
Foreign | Realized and | Unrealized | Total | |||||||||||||||||||||
Currency | Unrealized Losses | Gain (Loss) | ||||||||||||||||||||||
Translation | on Derivative | on Investment | ||||||||||||||||||||||
Adjustment | Securities | Securities | ||||||||||||||||||||||
Balance, as of December 31, 2014 | $ | (5.4 | ) | $ | (1.6 | ) | $ | 22.9 | $ | 15.9 | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (60.1 | ) | 2.4 | 8.6 | (49.1 | ) | ||||||||||||||||||
Amounts reclassified from other comprehensive income | — | 0.3 | 0.1 | 0.4 | ||||||||||||||||||||
Net other comprehensive income (loss) | (60.1 | ) | 2.7 | 8.7 | (48.7 | ) | ||||||||||||||||||
Balance, as of March 31, 2015 | $ | (65.5 | ) | $ | 1.1 | $ | 31.6 | $ | (32.8 | ) | ||||||||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 | ||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 244.9 | $ | 291.9 | $ | 56.3 | $ | 593.1 | ||||||||
Net income (controlling interest) | 35.9 | 34.1 | 7.2 | 77.2 | ||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 252.9 | $ | 318.3 | $ | 63.8 | $ | 635 | ||||||||
Net income (controlling interest) | 48.7 | 67.6 | 11.7 | 128 | ||||||||||||
Total Assets | ||||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||
Institutional | $ | 3,739.80 | $ | 3,417.20 | ||||||||||||
Mutual Fund | 3,082.00 | 3,253.90 | ||||||||||||||
High Net Worth | 876.3 | 822.8 | ||||||||||||||
Total | $ | 7,698.10 | $ | 7,493.90 | ||||||||||||
Investments_in_Marketable_Secu1
Investments in Marketable Securities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Schedule of Available-For-Sale and Trading Securities | 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, 2014 and March 31, 2015: | |||||||||||||||
Available-for-Sale | Trading | |||||||||||||||
December 31, | March 31, | December 31, | March 31, | |||||||||||||
2014 | 2015 | 2014 | 2015 | |||||||||||||
Cost | $ | 125.6 | $ | 123.1 | $ | 19.5 | $ | 21.9 | ||||||||
Unrealized Gains | 42.8 | 49.8 | 2.9 | 3.5 | ||||||||||||
Unrealized Losses | (18.1 | ) | (5.0 | ) | (0.1 | ) | (0.4 | ) | ||||||||
Fair Value | $ | 150.3 | $ | 167.9 | $ | 22.3 | $ | 25 | ||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Variable Interest Entities | ||||||||||||||||
Schedule of Unconsolidated VIE's and Company Risk | The net assets and liabilities of these unconsolidated VIEs and the Company's maximum risk of loss are as follows: | |||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||
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 | $ | 8,550.40 | $ | 1.2 | $ | 6,525.70 | $ | 1.2 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Interest Rate Swap Agreements | The following table summarizes the interest rate swap agreements outstanding at March 31, 2015: | ||||||||||||||||||||
Fair Value(1) | |||||||||||||||||||||
Notional | Paying | Receiving | Start Date | Expiration Date | 31-Dec-14 | 31-Mar-15 | |||||||||||||||
Amount | |||||||||||||||||||||
Counterparty A | $ | 25 | 1.67 | % | 3-Month LIBOR | Oct-10 | Oct-15 | $ | 0.3 | $ | 0.2 | ||||||||||
Counterparty A | $ | 25 | 1.65 | % | 3-Month LIBOR | Oct-10 | Oct-15 | 0.3 | 0.2 | ||||||||||||
Counterparty B | $ | 25 | 1.59 | % | 3-Month LIBOR | Oct-10 | Oct-15 | 0.2 | 0.1 | ||||||||||||
Counterparty B | $ | 25 | 2.14 | % | 3-Month LIBOR | Oct-10 | Oct-17 | 0.6 | 0.7 | ||||||||||||
Schedule of Foreign Currency Forward Contracts | The following table summarizes the foreign currency forward contracts outstanding at March 31, 2015: | ||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Paying | Receiving | Start Date | Expected Settlement | December 31, 2014 (1) | March 31, 2015 (2) | ||||||||||||||||
Counterparty C | € 21.00 | $25.70 | Dec-14 | Quarterly 2015 | $ | 0.3 | $ | 3.2 | |||||||||||||
Counterparty C | $11.30 | £7.0 | Sep-14 | Monthly 2015 | (0.8 | ) | (0.9 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||
Schedule of Fair Value of 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 | ||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||
2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||
Cash equivalents | $ | 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 | ||||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 59.3 | $ | — | $ | — | $ | 59.3 | ||||||||||||||||||
Obligations to related parties(2) | 93.1 | — | — | 93.1 | ||||||||||||||||||||||
Interest rate swaps | 1.4 | — | 1.4 | — | ||||||||||||||||||||||
Foreign currency forward contracts | 0.5 | — | 0.5 | — | ||||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
2015 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Financial Assets | ||||||||||||||||||||||||||
Cash equivalents | $ | 35 | $ | 35 | $ | — | $ | — | ||||||||||||||||||
Investments in marketable securities(1) | ||||||||||||||||||||||||||
Trading securities | 25 | 25 | — | — | ||||||||||||||||||||||
Available-for-sale securities | 167.9 | 167.9 | — | — | ||||||||||||||||||||||
Other investments | 158 | 14.2 | 10 | 133.8 | ||||||||||||||||||||||
Foreign currency forward contracts | 3.2 | — | 3.2 | — | ||||||||||||||||||||||
Financial Liabilities | ||||||||||||||||||||||||||
Contingent payment arrangements(2) | $ | 31.5 | $ | — | $ | — | $ | 31.5 | ||||||||||||||||||
Obligations to related parties(2) | 86.1 | — | — | 86.1 | ||||||||||||||||||||||
Interest rate swaps | 1.2 | — | 1.2 | — | ||||||||||||||||||||||
Foreign currency forward contracts | 0.9 | — | 0.9 | — | ||||||||||||||||||||||
__________________________ | ||||||||||||||||||||||||||
(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 Assets and Liabilities | The following table presents the changes in Level 3 assets and liabilities for the three months ended March 31, 2014 and 2015: | |||||||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||||
Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | Other Investments | Contingent Payment Arrangements | Obligations to Related Parties | |||||||||||||||||||||
Balance, beginning of period | $ | 131.8 | $ | 50.2 | $ | 76.9 | $ | 134.2 | $ | 59.3 | $ | 93.1 | ||||||||||||||
Net gains/losses | 5.8 | (1) | 3 | (2) | 2.5 | (3) | (4.2 | ) | (1) | (27.8 | ) | (2) | (0.1 | ) | (3) | |||||||||||
Purchases and issuances | 3.7 | — | 59.4 | 2.5 | — | 16.8 | ||||||||||||||||||||
Settlements and reductions | (5.4 | ) | — | (6.9 | ) | (5.2 | ) | — | (23.7 | ) | ||||||||||||||||
Net transfers in and/or out of Level 3 | — | — | — | 6.5 | — | — | ||||||||||||||||||||
Balance, end of period | $ | 135.9 | $ | 53.2 | $ | 131.9 | $ | 133.8 | $ | 31.5 | $ | 86.1 | ||||||||||||||
Net unrealized gains/losses relating to instruments still held at the reporting date | $ | 6.9 | (1) | $ | 3 | (2) | $ | 0.9 | (3) | $ | (1.2 | ) | (1) | $ | (27.8 | ) | (2) | $ | (4.0 | ) | (3) | |||||
___________________________ | ||||||||||||||||||||||||||
(1) | Gains and losses on Other investments are recorded in Investment and other income. | |||||||||||||||||||||||||
(2) | Accretion and changes to 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 used in Valuing Level 3 Liabilities | 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 | Fair Value at | Range at | Fair Value at March 31, 2015 | Range at March 31, 2015 | |||||||||||||||||||||
Techniques | Input | December 31, | 31-Dec-14 | |||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||
Contingent payment arrangements | Discounted cash flow | Growth rates | $ | 59.3 | 6% | $ | 31.5 | 5% | ||||||||||||||||||
Discount rates | 15% | 13% - 15% | ||||||||||||||||||||||||
Affiliate equity obligations | Discounted cash flow | Growth rates | 21.5 | 5% - 9% | 16.8 | 1% - 10% | ||||||||||||||||||||
Discount rates | 15% - 16% | 12% - 16% | ||||||||||||||||||||||||
Summary of Investments in Certain Entities that Calculate Net Asset Value | The following table summarizes, as of December 31, 2014 and March 31, 2015, the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: | |||||||||||||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||||||||||||
Category of Investment | Fair Value | Unfunded | Fair Value | Unfunded | ||||||||||||||||||||||
Commitments | Commitments | |||||||||||||||||||||||||
Private equity funds(1) | $ | 134.2 | $ | 67.8 | $ | 133.8 | $ | 66.4 | ||||||||||||||||||
Other funds(2) | 75.8 | — | 87.8 | — | ||||||||||||||||||||||
$ | 210 | $ | 67.8 | $ | 221.6 | $ | 66.4 | |||||||||||||||||||
___________________________ | ||||||||||||||||||||||||||
(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, which is generally up to 15 years. | |||||||||||||||||||||||||
(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 Assets and Liabilities Not Carried at Fair Value | The following table summarizes the Company's other financial liabilities not carried at fair value: | |||||||||||||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | Fair Value Hierarchy | ||||||||||||||||||||||
Senior notes | $ | 736.8 | $ | 786.2 | $ | 1,084.20 | $ | 1,136.10 | Level 2 | |||||||||||||||||
Convertible securities | 303.1 | 532.1 | 303.6 | 525.6 | Level 2 | |||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Changes in Goodwill | The following tables present the change in goodwill and components of acquired client relationships during the three months ended March 31, 2015: | |||||||||||||||||||
Goodwill | ||||||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||||||
Balance, as of December 31, 2014 | $ | 1,159.10 | $ | 1,125.30 | $ | 368.4 | $ | 2,652.80 | ||||||||||||
Goodwill acquired | — | — | — | — | ||||||||||||||||
Foreign currency translation | (17.9 | ) | (3.5 | ) | (10.2 | ) | (31.6 | ) | ||||||||||||
Balance, as of March 31, 2015 | $ | 1,141.20 | $ | 1,121.80 | $ | 358.2 | $ | 2,621.20 | ||||||||||||
Schedule of Changes in 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, 2014 | $ | 1,255.10 | $ | (565.0 | ) | $ | 690.1 | $ | 1,088.30 | $ | 1,778.40 | |||||||||
New investments | — | — | — | — | — | |||||||||||||||
Intangible amortization and impairments | — | (27.8 | ) | (27.8 | ) | — | (27.8 | ) | ||||||||||||
Foreign currency translation | (5.1 | ) | — | (5.1 | ) | (20.8 | ) | (25.9 | ) | |||||||||||
Balance, as of March 31, 2015 | $ | 1,250.00 | $ | (592.8 | ) | $ | 657.2 | $ | 1,067.50 | $ | 1,724.70 | |||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Share-Based Compensation | A summary of share-based compensation is as follows: | ||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2015 | ||||||||
Share-based compensation | $ | 6.5 | $ | 8 | |||||
Tax benefit | 2.5 | 3.1 | |||||||
Schedule of Company Stock Option Transactions | The following table summarizes the transactions of the Company's stock options: | ||||||||
Stock Options | Weighted Average | Weighted Average | |||||||
Exercise Price | Remaining | ||||||||
Contractual Life | |||||||||
(years) | |||||||||
Unexercised options outstanding—December 31, 2014 | 2.3 | $ | 83.42 | ||||||
Options granted | 0 | 197.79 | |||||||
Options exercised | (0.7 | ) | 65.72 | ||||||
Options forfeited | (0.0 | ) | 101.29 | ||||||
Unexercised options outstanding—March 31, 2015 | 1.6 | 91.37 | 2.7 | ||||||
Exercisable at March 31, 2015 | 1.4 | 88.6 | 2.6 | ||||||
Schedule of Company Restricted Stock Unit Transactions | The following table summarizes the transactions of the Company's restricted stock units: | ||||||||
Restricted | Weighted | ||||||||
Stock | Average | ||||||||
Grant Date | |||||||||
Value | |||||||||
Unvested units—December 31, 2014 | 0.4 | $ | 182.83 | ||||||
Units granted | 0.3 | 197.91 | |||||||
Units vested | (0.1 | ) | 166.56 | ||||||
Units forfeited | (0.0 | ) | 190.65 | ||||||
Unvested units—March 31, 2015 | 0.6 | 192.06 | |||||||
Affiliate_Equity_Tables
Affiliate Equity (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Affiliate Equity [Abstract] | ||||||||
Summary of Affiliate Equity Compensation | A summary of Affiliate equity expense is as follows: | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Affiliate equity expense | $ | 14.8 | $ | 9.3 | ||||
Tax benefit | 2.9 | 1.5 | ||||||
Schedule of Changes in Redeemable Non-Controlling Interests | The following table presents the changes in Redeemable non-controlling interests during the period: | |||||||
Redeemable Non-controlling Interests | ||||||||
Balance, as of December 31, 2014 | $ | 645.5 | ||||||
Transactions in Redeemable non-controlling interests | (12.2 | ) | ||||||
Changes in redemption value | 109.9 | |||||||
Balance, as of March 31, 2015 | $ | 743.2 | ||||||
Schedule of Changes in the Company's Interest in its Affiliates on the Controlling Interest's Equity | The following schedule discloses the effect of changes in the Company's ownership interest in its Affiliates on the controlling interest's equity: | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Net income (controlling interest) | $ | 77.2 | $ | 128 | ||||
Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity | (16.3 | ) | (3.0 | ) | ||||
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ | 60.9 | $ | 125 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Income Tax Provisions by Controlling and Noncontrolling 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 Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Controlling interests: | ||||||||
Current tax | $ | 30.3 | $ | 32 | ||||
Intangible-related deferred taxes | 16.9 | 20.4 | ||||||
Other deferred taxes | (1.6 | ) | 13.9 | |||||
Total controlling interests | 45.6 | 66.3 | ||||||
Non-controlling interests: | ||||||||
Current tax | $ | 3.5 | $ | 3.5 | ||||
Deferred taxes | (0.2 | ) | (0.2 | ) | ||||
Total non-controlling interests | 3.3 | 3.3 | ||||||
Provision for income taxes | $ | 48.9 | $ | 69.6 | ||||
Income before income taxes (controlling interest) | $ | 122.8 | $ | 194.3 | ||||
Effective tax rate attributable to controlling interest(1) | 37.1 | % | 34.1 | % | ||||
__________________________ | ||||||||
-1 | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule 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 Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Numerator | ||||||||
Net income (controlling interest) | $ | 77.2 | $ | 128 | ||||
Convertible securities interest expense, net | — | 3.8 | ||||||
Net income (controlling interest), as adjusted | $ | 77.2 | $ | 131.8 | ||||
Denominator | ||||||||
Average shares outstanding (basic) | 53.7 | 54.8 | ||||||
Effect of dilutive instruments: | ||||||||
Stock options and restricted stock | 1.3 | 0.8 | ||||||
Forward equity | 0.2 | — | ||||||
Junior convertible securities | — | 2.2 | ||||||
Average shares outstanding (diluted) | 55.2 | 57.8 | ||||||
Schedule of Shares Excluded from Calculation of Basic and Diluted Earnings Per Share | The diluted earnings per share calculations in the table above exclude restricted stock units for which performance or market conditions have not yet been met and the anti-dilutive effect of the following shares: | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Stock options and restricted stock | 0.3 | 0.1 | ||||||
Junior convertible securities | 3.7 | — | ||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [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 Three Months Ended March 31, | ||||||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||||||
Pre-Tax | Tax Benefit | Net of Tax | Pre-Tax | Tax Benefit | Net of Tax | |||||||||||||||||||
(Expense) | (Expense) | |||||||||||||||||||||||
Foreign currency translation adjustment | $ | (8.8 | ) | $ | — | $ | (8.8 | ) | $ | (60.1 | ) | $ | — | $ | (60.1 | ) | ||||||||
Change in net realized and unrealized gain (loss) on derivative securities | 0.3 | (0.1 | ) | 0.2 | 2.8 | (0.1 | ) | 2.7 | ||||||||||||||||
Change in net unrealized gain (loss) on investment securities | (22.2 | ) | 8.4 | (13.8 | ) | 14.2 | (5.5 | ) | 8.7 | |||||||||||||||
Other comprehensive loss | $ | (30.7 | ) | $ | 8.3 | $ | (22.4 | ) | $ | (43.1 | ) | $ | (5.6 | ) | $ | (48.7 | ) | |||||||
Schedule of Components of Accumulated Other Comprehensive Income | The components of Accumulated other comprehensive income, net of taxes, are as follows: | |||||||||||||||||||||||
Foreign | Realized and | Unrealized | Total | |||||||||||||||||||||
Currency | Unrealized Losses | Gain (Loss) | ||||||||||||||||||||||
Translation | on Derivative | on Investment | ||||||||||||||||||||||
Adjustment | Securities | Securities | ||||||||||||||||||||||
Balance, as of December 31, 2014 | $ | (5.4 | ) | $ | (1.6 | ) | $ | 22.9 | $ | 15.9 | ||||||||||||||
Other comprehensive income (loss) before reclassifications | (60.1 | ) | 2.4 | 8.6 | (49.1 | ) | ||||||||||||||||||
Amounts reclassified from other comprehensive income | — | 0.3 | 0.1 | 0.4 | ||||||||||||||||||||
Net other comprehensive income (loss) | (60.1 | ) | 2.7 | 8.7 | (48.7 | ) | ||||||||||||||||||
Balance, as of March 31, 2015 | $ | (65.5 | ) | $ | 1.1 | $ | 31.6 | $ | (32.8 | ) | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of Segment Information | The following table summarizes the Company's financial results for each of the distribution channels: | |||||||||||||||
Statements of Income | ||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 244.9 | $ | 291.9 | $ | 56.3 | $ | 593.1 | ||||||||
Net income (controlling interest) | 35.9 | 34.1 | 7.2 | 77.2 | ||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||
Institutional | Mutual Fund | High Net Worth | Total | |||||||||||||
Revenue | $ | 252.9 | $ | 318.3 | $ | 63.8 | $ | 635 | ||||||||
Net income (controlling interest) | 48.7 | 67.6 | 11.7 | 128 | ||||||||||||
Total Assets | ||||||||||||||||
31-Dec-14 | 31-Mar-15 | |||||||||||||||
Institutional | $ | 3,739.80 | $ | 3,417.20 | ||||||||||||
Mutual Fund | 3,082.00 | 3,253.90 | ||||||||||||||
High Net Worth | 876.3 | 822.8 | ||||||||||||||
Total | $ | 7,698.10 | $ | 7,493.90 | ||||||||||||
Investments_in_Marketable_Secu2
Investments in Marketable Securities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Marketable Securities [Abstract] | ||
Investments in marketable securities | $192.90 | $172.60 |
Investments_in_Marketable_Secu3
Investments in Marketable Securities - Schedule of Available-For-Sale and Trading Securities (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Available-for-Sale | ||
Cost | $123.10 | $125.60 |
Unrealized Gains | 49.8 | 42.8 |
Unrealized Losses | -5 | -18.1 |
Fair Value | 167.9 | 150.3 |
Trading | ||
Cost | 21.9 | 19.5 |
Unrealized Gains | 3.5 | 2.9 |
Unrealized Losses | -0.4 | -0.1 |
Fair Value | $25 | $22.30 |
Variable_Interest_Entities_Sch
Variable Interest Entities - Schedule of Unconsolidated VIE's and Company Risk (Details) (Sponsored Investment Funds, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Sponsored Investment Funds | ||
Variable Interest Entities | ||
Unconsolidated VIE net assets | $6,525.70 | $8,550.40 |
Carrying value and maximum exposure to loss | $1.20 | $1.20 |
Senior_Debt_Details
Senior Debt (Details) (Senior Notes, 3.50% Senior Notes Due 2025, USD $) | Feb. 13, 2015 |
Senior Notes | 3.50% Senior Notes Due 2025 | |
Long-term debt | |
Face amount | $350,000,000 |
Interest rate | 3.50% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap | |||
Derivatives, Fair Value | |||
Collateral posted | $2.40 | $2.40 | |
Other Liabilities | Interest Rate Swap | |||
Derivatives, Fair Value | |||
Interest rate swaps at fair value | 1.2 | 1.4 | |
Other Liabilities | Foreign Currency Forward Contract | |||
Derivatives, Fair Value | |||
Interest rate swaps at fair value | 0.9 | [1] | |
Revenue | |||
Derivatives, Fair Value | |||
Gain on settlement of foreign currency forward contracts | 0.3 | ||
Operating Expenses | |||
Derivatives, Fair Value | |||
Loss on settlement of foreign currency forward contracts | $0.60 | ||
[1] | Aggregate fair value of $(0.5) million is presented within Other assets. |
Derivatives_Financial_Instrume
Derivatives Financial Instruments Derivative Financial Instruments - Schedule of Interest Rate Swap Agreements (Details) (Interest Rate Swap, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Derivative | ||||
Collateral posted | $2,400,000 | $2,400,000 | ||
Counterparty A Paying 1.67% Interest | ||||
Derivative | ||||
Notional amount | 25,000,000 | |||
Paying | 1.67% | |||
Interest rate swaps at fair value | 200,000 | [1] | 300,000 | [1] |
Counterparty A Paying 1.65% Interest | ||||
Derivative | ||||
Notional amount | 25,000,000 | |||
Paying | 1.65% | |||
Interest rate swaps at fair value | 200,000 | [1] | 300,000 | [1] |
Counterparty B Paying 1.59% Interest | ||||
Derivative | ||||
Notional amount | 25,000,000 | |||
Paying | 1.59% | |||
Interest rate swaps at fair value | 100,000 | [1] | 200,000 | [1] |
Counterparty B Paying 2.14% Interest | ||||
Derivative | ||||
Notional amount | 25,000,000 | |||
Paying | 2.14% | |||
Interest rate swaps at fair value | 700,000 | [1] | 600,000 | [1] |
Other Liabilities | ||||
Derivative | ||||
Interest rate swaps at fair value | $1,200,000 | $1,400,000 | ||
[1] | Aggregate fair values of $1.4 million and $1.2 million at December 31, 2014 and March 31, 2015, respectively, are presented within Other liabilities. The Company posted collateral with its counterparties of $2.4 million. |
Derivatives_Financial_Instrume1
Derivatives Financial Instruments Derivative Financial Instruments - Schedule of Foreign Currency Forward Contracts (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |||||||
Foreign Currency Forward Contract | Foreign Currency Forward Contract | Foreign Currency Forward Contract | Foreign Exchange Forward Expected to Settle Quarterly | Foreign Exchange Forward Expected to Settle Quarterly | Foreign Exchange Forward Expected to Settle Quarterly | Foreign Exchange Forward Expected to Settle Quarterly | Foreign Exchange Forward Expected to Settle Monthly | Foreign Exchange Forward Expected to Settle Monthly | Foreign Exchange Forward Expected to Settle Monthly | Foreign Exchange Forward Expected to Settle Monthly | ||||||||
Other Assets | Other Assets | Other Liabilities | Counterparty C | Counterparty C | Counterparty C | Counterparty C | Counterparty C | Counterparty C | Counterparty C | Counterparty C | ||||||||
USD ($) | USD ($) | USD ($) | Other Assets | Other Assets | Paying | Receiving | Other Assets | Other Liabilities | Paying | Receiving | ||||||||
USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | EUR (€) | USD ($) | |||||||||||
Derivative | ||||||||||||||||||
Notional amount | $21,000,000 | £ 25,700,000 | € 11,300,000 | $7,000,000 | ||||||||||||||
Foreign currency forward liabilities at fair value | 3,200,000 | [1] | 300,000 | [2] | -800,000 | [2] | -900,000 | [1] | ||||||||||
Derivative asset | 3,200,000 | [2] | -500,000 | [2] | ||||||||||||||
Derivative liability | $900,000 | [2] | ||||||||||||||||
[1] | Fair value of $3.2 million is presented within Other assets and $(0.9) million is presented within Other liabilities. These amounts are expected to be reclassified into earnings within the next twelve months. | |||||||||||||||||
[2] | Aggregate fair value of $(0.5) million is presented within Other assets. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2015 |
Commitments and Contingencies | ||
Co-investment commitments in partnership | $66.40 | |
Acquisition agreements contingency liability | 276 | |
Expected payments to settle contingent obligations | 34.9 | |
Expected payments related to equity method investments | 22.5 | |
Net present value of expected payments to settle contingent obligations | 31.5 | |
Forecast | ||
Commitments and Contingencies | ||
Expected payments related to equity method investments | 40 | |
Payment of contingent consideration | 40 | |
Prior Owner | ||
Commitments and Contingencies | ||
Reimbursable amount of investment commitments | $19.30 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Investments in marketable securities | ||||
Trading securities | $25 | $22.30 | ||
Other investments | 221.6 | 210 | ||
Fair Value Measured On A Recurring Basis | ||||
Financial Assets | ||||
Cash equivalents | 35 | 59.1 | ||
Investments in marketable securities | ||||
Trading securities | 25 | [1] | 22.3 | [1] |
Available-for-sale securities | 167.9 | [1] | 150.3 | [1] |
Other investments | 158 | 167.2 | ||
Foreign currency forward contracts | 3.2 | |||
Financial Liabilities | ||||
Contingent payment arrangements | 31.5 | [2] | 59.3 | [2] |
Obligations to related parties | 86.1 | [2] | 93.1 | [2] |
Interest rate derivatives | 1.2 | 1.4 | ||
Foreign currency forward contracts | 0.9 | 0.5 | ||
Fair Value Measured On A Recurring Basis | Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||
Financial Assets | ||||
Cash equivalents | 35 | 59.1 | ||
Investments in marketable securities | ||||
Trading securities | 25 | [1] | 22.3 | [1] |
Available-for-sale securities | 167.9 | [1] | 150.3 | [1] |
Other investments | 14.2 | 13.6 | ||
Foreign currency forward contracts | 0 | |||
Financial Liabilities | ||||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | [2] | 0 | [2] |
Interest rate derivatives | 0 | 0 | ||
Foreign currency forward contracts | 0 | 0 | ||
Fair Value Measured On A Recurring Basis | Significant Other Observable Inputs (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 | 10 | 19.4 | ||
Foreign currency forward contracts | 3.2 | |||
Financial Liabilities | ||||
Contingent payment arrangements | 0 | [2] | 0 | [2] |
Obligations to related parties | 0 | [2] | 0 | [2] |
Interest rate derivatives | 1.2 | 1.4 | ||
Foreign currency forward contracts | 0.9 | 0.5 | ||
Fair Value Measured On A Recurring Basis | Significant Other Unobservable Inputs (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 | 133.8 | 134.2 | ||
Foreign currency forward contracts | 0 | |||
Financial Liabilities | ||||
Contingent payment arrangements | 31.5 | [2] | 59.3 | [2] |
Obligations to related parties | 86.1 | [2] | 93.1 | [2] |
Interest rate derivatives | 0 | 0 | ||
Foreign currency forward contracts | $0 | $0 | ||
[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 Assets and Liabilities (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Other Investments | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | $134.20 | $131.80 | ||
Net gains/losses | -4.2 | [1] | 5.8 | [1] |
Purchases and issuances | 2.5 | 3.7 | ||
Settlements and reductions | -5.2 | -5.4 | ||
Net transfers in and/or out of Level 3 | 6.5 | 0 | ||
Balance, end of period | 133.8 | 135.9 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | -1.2 | [1] | 6.9 | [1] |
Contingent Payment Arrangements | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | -59.3 | -50.2 | ||
Net gains/losses | 27.8 | [2] | -3 | [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 | -31.5 | -53.2 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | 27.8 | [2] | -3 | [2] |
Obligations To Related Parties | ||||
Changes in level 3 assets and liabilities | ||||
Balance, beginning of period | -93.1 | -76.9 | ||
Net gains/losses | 0.1 | [3] | -2.5 | [3] |
Purchases and issuances | -16.8 | -59.4 | ||
Settlements and reductions | 23.7 | 6.9 | ||
Net transfers in and/or out of Level 3 | 0 | 0 | ||
Balance, end of period | -86.1 | -131.9 | ||
Net unrealized gains/losses relating to instruments still held at the reporting date | $4 | [3] | ($0.90) | [3] |
[1] | Gains and losses on Other investments are recorded in Investment and other income. | |||
[2] | Accretion and changes to 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 used in Valuing Level 3 Liabilities (Details) (Discounted Cash Flow, USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Contingent Payment Arrangements | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | 31.5 | 59.3 |
Contingent Payment Arrangements | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 5.00% | 6.00% |
Discount rate (as a percent) | 12.00% | 15.00% |
Contingent Payment Arrangements | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 5.00% | 6.00% |
Discount rate (as a percent) | 15.00% | 15.00% |
Affiliate Equity Repurchase Obligations | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | 16.8 | 21.5 |
Affiliate Equity Repurchase Obligations | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 1.00% | 5.00% |
Discount rate (as a percent) | 12.00% | 15.00% |
Affiliate Equity Repurchase Obligations | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 10.00% | 9.00% |
Discount rate (as a percent) | 16.00% | 16.00% |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Investments in Certain Entities that Calculate Net Asset Value (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
NAV of investments at fair value | ||||
Fair value | $221.60 | $210 | ||
Unfunded commitments | 66.4 | 67.8 | ||
Life of funds (in years) | 15 years | |||
Private Equity Funds | ||||
NAV of investments at fair value | ||||
Fair value | 133.8 | [1] | 134.2 | [1] |
Unfunded commitments | 66.4 | [1] | 67.8 | [1] |
Other Funds | ||||
NAV of investments at fair value | ||||
Fair value | 87.8 | [2] | 75.8 | [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, which is generally up to 15 years. | |||
[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_Summar1
Fair Value Measurements - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) (Level 2, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $1,084.20 | $736.80 |
Convertible securities | 303.6 | 303.1 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | 1,136.10 | 786.2 |
Convertible securities | $525.60 | $532.10 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Intangible Assets | ||
Amortization and impairment expenses of intangible assets | $27.80 | $27.40 |
Acquired Client Relationships | ||
Intangible Assets | ||
Weighted average life | 10 years | |
Amortization and impairment expenses of intangible assets | 27.8 | 27.4 |
Annual amortization expense attributable to current equity method Affiliates for next five years | ||
2015 | 120 | |
2016 | 120 | |
2017 | 120 | |
2018 | 120 | |
2019 | 120 | |
Acquired Client Relationships | Affiliated Entity | ||
Intangible Assets | ||
Weighted average life | 14 years | |
Amortization and impairment expenses of intangible assets | 8.8 | 5.4 |
Annual amortization expense attributable to current equity method Affiliates for next five years | ||
2015 | 34 | |
2016 | 32 | |
2017 | 32 | |
2018 | 32 | |
2019 | $32 |
Intangible_Assets_Schedule_of_
Intangible Assets - Schedule of Changes in Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Beginning balance (in dollars) | $2,652.80 |
Goodwill acquired | 0 |
Foreign currency translation | -31.6 |
Ending balance (in dollars) | 2,621.20 |
Institutional | |
Goodwill [Roll Forward] | |
Beginning balance (in dollars) | 1,159.10 |
Goodwill acquired | 0 |
Foreign currency translation | -17.9 |
Ending balance (in dollars) | 1,141.20 |
Mutual Fund | |
Goodwill [Roll Forward] | |
Beginning balance (in dollars) | 1,125.30 |
Goodwill acquired | 0 |
Foreign currency translation | -3.5 |
Ending balance (in dollars) | 1,121.80 |
High Net Worth | |
Goodwill [Roll Forward] | |
Beginning balance (in dollars) | 368.4 |
Goodwill acquired | 0 |
Foreign currency translation | -10.2 |
Ending balance (in dollars) | $358.20 |
Intangible_Assets_Schedule_of_1
Intangible Assets - Schedule of Changes in the Components of Acquired Client Relationships (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Total | ||
Beginning balance, net (in dollars) | $1,778.40 | |
Ending balance, net (in dollars) | 1,724.70 | 1,778.40 |
Acquired Client Relationships | ||
Definite-lived | ||
Beginning balance, gross (in dollars) | 1,255.10 | |
Beginning balance, accumulated amortization | -565 | |
Beginning balance, net (in dollars) | 690.1 | |
New investments | 0 | |
Amortization and impairments | -27.8 | |
Foreign currency translation | -5.1 | |
Ending balance, gross (in dollars) | 1,250 | |
Ending balance, accumulated amortization | -592.8 | |
Ending balance, net (in dollars) | 657.2 | |
Indefinite-lived | ||
Beginning balance, net (in dollars) | 1,088.30 | |
New investments | 0 | |
Amortization and impairments | 0 | |
Foreign currency translation | -20.8 | |
Ending balance, net (in dollars) | 1,067.50 | |
Total | ||
Beginning balance, net (in dollars) | 1,778.40 | |
New investments | 0 | |
Amortization and impairments | -27.8 | |
Foreign currency translation | -25.9 | |
Ending balance, net (in dollars) | $1,724.70 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Share-Based Compensation (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation | $8 | $6.50 | |
Tax benefit | 3.1 | 2.5 | |
Share-based Compensation [Abstract] | |||
Compensation expense related to share-based compensation | $95.90 | $56.80 | |
Weighted average period over which compensation expense will be recognized | 3 years |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule of the Transactions of the Company's Stock Options (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Weighted Average Remaining Contractual Life | |
Options that expire before year end (in shares) | 0.1 |
Stock Options | |
Stock Options | |
Unexercised options outstanding at the beginning of the period (in shares) | 2.3 |
Options granted (in shares) | 0 |
Options exercised (in shares) | -0.7 |
Options forfeited (in shares) | 0 |
Unexercised options outstanding at the end of the period (in shares) | 1.6 |
Exercisable at the end of the period (in shares) | 1.4 |
Weighted Average Exercise Price | |
Unexercised options outstanding at the beginning of the period (in dollars per share) | $83.42 |
Options granted (in dollars per share) | $197.79 |
Options exercised (in dollars per share) | $65.72 |
Options forfeited (in dollars per share) | $101.29 |
Unexercised options outstanding at the end of the period (in dollars per share) | $91.37 |
Exercisable at the end of the period (in dollars per share) | $88.60 |
Weighted Average Remaining Contractual Life | |
Unexercised options outstanding at the end of the period (in years) | 2 years 8 months 12 days |
Exercisable at the end of the period (in years) | 2 years 7 months 18 days |
ShareBased_Compensation_Schedu1
Share-Based Compensation - Schedule of Company Restricted Stock Unit Transactions (Details) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Weighted Average Grant Date Value | |
Weighted average period over which compensation expense will be recognized | 3 years |
Restricted Stock | |
Restricted Stock | |
Unvested units at the beginning of the period (in shares) | 0.4 |
Units granted (in shares) | 0.3 |
Units vested (in shares) | -0.1 |
Units forfeited (in shares) | 0 |
Unvested units at the end of the period (in shares) | 0.6 |
Weighted Average Grant Date Value | |
Unvested units at the beginning of the period (in dollars per share) | 182.83 |
Units granted (in dollars per share) | 197.91 |
Units vested (in dollars per share) | 166.56 |
Units forfeited (in dollars per share) | 190.65 |
Unvested units at the end of the period (in dollars per share) | 192.06 |
Weighted average period over which compensation expense will be recognized | 4 years |
Service Vesting Restricted Stock | |
Restricted Stock | |
Units granted (in shares) | 0.2 |
Service and Performance Vesting Restricted Stock | |
Restricted Stock | |
Units granted (in shares) | 0.1 |
Affiliate_Equity_Details
Affiliate Equity (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Affiliate Equity [Abstract] | |||
Compensation expenses related to affiliate equity noncontrolling interests | $5.30 | $7.20 | |
Affiliate equity compensation cost not yet recognized | 77.9 | 71.1 | |
Period for recognition | 4 years | ||
Affiliate equity compensation cost not yet recognized attributable to noncontrolling interest | $50.50 | $41.60 |
Affiliate_Equity_Summary_of_Af
Affiliate Equity - Summary of Affiliate Equity Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Affiliate Equity [Abstract] | ||
Affiliate equity expense | $9.30 | $14.80 |
Tax benefit | $1.50 | $2.90 |
Affiliate_Equity_Schedule_of_C
Affiliate Equity - Schedule of Changes in Redeemable Non-Controlling Interests (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Changes in redeemable non-controlling interests during the period | |
Balance, as of December 31, 2014 | $645.50 |
Transactions in Redeemable non-controlling interests | -12.2 |
Changes in redemption value | 109.9 |
Balance, as of March 31, 2015 | $743.20 |
Affiliate_Equity_Schedule_of_C1
Affiliate Equity - Schedule of Changes in the Company's Interest in its Affiliates on the Controlling Interest's Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Affiliate Equity [Abstract] | ||
Net income (controlling interest) | $128 | $77.20 |
Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity | -3 | -16.3 |
Change from Net income (controlling interest) and net transfers with non-controlling interests | $125 | $60.90 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Tax Provision | ||||
Undistributed Earnings of Foreign Subsidiaries | 6.3 | |||
Liability for uncertain tax positions including interest and related charges | 27.7 | |||
Accrued income tax interest and related charges | 1.8 | |||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 25.5 | |||
Parent Company | ||||
Income Tax Provision | ||||
Effective tax rate attributable to controlling interests | 34.10% | [1] | 37.10% | [1] |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Tax Provisions by Controlling and Noncontrolling Interests (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Income Tax Provision | ||||
Deferred taxes | $34.10 | $15.10 | ||
Provision for income taxes | 69.6 | 48.9 | ||
Noncontrolling Interest | ||||
Income Tax Provision | ||||
Current tax | 3.5 | 3.5 | ||
Deferred taxes | -0.2 | -0.2 | ||
Provision for income taxes | 3.3 | 3.3 | ||
Parent Company | ||||
Income Tax Provision | ||||
Current tax | 32 | 30.3 | ||
Intangible-related deferred taxes | 20.4 | 16.9 | ||
Other deferred taxes | 13.9 | -1.6 | ||
Provision for income taxes | 66.3 | 45.6 | ||
Income before income taxes (controlling interest) | $194.30 | $122.80 | ||
Effective tax rate attributable to controlling interests | 34.10% | [1] | 37.10% | [1] |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator | ||
Net income (controlling interest) | $128 | $77.20 |
Convertible securities interest expense, net | 3.8 | 0 |
Net income (controlling interest), as adjusted | $131.80 | $77.20 |
Denominator | ||
Average shares outstandingbbasic (in shares) | 54.8 | 53.7 |
Effect of dilutive instruments: | ||
Stock options and restricted stock (in shares) | 0.8 | 1.3 |
Forward equity (in shares) | 0 | 0.2 |
Junior convertible securities (in shares) | 2.2 | 0 |
Average shares outstandingbdiluted (in shares) | 57.8 | 55.2 |
Earnings_Per_Share_Schedule_of1
Earnings Per Share - Schedule of Shares Excluded from Calculation of Basic and Diluted Earnings Per Share (Details) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Stock Options And Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0.1 | 0.3 |
Junior Convertible Trust Preferred Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 3.7 |
Comprehensive_Income_Summary_o
Comprehensive Income - Summary of the Tax Effects Allocated to Each Component of Other Comprehensive Income(Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pre-Tax | ||
Foreign currency translation adjustment | ($60.10) | ($8.80) |
Change in net realized and unrealized gain (loss) on derivative securities | 2.8 | 0.3 |
Change in net unrealized gain (loss) on investment securities | 14.2 | -22.2 |
Other comprehensive loss | -43.1 | -30.7 |
Tax Benefit (Expense) | ||
Foreign currency translation adjustment | 0 | 0 |
Change in net realized and unrealized gain (loss) on derivative securities | -0.1 | -0.1 |
Change in net unrealized gain (loss) on investment securities | -5.5 | 8.4 |
Other comprehensive loss | -5.6 | 8.3 |
Net of Tax | ||
Foreign currency translation adjustment | -60.1 | -8.8 |
Change in net realized and unrealized gain (loss) on derivative securities | 2.7 | 0.2 |
Change in net unrealized gain (loss) on investment securities | 8.7 | -13.8 |
Other comprehensive loss | ($48.70) | ($22.40) |
Comprehensive_Income_Schedule_
Comprehensive Income - Schedule of Components of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Total | |
Components of Accumulated other comprehensive income, net of taxes | |
Balance at the beginning of the period (in dollars) | $15.90 |
Other comprehensive income (loss) before reclassifications | -49.1 |
Amounts reclassified from other comprehensive income | 0.4 |
Net other comprehensive income (loss) | -48.7 |
Balance at the end of the period (in dollars) | -32.8 |
Foreign Currency Translation Adjustment | |
Components of Accumulated other comprehensive income, net of taxes | |
Balance at the beginning of the period (in dollars) | -5.4 |
Other comprehensive income (loss) before reclassifications | -60.1 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income (loss) | -60.1 |
Balance at the end of the period (in dollars) | -65.5 |
Realized and Unrealized Losses on Derivative Securities | |
Components of Accumulated other comprehensive income, net of taxes | |
Balance at the beginning of the period (in dollars) | -1.6 |
Other comprehensive income (loss) before reclassifications | 2.4 |
Amounts reclassified from other comprehensive income | 0.3 |
Net other comprehensive income (loss) | 2.7 |
Balance at the end of the period (in dollars) | 1.1 |
Unrealized Gain (Loss) on Investment Securities | |
Components of Accumulated other comprehensive income, net of taxes | |
Balance at the beginning of the period (in dollars) | 22.9 |
Other comprehensive income (loss) before reclassifications | 8.6 |
Amounts reclassified from other comprehensive income | 0.1 |
Net other comprehensive income (loss) | 8.7 |
Balance at the end of the period (in dollars) | $31.60 |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Channel | |||
Segment | |||
Segment Reporting [Abstract] | |||
Number of operating segments | 3 | ||
Number of principal distribution channels | 3 | ||
Statements of Income | |||
Revenue | $635 | $593.10 | |
Net income (controlling interest) | 128 | 77.2 | |
Balance Sheet Information | |||
Total Assets | 7,493.90 | 7,698.10 | |
Institutional | |||
Statements of Income | |||
Revenue | 252.9 | 244.9 | |
Net income (controlling interest) | 48.7 | 35.9 | |
Balance Sheet Information | |||
Total Assets | 3,417.20 | 3,739.80 | |
Mutual Fund | |||
Statements of Income | |||
Revenue | 318.3 | 291.9 | |
Net income (controlling interest) | 67.6 | 34.1 | |
Balance Sheet Information | |||
Total Assets | 3,253.90 | 3,082 | |
High Net Worth | |||
Statements of Income | |||
Revenue | 63.8 | 56.3 | |
Net income (controlling interest) | 11.7 | 7.2 | |
Balance Sheet Information | |||
Total Assets | $822.80 | $876.30 |