Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | AFFILIATED MANAGERS GROUP, INC. | |
Entity Central Index Key | 1,004,434 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,284,042 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 646.6 | $ 636.3 | $ 1,281.6 | $ 1,229.4 |
Operating expenses: | ||||
Compensation and related expenses | 292.2 | 272.6 | 544.9 | 508.3 |
Selling, general and administrative | 114.3 | 122.8 | 223 | 245.1 |
Intangible amortization and impairments | 28.1 | 28.1 | 55.9 | 55.5 |
Depreciation and other amortization | 4.6 | 4.1 | 9 | 7.9 |
Other operating expenses | 12.2 | 10.3 | 22.1 | 20.2 |
Total operating expenses | 451.4 | 437.9 | 854.9 | 837 |
Operating income | 195.2 | 198.4 | 426.7 | 392.4 |
Income from equity method investments | 60.1 | 54.7 | 113.2 | 100.9 |
Other non-operating (income) and expenses: | ||||
Investment and other income | (16) | (8.4) | (16.7) | (16.6) |
Interest expense | 22.5 | 20 | 44.7 | 37.7 |
Imputed interest expense and contingent payment arrangements | (13.2) | 2.4 | (40.4) | 24.8 |
Total non-operating (income) and expenses | (6.7) | 14 | (12.4) | 45.9 |
Income before income taxes | 262 | 239.1 | 552.3 | 447.4 |
Income taxes | 72.1 | 61.1 | 141.7 | 110 |
Net income | 189.9 | 178 | 410.6 | 337.4 |
Net income (non-controlling interests) | (61.2) | (78.9) | (153.9) | (161.2) |
Net income (controlling interest) | $ 128.7 | $ 99.1 | $ 256.7 | $ 176.2 |
Average shares outstanding—basic (in shares) | 54.6 | 55.4 | 54.7 | 54.6 |
Average shares outstanding—diluted (in shares) | 57.5 | 56.6 | 57.7 | 55.9 |
Earnings per share—basic (in dollars per share) | $ 2.36 | $ 1.79 | $ 4.70 | $ 3.23 |
Earnings per share—diluted (in dollars per share) | $ 2.31 | $ 1.75 | $ 4.58 | $ 3.15 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 189.9 | $ 178 | $ 410.6 | $ 337.4 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 48.5 | 20.4 | (11.6) | 11.6 |
Change in net realized and unrealized gain on derivative securities, net of tax | (0.7) | 0.1 | 2 | 0.3 |
Change in net unrealized gain (loss) on investment securities, net of tax | 47.9 | 5.1 | 56.6 | (8.7) |
Other comprehensive income | 95.7 | 25.6 | 47 | 3.2 |
Comprehensive income | 285.6 | 203.6 | 457.6 | 340.6 |
Comprehensive income (non-controlling interests) | (44.4) | (82.6) | (151.2) | (165.1) |
Comprehensive income (controlling interest) | $ 241.2 | $ 121 | $ 306.4 | $ 175.5 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 488.5 | $ 550.6 |
Receivables | 482 | 425.9 |
Investments in marketable securities | 261.5 | 172.6 |
Other investments | 165.7 | 167.2 |
Fixed assets, net | 97.8 | 95.4 |
Goodwill | 2,670 | 2,652.8 |
Acquired client relationships, net | 1,749.8 | 1,778.4 |
Equity method investments in Affiliates | 1,692.1 | 1,783.5 |
Other assets | 71.4 | 71.7 |
Total assets | 7,678.8 | 7,698.1 |
Liabilities and Equity | ||
Payables and accrued liabilities | 632 | 808.3 |
Senior bank debt | 475 | 855 |
Senior notes | 1,084.3 | 736.8 |
Convertible securities | 304.1 | 303.1 |
Deferred income taxes | 572.9 | 491.7 |
Other liabilities | 229.4 | 214.5 |
Total liabilities | $ 3,297.7 | $ 3,409.4 |
Commitments and contingencies | ||
Redeemable non-controlling interests | $ 744.3 | $ 645.5 |
Equity: | ||
Common stock | 0.6 | 0.6 |
Additional paid-in capital | 501.3 | 672.2 |
Accumulated other comprehensive income | 76.1 | 31.8 |
Retained earnings | 2,420 | 2,163.3 |
Total stockholders' equity before treasury stock | 2,998 | 2,867.9 |
Less: Treasury stock, at cost | (346.9) | (240.9) |
Total stockholders' equity | 2,651.1 | 2,627 |
Non-controlling interests | 985.7 | 1,016.2 |
Total equity | 3,636.8 | 3,643.2 |
Total liabilities and equity | $ 7,678.8 | $ 7,698.1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock at Cost | Noncontrolling Interest |
Beginning Balance (in shares) at Dec. 31, 2013 | 53.9 | ||||||
Beginning Balance at Dec. 31, 2013 | $ 3,144.6 | $ 0.5 | $ 479.9 | $ 74 | $ 1,711.2 | $ (131.4) | $ 1,010.4 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 337.4 | 176.2 | 161.2 | ||||
Share-based compensation | 15.2 | 15.2 | |||||
Common stock issued under share-based incentive plans | (21.2) | (87.2) | 66 | ||||
Tax benefit from share-based incentive plans | $ 44.9 | 44.9 | |||||
Settlement of senior convertible securities (in shares) | 1.9 | ||||||
Settlement of senior convertible securities | $ 276.5 | 0.1 | 276.4 | ||||
Forward equity | (45) | (45) | |||||
Investments in Affiliates | 116.6 | 116.6 | |||||
Affiliate equity activity | (21.4) | (35.2) | 13.8 | ||||
Distributions to non-controlling interests | (345.5) | (345.5) | |||||
Other comprehensive income (loss) | $ 3.2 | (0.7) | 3.9 | ||||
Ending Balance (in shares) at Jun. 30, 2014 | 55.8 | ||||||
Ending Balance at Jun. 30, 2014 | $ 3,505.3 | 0.6 | 649 | 73.3 | 1,887.4 | (65.4) | 960.4 |
Beginning Balance (in shares) at Dec. 31, 2014 | 55.8 | ||||||
Beginning Balance at Dec. 31, 2014 | $ 3,643.2 | 0.6 | 672.2 | 31.8 | 2,163.3 | (240.9) | 1,016.2 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 410.6 | 256.7 | 153.9 | ||||
Share-based compensation | 17 | 17 | |||||
Common stock issued under share-based incentive plans | 49.3 | (123.4) | 172.7 | ||||
Tax benefit from share-based incentive plans | 42.3 | 42.3 | |||||
Affiliate equity activity | (63.9) | (106.8) | 42.9 | ||||
Share repurchases | (278.7) | (278.7) | |||||
Distributions to non-controlling interests | (230) | (230) | |||||
Other comprehensive income (loss) | $ 47 | 44.3 | 2.7 | ||||
Ending Balance (in shares) at Jun. 30, 2015 | 55.8 | ||||||
Ending Balance at Jun. 30, 2015 | $ 3,636.8 | $ 0.6 | $ 501.3 | $ 76.1 | $ 2,420 | $ (346.9) | $ 985.7 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flow from (used in) operating activities: | ||
Net income | $ 410.6 | $ 337.4 |
Adjustments to reconcile Net income to net Cash flow from operating activities: | ||
Intangible amortization and impairments | 55.9 | 55.5 |
Depreciation and other amortization | 9 | 7.9 |
Deferred income tax provision | 59.7 | 30.3 |
Imputed interest expense and contingent payment arrangements | (40.4) | 24.8 |
Income from equity method investments, net of amortization | (113.2) | (100.9) |
Distributions received from equity method investments | 222.7 | 254.5 |
Share-based compensation and Affiliate equity expense | 67.1 | 61.1 |
Other non-cash items | (2.6) | 1.8 |
Changes in assets and liabilities: | ||
Increase in receivables | (54.3) | (53.6) |
(Increase) decrease in other assets | (5.2) | (3.5) |
Increase (decrease) in payables, accrued liabilities and other liabilities | (138.8) | 10.6 |
Cash flow from operating activities | 470.5 | 625.9 |
Cash flow from (used in) investing activities: | ||
Investments in Affiliates | (32) | (534) |
Purchase of fixed assets | (11.7) | (10.5) |
Purchase of investment securities | (4.8) | (8.3) |
Sale of investment securities | 18.2 | 7.3 |
Cash flow used in investing activities | (30.3) | (545.5) |
Cash flow from (used in) financing activities: | ||
Borrowings of senior debt | 523.3 | 986.5 |
Repayments of senior debt and convertible securities | (556) | (815.6) |
Issuance of common stock | 53.2 | 24 |
Repurchase of common stock | (314.8) | 0 |
Note and contingent payments | 9.4 | 10.4 |
Distributions to non-controlling interests | (230) | (345.5) |
Affiliate equity issuances and repurchases | (25.1) | (33.4) |
Excess tax benefit from share-based compensation | 42.3 | 44.6 |
Settlement of forward equity sale agreement | 0 | (45) |
Other financing items | (3.3) | (5) |
Cash flow used in financing activities | (501) | (179) |
Effect of foreign exchange rate changes on cash and cash equivalents | (1.3) | 3.2 |
Net decrease in cash and cash equivalents | (62.1) | (95.4) |
Cash and cash equivalents at beginning of period | 550.6 | 469.6 |
Cash and cash equivalents at end of period | 488.5 | 374.2 |
Supplemental disclosure of non-cash financing activities: | ||
Settlement of 2006 junior convertible securities | 0 | 217.8 |
Stock issued under incentive plans | 10.7 | 63.3 |
Stock received in settlement of liability | 3.6 | 44.7 |
Payables recorded under contingent payment arrangements | 30.9 | 0 |
Payables recorded for Affiliate equity repurchases | 54.9 | 20.9 |
Payables recorded for share repurchases | $ 11.7 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 Consolidated Financial Statements. In April 2015, the FASB issued a new standard amending the disclosure requirements for investments in certain entities that calculate net asset value per share. The new standard removes, from the fair value hierarchy, investments for which the net asset value is used as a practical measure of fair value. 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 financial statement disclosures. |
Investments in Marketable Secur
Investments in Marketable Securities | 6 Months Ended |
Jun. 30, 2015 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities at December 31, 2014 and June 30, 2015 were $172.6 million and $261.5 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 June 30, 2015 : Available-for-Sale Trading December 31, June 30, December 31, June 30, Cost $ 125.6 $ 113.3 $ 19.5 $ 20.1 Unrealized Gains 42.8 126.4 2.9 4.4 Unrealized Losses (18.1 ) (2.6 ) (0.1 ) (0.1 ) Fair Value $ 150.3 $ 237.1 $ 22.3 $ 24.4 There were no significant realized gains or losses on investments classified as available-for-sale or trading for the three and six months ended June 30, 2014 . In the six months ended June 30, 2015, there were $7.9 million of realized gains on investments classified as available-for-sale, all of which occurred in the three months ended June 30, 2015. These gains were recorded in Investment and other income. There were no significant realized gains or losses on investments classified as trading in the three and six months ended June 30, 2015. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 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 June 30, 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: December 31, 2014 June 30, 2015 Category of Investment Unconsolidated VIE Net Assets Carrying Value and Maximum Exposure to Loss Unconsolidated VIE Net Assets Carrying Value and Maximum Exposure to Loss Sponsored investment funds $ 8,550.4 $ 1.2 $ 6,510.3 $ 1.3 |
Senior Debt
Senior Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Senior Debt | Senior 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 June 30, 2015 , these unfunded commitments were $80.8 million and may be called in future periods. In connection with a past acquisition agreement, the Company is contractually entitled to reimbursement from a prior owner for $18.6 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 $223.1 million through 2019. As of June 30, 2015 , the Company expected to make payments of $9.9 million (the net present value of which totaled $6.7 million ) to settle these obligations. We do not expect to make any payments associated with these contingent arrangements during the remainder of 2015. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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, 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 June 30, 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 $ 37.8 $ 37.8 $ — $ — Investments in marketable securities (1) Trading securities 24.4 24.4 — — Available-for-sale securities 237.1 237.1 — — Other investments 165.7 24.3 8.0 133.4 Foreign currency forward contracts 1.5 — 1.5 — Financial Liabilities Contingent payment arrangements (2) $ 6.7 $ — $ — $ 6.7 Obligations to related parties (2) 127.3 — — 127.3 Interest rate swaps 0.9 — 0.9 — Foreign currency forward contracts 0.2 — 0.2 — __________________________ (1) Principally investments in equity securities. (2) Amounts are presented within Other liabilities in the accompanying Consolidated Balance Sheets. The following are descriptions 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 that 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 that 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 and six months ended June 30, 2014 and 2015 . Level 3 Financial Assets and Liabilities The following table presents the changes in Level 3 assets and liabilities for the three and six months ended June 30, 2014 and 2015 : For the Three Months Ended June 30, 2014 2015 Other Investments Contingent Payment Arrangements Obligations to Related Parties Other Investments Contingent Payment Arrangements Obligations to Related Parties Balance, beginning of period $ 135.9 $ 53.2 $ 131.9 $ 133.8 $ 31.5 $ 86.1 Net gains/losses 5.1 (1) 1.9 (2) 1.9 (3) 2.4 (1) (13.8 ) (2) 2.5 (3) Purchases and issuances 3.1 — 1.6 3.7 6.5 51.0 Settlements and reductions (4.6 ) — (37.0 ) (6.5 ) (17.5 ) (12.3 ) Net transfers in and/or out of Level 3 — — — — — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 5.8 (1) $ 1.9 (2) $ 1.4 (3) $ 4.8 (1) $ (13.8 ) (2) $ (0.2 ) (3) For the Six Months Ended June 30, 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 10.9 (1) 4.9 (2) 4.4 (3) (1.8 ) (1) (41.6 ) (2) 2.4 (3) Purchases and issuances 6.9 — 61.0 6.2 6.5 67.8 Settlements and reductions (10.1 ) — (43.9 ) (11.7 ) (17.5 ) (36.0 ) Net transfers in and/or out of Level 3 — — — 6.5 — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 12.7 (1) $ 4.9 (2) $ 2.4 (3) $ 3.6 (1) $ (41.6 ) (2) $ (4.2 ) (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 Techniques Unobservable Input Fair Value at Range at Fair Value at June 30, 2015 Range at June 30, 2015 Contingent payment arrangements Discounted cash flow Growth rates $ 59.3 6% $ 6.7 5% - 10% Discount rates 15% 16% Affiliate equity obligations Discounted cash flow Growth rates 21.5 5% - 9% 58.3 2% - 11% 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 June 30, 2015 , the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: December 31, 2014 June 30, 2015 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds (1) $ 134.2 $ 67.8 $ 133.4 $ 80.8 Other funds (2) 75.8 — 87.5 — $ 210.0 $ 67.8 $ 220.9 $ 80.8 ___________________________ (1) These funds primarily invest in a broad range of private equity funds, as well as make direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, 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. Other Financial Assets and Liabilities Not Carried at Fair Value The carrying amount of Cash and 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: December 31, 2014 June 30, 2015 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 736.8 $ 786.2 $ 1,084.3 $ 1,092.2 Level 2 Convertible securities 303.1 532.1 304.1 517.0 Level 2 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2015 : Goodwill Institutional Mutual Fund High Net Worth Total Balance, as of December 31, 2014 $ 1,159.1 $ 1,125.3 $ 368.4 $ 2,652.8 New investments (1) 1.6 — 27.4 29.0 Foreign currency translation (13.3 ) 10.6 (9.1 ) (11.8 ) Balance, as of June 30, 2015 $ 1,147.4 $ 1,135.9 $ 386.7 $ 2,670.0 Acquired Client Relationships Definite-lived Indefinite-lived Total Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balance, as of December 31, 2014 $ 1,255.1 $ (565.0 ) $ 690.1 $ 1,088.3 $ 1,778.4 New investments (1) 23.6 — 23.6 — 23.6 Intangible amortization and impairments — (55.9 ) (55.9 ) — (55.9 ) Foreign currency translation (0.1 ) — (0.1 ) 3.8 3.7 Balance, as of June 30, 2015 $ 1,278.6 $ (620.9 ) $ 657.7 $ 1,092.1 $ 1,749.8 __________________________ (1) On April 1, 2015, the Company completed its investment in Baker Street Advisors, LLC. Definite-lived acquired client relationships are amortized over their expected useful lives. As of June 30, 2015 , these relationships were being amortized over a weighted average life of approximately ten years. The Company recognized amortization expenses for these relationships of $28.1 million and $55.5 million for the three and six months ended June 30, 2014 , respectively, as compared to $28.1 million and $55.9 million for the three and six months ended June 30, 2015 , respectively. Based on relationships existing as of June 30, 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 Affiliates. On July 13, 2015, the Company announced that it will acquire a majority equity interest in myCIO Wealth Partners, LLC (“myCIO”). 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 June 30, 2015 , the definite-lived relationships were being amortized over a weighted average life of approximately fourteen years. The Company recognized amortization expense for these relationships of $8.9 million and $14.3 million for the three and six months ended June 30, 2014 , respectively, as compared to $8.7 million and $17.5 million for the three and six months ended June 30, 2015 , respectively. Based on relationships existing as of June 30, 2015 , the Company estimates the annual amortization expense will be approximately $34.1 million in 2015 and $31.9 million in each of 2016, 2017, 2018 and 2019. In the three months ended June 30, 2015, goodwill and acquired client relationships associated with equity method investments increased by $24.4 million related to a contingent payment obligation. 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. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Share-based compensation $ 8.7 $ 9.1 $ 15.2 $ 17.1 Tax benefit 3.4 3.5 5.8 6.6 There was $56.8 million and $86.3 million of unrecognized share-based compensation as of December 31, 2014 and June 30, 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 Exercise Price Weighted Average Remaining Contractual Life (years) Unexercised options outstanding—December 31, 2014 2.3 $ 83.42 Options granted 0.0 199.86 Options exercised (0.9 ) 65.60 Options forfeited (0.0 ) 101.29 Unexercised options outstanding—June 30, 2015 1.4 94.29 2.5 Exercisable at June 30, 2015 1.3 91.76 2.4 Restricted Stock The following table summarizes the transactions of the Company’s restricted stock units: Restricted Stock Weighted Average Grant Date Value Unvested units—December 31, 2014 0.4 $ 182.83 Units granted 0.3 197.93 Units vested (0.2 ) 174.19 Units forfeited (0.0 ) 190.76 Unvested units—June 30, 2015 0.5 192.10 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 values 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 expense over a service period of four years . |
Affiliate Equity
Affiliate Equity | 6 Months Ended |
Jun. 30, 2015 | |
Affiliate Equity [Abstract] | |
Affiliate Equity | Affiliate Equity A summary of Affiliate equity expense is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Affiliate equity expense $ 30.7 $ 40.7 $ 45.9 $ 50.0 Tax benefit 4.3 1.1 7.2 2.6 Affiliate equity expense attributable to the non-controlling interests was $19.7 million and $27.2 million in the three and six months ended June 30, 2014 , respectively, as compared to $37.9 million and $43.3 million in the three and six months ended June 30, 2015 , respectively. As of December 31, 2014 and June 30, 2015 , the Company had $71.1 million and $81.3 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 $56.6 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 (61.8 ) Changes in redemption value 160.6 Balance, as of June 30, 2015 $ 744.3 During the three and six months ended June 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Net income (controlling interest) $ 99.1 $ 128.7 $ 176.2 $ 256.7 Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity 2.8 (28.6 ) (13.5 ) (31.6 ) Change from Net income (controlling interest) and net transfers with non-controlling interests $ 101.9 $ 100.1 $ 162.7 $ 225.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Controlling interests: Current tax $ 42.3 $ 43.4 $ 72.6 $ 75.4 Intangible-related deferred taxes 18.4 20.7 35.3 41.1 Other deferred taxes (3.0 ) 5.1 (4.6 ) 18.9 Total controlling interests 57.7 69.2 103.3 135.4 Non-controlling interests: Current tax $ 3.6 $ 3.1 $ 7.1 $ 6.6 Deferred taxes (0.2 ) (0.2 ) (0.4 ) (0.3 ) Total non-controlling interests 3.4 2.9 6.7 6.3 Provision for income taxes $ 61.1 $ 72.1 $ 110.0 $ 141.7 Income before income taxes (controlling interest) $ 156.8 $ 197.9 $ 279.5 $ 392.1 Effective tax rate attributable to controlling interest (1) 36.8 % 35.0 % 37.0 % 34.5 % __________________________ (1) Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). The Effective tax rate attributable to controlling interest was 36.8 % and 37.0 % for the three and six months ended June 30, 2014 , respectively, as compared to 35.0% and 34.5% for the three and six months ended June 30, 2015 , respectively. The decrease resulted primarily from an indefinite reinvestment of $6.3 million and $12.5 million of non-U.S. earnings in the three and six months ended June 30, 2015 , respectively. As of June 30, 2015 , the Company carried a liability for uncertain tax positions of $27.6 million , including $1.9 million for interest and related charges. At June 30, 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 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 by entering into derivative contracts. The following table summarizes the interest rate swap agreements outstanding at June 30, 2015 : Fair Value (1) Notional Paying Receiving Start Date Expiration Date December 31, 2014 June 30, 2015 Counterparty A $ 25.0 1.67 % 3-Month LIBOR October 2010 October 2015 $ (0.3 ) $ (0.1 ) Counterparty A $ 25.0 1.65 % 3-Month LIBOR October 2010 October 2015 (0.3 ) (0.1 ) Counterparty B $ 25.0 1.59 % 3-Month LIBOR October 2010 October 2015 (0.2 ) (0.1 ) Counterparty B $ 25.0 2.14 % 3-Month LIBOR October 2010 October 2017 (0.6 ) (0.6 ) __________________________ (1) Aggregate fair values of $1.4 million and $0.9 million at December 31, 2014 and June 30, 2015 , respectively, are presented within Other liabilities. The Company posted collateral with its counterparties of $1.7 million . The Company’s Affiliates entered into foreign currency forward contracts to hedge projected cash flows denominated in currencies other than their functional currency. The following table summarizes the foreign currency forward contracts outstanding at June 30, 2015 : Fair Value (1) Paying Receiving Start Date Expected Settlement December 31, 2014 June 30, 2015 Counterparty C €15.8 $19.2 December 2014 Quarterly 2015 $ 0.3 $ 1.5 Counterparty C $7.5 £4.7 September 2014 Monthly 2015 (0.8 ) (0.2 ) Counterparty C £2.0 $3.1 June 2015 July 2015 — 0.0 __________________________ (1) The fair values of receivables and payables related to outstanding hedge contracts are presented within Other assets and Other liabilities, respectively. These amounts are expected to be reclassified into earnings within the next twelve months. During the three and six months ended June 30, 2015 , the Company realized $1.1 million and $1.4 million , respectively, of gains and $0.5 million and $1.1 million , respectively, 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, Investment and other income or Operating expenses. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Numerator Net income (controlling interest) $ 99.1 $ 128.7 $ 176.2 $ 256.7 Convertible securities interest expense, net — 3.8 — 7.6 Net income (controlling interest), as adjusted $ 99.1 $ 132.5 $ 176.2 $ 264.3 Denominator Average shares outstanding (basic) 55.4 54.6 54.6 54.7 Effect of dilutive instruments: Stock options and restricted stock 1.2 0.7 1.2 0.8 Forward equity 0.0 — 0.1 — Junior convertible securities — 2.2 — 2.2 Average shares outstanding (diluted) 56.6 57.5 55.9 57.7 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Stock options and restricted stock 0.2 0.1 0.2 0.1 Junior convertible securities 2.2 — 2.9 — |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 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 June 30, 2014 2015 Pre-Tax Tax Benefit Net of Tax Pre-Tax Tax Benefit Net of Tax Foreign currency translation adjustment $ 20.4 $ — $ 20.4 $ 48.5 $ — $ 48.5 Change in net realized and unrealized gain (loss) on derivative securities 0.2 (0.1 ) 0.1 (0.6 ) (0.1 ) (0.7 ) Change in net unrealized gain (loss) on investment securities 8.3 (3.2 ) 5.1 76.5 (28.6 ) 47.9 Other comprehensive loss $ 28.9 $ (3.3 ) $ 25.6 $ 124.4 $ (28.7 ) $ 95.7 For the Six Months Ended June 30, 2014 2015 Pre-Tax Tax Benefit Net of Tax Pre-Tax Tax Benefit Net of Tax Foreign currency translation adjustment $ 11.6 $ — $ 11.6 $ (11.6 ) $ — $ (11.6 ) Change in net realized and unrealized gain (loss) on derivative securities 0.5 (0.2 ) 0.3 2.2 (0.2 ) 2.0 Change in net unrealized gain (loss) on investment securities (13.9 ) 5.2 (8.7 ) 90.7 (34.1 ) 56.6 Other comprehensive income (loss) $ (1.8 ) $ 5.0 $ 3.2 $ 81.3 $ (34.3 ) $ 47.0 The components of Accumulated other comprehensive income (loss), net of taxes, are as follows: Foreign Currency Translation Adjustment Realized and Unrealized Gains (Losses) on Derivative Securities Unrealized Gains (Losses) on Investment Securities (1) Total Balance, as of December 31, 2014 $ (5.4 ) $ (1.6 ) $ 22.9 $ 15.9 Other comprehensive income (loss) before reclassifications (11.6 ) 1.4 48.7 38.5 Amounts reclassified from other comprehensive income — 0.6 7.9 8.5 Net other comprehensive income (loss) (11.6 ) 2.0 56.6 47.0 Balance, as of June 30, 2015 $ (17.0 ) $ 0.4 $ 79.5 $ 62.9 ________________________ (1) See Note 3 of the Consolidated Financial Statements for amounts reclassified from Other comprehensive income. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 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: For the Three Months Ended June 30, 2014 2015 Revenue Net income (controlling interest) Revenue Net income (controlling interest) Institutional $ 265.2 $ 48.4 $ 255.4 $ 59.6 Mutual Fund 310.0 41.2 323.0 56.1 High Net Worth 61.1 9.5 68.2 13.0 Total $ 636.3 $ 99.1 $ 646.6 $ 128.7 For the Six Months Ended June 30, 2014 2015 Revenue Net income (controlling interest) Revenue Net income (controlling interest) Institutional $ 510.1 $ 84.3 $ 508.3 $ 108.3 Mutual Fund 601.9 75.3 641.3 123.8 High Net Worth 117.4 16.6 132.0 24.6 Total $ 1,229.4 $ 176.2 $ 1,281.6 $ 256.7 Total Assets December 31, 2014 June 30, 2015 Institutional $ 3,739.8 $ 3,512.2 Mutual Fund 3,082.0 3,246.8 High Net Worth 876.3 919.8 Total $ 7,698.1 $ 7,678.8 |
Investments in Marketable Sec22
Investments in Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 : Available-for-Sale Trading December 31, June 30, December 31, June 30, Cost $ 125.6 $ 113.3 $ 19.5 $ 20.1 Unrealized Gains 42.8 126.4 2.9 4.4 Unrealized Losses (18.1 ) (2.6 ) (0.1 ) (0.1 ) Fair Value $ 150.3 $ 237.1 $ 22.3 $ 24.4 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 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: December 31, 2014 June 30, 2015 Category of Investment Unconsolidated VIE Net Assets Carrying Value and Maximum Exposure to Loss Unconsolidated VIE Net Assets Carrying Value and Maximum Exposure to Loss Sponsored investment funds $ 8,550.4 $ 1.2 $ 6,510.3 $ 1.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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, 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 June 30, 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 $ 37.8 $ 37.8 $ — $ — Investments in marketable securities (1) Trading securities 24.4 24.4 — — Available-for-sale securities 237.1 237.1 — — Other investments 165.7 24.3 8.0 133.4 Foreign currency forward contracts 1.5 — 1.5 — Financial Liabilities Contingent payment arrangements (2) $ 6.7 $ — $ — $ 6.7 Obligations to related parties (2) 127.3 — — 127.3 Interest rate swaps 0.9 — 0.9 — Foreign currency forward contracts 0.2 — 0.2 — __________________________ (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 | The following table presents the changes in Level 3 assets and liabilities for the three and six months ended June 30, 2014 and 2015 : For the Three Months Ended June 30, 2014 2015 Other Investments Contingent Payment Arrangements Obligations to Related Parties Other Investments Contingent Payment Arrangements Obligations to Related Parties Balance, beginning of period $ 135.9 $ 53.2 $ 131.9 $ 133.8 $ 31.5 $ 86.1 Net gains/losses 5.1 (1) 1.9 (2) 1.9 (3) 2.4 (1) (13.8 ) (2) 2.5 (3) Purchases and issuances 3.1 — 1.6 3.7 6.5 51.0 Settlements and reductions (4.6 ) — (37.0 ) (6.5 ) (17.5 ) (12.3 ) Net transfers in and/or out of Level 3 — — — — — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 5.8 (1) $ 1.9 (2) $ 1.4 (3) $ 4.8 (1) $ (13.8 ) (2) $ (0.2 ) (3) For the Six Months Ended June 30, 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 10.9 (1) 4.9 (2) 4.4 (3) (1.8 ) (1) (41.6 ) (2) 2.4 (3) Purchases and issuances 6.9 — 61.0 6.2 6.5 67.8 Settlements and reductions (10.1 ) — (43.9 ) (11.7 ) (17.5 ) (36.0 ) Net transfers in and/or out of Level 3 — — — 6.5 — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 12.7 (1) $ 4.9 (2) $ 2.4 (3) $ 3.6 (1) $ (41.6 ) (2) $ (4.2 ) (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 Changes in Level 3 Liabilities | The following table presents the changes in Level 3 assets and liabilities for the three and six months ended June 30, 2014 and 2015 : For the Three Months Ended June 30, 2014 2015 Other Investments Contingent Payment Arrangements Obligations to Related Parties Other Investments Contingent Payment Arrangements Obligations to Related Parties Balance, beginning of period $ 135.9 $ 53.2 $ 131.9 $ 133.8 $ 31.5 $ 86.1 Net gains/losses 5.1 (1) 1.9 (2) 1.9 (3) 2.4 (1) (13.8 ) (2) 2.5 (3) Purchases and issuances 3.1 — 1.6 3.7 6.5 51.0 Settlements and reductions (4.6 ) — (37.0 ) (6.5 ) (17.5 ) (12.3 ) Net transfers in and/or out of Level 3 — — — — — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 5.8 (1) $ 1.9 (2) $ 1.4 (3) $ 4.8 (1) $ (13.8 ) (2) $ (0.2 ) (3) For the Six Months Ended June 30, 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 10.9 (1) 4.9 (2) 4.4 (3) (1.8 ) (1) (41.6 ) (2) 2.4 (3) Purchases and issuances 6.9 — 61.0 6.2 6.5 67.8 Settlements and reductions (10.1 ) — (43.9 ) (11.7 ) (17.5 ) (36.0 ) Net transfers in and/or out of Level 3 — — — 6.5 — — Balance, end of period $ 139.5 $ 55.1 $ 98.4 $ 133.4 $ 6.7 $ 127.3 Net unrealized gains/losses relating to instruments still held at the reporting date $ 12.7 (1) $ 4.9 (2) $ 2.4 (3) $ 3.6 (1) $ (41.6 ) (2) $ (4.2 ) (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 Techniques Unobservable Input Fair Value at Range at Fair Value at June 30, 2015 Range at June 30, 2015 Contingent payment arrangements Discounted cash flow Growth rates $ 59.3 6% $ 6.7 5% - 10% Discount rates 15% 16% Affiliate equity obligations Discounted cash flow Growth rates 21.5 5% - 9% 58.3 2% - 11% 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 June 30, 2015 , the nature of these investments and any related liquidity restrictions or other factors which may impact the ultimate value realized: December 31, 2014 June 30, 2015 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity funds (1) $ 134.2 $ 67.8 $ 133.4 $ 80.8 Other funds (2) 75.8 — 87.5 — $ 210.0 $ 67.8 $ 220.9 $ 80.8 ___________________________ (1) These funds primarily invest in a broad range of private equity funds, as well as make direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, 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: December 31, 2014 June 30, 2015 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 736.8 $ 786.2 $ 1,084.3 $ 1,092.2 Level 2 Convertible securities 303.1 532.1 304.1 517.0 Level 2 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2015 : Goodwill Institutional Mutual Fund High Net Worth Total Balance, as of December 31, 2014 $ 1,159.1 $ 1,125.3 $ 368.4 $ 2,652.8 New investments (1) 1.6 — 27.4 29.0 Foreign currency translation (13.3 ) 10.6 (9.1 ) (11.8 ) Balance, as of June 30, 2015 $ 1,147.4 $ 1,135.9 $ 386.7 $ 2,670.0 |
Schedule of Changes in the Components of Acquired Client Relationships | Acquired Client Relationships Definite-lived Indefinite-lived Total Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balance, as of December 31, 2014 $ 1,255.1 $ (565.0 ) $ 690.1 $ 1,088.3 $ 1,778.4 New investments (1) 23.6 — 23.6 — 23.6 Intangible amortization and impairments — (55.9 ) (55.9 ) — (55.9 ) Foreign currency translation (0.1 ) — (0.1 ) 3.8 3.7 Balance, as of June 30, 2015 $ 1,278.6 $ (620.9 ) $ 657.7 $ 1,092.1 $ 1,749.8 __________________________ (1) On April 1, 2015, the Company completed its investment in Baker Street Advisors, LLC. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Share-based compensation $ 8.7 $ 9.1 $ 15.2 $ 17.1 Tax benefit 3.4 3.5 5.8 6.6 |
Schedule of Company Stock Option Transactions | The following table summarizes the transactions of the Company’s stock options: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Unexercised options outstanding—December 31, 2014 2.3 $ 83.42 Options granted 0.0 199.86 Options exercised (0.9 ) 65.60 Options forfeited (0.0 ) 101.29 Unexercised options outstanding—June 30, 2015 1.4 94.29 2.5 Exercisable at June 30, 2015 1.3 91.76 2.4 |
Schedule of Company Restricted Stock Unit Transactions | The following table summarizes the transactions of the Company’s restricted stock units: Restricted Stock Weighted Average Grant Date Value Unvested units—December 31, 2014 0.4 $ 182.83 Units granted 0.3 197.93 Units vested (0.2 ) 174.19 Units forfeited (0.0 ) 190.76 Unvested units—June 30, 2015 0.5 192.10 |
Affiliate Equity (Tables)
Affiliate Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Affiliate Equity [Abstract] | |
Summary of Affiliate Equity Compensation | A summary of Affiliate equity expense is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Affiliate equity expense $ 30.7 $ 40.7 $ 45.9 $ 50.0 Tax benefit 4.3 1.1 7.2 2.6 |
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 (61.8 ) Changes in redemption value 160.6 Balance, as of June 30, 2015 $ 744.3 |
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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Net income (controlling interest) $ 99.1 $ 128.7 $ 176.2 $ 256.7 Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity 2.8 (28.6 ) (13.5 ) (31.6 ) Change from Net income (controlling interest) and net transfers with non-controlling interests $ 101.9 $ 100.1 $ 162.7 $ 225.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Controlling interests: Current tax $ 42.3 $ 43.4 $ 72.6 $ 75.4 Intangible-related deferred taxes 18.4 20.7 35.3 41.1 Other deferred taxes (3.0 ) 5.1 (4.6 ) 18.9 Total controlling interests 57.7 69.2 103.3 135.4 Non-controlling interests: Current tax $ 3.6 $ 3.1 $ 7.1 $ 6.6 Deferred taxes (0.2 ) (0.2 ) (0.4 ) (0.3 ) Total non-controlling interests 3.4 2.9 6.7 6.3 Provision for income taxes $ 61.1 $ 72.1 $ 110.0 $ 141.7 Income before income taxes (controlling interest) $ 156.8 $ 197.9 $ 279.5 $ 392.1 Effective tax rate attributable to controlling interest (1) 36.8 % 35.0 % 37.0 % 34.5 % __________________________ (1) Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 : Fair Value (1) Notional Paying Receiving Start Date Expiration Date December 31, 2014 June 30, 2015 Counterparty A $ 25.0 1.67 % 3-Month LIBOR October 2010 October 2015 $ (0.3 ) $ (0.1 ) Counterparty A $ 25.0 1.65 % 3-Month LIBOR October 2010 October 2015 (0.3 ) (0.1 ) Counterparty B $ 25.0 1.59 % 3-Month LIBOR October 2010 October 2015 (0.2 ) (0.1 ) Counterparty B $ 25.0 2.14 % 3-Month LIBOR October 2010 October 2017 (0.6 ) (0.6 ) __________________________ (1) Aggregate fair values of $1.4 million and $0.9 million at December 31, 2014 and June 30, 2015 , respectively, are presented within Other liabilities. The Company posted collateral with its counterparties of $1.7 million . |
Schedule of Foreign Currency Forward Contracts | The following table summarizes the foreign currency forward contracts outstanding at June 30, 2015 : Fair Value (1) Paying Receiving Start Date Expected Settlement December 31, 2014 June 30, 2015 Counterparty C €15.8 $19.2 December 2014 Quarterly 2015 $ 0.3 $ 1.5 Counterparty C $7.5 £4.7 September 2014 Monthly 2015 (0.8 ) (0.2 ) Counterparty C £2.0 $3.1 June 2015 July 2015 — 0.0 __________________________ (1) The fair values of receivables and payables related to outstanding hedge contracts are presented within Other assets and Other liabilities, respectively. These amounts are expected to be reclassified into earnings within the next twelve months. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Numerator Net income (controlling interest) $ 99.1 $ 128.7 $ 176.2 $ 256.7 Convertible securities interest expense, net — 3.8 — 7.6 Net income (controlling interest), as adjusted $ 99.1 $ 132.5 $ 176.2 $ 264.3 Denominator Average shares outstanding (basic) 55.4 54.6 54.6 54.7 Effect of dilutive instruments: Stock options and restricted stock 1.2 0.7 1.2 0.8 Forward equity 0.0 — 0.1 — Junior convertible securities — 2.2 — 2.2 Average shares outstanding (diluted) 56.6 57.5 55.9 57.7 |
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 June 30, For the Six Months Ended June 30, 2014 2015 2014 2015 Stock options and restricted stock 0.2 0.1 0.2 0.1 Junior convertible securities 2.2 — 2.9 — |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2014 2015 Pre-Tax Tax Benefit Net of Tax Pre-Tax Tax Benefit Net of Tax Foreign currency translation adjustment $ 20.4 $ — $ 20.4 $ 48.5 $ — $ 48.5 Change in net realized and unrealized gain (loss) on derivative securities 0.2 (0.1 ) 0.1 (0.6 ) (0.1 ) (0.7 ) Change in net unrealized gain (loss) on investment securities 8.3 (3.2 ) 5.1 76.5 (28.6 ) 47.9 Other comprehensive loss $ 28.9 $ (3.3 ) $ 25.6 $ 124.4 $ (28.7 ) $ 95.7 For the Six Months Ended June 30, 2014 2015 Pre-Tax Tax Benefit Net of Tax Pre-Tax Tax Benefit Net of Tax Foreign currency translation adjustment $ 11.6 $ — $ 11.6 $ (11.6 ) $ — $ (11.6 ) Change in net realized and unrealized gain (loss) on derivative securities 0.5 (0.2 ) 0.3 2.2 (0.2 ) 2.0 Change in net unrealized gain (loss) on investment securities (13.9 ) 5.2 (8.7 ) 90.7 (34.1 ) 56.6 Other comprehensive income (loss) $ (1.8 ) $ 5.0 $ 3.2 $ 81.3 $ (34.3 ) $ 47.0 |
Schedule of Components of Accumulated Other Comprehensive Income | The components of Accumulated other comprehensive income (loss), net of taxes, are as follows: Foreign Currency Translation Adjustment Realized and Unrealized Gains (Losses) on Derivative Securities Unrealized Gains (Losses) on Investment Securities (1) Total Balance, as of December 31, 2014 $ (5.4 ) $ (1.6 ) $ 22.9 $ 15.9 Other comprehensive income (loss) before reclassifications (11.6 ) 1.4 48.7 38.5 Amounts reclassified from other comprehensive income — 0.6 7.9 8.5 Net other comprehensive income (loss) (11.6 ) 2.0 56.6 47.0 Balance, as of June 30, 2015 $ (17.0 ) $ 0.4 $ 79.5 $ 62.9 ________________________ (1) See Note 3 of the Consolidated Financial Statements for amounts reclassified from Other comprehensive income. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table summarizes the Company’s financial results for each of the distribution channels: For the Three Months Ended June 30, 2014 2015 Revenue Net income (controlling interest) Revenue Net income (controlling interest) Institutional $ 265.2 $ 48.4 $ 255.4 $ 59.6 Mutual Fund 310.0 41.2 323.0 56.1 High Net Worth 61.1 9.5 68.2 13.0 Total $ 636.3 $ 99.1 $ 646.6 $ 128.7 For the Six Months Ended June 30, 2014 2015 Revenue Net income (controlling interest) Revenue Net income (controlling interest) Institutional $ 510.1 $ 84.3 $ 508.3 $ 108.3 Mutual Fund 601.9 75.3 641.3 123.8 High Net Worth 117.4 16.6 132.0 24.6 Total $ 1,229.4 $ 176.2 $ 1,281.6 $ 256.7 Total Assets December 31, 2014 June 30, 2015 Institutional $ 3,739.8 $ 3,512.2 Mutual Fund 3,082.0 3,246.8 High Net Worth 876.3 919.8 Total $ 7,698.1 $ 7,678.8 |
Investments in Marketable Sec33
Investments in Marketable Securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Marketable Securities [Abstract] | |||
Investments in marketable securities | $ 261,500,000 | $ 261,500,000 | $ 172,600,000 |
Realized gain on available for sale investments | $ 7,900,000 | $ 7,900,000 |
Investments in Marketable Sec34
Investments in Marketable Securities - Schedule of Available-For-Sale and Trading Securities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available-for-Sale | ||
Cost | $ 113.3 | $ 125.6 |
Unrealized Gains | 126.4 | 42.8 |
Unrealized Losses | (2.6) | (18.1) |
Fair Value | 237.1 | 150.3 |
Trading | ||
Cost | 20.1 | 19.5 |
Unrealized Gains | 4.4 | 2.9 |
Unrealized Losses | (0.1) | (0.1) |
Fair Value | $ 24.4 | $ 22.3 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Unconsolidated VIE's and Company Risk (Details) - Sponsored Investment Funds - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Variable Interest Entities | ||
Unconsolidated VIE net assets | $ 6,510.3 | $ 8,550.4 |
Carrying value and maximum exposure to loss | $ 1.3 | $ 1.2 |
Senior Debt (Details)
Senior Debt (Details) - Feb. 13, 2015 - Senior Notes - 3.50% Senior Notes Due 2025 - USD ($) | Total |
Long-term debt | |
Face amount | $ 350,000,000 |
Interest rate | 3.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Commitments and Contingencies | |
Co-investment commitments in partnership | $ 80.8 |
Acquisition agreements contingency liability | 223.1 |
Expected payments to settle contingent obligations | 9.9 |
Net present value of expected payments to settle contingent obligations | 6.7 |
Prior Owner | |
Commitments and Contingencies | |
Reimbursable amount of investment commitments | $ 18.6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
Investments in marketable securities | |||
Trading securities | $ 24.4 | $ 22.3 | |
Other investments | 220.9 | 210 | |
Fair Value Measured On A Recurring Basis | |||
Financial Assets | |||
Cash equivalents | 37.8 | 59.1 | |
Investments in marketable securities | |||
Trading securities | [1] | 24.4 | 22.3 |
Available-for-sale securities | [1] | 237.1 | 150.3 |
Other investments | 165.7 | 167.2 | |
Foreign currency forward contracts | 1.5 | ||
Financial Liabilities | |||
Contingent payment arrangements | [2] | 6.7 | 59.3 |
Obligations to related parties | [2] | 127.3 | 93.1 |
Interest rate derivatives | 0.9 | 1.4 | |
Foreign currency forward contracts | 0.2 | 0.5 | |
Fair Value Measured On A Recurring Basis | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Financial Assets | |||
Cash equivalents | 37.8 | 59.1 | |
Investments in marketable securities | |||
Trading securities | [1] | 24.4 | 22.3 |
Available-for-sale securities | [1] | 237.1 | 150.3 |
Other investments | 24.3 | 13.6 | |
Foreign currency forward contracts | 0 | ||
Financial Liabilities | |||
Contingent payment arrangements | [2] | 0 | 0 |
Obligations to related parties | [2] | 0 | 0 |
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 | [1] | 0 | 0 |
Available-for-sale securities | [1] | 0 | 0 |
Other investments | 8 | 19.4 | |
Foreign currency forward contracts | 1.5 | ||
Financial Liabilities | |||
Contingent payment arrangements | [2] | 0 | 0 |
Obligations to related parties | [2] | 0 | 0 |
Interest rate derivatives | 0.9 | 1.4 | |
Foreign currency forward contracts | 0.2 | 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 | [1] | 0 | 0 |
Available-for-sale securities | [1] | 0 | 0 |
Other investments | 133.4 | 134.2 | |
Foreign currency forward contracts | 0 | ||
Financial Liabilities | |||
Contingent payment arrangements | [2] | 6.7 | 59.3 |
Obligations to related parties | [2] | 127.3 | 93.1 |
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 - Sch39
Fair Value Measurements - Schedule of Changes in Level 3 Assets (Details) - Other Investments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ 133.8 | $ 135.9 | $ 134.2 | $ 131.8 | |
Net gains/losses | [1] | 2.4 | 5.1 | (1.8) | 10.9 |
Purchases and issuances | 3.7 | 3.1 | 6.2 | 6.9 | |
Settlements and reductions | (6.5) | (4.6) | (11.7) | (10.1) | |
Net transfers in and/or out of Level 3 | 0 | 0 | 6.5 | 0 | |
Balance, end of period | 133.4 | 139.5 | 133.4 | 139.5 | |
Net unrealized gains/losses relating to instruments still held at the reporting date | [1] | $ 4.8 | $ 5.8 | $ 3.6 | $ 12.7 |
[1] | Gains and losses on Other investments are recorded in Investment and other income. |
Fair Value Measurements - Sch40
Fair Value Measurements - Schedule of Changes in Level 3 Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Contingent Payment Arrangements | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ 31.5 | $ 53.2 | $ 59.3 | $ 50.2 | |
Net gains/losses | [1] | (13.8) | 1.9 | (41.6) | 4.9 |
Purchases and issuances | 6.5 | 0 | 6.5 | 0 | |
Settlements and reductions | (17.5) | 0 | (17.5) | 0 | |
Net transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 6.7 | 55.1 | 6.7 | 55.1 | |
Net unrealized gains/losses relating to instruments still held at the reporting date | [1] | (13.8) | 1.9 | (41.6) | 4.9 |
Obligations to Related Parties | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | 86.1 | 131.9 | 93.1 | 76.9 | |
Net gains/losses | [2] | 2.5 | 1.9 | 2.4 | 4.4 |
Purchases and issuances | 51 | 1.6 | 67.8 | 61 | |
Settlements and reductions | (12.3) | (37) | (36) | (43.9) | |
Net transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 | |
Balance, end of period | 127.3 | 98.4 | 127.3 | 98.4 | |
Net unrealized gains/losses relating to instruments still held at the reporting date | [2] | $ (0.2) | $ 1.4 | $ (4.2) | $ 2.4 |
[1] | Accretion and changes to the Company’s contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements. | ||||
[2] | 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 - Sch41
Fair Value Measurements - Schedule of Quantitative Information used in Valuing Level 3 Liabilities (Details) - Discounted Cash Flow - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Contingent Payment Arrangements | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | $ 6.7 | $ 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) | 16.00% | 15.00% |
Contingent Payment Arrangements | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 10.00% | 6.00% |
Discount rate (as a percent) | 16.00% | 15.00% |
Affiliate Equity Repurchase Obligations | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | $ 58.3 | $ 21.5 |
Affiliate Equity Repurchase Obligations | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 2.00% | 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) | 11.00% | 9.00% |
Discount rate (as a percent) | 16.00% | 16.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments in Certain Entities that Calculate Net Asset Value (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
NAV of investments at fair value | |||
Fair value | $ 220.9 | $ 210 | |
Unfunded commitments | $ 80.8 | 67.8 | |
Life of funds (in years) | 15 years | ||
Private Equity Funds | |||
NAV of investments at fair value | |||
Fair value | [1] | $ 133.4 | 134.2 |
Unfunded commitments | [1] | 80.8 | 67.8 |
Other Funds | |||
NAV of investments at fair value | |||
Fair value | [2] | 87.5 | 75.8 |
Unfunded commitments | [2] | $ 0 | $ 0 |
[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 - Sum43
Fair Value Measurements - Summary of Financial Assets and Liabilities Not Carried at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | $ 1,084.3 | $ 736.8 |
Convertible securities | 304.1 | 303.1 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior notes | 1,092.2 | 786.2 |
Convertible securities | $ 517 | $ 532.1 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Intangible Assets | ||||
Amortization and impairment expenses of intangible assets | $ 28.1 | $ 28.1 | $ 55.9 | $ 55.5 |
Acquired Client Relationships | ||||
Intangible Assets | ||||
Weighted average life | 10 years | |||
Amortization and impairment expenses of intangible assets | 28.1 | 28.1 | $ 55.9 | 55.5 |
Annual amortization expense attributable to current equity method Affiliates for next five years | ||||
2,015 | 120 | 120 | ||
2,016 | 120 | 120 | ||
2,017 | 120 | 120 | ||
2,018 | 120 | 120 | ||
2,019 | 120 | $ 120 | ||
Acquired Client Relationships | Affiliated Entity | ||||
Intangible Assets | ||||
Weighted average life | 14 years | |||
Amortization and impairment expenses of intangible assets | 8.7 | $ 8.9 | $ 17.5 | $ 14.3 |
Annual amortization expense attributable to current equity method Affiliates for next five years | ||||
2,015 | 34.1 | 34.1 | ||
2,016 | 31.9 | 31.9 | ||
2,017 | 31.9 | 31.9 | ||
2,018 | 31.9 | 31.9 | ||
2,019 | 31.9 | $ 31.9 | ||
Equity Method Investee | ||||
Intangible Assets | ||||
Goodwill and intangible assets acquired | $ 24.4 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Changes in Goodwill (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Goodwill [Roll Forward] | ||
Beginning balance | $ 2,652.8 | |
New investments | [1] | 29 |
Foreign currency translation | (11.8) | |
Ending balance | 2,670 | |
Institutional | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,159.1 | |
New investments | [1] | 1.6 |
Foreign currency translation | (13.3) | |
Ending balance | 1,147.4 | |
Mutual Fund | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,125.3 | |
New investments | [1] | 0 |
Foreign currency translation | 10.6 | |
Ending balance | 1,135.9 | |
High Net Worth | ||
Goodwill [Roll Forward] | ||
Beginning balance | 368.4 | |
New investments | [1] | 27.4 |
Foreign currency translation | (9.1) | |
Ending balance | $ 386.7 | |
[1] | On April 1, 2015, the Company completed its investment in Baker Street Advisors, LLC. |
Intangible Assets - Schedule 46
Intangible Assets - Schedule of Changes in the Components of Acquired Client Relationships (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($) | ||
Indefinite-lived | ||
Beginning balance, net | $ 1,088.3 | |
New investments | [1] | 0 |
Amortization and impairments | 0 | |
Foreign currency translation | 3.8 | |
Ending balance, net | 1,092.1 | |
Total | ||
Beginning balance, net | 1,778.4 | |
New investments | [1] | 23.6 |
Amortization and impairments | (55.9) | |
Foreign currency translation | 3.7 | |
Ending balance, net | 1,749.8 | |
Acquired Client Relationships | ||
Definite-lived | ||
Beginning balance, gross | 1,255.1 | |
Beginning balance, accumulated amortization | (565) | |
Beginning balance, net | 690.1 | |
New investments | [1] | 23.6 |
Amortization and impairments | (55.9) | |
Foreign currency translation | (0.1) | |
Ending balance, gross | 1,278.6 | |
Ending balance, accumulated amortization | (620.9) | |
Ending balance, net | $ 657.7 | |
[1] | On April 1, 2015, the Company completed its investment in Baker Street Advisors, LLC. |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Share-based compensation | $ 9.1 | $ 8.7 | $ 17.1 | $ 15.2 | |
Tax benefit | 3.5 | $ 3.4 | 6.6 | $ 5.8 | |
Share-based Compensation [Abstract] | |||||
Compensation expense related to share-based compensation | $ 86.3 | $ 86.3 | $ 56.8 | ||
Weighted average period over which compensation expense will be recognized | 3 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of the Transactions of the Company's Stock Options (Details) - Jun. 30, 2015 - Stock Options - $ / shares shares in Millions | Total |
Stock Options | |
Unexercised options outstanding at the beginning of the period (in shares) | 2.3 |
Options granted (in shares) | 0 |
Options exercised (in shares) | (0.9) |
Options forfeited (in shares) | 0 |
Unexercised options outstanding at the end of the period (in shares) | 1.4 |
Exercisable at the end of the period (in shares) | 1.3 |
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) | 199.86 |
Options exercised (in dollars per share) | 65.60 |
Options forfeited (in dollars per share) | 101.29 |
Unexercised options outstanding at the end of the period (in dollars per share) | 94.29 |
Exercisable at the end of the period (in dollars per share) | $ 91.76 |
Weighted Average Remaining Contractual Life | |
Unexercised options outstanding at the end of the period (in years) | 2 years 6 months 12 days |
Exercisable at the end of the period (in years) | 2 years 4 months 18 days |
Share-Based Compensation - Sc49
Share-Based Compensation - Schedule of Company Restricted Stock Unit Transactions (Details) - $ / shares shares in Millions | 1 Months Ended | 6 Months Ended |
Jan. 31, 2015 | Jun. 30, 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 | 0.4 |
Units granted (in shares) | 0.3 | 0.3 |
Units vested (in shares) | (0.2) | |
Units forfeited (in shares) | 0 | |
Unvested units at the end of the period (in shares) | 0.5 | |
Weighted Average Grant Date Value | ||
Unvested units at the beginning of the period (in dollars per share) | $ 182.83 | $ 182.83 |
Units granted (in dollars per share) | 197.93 | |
Units vested (in dollars per share) | 174.19 | |
Units forfeited (in dollars per share) | 190.76 | |
Unvested units at the end of the period (in dollars per share) | $ 192.10 | |
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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Affiliate Equity [Abstract] | |||||
Compensation expenses related to affiliate equity noncontrolling interests | $ 37.9 | $ 19.7 | $ 43.3 | $ 27.2 | |
Affiliate equity compensation cost not yet recognized | 81.3 | $ 81.3 | $ 71.1 | ||
Period for recognition | 4 years | ||||
Affiliate equity compensation cost not yet recognized attributable to noncontrolling interest | $ 56.6 | $ 56.6 | $ 41.6 |
Affiliate Equity - Summary of A
Affiliate Equity - Summary of Affiliate Equity Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Affiliate Equity [Abstract] | ||||
Affiliate equity expense | $ 40.7 | $ 30.7 | $ 50 | $ 45.9 |
Tax benefit | $ 1.1 | $ 4.3 | $ 2.6 | $ 7.2 |
Affiliate Equity - Schedule of
Affiliate Equity - Schedule of Changes in Redeemable Non-Controlling Interests (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Changes in redeemable non-controlling interests during the period | |
Balance, as of December 31, 2014 | $ 645.5 |
Transactions in Redeemable non-controlling interests | (61.8) |
Changes in redemption value | 160.6 |
Balance, as of June 30, 2015 | $ 744.3 |
Affiliate Equity - Schedule o53
Affiliate Equity - Schedule of Changes in the Company's Interest in its Affiliates on the Controlling Interest's Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Affiliate Equity [Abstract] | ||||
Net income (controlling interest) | $ 128.7 | $ 99.1 | $ 256.7 | $ 176.2 |
Increase (decrease) in controlling interest paid-in capital from purchases and sales of Affiliate equity | (28.6) | 2.8 | (31.6) | (13.5) |
Change from Net income (controlling interest) and net transfers with non-controlling interests | $ 100.1 | $ 101.9 | $ 225.1 | $ 162.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Tax Provision | |||||
indefinite reinvestment of non-US earnings | $ 6.3 | $ 12.5 | |||
Liability for uncertain tax positions including interest and related charges | 27.6 | 27.6 | |||
Accrued income tax interest and related charges | 1.9 | 1.9 | |||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | $ 25.5 | $ 25.5 | |||
Parent Company | |||||
Income Tax Provision | |||||
Effective tax rate attributable to controlling interests | [1] | 35.00% | 36.80% | 34.50% | 37.00% |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provisions by Controlling and Noncontrolling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income Tax Provision | |||||
Deferred taxes | $ 59.7 | $ 30.3 | |||
Provision for income taxes | $ 72.1 | $ 61.1 | 141.7 | 110 | |
Noncontrolling Interest | |||||
Income Tax Provision | |||||
Current tax | 3.1 | 3.6 | 6.6 | 7.1 | |
Deferred taxes | (0.2) | (0.2) | (0.3) | (0.4) | |
Provision for income taxes | 2.9 | 3.4 | 6.3 | 6.7 | |
Parent Company | |||||
Income Tax Provision | |||||
Current tax | 43.4 | 42.3 | 75.4 | 72.6 | |
Intangible-related deferred taxes | 20.7 | 18.4 | 41.1 | 35.3 | |
Other deferred taxes | 5.1 | (3) | 18.9 | (4.6) | |
Provision for income taxes | 69.2 | 57.7 | 135.4 | 103.3 | |
Income before income taxes (controlling interest) | $ 197.9 | $ 156.8 | $ 392.1 | $ 279.5 | |
Effective tax rate attributable to controlling interests | [1] | 35.00% | 36.80% | 34.50% | 37.00% |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Derivative Financial Instrume56
Derivative Financial Instruments - Schedule of Interest Rate Swap Agreements (Details) - Interest Rate Swap - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivative | |||
Collateral posted | $ 1,700,000 | $ 1,700,000 | |
Counterparty A Paying 1.67% Interest | |||
Derivative | |||
Notional amount | $ 25,000,000 | ||
Paying | 1.67% | ||
Interest rate swaps at fair value | [1] | $ (100,000) | (300,000) |
Counterparty A Paying 1.65% Interest | |||
Derivative | |||
Notional amount | $ 25,000,000 | ||
Paying | 1.65% | ||
Interest rate swaps at fair value | [1] | $ (100,000) | (300,000) |
Counterparty B Paying 1.59% Interest | |||
Derivative | |||
Notional amount | $ 25,000,000 | ||
Paying | 1.59% | ||
Interest rate swaps at fair value | [1] | $ (100,000) | (200,000) |
Counterparty B Paying 2.14% Interest | |||
Derivative | |||
Notional amount | $ 25,000,000 | ||
Paying | 2.14% | ||
Interest rate swaps at fair value | [1] | $ (600,000) | (600,000) |
Other Liabilities | |||
Derivative | |||
Interest rate swaps at fair value | $ (900,000) | $ (1,400,000) | |
[1] | Aggregate fair values of $1.4 million and $0.9 million at December 31, 2014 and June 30, 2015, respectively, are presented within Other liabilities. The Company posted collateral with its counterparties of $1.7 million. |
Derivative Financial Instrume57
Derivative Financial Instruments - Schedule of Foreign Currency Forward Contracts (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015GBP (£) | Jun. 30, 2015EUR (€) | Dec. 31, 2014USD ($) | ||
Foreign Exchange Forward Expected to Settle Quarterly | Counterparty C | ||||||
Derivative | ||||||
Foreign currency forward liabilities at fair value | [1] | $ 1.5 | $ 1.5 | $ 0.3 | ||
Foreign Exchange Forward Expected to Settle Quarterly | Counterparty C | Paying | ||||||
Derivative | ||||||
Notional amount | € | € 15.8 | |||||
Foreign Exchange Forward Expected to Settle Quarterly | Counterparty C | Receiving | ||||||
Derivative | ||||||
Notional amount | 19.2 | 19.2 | ||||
Foreign Exchange Forward Expected to Settle Monthly | Counterparty C | ||||||
Derivative | ||||||
Foreign currency forward liabilities at fair value | [1] | (0.2) | (0.2) | (0.8) | ||
Foreign Exchange Forward Expected to Settle Monthly | Counterparty C | Paying | ||||||
Derivative | ||||||
Notional amount | 7.5 | 7.5 | ||||
Foreign Exchange Forward Expected to Settle Monthly | Counterparty C | Receiving | ||||||
Derivative | ||||||
Notional amount | £ | £ 4.7 | |||||
Foreign Exchange Forward Expected To Settle July Twenty Fifteen [Member] | Counterparty C | ||||||
Derivative | ||||||
Foreign currency forward liabilities at fair value | [1] | 0 | 0 | $ 0 | ||
Foreign Exchange Forward Expected To Settle July Twenty Fifteen [Member] | Counterparty C | Paying | ||||||
Derivative | ||||||
Notional amount | £ | £ 2 | |||||
Foreign Exchange Forward Expected To Settle July Twenty Fifteen [Member] | Counterparty C | Receiving | ||||||
Derivative | ||||||
Notional amount | 3.1 | 3.1 | ||||
Revenue | ||||||
Derivative | ||||||
Derivative, Gain on Derivative | 1.1 | 1.4 | ||||
Operating Expenses | ||||||
Derivative | ||||||
Derivative, Loss on Derivative | $ 0.5 | $ 1.1 | ||||
[1] | The fair values of receivables and payables related to outstanding hedge contracts are presented within Other assets and Other liabilities, respectively. These amounts are expected to be reclassified into earnings within the next twelve months. |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator | ||||
Net income (controlling interest) | $ 128.7 | $ 99.1 | $ 256.7 | $ 176.2 |
Convertible securities interest expense, net | 3.8 | 0 | 7.6 | 0 |
Net income (controlling interest), as adjusted | $ 132.5 | $ 99.1 | $ 264.3 | $ 176.2 |
Denominator | ||||
Average shares outstanding—basic (in shares) | 54.6 | 55.4 | 54.7 | 54.6 |
Effect of dilutive instruments: | ||||
Stock options and restricted stock (in shares) | 0.7 | 1.2 | 0.8 | 1.2 |
Forward equity (in shares) | 0 | 0 | 0 | 0.1 |
Junior convertible securities (in shares) | 2.2 | 0 | 2.2 | 0 |
Average shares outstanding—diluted (in shares) | 57.5 | 56.6 | 57.7 | 55.9 |
Earnings Per Share - Schedule59
Earnings Per Share - Schedule of Shares Excluded from Calculation of Basic and Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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 | 0.2 | 0.1 | 0.2 |
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 | 2.2 | 0 | 2.9 |
Comprehensive Income - Summary
Comprehensive Income - Summary of the Tax Effects Allocated to Each Component of Other Comprehensive Income(Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pre-Tax | ||||
Foreign currency translation adjustment | $ 48.5 | $ 20.4 | $ (11.6) | $ 11.6 |
Change in net realized and unrealized gain (loss) on derivative securities | (0.6) | 0.2 | 2.2 | 0.5 |
Change in net unrealized gain (loss) on investment securities | 76.5 | 8.3 | 90.7 | (13.9) |
Other comprehensive loss | 124.4 | 28.9 | 81.3 | (1.8) |
Tax Benefit (Expense) | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Change in net realized and unrealized gain (loss) on derivative securities | (0.1) | (0.1) | (0.2) | (0.2) |
Change in net unrealized gain (loss) on investment securities | (28.6) | (3.2) | (34.1) | 5.2 |
Other comprehensive loss | (28.7) | (3.3) | (34.3) | 5 |
Net of Tax | ||||
Foreign currency translation adjustment | 48.5 | 20.4 | (11.6) | 11.6 |
Change in net realized and unrealized gain (loss) on derivative securities | (0.7) | 0.1 | 2 | 0.3 |
Change in net unrealized gain (loss) on investment securities | 47.9 | 5.1 | 56.6 | (8.7) |
Other comprehensive income | $ 95.7 | $ 25.6 | $ 47 | $ 3.2 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Components of Accumulated other comprehensive income, net of taxes | |||
Balance at the beginning of the period (in dollars) | $ 15.9 | ||
Other comprehensive income (loss) before reclassifications | 38.5 | ||
Amounts reclassified from other comprehensive income | [1] | 8.5 | |
Net other comprehensive income (loss) | 47 | $ 3.2 | |
Balance at the end of the period (in dollars) | 62.9 | ||
Total | |||
Components of Accumulated other comprehensive income, net of taxes | |||
Net other comprehensive income (loss) | 44.3 | $ (0.7) | |
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 | (11.6) | ||
Amounts reclassified from other comprehensive income | [1] | 0 | |
Net other comprehensive income (loss) | (11.6) | ||
Balance at the end of the period (in dollars) | (17) | ||
Realized and Unrealized Gains (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 | 1.4 | ||
Amounts reclassified from other comprehensive income | [1] | 0.6 | |
Net other comprehensive income (loss) | 2 | ||
Balance at the end of the period (in dollars) | 0.4 | ||
Unrealized Gains (Losses) 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 | 48.7 | ||
Amounts reclassified from other comprehensive income | [1] | 7.9 | |
Net other comprehensive income (loss) | 56.6 | ||
Balance at the end of the period (in dollars) | $ 79.5 | ||
[1] | See Note 3 of the Consolidated Financial Statements for amounts reclassified from Other comprehensive income. |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)SegmentChannel | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | Segment | 3 | ||||
Number of principal distribution channels | Channel | 3 | ||||
Statements of Income | |||||
Revenue | $ 646.6 | $ 636.3 | $ 1,281.6 | $ 1,229.4 | |
Net income (controlling interest) | 128.7 | 99.1 | 256.7 | 176.2 | |
Balance Sheet Information | |||||
Total Assets | 7,678.8 | 7,678.8 | $ 7,698.1 | ||
Operating Segments | Institutional | |||||
Statements of Income | |||||
Revenue | 255.4 | 265.2 | 508.3 | 510.1 | |
Net income (controlling interest) | 59.6 | 48.4 | 108.3 | 84.3 | |
Balance Sheet Information | |||||
Total Assets | 3,512.2 | 3,512.2 | 3,739.8 | ||
Operating Segments | Mutual Fund | |||||
Statements of Income | |||||
Revenue | 323 | 310 | 641.3 | 601.9 | |
Net income (controlling interest) | 56.1 | 41.2 | 123.8 | 75.3 | |
Balance Sheet Information | |||||
Total Assets | 3,246.8 | 3,246.8 | 3,082 | ||
Operating Segments | High Net Worth | |||||
Statements of Income | |||||
Revenue | 68.2 | 61.1 | 132 | 117.4 | |
Net income (controlling interest) | 13 | $ 9.5 | 24.6 | $ 16.6 | |
Balance Sheet Information | |||||
Total Assets | $ 919.8 | $ 919.8 | $ 876.3 |