Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | AFFILIATED MANAGERS GROUP, INC. | ||
Entity Central Index Key | 1,004,434 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 7,547,517,704 | ||
Entity Common Stock, Shares Outstanding | 56,703,064 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 2,194.6 | $ 2,484.5 | $ 2,510.9 |
Operating expenses: | |||
Compensation and related expenses | 932.4 | 1,027.7 | 1,030.5 |
Selling, general and administrative | 398.1 | 443.8 | 485.5 |
Intangible amortization and impairments | 110.2 | 115.4 | 122.2 |
Depreciation and other amortization | 19.5 | 18.8 | 16.9 |
Other operating expenses, net | 29.1 | 43.8 | 40.6 |
Total operating expenses | 1,489.3 | 1,649.5 | 1,695.7 |
Operating income | 705.3 | 835 | 815.2 |
Income from equity method investments | 328.8 | 288.9 | 281.7 |
Other non-operating (income) and expenses: | |||
Investment and other income | (33.8) | (15.3) | (23.3) |
Interest expense | 89.4 | 88.9 | 76.6 |
Imputed interest expense and contingent payment arrangements | 3.9 | (40.3) | 30.1 |
Total other non-operating (income) and expenses | 59.5 | 33.3 | 83.4 |
Income before income taxes | 974.6 | 1,090.6 | 1,013.5 |
Income taxes | 235.6 | 263.4 | 246.1 |
Net income | 739 | 827.2 | 767.4 |
Net income (non-controlling interests) | (266.2) | (317.7) | (333.5) |
Net income (controlling interest) | $ 472.8 | $ 509.5 | $ 433.9 |
Average shares outstanding - basic (in shares) | 54.2 | 54.3 | 55 |
Average shares outstanding - diluted (in shares) | 57 | 57.2 | 58.4 |
Earnings per share - basic (in dollars per share) | $ 8.73 | $ 9.37 | $ 7.89 |
Earnings per share - diluted (in dollars per share) | $ 8.57 | $ 9.17 | $ 7.70 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 739 | $ 827.2 | $ 767.4 |
Controlling interest: | |||
Foreign currency translation gain (loss) | (68.8) | (72.8) | (48.6) |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | 0.7 | 1.1 | 1.1 |
Change in net unrealized gain (loss) on investment securities, net of tax | (36.7) | 21.8 | 5.3 |
Other comprehensive income (loss) (Controlling interest) | (104.8) | (49.9) | (42.2) |
Non-controlling interests: | |||
Foreign currency translation gain (loss) | (46.5) | (20.4) | (13.4) |
Change in net realized and unrealized gain (loss) on derivative securities, net of tax | (0.6) | 0.8 | (0.8) |
Change in net unrealized gain (loss) on investment securities, net of tax | 1.5 | 0.3 | (1.9) |
Other comprehensive income (loss) (Non-controlling interests) | (45.6) | (19.3) | (16.1) |
Other comprehensive income (loss) | (150.4) | (69.2) | (58.3) |
Comprehensive income | 588.6 | 758 | 709.1 |
Comprehensive income (non-controlling interests) | (220.6) | (298.4) | (317.4) |
Comprehensive income (controlling interest) | $ 368 | $ 459.6 | $ 391.7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 430.8 | $ 563.8 |
Receivables | 383.3 | 391.2 |
Investments in marketable securities | 122.4 | 199.9 |
Other investments | 147.5 | 149.3 |
Fixed assets, net | 110.1 | 114.1 |
Goodwill | 2,628.1 | 2,668.4 |
Acquired client relationships, net | 1,497.4 | 1,686.4 |
Equity method investments in Affiliates | 3,368.3 | 1,937.1 |
Other assets | 61.2 | 59.2 |
Total assets | 8,749.1 | 7,769.4 |
Liabilities and Equity | ||
Payables and accrued liabilities | 729.3 | 729.4 |
Senior bank debt | 868.6 | 643.3 |
Senior notes | 939.4 | 937.1 |
Convertible securities | 301.6 | 299 |
Deferred income taxes | 660.8 | 565.7 |
Other liabilities | 149.4 | 213.3 |
Total liabilities | 3,649.1 | 3,387.8 |
Commitments and contingencies | ||
Redeemable non-controlling interests | 673.5 | 612.5 |
Equity: | ||
Common stock ($0.01 par value, 153.0 shares authorized; 55.8 shares outstanding in 2015 and 58.5 shares outstanding 2016) | 0.6 | 0.6 |
Additional paid-in capital | 1,073.5 | 694.9 |
Accumulated other comprehensive income (loss) | (122.9) | (18.1) |
Retained earnings | 3,054.4 | 2,581.6 |
Total stockholders' equity before treasury stock | 4,005.6 | 3,259 |
Less: Treasury stock, at cost (2.0 shares in 2015 and 1.8 shares in 2016) | (386) | (421.9) |
Total stockholders’ equity | 3,619.6 | 2,837.1 |
Non-controlling interests | 806.9 | 932 |
Total equity | 4,426.5 | 3,769.1 |
Total liabilities and equity | $ 8,749.1 | $ 7,769.4 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 153 | 153 |
Common stock, shares outstanding (in shares) | 58.5 | 55.8 |
Treasury stock, shares (in shares) | 1.8 | 2 |
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 | Non- controlling Interests |
Beginning balance (in shares) at Dec. 31, 2013 | 53.9 | ||||||
Beginning Balance at Dec. 31, 2013 | $ 3,144.6 | $ 0.5 | $ 552.9 | $ 74 | $ 1,638.2 | $ (131.4) | $ 1,010.4 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 767.4 | 433.9 | 333.5 | ||||
Other comprehensive income (loss) | (58.3) | (42.2) | (16.1) | ||||
Share-based compensation | 29.3 | 29.3 | |||||
Common stock issued under share-based incentive plans | (5.3) | (134.4) | 129.1 | ||||
Tax benefit from share-based incentive plans | $ 60.2 | 60.2 | |||||
Settlement of senior convertible securities (in shares) | 1.9 | ||||||
Settlement of senior convertible securities | $ 276.5 | 0.1 | 276.4 | ||||
Shares repurchases | (238.6) | (238.6) | |||||
Forward equity | (45) | (45) | |||||
Investments in Affiliates | 235 | 235 | |||||
Affiliate equity activity: | |||||||
Affiliate equity expense | 84.4 | 47.4 | 37 | ||||
Issuances | 10.8 | 0 | 10.8 | ||||
Repurchases | 0 | 19.6 | (19.6) | ||||
Changes in redemption value of Redeemable non-controlling interests | (43) | (43) | |||||
Transfers to Redeemable non-controlling interests | (22.7) | (22.7) | |||||
Capital Contributions by Affiliate equity holders | 17.3 | 17.3 | |||||
Distributions to non-controlling interests | $ (569.4) | (569.4) | |||||
Ending balance (in shares) at Dec. 31, 2014 | 55.8 | ||||||
Ending Balance at Dec. 31, 2014 | $ 3,643.2 | 0.6 | 763.4 | 31.8 | 2,072.1 | (240.9) | 1,016.2 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 827.2 | 509.5 | 317.7 | ||||
Other comprehensive income (loss) | (69.2) | (49.9) | (19.3) | ||||
Share-based compensation | 34.2 | 34.2 | |||||
Common stock issued under share-based incentive plans | 54 | (131) | 185 | ||||
Tax benefit from share-based incentive plans | 44.5 | 44.5 | |||||
Shares repurchases | (366) | (366) | |||||
Investments in Affiliates | 33.8 | 33.8 | |||||
Affiliate equity activity: | |||||||
Affiliate equity expense | 68.5 | 16.9 | 51.6 | ||||
Issuances | 1.7 | 0.1 | 1.6 | ||||
Repurchases | 48 | 48.4 | (0.4) | ||||
Changes in redemption value of Redeemable non-controlling interests | (81.6) | (81.6) | |||||
Transfers to Redeemable non-controlling interests | (49.5) | (49.5) | |||||
Capital Contributions by Affiliate equity holders | 11.7 | 11.7 | |||||
Distributions to non-controlling interests | $ (431.4) | (431.4) | |||||
Ending balance (in shares) at Dec. 31, 2015 | 55.8 | ||||||
Ending Balance at Dec. 31, 2015 | $ 3,769.1 | 0.6 | 694.9 | (18.1) | 2,581.6 | (421.9) | 932 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 739 | 472.8 | 266.2 | ||||
Other comprehensive income (loss) | (150.4) | (104.8) | (45.6) | ||||
Share-based compensation | 39.2 | 39.2 | |||||
Common stock issued under share-based incentive plans | 15.5 | (53.8) | 69.3 | ||||
Shares repurchases | (33.4) | (33.4) | |||||
Forward equity | $ 5.2 | 5.2 | |||||
Common stock issued under forward equity agreement (in shares) | 2.7 | ||||||
Common stock issued under forward equity agreement | $ 440.3 | 0 | 440.3 | ||||
Issuance costs and other | (3) | (3) | |||||
Affiliate equity activity: | |||||||
Affiliate equity expense | 41.2 | 10 | 31.2 | ||||
Issuances | 11.9 | (2.8) | 14.7 | ||||
Repurchases | 15.3 | 14.9 | 0.4 | ||||
Changes in redemption value of Redeemable non-controlling interests | (71.4) | (71.4) | |||||
Transfers to Redeemable non-controlling interests | (42.6) | (42.6) | |||||
Capital Contributions by Affiliate equity holders | 4.7 | 4.7 | |||||
Distributions to non-controlling interests | $ (354.1) | (354.1) | |||||
Ending balance (in shares) at Dec. 31, 2016 | 58.5 | ||||||
Ending Balance at Dec. 31, 2016 | $ 4,426.5 | $ 0.6 | $ 1,073.5 | $ (122.9) | $ 3,054.4 | $ (386) | $ 806.9 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flow from (used in) operating activities: | |||
Net income | $ 739 | $ 827.2 | $ 767.4 |
Adjustments to reconcile Net income to net cash flow from operating activities: | |||
Intangible amortization and impairments | 110.2 | 115.4 | 122.2 |
Depreciation and other amortization | 19.5 | 18.8 | 16.9 |
Deferred income tax provision | 59.3 | 101.2 | 81 |
Imputed interest expense and contingent payment arrangements | 3.9 | (40.3) | 30.1 |
Income from equity method investments, net of amortization | (328.8) | (288.9) | (281.7) |
Distributions received from equity method investments | 346.4 | 346.1 | 366.9 |
Amortization of issuance costs | 4.8 | 8.1 | 7.6 |
Share-based compensation and Affiliate equity expense | 80.4 | 102.7 | 113.7 |
Other non-cash items | (24.8) | (5.8) | 3.8 |
Changes in assets and liabilities: | |||
Purchases of trading securities by Affiliate sponsored consolidated products | (86.2) | (4.6) | (1.9) |
Sales of trading securities by Affiliate sponsored consolidated products | 82.8 | 4.1 | 1.3 |
Decrease in receivables | 58.2 | 56.1 | 26.5 |
(Increase) decrease in other assets | (6.1) | 6.7 | (6.5) |
Increase (decrease) in payables, accrued liabilities and other liabilities | (31) | (38.4) | 189.6 |
Cash flow from operating activities | 1,027.6 | 1,208.4 | 1,436.9 |
Cash flow from (used in) investing activities: | |||
Investments in Affiliates | (1,361.3) | (297.7) | (1,245) |
Purchase of fixed assets | (20.2) | (38.2) | (19.2) |
Purchase of investment securities | (16) | (13.5) | (21.2) |
Sale of investment securities | 65.3 | 24.9 | 17.3 |
Cash flow used in investing activities | (1,332.2) | (324.5) | (1,268.1) |
Cash flow from (used in) financing activities: | |||
Borrowings of senior debt | 1,350 | 1,253.3 | 1,746.5 |
Repayments of senior debt and convertible securities | (1,125) | (1,256) | (1,020.6) |
Issuance of common stock | 465.8 | 57.8 | 41.4 |
Repurchase of common stock | (33.4) | (413.7) | (190.8) |
Note and contingent payments | 4.9 | 20.5 | 14.4 |
Distributions to non-controlling interests | (354.1) | (431.4) | (569.4) |
Affiliate equity issuances and repurchases | (104) | (120.6) | (65.7) |
Excess tax benefit from share-based compensation | 0 | 44.5 | 61.5 |
Settlement of forward equity sale agreement | 0 | 0.1 | (45) |
Other financing items | (3.3) | (12.2) | (49.9) |
Cash flow from (used in) financing activities | 200.9 | (857.7) | (77.6) |
Effect of foreign exchange rate changes on cash and cash equivalents | (27.2) | (13) | (10.2) |
Net increase (decrease) in cash and cash equivalents | (130.9) | 13.2 | 81 |
Cash and cash equivalents at beginning of period | 563.8 | 550.6 | 469.6 |
Net cash outflows upon the consolidation and deconsolidation of Affiliate sponsored products | (2.1) | 0 | 0 |
Cash and cash equivalents at end of period | 430.8 | 563.8 | 550.6 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 85 | 76.4 | 67.9 |
Income taxes paid | 152.3 | 89.6 | 110.7 |
Supplemental disclosure of non-cash financing activities: | |||
Settlement of 2006 junior convertible securities | 0 | 0 | 217.8 |
Stock issued under incentive plans | 17.2 | 10.7 | 63.6 |
Stock received for tax withholdings on share-based payments | 9.8 | 3.6 | 44.7 |
Payables recorded for Share repurchases | 0 | 0 | 47.8 |
Payables recorded for Affiliate equity repurchases | $ 12.1 | $ 62.3 | $ 21.5 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies (a) Organization and Nature of Operations Affiliated Managers Group, Inc. (“AMG” or the “Company”) is a global asset management company with equity investments in leading boutique investment management firms, referred to as “Affiliates.” AMG’s Affiliates provide investment management services globally to institutional, retail and high net worth clients. Each of AMG’s Affiliates operates through distinct entities, typically organized as limited liability companies or limited partnerships (or equivalent non-U.S. forms), which affords AMG the flexibility to design a separate operating agreement for each Affiliate. The operating agreements reflect the specific terms of AMG’s economic participation in the Affiliate through a “structured partnership interest.” AMG’s structured partnership interests typically consist of arrangements through which AMG shares in the Affiliate’s revenue without regard to expenses and also include arrangements through which AMG shares in the Affiliate’s revenue less certain agreed-upon expenses. When AMG owns a majority of the equity interests in an Affiliate and its structured partnership interest is calculated by reference to the Affiliate’s revenue without regard to expenses, a set percentage of revenue is allocated to fund operating expenses, including compensation (the “Operating Allocation”), while the remaining revenue (the “Owners’ Allocation”) is allocated to AMG and Affiliate management in proportion to their respective ownership interests. When AMG owns a minority of the equity interests in an Affiliate, its structured partnership interest is either calculated by reference to the Affiliate’s revenue without regard to expenses or by reference to the Affiliate’s revenue less certain agreed-upon expenses. When AMG’s interest is calculated by reference to an Affiliate’s revenue less certain agreed-upon expenses, AMG participates in increases and decreases both in revenue and the agreed-upon expenses included in the calculation. This structure allows AMG to benefit from any increase in revenue or any decrease in the expenses that are included in the calculation, but also directly exposes AMG to any decrease in revenue or any increase in such expenses, which AMG may not anticipate and which could be significant. (b) Basis of Presentation and Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All dollar amounts, except per share data in the text and tables herein, are stated in millions unless otherwise indicated. Certain reclassifications have been made to prior years’ financial statements to conform to the current year’s presentation. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Revision of Prior Periods In the third quarter of 2016, the Company reviewed its accounting for Affiliate equity transactions in preparation for the adoption of Accounting Standard Update (“ASU”) 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which the Company has now adopted. During this review, the Company determined that it had incorrectly recorded deferred tax benefits, a non-cash item, on certain Affiliate equity transactions dating back to 2005. The Company assessed the impact of the error, both quantitatively and qualitatively, in accordance with the Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) No. 99 and SAB No. 108 and concluded that it was not material to any of the Company’s previously issued Consolidated Financial Statements. The Company has revised its Consolidated Financial Statements for periods prior to 2016 to reflect the correction of the error in the periods in which the deferred tax benefits were recorded. The cumulative impact of the correction has been reflected as a reclassification between the beginning Retained earnings and Additional paid-in capital balances as of December 31, 2013 in the Consolidated Statements of Changes in Equity. The tables below show the effect of the correction on the Consolidated Statements of Income and Consolidated Statements of Cash Flows for the years ended December 31, 2014 and 2015 and on the Consolidated Balance Sheet as of December 31, 2015. All financial information presented in these notes has been revised to reflect the correction of this error. The revision had no impact on Income before income taxes, Total stockholders’ equity or Cash flow from operating activities. For the Year Ended 2014 For the Year Ended 2015 Consolidated Statements of Income As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Income taxes $ 227.9 $ 18.2 $ 246.1 $ 256.9 $ 6.5 $ 263.4 Net income 785.6 (18.2 ) 767.4 833.7 (6.5 ) 827.2 Net income (controlling interest) 452.1 (18.2 ) 433.9 516.0 (6.5 ) 509.5 Earnings per share (basic) $ 8.22 $ (0.33 ) $ 7.89 $ 9.49 $ (0.12 ) $ 9.37 Earnings per share (diluted) $ 8.01 $ (0.31 ) $ 7.70 $ 9.28 $ (0.11 ) $ 9.17 December 31, 2015 Consolidated Balance Sheet As Previously Reported Adjustments As Revised Additional paid-in capital $ 597.2 $ 97.7 $ 694.9 Retained earnings 2,679.3 (97.7 ) 2,581.6 For the Year Ended 2014 For the Year Ended 2015 Consolidated Statements of Cash Flows As Previously Reported Adjustments As Revised As Previously Reported Adjustments As Revised Net income $ 785.6 $ (18.2 ) $ 767.4 $ 833.7 $ (6.5 ) $ 827.2 Deferred income tax provision 62.8 18.2 81.0 94.7 6.5 101.2 (c) Principles of Consolidation The Company assesses consolidation requirements pursuant to ASU 2015-02: Consolidation, which was adopted using the modified retrospective method and resulted in an effective date of adoption of January 1, 2016. In evaluating whether an investment must be consolidated, the Company evaluates the risk, rewards, and significant terms of each of its Affiliate and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to finance its activities independently and when the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact its economic performance. An entity is a VIE when it lacks one or more of the characteristics of a VRE. Assessing whether an entity is a VRE or VIE involves judgment. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a VRE or a VIE. The Company consolidates VREs when it has control over significant operating, financial and investing decisions of the investment or holds the majority voting interest. The Company consolidates VIEs when it has a controlling financial interest, which is defined as having the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or the right to receive benefits from the entity that could potentially be significant to the VIE. Investments in Affiliates For the Company’s consolidated Affiliates, the portion of the Owners’ Allocation allocated to Affiliate management is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Non-controlling interests on the Consolidated Balance Sheets include capital and undistributed Operating and Owners’ Allocation owned by Affiliate management of the Company’s consolidated Affiliates. The effect of any changes in the Company’s equity interests in its consolidated Affiliates resulting from the issuance or repurchase of an Affiliate’s equity by the Company or one of its Affiliates is included as a component of stockholders’ equity, net of any related income tax effects in the period of the change. The current redemption value of non-controlling interests has been presented as Redeemable non-controlling interests on the Consolidated Balance Sheets. The Company applies the equity method of accounting to investments where the Company does not hold a controlling equity interest but has the ability to exercise significant influence over operating and financial matters. Other investments in which the Company owns less than a 20% interest and does not exercise significant influence are accounted for under the cost method. Under the cost method, income is recognized when dividends are declared. Affiliate Sponsored Investment Vehicles The Company’s consolidated Affiliates sponsor various investment products where they also act as the investment advisor, and in some cases these products are considered VIEs. These investment products are typically owned primarily by third-party investors; however, certain products are capitalized with seed capital investments from Affiliates. Investors are generally entitled to substantially all of the economics of these VIEs, except for the management and performance fees earned by Affiliates or any gains or losses attributable to Affiliates’ investments in these products. As a result, Affiliates do not generally consolidate these VIEs unless the Affiliate’s interest in the product is considered substantial. When consolidating these VIEs, the Company retains the specialized investment company accounting principles of the underlying products, and all of the underlying investments are carried at fair value in Investments in marketable securities in the Consolidated Balance Sheets with corresponding changes in the investments’ fair values reflected in Other operating expenses (net) in the Consolidated Statements of Income. Purchases and sales of securities are presented within purchases and sales by Affiliate sponsored consolidated products in the Consolidated Statements of Cash Flows. When Affiliates no longer control these products, due to a reduction in ownership or other reasons, the products are deconsolidated. (d) Cash and Cash Equivalents The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. Money market mutual funds with a floating net asset value (“NAV”) would not meet the definition of a cash equivalent if the fund has enacted liquidity fees or redemption gates. (e) Receivables The Company’s Affiliates earn asset based and performance fees, which are billed based on the terms of the related contracts. Billed but uncollected asset based and performance fees are presented within Receivables on the Consolidated Balance Sheets and are generally short-term in nature. Certain of the Company’s Affiliates in the UK act as intermediaries between clients and their sponsored investment products. Normal settlement periods on transactions initiated by these clients with the sponsored investment products result in unsettled fund share receivables and payables that are presented on a gross basis within Receivables and Payables and accrued liabilities on the Consolidated Balance Sheets. The gross presentation of these receivables and offsetting payables reflects the legal relationship between the underlying investor and the Company’s Affiliates. (f) Investments in Marketable Securities Investments in marketable securities are classified as either trading or available-for-sale and carried at fair value. Unrealized gains or losses on investments classified as available-for-sale are reported, net of tax, as a separate component of Accumulated other comprehensive income (loss) in Equity until realized when they are reported in Investment and other income in the Consolidated Statements of Income. Realized and unrealized gains or losses related to trading securities are reported within Investment and other income. Realized gains and losses are recorded on trade date on a specific identified basis. If a decline in the fair value of an available-for-sale investment is determined to be other-than-temporary, the carrying amount of the asset is reduced to its fair value, and the difference is charged to Investment and other income in the period incurred. (g) Fair Value Measurements The Company determines the fair value of certain investment securities and other financial and non-financial assets and liabilities. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, utilizing a hierarchy of three different valuation techniques: Level 1 - Unadjusted quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and Level 3 - Prices reflect the Company’s own assumptions concerning unobservable inputs to the valuation model. These inputs require significant management judgment and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. (h) Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three to ten years . Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally three to seven years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease, and buildings are amortized over their expected useful lives. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land is not depreciated. (i) Leases The Company and its Affiliates currently lease office space and equipment under various leasing arrangements. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements for office space that are classified as operating leases contain renewal options, rent escalation clauses or other inducements provided by the landlord. Rent expense is accrued to recognize lease escalation provisions and inducements provided by the landlord, if any, on a straight-line basis over the lease term and is reported in Other operating expenses on the Consolidated Statements of Income. (j) Equity Method Investments in Affiliates For Equity method investments in Affiliates, the Company’s share of the Affiliate’s revenue without regard to expenses or less certain agreed-upon expenses, net of amortization of intangible assets related to the Company’s investment, is included in Income from equity method investments in the Consolidated Statements of Income. The Company’s share of income taxes incurred directly by Affiliates accounted for under the equity method is recorded within Income taxes in the Consolidated Statements of Income because these taxes generally represent the Company’s share of the taxes incurred by Affiliates. The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses if the fair value of the investment has declined below its carrying value for a period considered to be other-than-temporary. If the Company determines that a decline in fair value below the carrying value of the investment is other-than-temporary, then the reduction in carrying value would be recorded in Income from equity method investments. (k) Acquired Client Relationships and Goodwill Each Affiliate in which the Company makes an investment has identifiable assets arising from contractual or other legal rights with their clients (“acquired client relationships”). In determining the value of acquired client relationships, the Company analyzes the net present value of these Affiliates’ existing client relationships based on a number of factors, including: the Affiliate’s historical and potential future operating performance; the Affiliate’s historical and potential future rates of attrition of existing clients; the stability and longevity of existing client relationships; the Affiliate’s recent, as well as long-term, investment performance; the characteristics of the firm’s products and investment styles; the stability and depth of the Affiliate’s management team; and the Affiliate’s history and perceived franchise or brand value. The Company has determined that certain of its acquired client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and, therefore, the cash flows generated by these contracts to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred that indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of the assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. The expected useful lives of definite-lived acquired client relationships are determined based on an analysis of the historical and projected attrition rates of each Affiliate’s existing clients, and other factors that may influence the expected future economic benefit the Company will derive from the relationships. The expected lives of definite-lived acquired client relationships are analyzed annually or more frequently whenever events or circumstances have occurred that indicate the expected useful lives may no longer be appropriate. The Company tests for the possible impairment of indefinite and definite-lived intangible assets annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset is not recoverable. If such indicators exist, the Company compares the fair value of the asset to the carrying value of the asset. If the carrying value is greater than the fair value, an impairment loss would be recorded in Intangible amortization and impairments in the Consolidated Statements of Income. Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized, and is reported within the segments in which the Affiliate operates. Goodwill is not amortized, but is instead reviewed for impairment. The Company assesses goodwill for impairment at least annually, or more frequently whenever events or circumstances occur indicating that the recorded goodwill may be impaired. If the carrying amount of goodwill exceeds the fair value, an impairment loss would be recorded in Intangible amortization and impairments. (l) Issuance Costs Issuance costs related to the Company’s senior bank debt are amortized over the remaining term of the senior unsecured multicurrency revolving credit facility (the “revolver”) and the senior unsecured term loan facility (the “term loan”). Issuance costs associated with the revolver and term loan are included in Other assets and as a reduction of the related debt balance, respectively, in the Consolidated Balance Sheets. Issuance costs associated with the Company’s senior notes are amortized over the shorter of the period to the first investor put date or the Company’s estimate of the expected term of the security, and are included as a reduction of the related debt balance in the Consolidated Balance Sheets. The expense resulting from the amortization of these issuance costs is reported in Interest expense in the Consolidated Statements of Income. (m) Derivative Financial Instruments The Company may utilize financial instruments, specifically interest rate derivative contracts to hedge certain interest rate exposures. In entering into these contracts, the Company intends to offset cash flow gains and losses that occur on its existing debt obligations with cash flow gains and losses on the contracts hedging these obligations. From time to time, the Company’s Affiliates use foreign currency forward contracts to hedge the risk of foreign exchange rate movements. In entering into these contracts, the Affiliates intend to offset cash flow gains and losses on projected foreign currency-denominated revenues and expenses as a result of variability in foreign exchange rates. The Company records derivatives on the balance sheet at fair value. If the Company’s derivatives qualify as cash flow hedges, the effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive income as a separate component of stockholders’ equity and reclassified to Investment and other income when the hedged cash flows are recorded in earnings. Hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future variable cash flows of the hedged contract with the present value of the cumulative change in the expected future variable cash flows of the hedged item. To the extent that the critical terms of the hedged item and the derivative are not identical, hedge ineffectiveness would be reported in Investment and other income. If the Company’s or its Affiliates’ derivatives do not qualify as cash flow or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other income. (n) Contingent Payment Arrangements The Company periodically enters into contingent payment arrangements in connection with its business combinations. In these arrangements, the Company agrees to pay additional consideration to the sellers to the extent that certain levels of revenue growth or other metrics are achieved. For consolidated Affiliates, the Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a liability primarily in Other liabilities on its Consolidated Balance Sheet. The Company then accretes the obligation to its expected payment amount over the period until the arrangement is measured. If the Company’s expected payment amount subsequently changes, the obligation is reduced or increased in the current period resulting in a gain or loss, respectively. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within Imputed interest expense and contingent payment arrangements. For Affiliates accounted for under the equity method of accounting, the Company records a liability when a payment becomes probable in Payables and accrued liabilities, with a corresponding increase to the carrying value of the Affiliate in Equity method investments in Affiliates in the Consolidated Balance Sheets. (o) Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial reporting bases of assets and liabilities and their respective tax bases, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income taxes in the Consolidated Statements of Income in the period when the change is enacted. The Company regularly assesses the recoverability of its deferred income tax assets to determine whether these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their recorded amount, or that the recorded deferred tax assets are not realizable, the Company would adjust the deferred tax asset valuation allowance to record the deferred tax assets at their current value, which would increase or decrease Income taxes, respectively. The Company records unrecognized tax benefits based on whether it is more-likely-than-not that the uncertain tax positions will be sustained on the basis of the technical merits of the position. If it is determined an uncertain tax position is more-likely-than-not to be sustained, the Company records the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority in Income taxes. Interest and penalties related to unrecognized tax benefits are also recorded in Income taxes. (p) Foreign Currency Translation Assets and liabilities whose functional currency is not the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expenses are translated into U.S. dollars using average exchange rates for the relevant period. Because of the long-term nature of the Company’s investments in Affiliates, net translation exchange gains and losses resulting from foreign currency translation are recorded in Accumulated comprehensive income as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are reflected in Investment and other income. (q) Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments. The Company maintains cash and cash equivalents, investments and, at times, certain financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which AMG and its Affiliates operate. For AMG and certain Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. (r) Revenue Recognition The Company’s revenue primarily represents advisory fees billed by consolidated Affiliates for managing the assets of clients. Asset based advisory fees are recognized as services are rendered and are typically based upon a percentage of the value of a client’s assets under management. Any fees collected in advance are deferred and recognized as income over the period earned. Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account. Performance fees are recognized when they are earned (i.e., when they become billable to customers and are not subject to claw-back) based on the contractual terms of agreements and when collection is reasonably assured. Carried interest is recognized upon the earlier of the termination of the investment product or when the likelihood of claw-back is improbable. Also included in revenue are commissions earned by broker-dealers, and administrative fees for services provided to Affiliate sponsored investment products. The Company’s Affiliates have contractual arrangements with third parties to provide certain distribution-related services. These third parties are primarily compensated based on the value of client assets over time. Distribution-related revenues are presented in Revenue in the Consolidated Statements of Income gross of any related expenses when the Affiliate is the principal in its role as primary obligor under its sales and distribution arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses in the Consolidated Statements of Income. (s) Earnings Per Share The calculation of basic earnings per share is based on the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share, but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock. The Company had convertible securities outstanding during the periods presented and is required to apply the if-converted method to these securities in its calculation of diluted earnings per share. Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into the Company’s common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share. (t) Share-Based Compensation Plans The Company recognizes expenses for all share-based payments based on their grant date fair values over the requisite service period. The Company records these expenses only for awards that are expected to vest. Prior to 2016, the Company reported any tax benefits realized upon the exercise of stock options or vesting of restricted stock that were in excess of the expense recognized for reporting purposes as a financing activity in the Consolidated Statements of Cash Flows. If the tax benefit ultimately realized was greater than or less than the expense recognized, the tax windfall or shortfall was recognized in stockholders’ equity. To the extent the shortfall exceeded the cumulative windfall tax benefits, the excess was recognized in Income taxes. Beginning in 2016, all tax windfalls or shortfalls are recognized in Income taxes and have been classified as operating activities in the Consolidated Statements of Cash Flows. Taxes paid by the Company when it withholds shares to satisfy tax withholding obligations are classified as a financing activity. (u) Segment Information Management has assessed and determined that the Company operates in three business segments representing the Company’s three principal distribution channels: Institutional, Mutual Fund and High Net Worth, each of which has different client relationships. Revenue and Income from equity method investments in the Institutional distribution channel are earned from relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. Revenue and Income from equity method investments in the Mutual Fund distribution channel are earned from advisory or sub-advisory relationships with active return-oriented mutual funds, UCITS and other retail products. Revenue and Income from equity method investments in the High Net Worth distribution channel are earned from relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans. In measuring Net income (controlling interest) by segment, the Company’s share of expenses incurred directly at Affiliates and AMG Funds is allocated to a particular segment pro rata to the revenue generated by the Affiliate and AMG Funds in such segment. All other operating and non-operating expenses not incurred directly by an Affiliate or AMG Funds are generally allocated to segments based on the relative contribution to Adjusted EBITDA (controlling interest) of the applicable Affiliate or AMG Funds in each segment. (v) Recent Accounting Developments Effective January 1, 2016, the Company adopted several updates to accounting standards as follows: • ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02: Consolidation”); • ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs; • ASU 2015-07, Fair Value Measurement: Disclosures |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities at December 31, 2015 and 2016 were $199.9 million and $122.4 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: Available-for-Sale Trading December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 Cost $ 104.7 $ 66.1 $ 19.8 $ 34.4 Unrealized Gains 77.6 17.6 1.9 6.6 Unrealized Losses (1.8 ) (1.8 ) (2.3 ) (0.5 ) Fair Value $ 180.5 $ 81.9 $ 19.4 $ 40.5 For the years ended December 31, 2015 and 2016 , the Company received proceeds of $18.1 million and $61.1 million , respectively, from the sale of investments classified as available-for-sale and recorded gains of $8.8 million and $19.9 million , respectively. For the years ended December 31, 2015 and 2016, the Company realized gains on the sale of investments classified as trading of $0.8 million and $4.4 million , respectively. For the years ended December 31, 2015 and 2016, the Company realized losses on the sale of investments classified as trading of $0.1 million and $3.4 million , respectively. These gains and losses were recorded in Investment and other income. |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Other Investments Other investments consist of investments in funds advised by Affiliates that are carried at fair value. The income or loss related to these investments is recorded in Investment and other income. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities The Company’s consolidated Affiliates act as the investment advisor for certain investment entities that are considered VIEs, and in connection with the adoption of ASU 2015-02: Consolidation, certain investment entities previously accounted for as VIEs no longer met the criteria for being a VIE and certain VREs became VIEs and were either consolidated or disclosed as VIEs. The Company's Affiliates’ involvement with unconsolidated VIEs is generally limited to that of a service provider, and their investment, if any, represents an insignificant interest in the relevant investment entities’ assets under management. The Company's Affiliates’ exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected asset based and performance fees. The Company has not issued any investment performance guarantees to these VIEs or their investors. The net assets and liabilities of unconsolidated VIEs and the Company’s maximum risk of loss were as follows: December 31, 2015 December 31, 2016 Unconsolidated VIE Net Assets Carrying Value and Maximum Risk of Loss Unconsolidated VIE Net Assets Carrying Value and Maximum Risk of Loss Sponsored investment funds $ 6,688.9 $ 1.4 $ 1,756.6 $ 9.4 In addition, substantially all of the Company’s consolidated Affiliates are considered VIEs. The unconsolidated assets, net of liabilities and non-controlling interests, of Affiliates accounted for under the equity method of accounting were $1.2 billion and $1.0 billion , as of December 31, 2015 and 2016 , respectively. The Company’s carrying value and maximum exposure to loss for these Affiliates was approximately $1.9 billion and $2.8 billion as of December 31, 2015 and 2016 , respectively. |
Senior Bank Debt
Senior Bank Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Senior Bank Debt | Senior Bank Debt The Company has a senior unsecured multicurrency revolving credit facility and a senior unsecured term loan facility (together, the “credit facilities”). In 2016, the Company amended the revolver to increase commitments from $1.3 billion to $1.45 billion , and amended the term loan to increase borrowings from $350.0 million to $385.0 million . The credit facilities mature on September 30, 2020. Subject to certain conditions, the Company may further increase the commitments under the revolver by up to $350.0 million and borrow up to an additional $65.0 million under the term loan. The Company pays interest on any outstanding obligations under the credit facilities at specified rates, based either on the LIBOR rate or the prime rate as in effect from time to time. As of December 31, 2015 and 2016 , the Company had outstanding borrowings under the revolver of $295.0 million and $485.0 million, respectively, and the weighted-average interest rate on outstanding borrowings was 2.52% and 1.88% , respectively. As of December 31, 2015 and 2016 , the Company had outstanding borrowings under the term loan of $350.0 million and $385.0 million , respectively, and the weighted-average interest rate on outstanding borrowings was 1.45% and 1.87% , respectively. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2015 and 2016 , these fees amounted to $1.9 million and $1.0 million , respectively. The credit facilities contain financial covenants with respect to leverage and interest coverage, as well as customary affirmative and negative covenants, including limitations on priority indebtedness, asset dispositions and fundamental corporate changes, and certain customary events of default. |
Senior Notes
Senior Notes | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes At December 31, 2016, the Company had three senior notes outstanding, the principal terms of which are summarized below. In 2015, the Company redeemed, canceled and retired all $140.0 million principal amount outstanding of its 5.25% senior unsecured notes due 2022 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest. 2024 Senior Notes 2025 Senior Notes 2042 Senior Notes Issue date February 2014 February 2015 August 2012 Maturity date February 2024 August 2025 August 2042 Potential Call Date Any Time (1) Any Time (1) August 2017 Par value (in millions) $ 400.0 $ 350.0 $ 200.0 Call Price As Defined (1) As Defined (1) At Par Stated coupon 4.25 % 3.50 % 6.375 % Coupon frequency Semi-annually Semi-annually Quarterly __________________________ (1) The 2024 and 2025 senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. |
Convertible Securities
Convertible Securities | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Securities | Convertible Securities At December 31, 2016 , the Company had junior convertible trust preferred securities outstanding (the “junior convertible securities”). The carrying value and principal amount at maturity of the junior convertible securities were as follows: December 31, 2015 December 31, 2016 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 305.2 $ 430.8 $ 307.5 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 21 years. The junior convertible securities bear interest at 5.15% per annum, payable quarterly in cash. Each $ 50 security is convertible, at any time, into 0.25 shares of the Company’s common stock, which represents a conversion price of $200 per share, subject to customary anti-dilution adjustments. Holders of the junior convertible securities have no rights to put these securities to the Company. Upon conversion, holders will receive cash or shares of the Company’s common stock, or a combination thereof, at the Company’s election. The Company may redeem the junior convertible securities if the closing price of its common stock exceeds $260 per share for 20 trading days in a period of 30 consecutive trading days. The junior convertible securities are considered contingent payment debt instruments under federal income tax regulations, which require the Company to deduct interest in an amount greater than its reported interest expense. These deductions result in annual deferred tax liabilities of $10.2 million . These deferred tax liabilities will be reclassified directly to stockholders’ equity if the Company’s common stock is trading above certain thresholds at the time of the conversion of the securities. |
Forward Equity and Equity Distr
Forward Equity and Equity Distribution Program | 12 Months Ended |
Dec. 31, 2016 | |
Forward Equity Sale Agreements | |
Forward Equity Sale Agreement | Forward Equity and Equity Distribution Program In 2016, the Company entered into an agreement to sell approximately 2.9 million shares of the Company’s common stock at a price of $167.25 per share on a forward basis. During the year, the Company issued 2.7 million shares to settle a portion of this forward equity sale and received proceeds of $440.3 million , and net settled 0.2 million shares for cash at an average share price of $144.59 . As of December 31, 2016 , no shares remain outstanding under this agreement. In 2016, the Company entered into equity distribution and forward equity agreements with several major securities firms under which the Company, from time to time, may issue and sell shares of its common stock (immediately or on a forward basis) having an aggregate sales price of up to $500.0 million (the “equity distribution program”). As of December 31, 2016, no sales have occurred under the equity distribution program. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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 exchange rates by entering into derivative contracts. For the years ended December 31, 2015 and 2016 , the Company’s Affiliates realized $3.2 million and $0.2 million of gains, respectively, and $1.7 million and $1.2 million of losses, respectively, upon the settlement of certain foreign currency forward contracts. Such realized gains and losses are presented in Revenue, Operating expenses or Investment and other income, depending on the risk being hedged. At December 31, 2016, the Company’s Affiliates had unrealized gains and losses related to outstanding foreign currency forward contracts of $0.6 million and $0.5 million , respectively. Such unrealized gains and losses are presented within Accumulated other comprehensive income. There were no foreign currency forward contracts outstanding at December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company and its Affiliates may be subject to claims, legal proceedings and other contingencies in the ordinary course of their business activities. Any such matters are subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its Affiliates establish accruals, as necessary, for matters for which the outcome is probable and the amount of the liability can be reasonably estimated. Third Avenue Management LLC (“Third Avenue”), one of the Company’s consolidated Affiliates, has been named as a defendant in various legal actions relating to the liquidation and closure of the Third Avenue Focused Credit Fund. The Company has been named as a co-defendant in one of these actions, as a purported control person. In the fourth quarter of 2016, Third Avenue recorded a reserve of $15.0 million in connection with the proposed resolution of all claims, including against the Company, related to the Focused Credit Fund, which is subject to court approvals. The entire amount of the reserve would be funded by Third Avenue and, therefore, the recording of the reserve had no impact on Net income (controlling interest). The Company has committed to co-invest in certain Affiliate sponsored investment products. As of December 31, 2016 , these unfunded commitments were $92.2 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 of one of the Company’s Affiliates for $11.8 million of these commitments if they are called. As of December 31, 2016 , Company was contingently liable, upon achievement by certain Affiliates of specified financial targets, to make payments through 2019 of up to $84.9 million associated with its consolidated Affiliates and $312.0 million associated with its equity method Affiliates. The Company expects to make payments of $10.3 million ( $3.0 million in 2017) of the $84.9 million related to consolidated Affiliates and no payments related to the Company’s equity method Affiliates. Affiliate equity interests provide holders with a conditional right to put their interests to the Company over time. See Note 20. In addition, in connection with an investment in an Affiliate accounted for under the equity method, the Company entered into an arrangement with a minority owner of the Affiliate that gives such owner the right to sell a portion of its ownership interest in the Affiliate to the Company annually beginning in 2018. The purchase price of these conditional purchases will be at fair market value on the date of the transaction. The Company and certain Affiliates operate under regulatory authorities that require that they maintain minimum financial or capital requirements. Management is not aware of any significant violations of such requirements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Financial Assets Cash equivalents $ 65.9 $ 65.9 $ — $ — Investments in marketable securities (1) Trading securities 19.4 19.4 — — Available-for-sale securities 180.5 180.5 — — Other investments (2) 23.3 20.7 2.6 — Financial Liabilities (3) Contingent payment arrangements $ 10.2 $ — $ — $ 10.2 Affiliate equity obligations 62.3 — — 62.3 Fair Value Measurements December 31, 2016 Level 1 Level 2 Level 3 Financial Assets Cash equivalents $ 64.1 $ 64.1 $ — $ — Investments in marketable securities (1) Trading securities 40.5 40.5 — — Available for sale securities 81.9 81.9 — — Other investments (2) 3.4 3.4 — — Foreign currency forward contracts (3) 0.6 — 0.6 — Financial Liabilities (3) Contingent payment arrangements $ 8.6 $ — $ — $ 8.6 Affiliate equity obligations 12.1 — — 12.1 Foreign currency forward contracts 0.5 — 0.5 — __________________________ (1) Principally investments in equity securities. (2) The Company adopted ASU 2015-07 and no longer includes $126.0 million and $ 144.1 million as of December 31, 2015 and 2016, respectively, of investments in certain entities for which fair value was measured using NAV as a practical expedient. (3) Amounts are presented within Other assets or Other liabilities. 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, without enacted liquidity fees or redemption gates. Investments in marketable securities consist primarily of investments in publicly traded securities and in funds advised by Affiliates that are valued at NAV. Publicly traded securities valued using unadjusted quoted market prices for identical instruments in active markets are classified as level 1. Publicly traded securities valued using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active are classified as level 2. Other investments consist primarily of funds advised by Affiliates that are valued using NAV. Investments in funds that calculate NAVs are classified as level 1. Investments in funds valued using other inputs that are observable or can be corroborated by observable market data, such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active, are classified as level 2. 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. Affiliate equity obligations include agreements to repurchase Affiliate equity. 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. Foreign currency forward contracts use model-derived valuations in which all significant inputs are observable in active markets to determine fair value and are classified as level 2. It is the Company’s policy to value financial assets or liabilities transferred as of the beginning of the period in which the transfer occurs. There were no significant transfers of financial assets or liabilities from level 1 to level 2 in 2015 or 2016 . Level 3 Financial Liabilities The following table presents the changes in Level 3 liabilities: For the Years Ended December 31, 2015 2016 Contingent Payment Arrangements Affiliate Equity Obligations Contingent Payment Arrangements Affiliate Equity Obligations Balance, beginning of period $ 59.3 $ 21.5 $ 10.2 $ 62.3 Net (gains) losses (40.9 ) (1) (1.4 ) (1.6 ) (1) 3.1 Purchases and issuances 9.3 158.0 — 69.1 Settlements and reductions (17.5 ) (115.8 ) — (122.4 ) Balance, end of period $ 10.2 $ 62.3 $ 8.6 $ 12.1 Net change in unrealized (gains) losses relating to instruments still held at the reporting date $ (40.9 ) $ — $ (1.6 ) $ — __________________________ (1) Accretion and changes in the expected value of the Company’s contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements. 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 December 31, 2015 Fair Value at Range at December 31, 2016 Contingent payment arrangements Discounted cash flow Growth rates $ 10.2 3% - 8% $ 8.6 3% - 8% Discount rates 15% 14% - 15% Affiliate equity obligations Discounted cash flow Growth rates 62.3 1% - 9% 12.1 4% - 10% Discount rates 14% - 15% 15% - 16% Investments in Certain Entities that Calculate Net Asset Value The Company uses the NAV of certain investments as their fair value. The NAVs provided by the investees have been derived from the fair values of the underlying assets and liabilities as of the measurement dates. The following table summarizes the nature of these investments and any related liquidity restrictions or other factors that may impact the ultimate value realized: December 31, 2015 December 31, 2016 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 126.0 $ 76.8 $ 137.8 $ 92.2 Other funds (2) 72.3 — 36.8 — $ 198.3 $ 76.8 $ 174.6 $ 92.2 __________________________ (1) These funds primarily invest in a broad range of private equity funds, as well as make direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . The fair value of private equity funds is determined using NAV one quarter in arrears (adjusted for current period calls and distributions). (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, monthly or quarterly basis. Other Financial Assets and Liabilities Not Carried at Fair Value The carrying amount of 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 the credit facilities 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, 2015 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 944.6 $ 966.3 $ 945.1 $ 936.0 Level 2 Convertible securities 305.2 483.6 307.5 466.9 Level 2 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations The Company completed majority investments in Baker Street Advisors, LLC on April 1, 2015 and myCIO Wealth Partners, L.P. on October 1, 2015. The Company’s purchase price allocations used financial models that included assumptions of market performance, net client cash flows and discount rates. The consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15 -year life. The aggregate purchase price allocation for the 2015 investments was as follows: Total Consideration paid $ 76.1 Contingent payment obligations 9.3 Non-controlling interests 33.8 Enterprise value $ 119.2 Acquired client relationships $ 52.5 Tangible assets, net 2.4 Goodwill 64.3 $ 119.2 The excess of the enterprise value over the separately identifiable net assets acquired was recorded as goodwill and the segment allocation was as follows: Total Institutional 14.4 % Mutual Fund — % High Net Worth 85.6 % Unaudited pro forma financial results are set forth below, assuming these investments occurred on January 1, 2014 and the Company’s structured partnership interests had been in effect for the entire period. For the Years Ended December 31, 2014 (Unaudited) 2015 (Unaudited) Revenue $ 2,538.2 $ 2,499.4 Net income (controlling interest) 436.3 511.4 Earnings per share (basic) $ 7.93 $ 9.41 Earnings per share (diluted) $ 7.74 $ 9.20 The unaudited pro forma financial results are not necessarily indicative of the financial results had the investments been consummated at the beginning of the periods presented, nor are they necessarily indicative of the financial results expected in future periods. The unaudited pro forma financial results do not include the impact of transaction and integration related costs or benefits that may be expected to result from these investments. The Company’s new investments contributed $15.3 million and $1.3 million to the Company’s Revenue and Net income, respectively, during 2015. The Company had liabilities to related parties for contingent payment arrangements in connection with certain business combinations. The total payable was $10.2 million and $8.6 million as of December 31, 2015 and 2016, respectively, and was included in Other liabilities. In 2015, the Company made $17.5 million in payments associated with these liabilities. In 2016, no such payments were made. For the years ended December 31, 2015 and 2016, the Company adjusted its estimates of contingent payment obligations and recorded gains attributable to the controlling interest of $44.7 million and $2.8 million , respectively. These amounts are included in Imputed interest expense and contingent payment arrangements. |
Goodwill and Acquired Client Re
Goodwill and Acquired Client Relationships | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Client Relationships | Goodwill and Acquired Client Relationships The following tables present the change in Goodwill and components of Acquired client relationships, net of the Company’s consolidated Affiliates: 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 Goodwill acquired 9.2 — 55.1 64.3 Foreign currency translation (27.0 ) (5.8 ) (15.9 ) (48.7 ) Balance, as of December 31, 2015 $ 1,141.3 $ 1,119.5 $ 407.6 $ 2,668.4 Goodwill acquired — — — — Foreign currency translation (5.1 ) (37.0 ) 1.8 (40.3 ) Balance, as of December 31, 2016 $ 1,136.2 $ 1,082.5 $ 409.4 $ 2,628.1 During 2015 and 2016, the Company completed impairment assessments on its goodwill and no impairments were indicated. Only a substantial decline in the fair value of its reporting units would result in an indication of impairment. 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 52.5 — 52.5 — 52.5 Intangible amortization and impairments — (115.4 ) (115.4 ) — (115.4 ) Foreign currency translation (5.8 ) — (5.8 ) (23.3 ) (29.1 ) Balance, as of December 31, 2015 $ 1,301.8 $ (680.4 ) $ 621.4 $ 1,065.0 $ 1,686.4 New Investments — — — — — Intangible amortization and impairments — (107.7 ) (107.7 ) (2.5 ) (110.2 ) Foreign currency translation (11.8 ) — (11.8 ) (67.0 ) (78.8 ) Balance, as of December 31, 2016 $ 1,290.0 $ (788.1 ) $ 501.9 $ 995.5 $ 1,497.4 Definite-lived acquired client relationships are amortized over their expected useful lives. As of December 31, 2016 , these relationships were being amortized over a weighted average life of approximately ten years. The Company recorded amortization expense for these relationships of $115.4 million for the year ended December 31, 2015 , as compared to $107.7 million for the year ended December 31, 2016 , in Intangible amortization and impairments. Based on relationships existing as of December 31, 2016 , the Company estimates that its consolidated annual amortization expense will be approximately $100 million for each of the next five years. During 2015 and 2016 , the Company completed impairment assessments on its definite-lived and indefinite-lived acquired client relationships and no impairments were indicated. As of December 31, 2016 , the fair values of the indefinite-lived intangible assets at two of the Company’s Affiliates, both managers of global equity funds, have recently experienced declines, and further declines in the fair values of these assets could result in future impairments. |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in Affiliates | Equity Method Investments in Affiliates The following table presents the change in Equity method investments in Affiliates: Total Balance, December 31, 2014 $ 1,783.5 Equity method earnings 323.2 Equity method intangible amortization (34.3 ) Distributions from equity method investments (346.1 ) Consideration for new investments 223.4 Foreign currency translation (4.7 ) Other (1) (7.9 ) Balance, December 31, 2015 $ 1,937.1 Equity method earnings 388.0 Equity method intangible amortization (59.2 ) Distributions from equity method investments (346.4 ) Consideration for new investments 1,361.3 Foreign currency translation 8.0 Other (1) 79.5 Balance, December 31, 2016 $ 3,368.3 __________________________ (1) Includes incremental basis related to deferred income taxes of $4.3 million and $93.3 million in 2015 and 2016, respectively. In 2015, the Company completed minority investments in Abax Investments (Pty) Ltd and Ivory Investment Management, L.P. On January 4, 2016, the Company completed minority investments in Systematica Investments L.P. and Baring Private Equity Asia. The Company completed minority investments in Capula Investment Management LLP and CapeView Capital LLP on July 1, 2016, Partner Fund Management, L.P. on September 30, 2016 and Winton Group Ltd. on October 4, 2016. The purchase price allocations were measured using financial models that include assumptions of expected market performance, net client flows and discount rates. The majority of the consideration paid (less net tangible assets acquired) will be deductible for U.S. tax purposes over a 15 -year life. In 2015, the Company paid $23.3 million to settle a contingent payment related to an equity method Affiliate investment. The payment increased the Company’s carrying value of the Affiliate investment. A portion of the purchase price attributable to the Company’s equity method Affiliates relates to definite-lived acquired client relationships. As of December 31, 2016 , the definite-lived acquired relationships were being amortized over a weighted average life of approximately fourteen years. The Company recorded amortization expense in Income from equity method investments for these relationships of $34.3 million for the year ended December 31, 2015 , as compared to $59.2 million for the year ended December 31, 2016 . Based on relationships existing as of December 31, 2016 , the Company estimates the annual amortization expense attributable to its current equity-method Affiliates to be approximately $80 million for each of the next five years. As of December 31, 2016, the fair value of one of the Company’s Affiliates, which is a firm with a fundamental value-based investment approach, had recently experienced a decline, and further declines in the fair value of the Affiliate could result in a future impairment. The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2014 (1)(2) 2015 (1)(2) 2016 (2) Revenue $ 1,869.3 $ 2,217.1 $ 2,200.9 Net income 253.8 431.5 1,068.9 December 31, 2015 (3) 2016 Assets $ 30,663.4 $ 1,915.3 Liabilities and Non-controlling interest 29,434.7 862.4 __________________________ (1) Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. (2) Revenue and Net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. (3) Assets consist primarily of investment securities in consolidated investment partnerships, which are generally held by non-controlling interests. The Company’s share of undistributed earnings from equity method investments was $134.3 million as of December 31, 2016 . |
Fixed Assets and Lease Commitme
Fixed Assets and Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Fixed Assets and Lease Commitments [Abstract] | |
Fixed Assets and Lease Commitments | Fixed Assets and Lease Commitments Fixed assets consisted of the following: December 31, 2015 2016 Building and leasehold improvements $ 104.7 $ 103.5 Software 45.4 52.5 Equipment 39.9 39.5 Furniture and fixtures 22.4 20.8 Land, improvements and other 18.6 17.9 Fixed assets, at cost 231.0 234.2 Accumulated depreciation and amortization (116.9 ) (124.1 ) Fixed assets, net $ 114.1 $ 110.1 The Company and its consolidated Affiliates lease office space and equipment for their operations. At December 31, 2016 , the Company’s aggregate future minimum payments for operating leases having initial or non-cancelable lease terms greater than one year were payable as follows: Required Minimum Payments (1) 2017 $ 37.7 2018 34.7 2019 31.7 2020 30.0 2021 27.4 Thereafter 57.4 __________________________ (1) The controlling interest portion is $11.5 million through 2017, $11.4 million in 2018, $10.8 million in 2019, $10.0 million in 2020, $9.3 million in 2021 and $29.3 million thereafter. Consolidated rent expense for 2014 , 2015 and 2016 was $30.5 million , $36.3 million and $35.5 million , respectively. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consisted of the following: December 31, 2015 2016 Accrued compensation $ 455.0 $ 418.5 Unsettled fund share payables 76.6 83.2 Accrued income taxes 67.9 87.7 Accrued professional fees 31.4 26.1 Other 98.5 113.8 Payables and accrued liabilities $ 729.4 $ 729.3 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A prior owner of one of the Company’s Affiliates retained an interest in certain of the Affiliate’s private equity investment partnerships. The prior owner’s interest is presented in the Company’s Consolidated Balance Sheets as either a liability in Other liabilities or as Non-controlling interests, depending on the structure of the prior owner’s investments in the partnerships. The total liability was $75.0 million and $67.8 million at December 31, 2015 and 2016 , respectively. The total non-controlling interest was $5.1 million and $2.5 million at December 31, 2015 and 2016 , respectively. In certain cases, Affiliate management owners and Company officers may serve as trustees or directors of certain mutual funds from which the Affiliate earns advisory fee revenue. The Company has related party transactions in association with its business combinations, as more fully described in Note 12, as well as Affiliate equity transactions, as more fully described in Notes 20 and 21. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock The Company is authorized to issue up to 5.0 million shares of Preferred Stock. Any such Preferred Stock issued by the Company may rank prior to common stock as to dividend rights, liquidation preference or both, may have full or limited voting rights and may be convertible into shares of common stock. Common Stock The Company is authorized to issue up to 150.0 million shares of Voting Common Stock and 3.0 million shares of Class B Non-Voting Common Stock. As more fully described in Note 8, the Company is party to an equity distribution program under which the Company may sell shares of its common stock. The Company’s Board of Directors authorized share repurchase programs in January 2017 and May 2015, authorizing the Company to repurchase up to 1.9 million and 3.0 million , respectively, shares of its common stock, which do not expire. In 2016, the Company repurchased 0.2 million shares at an average price per share of $161.16 . The following is a summary of the Company’s recent share repurchase activity: Period Shares Repurchased Average Price 2014 1.2 $ 204.72 2015 1.7 209.39 2016 0.2 161.16 Financial Instruments The Company’s junior convertible securities contain an embedded right for holders to receive shares of the Company’s common stock under certain conditions. These arrangements, as well as the equity distribution program, meet the definition of equity and are not required to be accounted for separately as derivative instruments. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Share-Based Incentive Plans The Company has established various plans under which it is authorized to grant restricted stock, restricted stock units, stock options and stock appreciation rights. Compensation payable under these plans is intended to qualify as performance-based compensation within the meaning of Section 162(m) of the Internal Revenue Code. The Company may also grant cash awards that can be notionally invested in one or more specified measurement funds, including the Company’s common stock. Awards granted under the Company’s share-based incentive plans typically participate in any dividends declared, but such amounts are deferred until delivery of the shares and are forfeitable if the requisite service is not satisfied. Dividends may be paid in cash or may be reinvested in the Company’s common stock. Share-Based Incentive Compensation The following is a summary of share-based compensation expense: Period Share-Based Compensation Expense Tax Benefit 2014 $ 29.3 $ 11.3 2015 34.2 13.2 2016 39.2 15.1 The excess tax benefit recognized from share-based incentive plans was $44.5 million and $5.1 million during the years ended December 31, 2015 and 2016 , respectively. The excess tax benefit for the year ended December 31, 2015 was recorded as an increase to Additional paid-in capital and the excess tax benefit for the year ended December 31, 2016 was recorded as a reduction to Income taxes. The excess tax benefit for the year ended December 31, 2015 was classified as a financing cash flow and the excess tax benefit for the year ended December 31, 2016 was classified as an operating cash flow. There was $70.6 million and $66.4 million of unrecognized compensation expense related to share-based compensation arrangements as of December 31, 2015 and 2016 , respectively. The unrecognized compensation expense at December 31, 2016 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—January 1, 2016 1.4 $ 96.18 Options granted 0.4 122.82 Options exercised (0.4 ) 81.08 Options forfeited (0.0 ) 131.91 Unexercised options outstanding—December 31, 2016 1.4 108.53 2.8 Exercisable at December 31, 2016 0.9 101.38 1.3 The Company granted stock options with fair values of $0.6 million , $1.0 million , and $16.4 million in 2014 , 2015 and 2016 , respectively. Stock options generally vest over a period of three to five years and expire seven to ten years after the grant date. All options have been granted with exercise prices equal to the fair market value of the Company’s common stock on the date of grant. The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of options exercised during the years ended December 31, 2014 , 2015 and 2016 was $92.6 million , $130.2 million and $27.7 million , respectively. The cash received for options exercised was $57.8 million and $25.6 million during the years ended December 31, 2015 and 2016 , respectively. As of December 31, 2016 , the intrinsic value of exercisable options outstanding was $43.1 million , and 3.1 million options were available for grant under the Company’s option plans. The fair value of options granted was estimated using the Black-Scholes option pricing model. The weighted average fair value of options granted during the years ended December 31, 2014 , 2015 and 2016 was $60.20 , $54.92 , and $39.02 per option, respectively, based on the weighted-average grant date assumptions stated below. For the Years Ended December 31, 2014 2015 2016 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility (1) 29.7 % 26.7 % 30.7 % Risk-free interest rate (2) 1.8 % 1.5 % 1.6 % Expected life of options (in years) (3) 5.0 5.0 5.7 Forfeiture rate (3) 0.0 % 0.0 % 0.0 % __________________________ (1) Expected volatility is based on historical and implied volatility. (2) Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. (3) Expected life of options (in years) is based on the Company’s historical and expected exercise behavior. Restricted Stock The following table summarizes the transactions of the Company’s restricted stock: Restricted Stock Weighted Average Grant Date Value Unvested units—January 1, 2016 0.6 $ 192.04 Units granted 0.2 122.59 Units vested (0.2 ) 181.87 Units forfeited (0.0 ) 171.51 Unvested units—December 31, 2016 0.6 168.84 The Company granted awards with fair values of $8.0 million , $50.7 million , and $28.0 million in 2014 , 2015 and 2016 , respectively. These awards were valued based on the closing price of the Company’s common stock on the date of grant and contain vesting conditions requiring service over a period of four years. In certain circumstances, awards also require certain performance conditions to be satisfied, and the Company may elect to settle the awards in shares of the Company’s common stock or cash. As of December 31, 2016 , the Company had 1.3 million shares available for grant under its plans. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests Affiliate equity interests provide holders with a ratable portion of ownership in one of the Company’s consolidated Affiliates. Affiliate equity holders generally have a conditional right to put their interests to the Company at certain intervals (between five and fifteen years from the date the equity interest is received or on an annual basis following an Affiliate equity holder’s departure). The current redemption value of the Company’s Affiliate equity interests is 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: December 31, 2015 2016 Balance, as of January 1 $ 645.5 $ 612.5 Repurchases of redeemable Affiliate equity (161.3 ) (69.1 ) Transfers from Non-controlling interests 49.5 42.6 Changes in redemption value 81.6 71.4 Changes attributable to consolidated products (2.8 ) 16.1 Balance, as of December 31 $ 612.5 $ 673.5 |
Affiliate Equity
Affiliate Equity | 12 Months Ended |
Dec. 31, 2016 | |
Affiliate Equity | |
Affiliate Equity | Affiliate Equity Affiliate equity interests are allocated income in a manner that is consistent with the structured partnership interests in place at the respective Affiliate. The Company’s Affiliates generally pay quarterly distributions to Affiliate equity holders. Distributions paid to Affiliate equity holders were $569.4 million , $431.4 million and $354.1 million for the years ended December 31, 2014, 2015 and 2016, respectively. Affiliate equity interests provide the Company a conditional right to call (on an annual basis following an Affiliate equity holder’s departure) and Affiliate equity holders have a conditional right to put their interests at certain intervals (between five and fifteen years from the date the equity interest is received or on an annual basis following an Affiliate equity holder’s departure). Affiliate equity holders are also permitted to sell their equity interests to other individuals or entities in certain cases, subject to the Company's approval or other restrictions. The purchase price of these conditional purchases are generally calculated based upon a multiple of cash flow distributions, which is intended to represent fair value. The Company, at its option, may pay for Affiliate equity purchases in cash, shares of its common stock or other forms of consideration and can consent to the transfer of these interests to other individuals or entities. The Company periodically issues Affiliate equity interests to and repurchases Affiliate equity interests from its Affiliate equity holders. The amount of cash paid for repurchases was $32.6 million , $130.8 million and $115.8 million for the years ended December 31, 2014, 2015 and 2016, respectively. The total amount of cash received for issuances was $11.0 million , $6.1 million and $11.8 million for the years ended December 31, 2014, 2015 and 2016, respectively. Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its Affiliate partners, employees and officers as a form of compensation. If the equity is issued for consideration below the fair value of the equity or repurchased for consideration above the fair value of the equity, then such difference is recorded as compensation expense over the requisite service period. The following is a summary of Affiliate equity expense: 2014 2015 2016 Controlling interest $ 47.4 $ 16.9 $ 10.0 Non-controlling interest 37.0 51.6 31.2 Total $ 84.4 $ 68.5 $ 41.2 The following is a summary of unrecognized Affiliate equity expense: Unrecognized Affiliate Equity Expense Period Controlling Interest Remaining Life Non-Controlling Interest Remaining Life 2014 $ 29.5 3 years $ 41.6 6 years 2015 22.4 3 years 51.9 5 years 2016 31.3 4 years 70.7 5 years The Company records amounts receivable from and payable to Affiliate equity holders in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. The total receivable was $22.6 million and $22.9 million at December 31, 2015 and 2016 , respectively, and was included in Other assets. The total payable was $62.3 million and $12.1 million as of December 31, 2015 and 2016 , respectively, and was included in Other liabilities. Effects of Changes in the Company’s Ownership in Affiliates The Company periodically acquires interests from, and transfers interests to, Affiliate equity holders. Because these transactions do not result in a change of control, any gain or loss related to these transactions is recorded to Additional paid-in capital, which increases or decreases the controlling interest’s equity. No gain or loss related to these transactions is recognized in the Consolidated Statements of Income or Comprehensive Income. While the Company presents the current redemption value of Affiliate equity within Redeemable Non-Controlling Interests with changes in the current redemption value increasing or decreasing the controlling interest’s equity over time, the following table discloses the cumulative effect that ownership changes had on the controlling interest’s equity related only to Affiliate equity transactions that settled during the periods: For the Years Ended December 31, 2014 2015 2016 Net income (controlling interest) $ 433.9 $ 509.5 $ 472.8 Increase in controlling interest paid-in capital from purchases and sales of Affiliate equity issuances 4.1 0.9 1.6 Decrease in controlling interest paid-in capital related to Affiliate equity repurchases (33.2 ) (87.6 ) (38.0 ) Net income attributable to controlling interest and transfers (to) or from Non-controlling interests $ 404.8 $ 422.8 $ 436.4 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans The Company has three defined contribution plans consisting of a qualified employee profit-sharing plan covering substantially all of its full-time employees and several of its Affiliates, and non-qualified plans for certain senior employees. AMG’s other Affiliates generally have separate defined contribution retirement plans. Under each of the qualified plans, AMG and each participating Affiliate, as the case may be, are able to make discretionary contributions for the benefit of qualified plan participants up to Internal Revenue Service limits. The Company has a Deferred Compensation Plan that provides officers and directors of the Company the opportunity to voluntarily defer base salary, bonus payments and director fees, as applicable, on a pre-tax basis, and invest such deferred amounts in one or more specified measurement funds. While the Company has no obligation to do so, the Deferred Compensation Plan also provides the Company the opportunity to make discretionary contributions; in the event any such contributions are made, contributed amounts will be subject to vesting and forfeiture provisions. Consolidated expenses related to the Company’s benefit plans in 2014 , 2015 and 2016 were $17.2 million , $18.7 million and $18.9 million , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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 is as follows: For the Years Ended December 31, 2014 2015 2016 Controlling interests: Current tax $ 149.8 $ 152.4 $ 168.1 Intangible-related deferred taxes 47.8 77.7 84.3 Other deferred taxes 34.0 27.7 (23.2 ) Total controlling interests 231.6 257.8 229.2 Non-controlling interests: Current tax $ 15.3 $ 9.8 $ 8.2 Deferred taxes (0.8 ) (4.2 ) (1.8 ) Total non-controlling interests 14.5 5.6 6.4 Provision for income taxes $ 246.1 $ 263.4 $ 235.6 Income before income taxes (controlling interest) $ 665.5 $ 767.3 $ 702.0 Effective tax rate attributable to controlling interests (1) 34.8 % 33.6 % 32.6 % __________________________ (1) Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). The consolidated provision for income taxes consisted of the following: For the Years Ended December 31, 2014 2015 2016 Current: Federal $ 93.8 $ 106.3 $ 103.4 State 27.1 18.3 22.9 Foreign 44.2 37.6 50.0 Total current 165.1 162.2 176.3 Deferred: Federal 89.0 103.8 62.3 State 2.8 14.8 10.0 Foreign (10.8 ) (17.4 ) (13.0 ) Total deferred 81.0 101.2 59.3 Provision for income taxes $ 246.1 $ 263.4 $ 235.6 For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2014 2015 2016 Domestic $ 784.1 $ 827.6 $ 688.1 International 229.5 263.0 286.5 $ 1,013.6 $ 1,090.6 $ 974.6 The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2014 2015 2016 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.3 2.6 2.9 Effect of foreign operations (1) (5.3 ) (3.5 ) (4.6 ) Equity Compensation 2.5 0.8 (0.4 ) Effect of changes in tax law, rates (2) — (0.8 ) (0.3 ) Other 0.3 (0.5 ) — Effective tax rate (controlling interest) 34.8 % 33.6 % 32.6 % Effect of income from non-controlling interests (9.6 ) (9.2 ) (8.4 ) Effective tax rate 25.2 % 24.4 % 24.2 % __________________________ (1) Effect of foreign operations includes the effect of undistributed foreign earnings the Company deems indefinitely reinvested in foreign operations, and the effect of differences in the financial reporting basis over tax basis in the Company’s investments in foreign subsidiaries considered permanent in duration. (2) Effect of changes in tax law, rates reflects the impact of the reduction in the UK tax rates in years 2015 and 2016. Deferred income taxes reflect the expected future tax consequences of temporary differences between the financial reporting basis and tax basis of the Company’s assets and liabilities. The significant components of the Company’s deferred income taxes are as follows: December 31, 2015 2016 Deferred Tax Assets Deferred compensation $ 30.5 $ 34.1 State net operating loss carryforwards 17.1 17.4 Foreign loss carryforwards 12.3 14.6 Tax benefit of uncertain tax positions 14.6 12.1 Foreign tax credits — 10.0 Accrued expenses 4.4 3.9 Total deferred tax assets 78.9 92.1 Valuation allowance (20.5 ) (22.1 ) Deferred tax assets, net of valuation allowance $ 58.4 $ 70.0 Deferred Tax Liabilities Intangible asset amortization $ (320.2 ) $ (396.8 ) Non-deductible intangible amortization (109.8 ) (177.0 ) Convertible securities interest (99.8 ) (109.0 ) Deferred income (92.8 ) (47.2 ) Other (1.5 ) (0.8 ) Total deferred tax liabilities (624.1 ) (730.8 ) Net deferred tax liability $ (565.7 ) $ (660.8 ) At December 31, 2016, the Company had available state net operating loss carryforwards of $489.7 million , which will expire over a 19 -year period. At December 31, 2016, the Company had foreign loss carryforwards of $55.1 million , of which $47.7 million will expire over a 20 -year period and the balance will carry forward indefinitely. At December 31, 2016, the Company had foreign tax credits of $10.0 million , which will expire in 2026. The Company believes that it is more-likely-than-not that the benefit from a portion of the state and foreign loss carryforwards will not be realized and has, therefore, recorded a valuation allowance of $22.1 million on the deferred tax assets related to these state and foreign loss carryforwards. For the years ended December 31, 2015 and 2016, the Company increased its valuation allowance $2.1 million and $1.6 million , respectively, related to an increase in the loss carryforwards that are not expected to be realized. The Company does not provide for U.S. income taxes on the excess of the financial reporting basis over tax basis in the Company’s investments in foreign subsidiaries considered permanent in duration. Such amount would generally become taxable upon the repatriation of assets from, or a sale or liquidation of, the subsidiaries. As of December 31, 2016, the amount of such difference was $222.9 million . The Company also considers certain undistributed earnings of a foreign subsidiary to be indefinitely reinvested and, accordingly, has not provided U.S. income taxes on these earnings. As of December 31, 2016, the cumulative amount of indefinitely reinvested foreign earnings was $65.0 million . Determination of the potential amount of unrecognized deferred U.S. income tax liability related to these amounts is not practicable because of the numerous assumptions associated with this hypothetical calculation. However, foreign tax credits would be available to reduce some portion of the deferred U.S. income tax liability. A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2014 2015 2016 Balance, as of January 1 $ 20.4 $ 28.8 $ 26.9 Additions based on current year tax positions 2.6 2.2 3.8 Additions based on prior years’ tax positions 10.8 1.6 0.6 Reductions related to lapses of statutes of limitations (4.1 ) (4.3 ) (4.7 ) Additions (reductions) related to foreign exchange rates (0.9 ) (1.4 ) 0.2 Balance, as of December 31 $ 28.8 $ 26.9 $ 26.8 Included in the balance of unrecognized tax benefits at December 31, 2014, 2015 and 2016 are $26.4 million , $25.3 million , and $26.0 million , respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective tax rate. The Company records accrued interest and penalties, if any, related to unrecognized tax benefits in Income taxes. The Company had $1.6 million , $1.8 million and $1.4 million in interest related to unrecognized tax benefits accrued at December 31, 2014, 2015 and 2016, respectively, which are included in the table above. For the years ended December 31, 2014, 2015 and 2016, no significant interest or penalties were recorded in Income taxes. The Company is subject to U.S. federal, state and local, and foreign income tax in multiple jurisdictions. The Company is also periodically subject to tax examinations in these jurisdictions. The completion of examinations may result in the payment of additional taxes and/or the recognition of tax benefits. The Company is generally no longer subject to income tax examinations by U.S. federal, state and local, or foreign taxing authorities for periods prior to 2011. The Company does not expect any significant changes to its liability for tax benefits during the next twelve months. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders: For the Years Ended December 31, 2014 2015 2016 Numerator Net income (controlling interest) $ 433.9 $ 509.5 $ 472.8 Interest expense on convertible securities, net of taxes 15.2 15.3 15.5 Net income (controlling interest), as adjusted $ 449.1 $ 524.8 $ 488.3 Denominator Average shares outstanding (basic) 55.0 54.3 54.2 Effect of dilutive instruments: Stock options and restricted stock 1.2 0.7 0.6 Forward sale agreement 0.0 — — Junior convertible securities 2.2 2.2 2.2 Average shares outstanding (diluted) 58.4 57.2 57.0 Average shares outstanding (diluted) in the table above exclude the anti-dilutive effect of the following shares: For the Years Ended December 31, 2014 2015 2016 Stock options and restricted stock units 0.0 0.0 0.6 Junior convertible securities 0.4 — — As discussed further in Note 21, the Company may settle portions of its Affiliate equity purchases in shares of its common stock. Because it is the Company’s intent to settle these potential repurchases in cash, the calculation of diluted earnings per share excludes any potential dilutive effect from possible share settlements. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income | Comprehensive Income The following tables show the tax effects allocated to each component of Other comprehensive income: For the Year Ended December 31, 2014 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (62.0 ) $ — $ (62.0 ) Change in net realized and unrealized gain (loss) on derivative securities 0.6 (0.3 ) 0.3 Change in net unrealized gain (loss) on investment securities 5.6 (2.2 ) 3.4 Other comprehensive income (loss) $ (55.8 ) $ (2.5 ) $ (58.3 ) For the Year Ended December 31, 2015 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (93.2 ) $ — $ (93.2 ) Change in net realized and unrealized gain (loss) on derivative securities 2.3 (0.4 ) 1.9 Change in net unrealized gain (loss) on investment securities 34.8 (12.7 ) 22.1 Other comprehensive income (loss) $ (56.1 ) $ (13.1 ) $ (69.2 ) For the Year Ended December 31, 2016 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (115.3 ) $ — $ (115.3 ) Change in net realized and unrealized gain (loss) on derivative securities 0.3 (0.2 ) 0.1 Change in net unrealized gain (loss) on investment securities (58.3 ) 23.1 (35.2 ) Other comprehensive income (loss) $ (173.3 ) $ 22.9 $ (150.4 ) The components of accumulated other comprehensive income (loss), net of taxes, were as follows: Foreign Currency Translation Adjustment Realized and Unrealized Losses on Derivative Securities Unrealized Gain (Loss) 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 (93.2 ) 0.8 13.5 (78.9 ) Amounts reclassified from other comprehensive income — 1.1 8.6 9.7 Net other comprehensive income (loss) (93.2 ) 1.9 22.1 (69.2 ) Balance, as of December 31, 2015 $ (98.6 ) $ 0.3 $ 45.0 $ (53.3 ) Other comprehensive income (loss) before reclassifications (115.3 ) (1.0 ) (22.5 ) (138.8 ) Amounts reclassified from other comprehensive income — 1.1 (12.7 ) (11.6 ) Net other comprehensive income (loss) (115.3 ) 0.1 (35.2 ) (150.4 ) Balance, as of December 31, 2016 $ (213.9 ) $ 0.4 $ 9.8 $ (203.7 ) __________________________ (1) See Note 2 for amounts reclassified from Other comprehensive income. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2015 and 2016 . 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 635.0 $ 646.6 $ 613.1 $ 589.8 Operating income 231.4 195.2 215.2 193.2 Income before income taxes 290.3 262.0 249.1 289.2 Net income (controlling interest) 126.7 127.6 107.7 147.5 Earnings per share (diluted) $ 2.26 $ 2.29 $ 1.96 $ 2.67 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 545.4 $ 554.1 $ 544.7 $ 550.3 Operating income 178.8 181.8 171.0 173.8 Income before income taxes 230.5 235.9 226.2 281.9 Net income (controlling interest) 104.0 108.3 110.2 150.2 Earnings per share (diluted) $ 1.90 $ 1.98 $ 2.02 $ 2.67 |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic 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: As of and for the Year Ended December 31, 2014 Institutional Mutual Fund High Net Worth Total Revenue $ 1,022.8 $ 1,242.6 $ 245.5 $ 2,510.9 Net income (controlling interest) 217.9 172.9 43.1 433.9 Total assets 3,731.4 3,077.5 874.6 7,683.5 Goodwill 1,159.1 1,125.3 368.4 2,652.8 Equity method investments in Affiliates 1,533.8 150.3 99.4 1,783.5 As of and for the Year Ended December 31, 2015 Institutional Mutual Fund High Net Worth Total Revenue $ 979.4 $ 1,238.2 $ 266.9 $ 2,484.5 Net income (controlling interest) 226.4 226.8 56.3 509.5 Total assets 3,717.1 3,070.5 981.8 7,769.4 Goodwill 1,141.3 1,119.5 407.6 2,668.4 Equity method investments in Affiliates 1,609.3 185.7 142.1 1,937.1 As of and for the Year Ended December 31, 2016 Institutional Mutual Fund High Net Worth Total Revenue $ 878.5 $ 1,036.0 $ 280.1 $ 2,194.6 Net income (controlling interest) 246.7 177.8 48.3 472.8 Total assets 4,386.4 3,360.4 1,002.3 8,749.1 Goodwill 1,136.2 1,082.5 409.4 2,628.1 Equity method investments in Affiliates 2,796.9 412.2 159.2 3,368.3 The following table presents Revenue and Fixed Assets, net of the Company by geographic location. Revenue by geographic location is primarily based on the location of an Affiliate. For the Years Ended December 31, 2014 2015 2016 Revenue United States $ 1,731.5 $ 1,657.2 $ 1,477.5 United Kingdom 567.1 645.3 566.4 Other 212.3 182.0 150.7 Total $ 2,510.9 $ 2,484.5 $ 2,194.6 December 31, 2014 2015 2016 Fixed Assets, net United States $ 80.2 $ 98.6 $ 97.3 United Kingdom 11.9 12.3 9.9 Other 3.3 3.2 2.9 Total $ 95.4 $ 114.1 $ 110.1 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 5, 2017, the Company completed a minority investment in Forbes Family Trust. On January 30, 2017, the Company announced the initiation of a quarterly cash dividend program, and declared a $0.20 per share dividend, paid on February 23, 2017 to all holders of record of the Company’s common stock as of February 9, 2017. As of February 21, 2017, the Company had repurchased 0.4 million shares of common stock, at an average share price of $159.91 in 2017. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in millions) Balance Beginning of Period Additions Charged to Costs and Expenses Additions Charged to Other Accounts Deductions Balance End of Period Income Tax Valuation Allowance Year Ending December 31, 2016 $ 20.5 $ 1.3 $ 0.3 $ — $ 22.1 2015 18.4 2.1 — — 20.5 2014 36.6 — — 18.2 18.4 Other Allowances (1) Year Ending December 31, 2016 $ 10.6 $ 5.0 $ — $ 5.3 $ 10.3 2015 12.1 0.7 — 2.2 10.6 2014 8.8 4.7 — 1.4 12.1 __________________________ (1) Other Allowances represented reserves on notes received in connection with transfers of our interests in certain Affiliates as well as other receivable amounts, which we considered uncollectible. |
Business and Summary of Signi37
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All dollar amounts, except per share data in the text and tables herein, are stated in millions unless otherwise indicated. Certain reclassifications have been made to prior years’ financial statements to conform to the current year’s presentation. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The Company assesses consolidation requirements pursuant to ASU 2015-02: Consolidation, which was adopted using the modified retrospective method and resulted in an effective date of adoption of January 1, 2016. In evaluating whether an investment must be consolidated, the Company evaluates the risk, rewards, and significant terms of each of its Affiliate and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to finance its activities independently and when the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact its economic performance. An entity is a VIE when it lacks one or more of the characteristics of a VRE. Assessing whether an entity is a VRE or VIE involves judgment. Upon the occurrence of certain events, management reviews and reconsiders its previous conclusion regarding the status of an entity as a VRE or a VIE. The Company consolidates VREs when it has control over significant operating, financial and investing decisions of the investment or holds the majority voting interest. The Company consolidates VIEs when it has a controlling financial interest, which is defined as having the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses of or the right to receive benefits from the entity that could potentially be significant to the VIE. Investments in Affiliates For the Company’s consolidated Affiliates, the portion of the Owners’ Allocation allocated to Affiliate management is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Non-controlling interests on the Consolidated Balance Sheets include capital and undistributed Operating and Owners’ Allocation owned by Affiliate management of the Company’s consolidated Affiliates. The effect of any changes in the Company’s equity interests in its consolidated Affiliates resulting from the issuance or repurchase of an Affiliate’s equity by the Company or one of its Affiliates is included as a component of stockholders’ equity, net of any related income tax effects in the period of the change. The current redemption value of non-controlling interests has been presented as Redeemable non-controlling interests on the Consolidated Balance Sheets. The Company applies the equity method of accounting to investments where the Company does not hold a controlling equity interest but has the ability to exercise significant influence over operating and financial matters. Other investments in which the Company owns less than a 20% interest and does not exercise significant influence are accounted for under the cost method. Under the cost method, income is recognized when dividends are declared. Affiliate Sponsored Investment Vehicles The Company’s consolidated Affiliates sponsor various investment products where they also act as the investment advisor, and in some cases these products are considered VIEs. These investment products are typically owned primarily by third-party investors; however, certain products are capitalized with seed capital investments from Affiliates. Investors are generally entitled to substantially all of the economics of these VIEs, except for the management and performance fees earned by Affiliates or any gains or losses attributable to Affiliates’ investments in these products. As a result, Affiliates do not generally consolidate these VIEs unless the Affiliate’s interest in the product is considered substantial. When consolidating these VIEs, the Company retains the specialized investment company accounting principles of the underlying products, and all of the underlying investments are carried at fair value in Investments in marketable securities in the Consolidated Balance Sheets with corresponding changes in the investments’ fair values reflected in Other operating expenses (net) in the Consolidated Statements of Income. Purchases and sales of securities are presented within purchases and sales by Affiliate sponsored consolidated products in the Consolidated Statements of Cash Flows. When Affiliates no longer control these products, due to a reduction in ownership or other reasons, the products are deconsolidated. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. Money market mutual funds with a floating net asset value (“NAV”) would not meet the definition of a cash equivalent if the fund has enacted liquidity fees or redemption gates. |
Receivables | Receivables The Company’s Affiliates earn asset based and performance fees, which are billed based on the terms of the related contracts. Billed but uncollected asset based and performance fees are presented within Receivables on the Consolidated Balance Sheets and are generally short-term in nature. Certain of the Company’s Affiliates in the UK act as intermediaries between clients and their sponsored investment products. Normal settlement periods on transactions initiated by these clients with the sponsored investment products result in unsettled fund share receivables and payables that are presented on a gross basis within Receivables and Payables and accrued liabilities on the Consolidated Balance Sheets. The gross presentation of these receivables and offsetting payables reflects the legal relationship between the underlying investor and the Company’s Affiliates. |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities are classified as either trading or available-for-sale and carried at fair value. Unrealized gains or losses on investments classified as available-for-sale are reported, net of tax, as a separate component of Accumulated other comprehensive income (loss) in Equity until realized when they are reported in Investment and other income in the Consolidated Statements of Income. Realized and unrealized gains or losses related to trading securities are reported within Investment and other income. Realized gains and losses are recorded on trade date on a specific identified basis. If a decline in the fair value of an available-for-sale investment is determined to be other-than-temporary, the carrying amount of the asset is reduced to its fair value, and the difference is charged to Investment and other income in the period incurred. |
Fair Value Measurements | Fair Value Measurements The Company determines the fair value of certain investment securities and other financial and non-financial assets and liabilities. Fair value is determined based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, utilizing a hierarchy of three different valuation techniques: Level 1 - Unadjusted quoted market prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and Level 3 - Prices reflect the Company’s own assumptions concerning unobservable inputs to the valuation model. These inputs require significant management judgment and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three to ten years . Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally three to seven years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease, and buildings are amortized over their expected useful lives. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land is not depreciated. |
Leases | Leases The Company and its Affiliates currently lease office space and equipment under various leasing arrangements. As these leases expire, it can be expected that in the normal course of business they will be renewed or replaced. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements for office space that are classified as operating leases contain renewal options, rent escalation clauses or other inducements provided by the landlord. Rent expense is accrued to recognize lease escalation provisions and inducements provided by the landlord, if any, on a straight-line basis over the lease term and is reported in Other operating expenses on the Consolidated Statements of Income. |
Equity Investments in Affiliates | Equity Method Investments in Affiliates For Equity method investments in Affiliates, the Company’s share of the Affiliate’s revenue without regard to expenses or less certain agreed-upon expenses, net of amortization of intangible assets related to the Company’s investment, is included in Income from equity method investments in the Consolidated Statements of Income. The Company’s share of income taxes incurred directly by Affiliates accounted for under the equity method is recorded within Income taxes in the Consolidated Statements of Income because these taxes generally represent the Company’s share of the taxes incurred by Affiliates. The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses if the fair value of the investment has declined below its carrying value for a period considered to be other-than-temporary. If the Company determines that a decline in fair value below the carrying value of the investment is other-than-temporary, then the reduction in carrying value would be recorded in Income from equity method investments. |
Acquired Client Relationships and Goodwill | Acquired Client Relationships and Goodwill Each Affiliate in which the Company makes an investment has identifiable assets arising from contractual or other legal rights with their clients (“acquired client relationships”). In determining the value of acquired client relationships, the Company analyzes the net present value of these Affiliates’ existing client relationships based on a number of factors, including: the Affiliate’s historical and potential future operating performance; the Affiliate’s historical and potential future rates of attrition of existing clients; the stability and longevity of existing client relationships; the Affiliate’s recent, as well as long-term, investment performance; the characteristics of the firm’s products and investment styles; the stability and depth of the Affiliate’s management team; and the Affiliate’s history and perceived franchise or brand value. The Company has determined that certain of its acquired client relationships meet the criteria to be considered indefinite-lived assets because the Company expects both the renewal of these contracts and, therefore, the cash flows generated by these contracts to continue indefinitely. Accordingly, the Company does not amortize these intangible assets, but instead reviews these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived assets may be impaired. Each reporting period, the Company assesses whether events or circumstances have occurred that indicate that the indefinite life criteria are no longer met. If the indefinite life criteria are no longer met, the Company would assess whether the carrying value of the assets exceeds its fair value, an impairment loss would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. The expected useful lives of definite-lived acquired client relationships are determined based on an analysis of the historical and projected attrition rates of each Affiliate’s existing clients, and other factors that may influence the expected future economic benefit the Company will derive from the relationships. The expected lives of definite-lived acquired client relationships are analyzed annually or more frequently whenever events or circumstances have occurred that indicate the expected useful lives may no longer be appropriate. The Company tests for the possible impairment of indefinite and definite-lived intangible assets annually or more frequently whenever events or changes in circumstances indicate that the carrying amount of the asset is not recoverable. If such indicators exist, the Company compares the fair value of the asset to the carrying value of the asset. If the carrying value is greater than the fair value, an impairment loss would be recorded in Intangible amortization and impairments in the Consolidated Statements of Income. Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized, and is reported within the segments in which the Affiliate operates. Goodwill is not amortized, but is instead reviewed for impairment. The Company assesses goodwill for impairment at least annually, or more frequently whenever events or circumstances occur indicating that the recorded goodwill may be impaired. If the carrying amount of goodwill exceeds the fair value, an impairment loss would be recorded in Intangible amortization and impairments. |
Issuance Costs | Issuance Costs Issuance costs related to the Company’s senior bank debt are amortized over the remaining term of the senior unsecured multicurrency revolving credit facility (the “revolver”) and the senior unsecured term loan facility (the “term loan”). Issuance costs associated with the revolver and term loan are included in Other assets and as a reduction of the related debt balance, respectively, in the Consolidated Balance Sheets. Issuance costs associated with the Company’s senior notes are amortized over the shorter of the period to the first investor put date or the Company’s estimate of the expected term of the security, and are included as a reduction of the related debt balance in the Consolidated Balance Sheets. The expense resulting from the amortization of these issuance costs is reported in Interest expense in the Consolidated Statements of Income. |
Derivative Financial Instruments | Derivative Financial Instruments The Company may utilize financial instruments, specifically interest rate derivative contracts to hedge certain interest rate exposures. In entering into these contracts, the Company intends to offset cash flow gains and losses that occur on its existing debt obligations with cash flow gains and losses on the contracts hedging these obligations. From time to time, the Company’s Affiliates use foreign currency forward contracts to hedge the risk of foreign exchange rate movements. In entering into these contracts, the Affiliates intend to offset cash flow gains and losses on projected foreign currency-denominated revenues and expenses as a result of variability in foreign exchange rates. The Company records derivatives on the balance sheet at fair value. If the Company’s derivatives qualify as cash flow hedges, the effective portion of the unrealized gain or loss is recorded in Accumulated other comprehensive income as a separate component of stockholders’ equity and reclassified to Investment and other income when the hedged cash flows are recorded in earnings. Hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future variable cash flows of the hedged contract with the present value of the cumulative change in the expected future variable cash flows of the hedged item. To the extent that the critical terms of the hedged item and the derivative are not identical, hedge ineffectiveness would be reported in Investment and other income. If the Company’s or its Affiliates’ derivatives do not qualify as cash flow or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other income. |
Contingent Payment Arrangements | Contingent Payment Arrangements The Company periodically enters into contingent payment arrangements in connection with its business combinations. In these arrangements, the Company agrees to pay additional consideration to the sellers to the extent that certain levels of revenue growth or other metrics are achieved. For consolidated Affiliates, the Company estimates the fair value of these potential future obligations at the time a business combination is consummated and records a liability primarily in Other liabilities on its Consolidated Balance Sheet. The Company then accretes the obligation to its expected payment amount over the period until the arrangement is measured. If the Company’s expected payment amount subsequently changes, the obligation is reduced or increased in the current period resulting in a gain or loss, respectively. Both gains and losses resulting from changes to expected payments and the accretion of these obligations to their expected payment amounts are reflected within Imputed interest expense and contingent payment arrangements. For Affiliates accounted for under the equity method of accounting, the Company records a liability when a payment becomes probable in Payables and accrued liabilities, with a corresponding increase to the carrying value of the Affiliate in Equity method investments in Affiliates in the Consolidated Balance Sheets. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the financial reporting bases of assets and liabilities and their respective tax bases, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in Income taxes in the Consolidated Statements of Income in the period when the change is enacted. The Company regularly assesses the recoverability of its deferred income tax assets to determine whether these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their recorded amount, or that the recorded deferred tax assets are not realizable, the Company would adjust the deferred tax asset valuation allowance to record the deferred tax assets at their current value, which would increase or decrease Income taxes, respectively. The Company records unrecognized tax benefits based on whether it is more-likely-than-not that the uncertain tax positions will be sustained on the basis of the technical merits of the position. If it is determined an uncertain tax position is more-likely-than-not to be sustained, the Company records the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority in Income taxes. Interest and penalties related to unrecognized tax benefits are also recorded in Income taxes. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities whose functional currency is not the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expenses are translated into U.S. dollars using average exchange rates for the relevant period. Because of the long-term nature of the Company’s investments in Affiliates, net translation exchange gains and losses resulting from foreign currency translation are recorded in Accumulated comprehensive income as a separate component of stockholders’ equity. Foreign currency transaction gains and losses are reflected in Investment and other income. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments. The Company maintains cash and cash equivalents, investments and, at times, certain financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which AMG and its Affiliates operate. For AMG and certain Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. |
Revenue Recognition | Revenue Recognition The Company’s revenue primarily represents advisory fees billed by consolidated Affiliates for managing the assets of clients. Asset based advisory fees are recognized as services are rendered and are typically based upon a percentage of the value of a client’s assets under management. Any fees collected in advance are deferred and recognized as income over the period earned. Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account. Performance fees are recognized when they are earned (i.e., when they become billable to customers and are not subject to claw-back) based on the contractual terms of agreements and when collection is reasonably assured. Carried interest is recognized upon the earlier of the termination of the investment product or when the likelihood of claw-back is improbable. Also included in revenue are commissions earned by broker-dealers, and administrative fees for services provided to Affiliate sponsored investment products. The Company’s Affiliates have contractual arrangements with third parties to provide certain distribution-related services. These third parties are primarily compensated based on the value of client assets over time. Distribution-related revenues are presented in Revenue in the Consolidated Statements of Income gross of any related expenses when the Affiliate is the principal in its role as primary obligor under its sales and distribution arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses in the Consolidated Statements of Income. |
Earnings Per Share | Earnings Per Share The calculation of basic earnings per share is based on the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings per share is similar to basic earnings per share, but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock. The Company had convertible securities outstanding during the periods presented and is required to apply the if-converted method to these securities in its calculation of diluted earnings per share. Under the if-converted method, shares that are issuable upon conversion are deemed outstanding, regardless of whether the securities are contractually convertible into the Company’s common stock at that time. For this calculation, the interest expense (net of tax) attributable to these dilutive securities is added back to Net income (controlling interest), reflecting the assumption that the securities have been converted. Issuable shares for these securities and related interest expense are excluded from the calculation if an assumed conversion would be anti-dilutive to diluted earnings per share. |
Share-Based Compensation Plans | Share-Based Compensation Plans The Company recognizes expenses for all share-based payments based on their grant date fair values over the requisite service period. The Company records these expenses only for awards that are expected to vest. Prior to 2016, the Company reported any tax benefits realized upon the exercise of stock options or vesting of restricted stock that were in excess of the expense recognized for reporting purposes as a financing activity in the Consolidated Statements of Cash Flows. If the tax benefit ultimately realized was greater than or less than the expense recognized, the tax windfall or shortfall was recognized in stockholders’ equity. To the extent the shortfall exceeded the cumulative windfall tax benefits, the excess was recognized in Income taxes. Beginning in 2016, all tax windfalls or shortfalls are recognized in Income taxes and have been classified as operating activities in the Consolidated Statements of Cash Flows. Taxes paid by the Company when it withholds shares to satisfy tax withholding obligations are classified as a financing activity. |
Segment Information | Segment Information Management has assessed and determined that the Company operates in three business segments representing the Company’s three principal distribution channels: Institutional, Mutual Fund and High Net Worth, each of which has different client relationships. Revenue and Income from equity method investments in the Institutional distribution channel are earned from relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities. Revenue and Income from equity method investments in the Mutual Fund distribution channel are earned from advisory or sub-advisory relationships with active return-oriented mutual funds, UCITS and other retail products. Revenue and Income from equity method investments in the High Net Worth distribution channel are earned from relationships with high net worth and ultra-high net worth individuals, families, trusts, foundations, endowments and retirement plans. In measuring Net income (controlling interest) by segment, the Company’s share of expenses incurred directly at Affiliates and AMG Funds is allocated to a particular segment pro rata to the revenue generated by the Affiliate and AMG Funds in such segment. All other operating and non-operating expenses not incurred directly by an Affiliate or AMG Funds are generally allocated to segments based on the relative contribution to Adjusted EBITDA (controlling interest) of the applicable Affiliate or AMG Funds in each segment. |
Recent Accounting Developments | Recent Accounting Developments Effective January 1, 2016, the Company adopted several updates to accounting standards as follows: • ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis (“ASU 2015-02: Consolidation”); • ASU 2015-03, Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs; • ASU 2015-07, Fair Value Measurement: Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent); • ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments; and • ASU 2016-09, Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The adoption of these updates did not have a significant impact on the Company’s Consolidated Financial Statements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, as amended. The new standard provides a comprehensive model for revenue recognition. The standard is effective for interim and fiscal periods beginning after December 15, 2017. The Company is reviewing its and its Affiliates’ contracts with clients to evaluate the impact of this standard on its Consolidated Financial Statements, but it does not expect the adoption to significantly impact the timing of the recognition of the majority of its Revenue. In January 2016, the FASB issued ASU 2016-01, Fair Value: Recognition and Measurement of Financial Assets and Liabilities. Under the new standard, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. The standard is effective for interim and fiscal periods beginning after December 15, 2017. The Company is evaluating the impact of this standard on its Consolidated Financial Statements; any impact will be primarily dependent on equity investments in securities held by the Company at the time of adoption. In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize assets and liabilities arising from most operating leases on the statement of financial position. The standard is effective for interim and fiscal periods beginning after December 15, 2018. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting, which simplifies the equity method of accounting by eliminating the need to apply the equity method retroactively to an investment that subsequently qualifies for such accounting treatment. The standard is effective for interim and fiscal periods beginning after December 15, 2016. The Company does not expect the adoption of this standard to have a significant impact on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments, which clarifies how cash receipts and cash payments are classified in the statement of cash flows. The standard is effective for interim and fiscal periods beginning after December 15, 2017. The Company does not expect the adoption of this standard to have a significant impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business, which provides guidance on evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The standard is effective for interim and fiscal periods beginning after December 15, 2017. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, which simplifies goodwill impairment testing. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The standard is effective for interim and fiscal periods beginning after December 15, 2019. The Company is evaluating the impact of this standard on its Consolidated Financial Statements. |
Fair Value of Financial Instruments | 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, without enacted liquidity fees or redemption gates. Investments in marketable securities consist primarily of investments in publicly traded securities and in funds advised by Affiliates that are valued at NAV. Publicly traded securities valued using unadjusted quoted market prices for identical instruments in active markets are classified as level 1. Publicly traded securities valued using quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active are classified as level 2. Other investments consist primarily of funds advised by Affiliates that are valued using NAV. Investments in funds that calculate NAVs are classified as level 1. Investments in funds valued using other inputs that are observable or can be corroborated by observable market data, such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active, are classified as level 2. 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. Affiliate equity obligations include agreements to repurchase Affiliate equity. 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. Foreign currency forward contracts use model-derived valuations in which all significant inputs are observable in active markets to determine fair value and are classified as level 2. 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. |
Investments in Marketable Sec38
Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Marketable Securities [Abstract] | |
Summary of the Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments | The following is a summary of the cost, gross unrealized gains and losses and fair value of investments classified as available-for-sale and trading: Available-for-Sale Trading December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 Cost $ 104.7 $ 66.1 $ 19.8 $ 34.4 Unrealized Gains 77.6 17.6 1.9 6.6 Unrealized Losses (1.8 ) (1.8 ) (2.3 ) (0.5 ) Fair Value $ 180.5 $ 81.9 $ 19.4 $ 40.5 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Schedule of Net Assets and Liabilities and Maximum Risk of Losses Related to Unconsolidated VIEs | The net assets and liabilities of unconsolidated VIEs and the Company’s maximum risk of loss were as follows: December 31, 2015 December 31, 2016 Unconsolidated VIE Net Assets Carrying Value and Maximum Risk of Loss Unconsolidated VIE Net Assets Carrying Value and Maximum Risk of Loss Sponsored investment funds $ 6,688.9 $ 1.4 $ 1,756.6 $ 9.4 |
Senior Notes (Tables)
Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Principal Terms of Senior Notes | 2024 Senior Notes 2025 Senior Notes 2042 Senior Notes Issue date February 2014 February 2015 August 2012 Maturity date February 2024 August 2025 August 2042 Potential Call Date Any Time (1) Any Time (1) August 2017 Par value (in millions) $ 400.0 $ 350.0 $ 200.0 Call Price As Defined (1) As Defined (1) At Par Stated coupon 4.25 % 3.50 % 6.375 % Coupon frequency Semi-annually Semi-annually Quarterly __________________________ (1) The 2024 and 2025 senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. |
Convertible Securities (Tables)
Convertible Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Convertible Securities | The carrying value and principal amount at maturity of the junior convertible securities were as follows: December 31, 2015 December 31, 2016 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 305.2 $ 430.8 $ 307.5 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 21 years. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2015 Level 1 Level 2 Level 3 Financial Assets Cash equivalents $ 65.9 $ 65.9 $ — $ — Investments in marketable securities (1) Trading securities 19.4 19.4 — — Available-for-sale securities 180.5 180.5 — — Other investments (2) 23.3 20.7 2.6 — Financial Liabilities (3) Contingent payment arrangements $ 10.2 $ — $ — $ 10.2 Affiliate equity obligations 62.3 — — 62.3 Fair Value Measurements December 31, 2016 Level 1 Level 2 Level 3 Financial Assets Cash equivalents $ 64.1 $ 64.1 $ — $ — Investments in marketable securities (1) Trading securities 40.5 40.5 — — Available for sale securities 81.9 81.9 — — Other investments (2) 3.4 3.4 — — Foreign currency forward contracts (3) 0.6 — 0.6 — Financial Liabilities (3) Contingent payment arrangements $ 8.6 $ — $ — $ 8.6 Affiliate equity obligations 12.1 — — 12.1 Foreign currency forward contracts 0.5 — 0.5 — __________________________ (1) Principally investments in equity securities. (2) The Company adopted ASU 2015-07 and no longer includes $126.0 million and $ 144.1 million as of December 31, 2015 and 2016, respectively, of investments in certain entities for which fair value was measured using NAV as a practical expedient. (3) Amounts are presented within Other assets or Other liabilities. |
Schedule of Changes in Level 3 Financial Assets and Liabilities | The following table presents the changes in Level 3 liabilities: For the Years Ended December 31, 2015 2016 Contingent Payment Arrangements Affiliate Equity Obligations Contingent Payment Arrangements Affiliate Equity Obligations Balance, beginning of period $ 59.3 $ 21.5 $ 10.2 $ 62.3 Net (gains) losses (40.9 ) (1) (1.4 ) (1.6 ) (1) 3.1 Purchases and issuances 9.3 158.0 — 69.1 Settlements and reductions (17.5 ) (115.8 ) — (122.4 ) Balance, end of period $ 10.2 $ 62.3 $ 8.6 $ 12.1 Net change in unrealized (gains) losses relating to instruments still held at the reporting date $ (40.9 ) $ — $ (1.6 ) $ — __________________________ (1) Accretion and changes in the expected value of the Company’s contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements. |
Schedule of Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 financial liabilities: Quantitative Information about Level 3 Fair Value Measurements Valuation Techniques Unobservable Input Fair Value at Range at December 31, 2015 Fair Value at Range at December 31, 2016 Contingent payment arrangements Discounted cash flow Growth rates $ 10.2 3% - 8% $ 8.6 3% - 8% Discount rates 15% 14% - 15% Affiliate equity obligations Discounted cash flow Growth rates 62.3 1% - 9% 12.1 4% - 10% Discount rates 14% - 15% 15% - 16% |
Schedule of Investments | The following table summarizes the nature of these investments and any related liquidity restrictions or other factors that may impact the ultimate value realized: December 31, 2015 December 31, 2016 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 126.0 $ 76.8 $ 137.8 $ 92.2 Other funds (2) 72.3 — 36.8 — $ 198.3 $ 76.8 $ 174.6 $ 92.2 __________________________ (1) These funds primarily invest in a broad range of private equity funds, as well as make direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . The fair value of private equity funds is determined using NAV one quarter in arrears (adjusted for current period calls and distributions). (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, monthly or quarterly basis. |
Summary of Financial Liabilities not Carried at Fair Value | December 31, 2015 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 944.6 $ 966.3 $ 945.1 $ 936.0 Level 2 Convertible securities 305.2 483.6 307.5 466.9 Level 2 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation for Investments | The aggregate purchase price allocation for the 2015 investments was as follows: Total Consideration paid $ 76.1 Contingent payment obligations 9.3 Non-controlling interests 33.8 Enterprise value $ 119.2 Acquired client relationships $ 52.5 Tangible assets, net 2.4 Goodwill 64.3 $ 119.2 |
Schedule of Goodwill Allocation by Segment | The excess of the enterprise value over the separately identifiable net assets acquired was recorded as goodwill and the segment allocation was as follows: Total Institutional 14.4 % Mutual Fund — % High Net Worth 85.6 % |
Schedule of Unaudited Pro Forma Financial Results | Unaudited pro forma financial results are set forth below, assuming these investments occurred on January 1, 2014 and the Company’s structured partnership interests had been in effect for the entire period. For the Years Ended December 31, 2014 (Unaudited) 2015 (Unaudited) Revenue $ 2,538.2 $ 2,499.4 Net income (controlling interest) 436.3 511.4 Earnings per share (basic) $ 7.93 $ 9.41 Earnings per share (diluted) $ 7.74 $ 9.20 |
Goodwill and Acquired Client 44
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, net of the Company’s consolidated Affiliates: 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 Goodwill acquired 9.2 — 55.1 64.3 Foreign currency translation (27.0 ) (5.8 ) (15.9 ) (48.7 ) Balance, as of December 31, 2015 $ 1,141.3 $ 1,119.5 $ 407.6 $ 2,668.4 Goodwill acquired — — — — Foreign currency translation (5.1 ) (37.0 ) 1.8 (40.3 ) Balance, as of December 31, 2016 $ 1,136.2 $ 1,082.5 $ 409.4 $ 2,628.1 |
Schedule of Changes in, and 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 52.5 — 52.5 — 52.5 Intangible amortization and impairments — (115.4 ) (115.4 ) — (115.4 ) Foreign currency translation (5.8 ) — (5.8 ) (23.3 ) (29.1 ) Balance, as of December 31, 2015 $ 1,301.8 $ (680.4 ) $ 621.4 $ 1,065.0 $ 1,686.4 New Investments — — — — — Intangible amortization and impairments — (107.7 ) (107.7 ) (2.5 ) (110.2 ) Foreign currency translation (11.8 ) — (11.8 ) (67.0 ) (78.8 ) Balance, as of December 31, 2016 $ 1,290.0 $ (788.1 ) $ 501.9 $ 995.5 $ 1,497.4 |
Equity Method Investments in 45
Equity Method Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Changes in Equity Method Investments in Affiliates | The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2014 (1)(2) 2015 (1)(2) 2016 (2) Revenue $ 1,869.3 $ 2,217.1 $ 2,200.9 Net income 253.8 431.5 1,068.9 December 31, 2015 (3) 2016 Assets $ 30,663.4 $ 1,915.3 Liabilities and Non-controlling interest 29,434.7 862.4 __________________________ (1) Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. (2) Revenue and Net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. (3) Assets consist primarily of investment securities in consolidated investment partnerships, which are generally held by non-controlling interests. The following table presents the change in Equity method investments in Affiliates: Total Balance, December 31, 2014 $ 1,783.5 Equity method earnings 323.2 Equity method intangible amortization (34.3 ) Distributions from equity method investments (346.1 ) Consideration for new investments 223.4 Foreign currency translation (4.7 ) Other (1) (7.9 ) Balance, December 31, 2015 $ 1,937.1 Equity method earnings 388.0 Equity method intangible amortization (59.2 ) Distributions from equity method investments (346.4 ) Consideration for new investments 1,361.3 Foreign currency translation 8.0 Other (1) 79.5 Balance, December 31, 2016 $ 3,368.3 __________________________ (1) Includes incremental basis related to deferred income taxes of $4.3 million and $93.3 million in 2015 and 2016, respectively. |
Schedule of Financial Information for Affiliates Accounted for Under the Equity Method | The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2014 (1)(2) 2015 (1)(2) 2016 (2) Revenue $ 1,869.3 $ 2,217.1 $ 2,200.9 Net income 253.8 431.5 1,068.9 December 31, 2015 (3) 2016 Assets $ 30,663.4 $ 1,915.3 Liabilities and Non-controlling interest 29,434.7 862.4 __________________________ (1) Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. (2) Revenue and Net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. (3) Assets consist primarily of investment securities in consolidated investment partnerships, which are generally held by non-controlling interests. The following table presents the change in Equity method investments in Affiliates: Total Balance, December 31, 2014 $ 1,783.5 Equity method earnings 323.2 Equity method intangible amortization (34.3 ) Distributions from equity method investments (346.1 ) Consideration for new investments 223.4 Foreign currency translation (4.7 ) Other (1) (7.9 ) Balance, December 31, 2015 $ 1,937.1 Equity method earnings 388.0 Equity method intangible amortization (59.2 ) Distributions from equity method investments (346.4 ) Consideration for new investments 1,361.3 Foreign currency translation 8.0 Other (1) 79.5 Balance, December 31, 2016 $ 3,368.3 __________________________ (1) Includes incremental basis related to deferred income taxes of $4.3 million and $93.3 million in 2015 and 2016, respectively. |
Fixed Assets and Lease Commit46
Fixed Assets and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fixed Assets and Lease Commitments [Abstract] | |
Schedule of Fixed Assets | Fixed assets consisted of the following: December 31, 2015 2016 Building and leasehold improvements $ 104.7 $ 103.5 Software 45.4 52.5 Equipment 39.9 39.5 Furniture and fixtures 22.4 20.8 Land, improvements and other 18.6 17.9 Fixed assets, at cost 231.0 234.2 Accumulated depreciation and amortization (116.9 ) (124.1 ) Fixed assets, net $ 114.1 $ 110.1 |
Schedule of Aggregate Future Minimum Payments for Operating Leases | At December 31, 2016 , the Company’s aggregate future minimum payments for operating leases having initial or non-cancelable lease terms greater than one year were payable as follows: Required Minimum Payments (1) 2017 $ 37.7 2018 34.7 2019 31.7 2020 30.0 2021 27.4 Thereafter 57.4 __________________________ (1) The controlling interest portion is $11.5 million through 2017, $11.4 million in 2018, $10.8 million in 2019, $10.0 million in 2020, $9.3 million in 2021 and $29.3 million thereafter. |
Payables and Accrued Liabilit47
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Payables and accrued liabilities consisted of the following: December 31, 2015 2016 Accrued compensation $ 455.0 $ 418.5 Unsettled fund share payables 76.6 83.2 Accrued income taxes 67.9 87.7 Accrued professional fees 31.4 26.1 Other 98.5 113.8 Payables and accrued liabilities $ 729.4 $ 729.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Recent Share Repurchase Activity | The following is a summary of the Company’s recent share repurchase activity: Period Shares Repurchased Average Price 2014 1.2 $ 204.72 2015 1.7 209.39 2016 0.2 161.16 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Recent Share-Based Compensation Expense | The following is a summary of share-based compensation expense: Period Share-Based Compensation Expense Tax Benefit 2014 $ 29.3 $ 11.3 2015 34.2 13.2 2016 39.2 15.1 |
Schedule of Transactions of the Company's 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—January 1, 2016 1.4 $ 96.18 Options granted 0.4 122.82 Options exercised (0.4 ) 81.08 Options forfeited (0.0 ) 131.91 Unexercised options outstanding—December 31, 2016 1.4 108.53 2.8 Exercisable at December 31, 2016 0.9 101.38 1.3 |
Schedule of Assumptions Used to Determine Fair Value of Options Granted | The fair value of options granted was estimated using the Black-Scholes option pricing model. The weighted average fair value of options granted during the years ended December 31, 2014 , 2015 and 2016 was $60.20 , $54.92 , and $39.02 per option, respectively, based on the weighted-average grant date assumptions stated below. For the Years Ended December 31, 2014 2015 2016 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility (1) 29.7 % 26.7 % 30.7 % Risk-free interest rate (2) 1.8 % 1.5 % 1.6 % Expected life of options (in years) (3) 5.0 5.0 5.7 Forfeiture rate (3) 0.0 % 0.0 % 0.0 % __________________________ (1) Expected volatility is based on historical and implied volatility. (2) Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. (3) Expected life of options (in years) is based on the Company’s historical and expected exercise behavior. |
Summary of Transactions of the Company's Restricted Stock | The following table summarizes the transactions of the Company’s restricted stock: Restricted Stock Weighted Average Grant Date Value Unvested units—January 1, 2016 0.6 $ 192.04 Units granted 0.2 122.59 Units vested (0.2 ) 181.87 Units forfeited (0.0 ) 171.51 Unvested units—December 31, 2016 0.6 168.84 |
Redeemable Non-Controlling In50
Redeemable Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Noncontrolling Interest [Abstract] | |
Schedule of Changes in Redeemable Non-Controlling Interests | The following table presents the changes in Redeemable non-controlling interests: December 31, 2015 2016 Balance, as of January 1 $ 645.5 $ 612.5 Repurchases of redeemable Affiliate equity (161.3 ) (69.1 ) Transfers from Non-controlling interests 49.5 42.6 Changes in redemption value 81.6 71.4 Changes attributable to consolidated products (2.8 ) 16.1 Balance, as of December 31 $ 612.5 $ 673.5 |
Affiliate Equity (Tables)
Affiliate Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Affiliate Equity | |
Summary of Affiliate Equity Expense | The following is a summary of Affiliate equity expense: 2014 2015 2016 Controlling interest $ 47.4 $ 16.9 $ 10.0 Non-controlling interest 37.0 51.6 31.2 Total $ 84.4 $ 68.5 $ 41.2 |
Summary of Affiliate Equity Unrecognized Expense | The following is a summary of unrecognized Affiliate equity expense: Unrecognized Affiliate Equity Expense Period Controlling Interest Remaining Life Non-Controlling Interest Remaining Life 2014 $ 29.5 3 years $ 41.6 6 years 2015 22.4 3 years 51.9 5 years 2016 31.3 4 years 70.7 5 years |
Schedule of the Effect of Changes in the Company's Ownership Interest in its Affiliates on the Controlling Interest's Equity | For the Years Ended December 31, 2014 2015 2016 Net income (controlling interest) $ 433.9 $ 509.5 $ 472.8 Increase in controlling interest paid-in capital from purchases and sales of Affiliate equity issuances 4.1 0.9 1.6 Decrease in controlling interest paid-in capital related to Affiliate equity repurchases (33.2 ) (87.6 ) (38.0 ) Net income attributable to controlling interest and transfers (to) or from Non-controlling interests $ 404.8 $ 422.8 $ 436.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision Attributable to Controlling and Non-Controlling Interests | The consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests is as follows: For the Years Ended December 31, 2014 2015 2016 Controlling interests: Current tax $ 149.8 $ 152.4 $ 168.1 Intangible-related deferred taxes 47.8 77.7 84.3 Other deferred taxes 34.0 27.7 (23.2 ) Total controlling interests 231.6 257.8 229.2 Non-controlling interests: Current tax $ 15.3 $ 9.8 $ 8.2 Deferred taxes (0.8 ) (4.2 ) (1.8 ) Total non-controlling interests 14.5 5.6 6.4 Provision for income taxes $ 246.1 $ 263.4 $ 235.6 Income before income taxes (controlling interest) $ 665.5 $ 767.3 $ 702.0 Effective tax rate attributable to controlling interests (1) 34.8 % 33.6 % 32.6 % __________________________ (1) Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Schedule of Consolidated Provision for Income Taxes | The consolidated provision for income taxes consisted of the following: For the Years Ended December 31, 2014 2015 2016 Current: Federal $ 93.8 $ 106.3 $ 103.4 State 27.1 18.3 22.9 Foreign 44.2 37.6 50.0 Total current 165.1 162.2 176.3 Deferred: Federal 89.0 103.8 62.3 State 2.8 14.8 10.0 Foreign (10.8 ) (17.4 ) (13.0 ) Total deferred 81.0 101.2 59.3 Provision for income taxes $ 246.1 $ 263.4 $ 235.6 |
Schedule of Components of Income before Income Taxes | For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2014 2015 2016 Domestic $ 784.1 $ 827.6 $ 688.1 International 229.5 263.0 286.5 $ 1,013.6 $ 1,090.6 $ 974.6 |
Schedule of Effective Income Tax Rate Computed Using Income before Income Taxes and Applying U.S. Federal Income Tax Rate | The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2014 2015 2016 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.3 2.6 2.9 Effect of foreign operations (1) (5.3 ) (3.5 ) (4.6 ) Equity Compensation 2.5 0.8 (0.4 ) Effect of changes in tax law, rates (2) — (0.8 ) (0.3 ) Other 0.3 (0.5 ) — Effective tax rate (controlling interest) 34.8 % 33.6 % 32.6 % Effect of income from non-controlling interests (9.6 ) (9.2 ) (8.4 ) Effective tax rate 25.2 % 24.4 % 24.2 % __________________________ (1) Effect of foreign operations includes the effect of undistributed foreign earnings the Company deems indefinitely reinvested in foreign operations, and the effect of differences in the financial reporting basis over tax basis in the Company’s investments in foreign subsidiaries considered permanent in duration. |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred income taxes are as follows: December 31, 2015 2016 Deferred Tax Assets Deferred compensation $ 30.5 $ 34.1 State net operating loss carryforwards 17.1 17.4 Foreign loss carryforwards 12.3 14.6 Tax benefit of uncertain tax positions 14.6 12.1 Foreign tax credits — 10.0 Accrued expenses 4.4 3.9 Total deferred tax assets 78.9 92.1 Valuation allowance (20.5 ) (22.1 ) Deferred tax assets, net of valuation allowance $ 58.4 $ 70.0 Deferred Tax Liabilities Intangible asset amortization $ (320.2 ) $ (396.8 ) Non-deductible intangible amortization (109.8 ) (177.0 ) Convertible securities interest (99.8 ) (109.0 ) Deferred income (92.8 ) (47.2 ) Other (1.5 ) (0.8 ) Total deferred tax liabilities (624.1 ) (730.8 ) Net deferred tax liability $ (565.7 ) $ (660.8 ) |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2014 2015 2016 Balance, as of January 1 $ 20.4 $ 28.8 $ 26.9 Additions based on current year tax positions 2.6 2.2 3.8 Additions based on prior years’ tax positions 10.8 1.6 0.6 Reductions related to lapses of statutes of limitations (4.1 ) (4.3 ) (4.7 ) Additions (reductions) related to foreign exchange rates (0.9 ) (1.4 ) 0.2 Balance, as of December 31 $ 28.8 $ 26.9 $ 26.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerator and Denominator used in the Calculation of Basic and Diluted Earnings per Share | The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders: For the Years Ended December 31, 2014 2015 2016 Numerator Net income (controlling interest) $ 433.9 $ 509.5 $ 472.8 Interest expense on convertible securities, net of taxes 15.2 15.3 15.5 Net income (controlling interest), as adjusted $ 449.1 $ 524.8 $ 488.3 Denominator Average shares outstanding (basic) 55.0 54.3 54.2 Effect of dilutive instruments: Stock options and restricted stock 1.2 0.7 0.6 Forward sale agreement 0.0 — — Junior convertible securities 2.2 2.2 2.2 Average shares outstanding (diluted) 58.4 57.2 57.0 |
Diluted Earnings per Share Calculations Excluding the Anti-dilutive Effect of Shares | anti-dilutive effect of the following shares: For the Years Ended December 31, 2014 2015 2016 Stock options and restricted stock units 0.0 0.0 0.6 Junior convertible securities 0.4 — — |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Summary of the Tax Effects Allocated to each Component of Other Comprehensive Income | The following tables show the tax effects allocated to each component of Other comprehensive income: For the Year Ended December 31, 2014 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (62.0 ) $ — $ (62.0 ) Change in net realized and unrealized gain (loss) on derivative securities 0.6 (0.3 ) 0.3 Change in net unrealized gain (loss) on investment securities 5.6 (2.2 ) 3.4 Other comprehensive income (loss) $ (55.8 ) $ (2.5 ) $ (58.3 ) For the Year Ended December 31, 2015 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (93.2 ) $ — $ (93.2 ) Change in net realized and unrealized gain (loss) on derivative securities 2.3 (0.4 ) 1.9 Change in net unrealized gain (loss) on investment securities 34.8 (12.7 ) 22.1 Other comprehensive income (loss) $ (56.1 ) $ (13.1 ) $ (69.2 ) For the Year Ended December 31, 2016 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation gain (loss) $ (115.3 ) $ — $ (115.3 ) Change in net realized and unrealized gain (loss) on derivative securities 0.3 (0.2 ) 0.1 Change in net unrealized gain (loss) on investment securities (58.3 ) 23.1 (35.2 ) Other comprehensive income (loss) $ (173.3 ) $ 22.9 $ (150.4 ) |
Schedule of Components of Accumulated Other Comprehensive Income, Net of Taxes | The components of accumulated other comprehensive income (loss), net of taxes, were as follows: Foreign Currency Translation Adjustment Realized and Unrealized Losses on Derivative Securities Unrealized Gain (Loss) 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 (93.2 ) 0.8 13.5 (78.9 ) Amounts reclassified from other comprehensive income — 1.1 8.6 9.7 Net other comprehensive income (loss) (93.2 ) 1.9 22.1 (69.2 ) Balance, as of December 31, 2015 $ (98.6 ) $ 0.3 $ 45.0 $ (53.3 ) Other comprehensive income (loss) before reclassifications (115.3 ) (1.0 ) (22.5 ) (138.8 ) Amounts reclassified from other comprehensive income — 1.1 (12.7 ) (11.6 ) Net other comprehensive income (loss) (115.3 ) 0.1 (35.2 ) (150.4 ) Balance, as of December 31, 2016 $ (213.9 ) $ 0.4 $ 9.8 $ (203.7 ) __________________________ (1) See Note 2 for amounts reclassified from Other comprehensive income. |
Selected Quarterly Financial 55
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2015 and 2016 . 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 635.0 $ 646.6 $ 613.1 $ 589.8 Operating income 231.4 195.2 215.2 193.2 Income before income taxes 290.3 262.0 249.1 289.2 Net income (controlling interest) 126.7 127.6 107.7 147.5 Earnings per share (diluted) $ 2.26 $ 2.29 $ 1.96 $ 2.67 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 545.4 $ 554.1 $ 544.7 $ 550.3 Operating income 178.8 181.8 171.0 173.8 Income before income taxes 230.5 235.9 226.2 281.9 Net income (controlling interest) 104.0 108.3 110.2 150.2 Earnings per share (diluted) $ 1.90 $ 1.98 $ 2.02 $ 2.67 |
Segment and Geographic Inform56
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table summarizes the Company’s financial results for each of the distribution channels: As of and for the Year Ended December 31, 2014 Institutional Mutual Fund High Net Worth Total Revenue $ 1,022.8 $ 1,242.6 $ 245.5 $ 2,510.9 Net income (controlling interest) 217.9 172.9 43.1 433.9 Total assets 3,731.4 3,077.5 874.6 7,683.5 Goodwill 1,159.1 1,125.3 368.4 2,652.8 Equity method investments in Affiliates 1,533.8 150.3 99.4 1,783.5 As of and for the Year Ended December 31, 2015 Institutional Mutual Fund High Net Worth Total Revenue $ 979.4 $ 1,238.2 $ 266.9 $ 2,484.5 Net income (controlling interest) 226.4 226.8 56.3 509.5 Total assets 3,717.1 3,070.5 981.8 7,769.4 Goodwill 1,141.3 1,119.5 407.6 2,668.4 Equity method investments in Affiliates 1,609.3 185.7 142.1 1,937.1 As of and for the Year Ended December 31, 2016 Institutional Mutual Fund High Net Worth Total Revenue $ 878.5 $ 1,036.0 $ 280.1 $ 2,194.6 Net income (controlling interest) 246.7 177.8 48.3 472.8 Total assets 4,386.4 3,360.4 1,002.3 8,749.1 Goodwill 1,136.2 1,082.5 409.4 2,628.1 Equity method investments in Affiliates 2,796.9 412.2 159.2 3,368.3 |
Schedule of Revenue and Fixed Assets, net of the Company by Geographic Location | The following table presents Revenue and Fixed Assets, net of the Company by geographic location. Revenue by geographic location is primarily based on the location of an Affiliate. For the Years Ended December 31, 2014 2015 2016 Revenue United States $ 1,731.5 $ 1,657.2 $ 1,477.5 United Kingdom 567.1 645.3 566.4 Other 212.3 182.0 150.7 Total $ 2,510.9 $ 2,484.5 $ 2,194.6 December 31, 2014 2015 2016 Fixed Assets, net United States $ 80.2 $ 98.6 $ 97.3 United Kingdom 11.9 12.3 9.9 Other 3.3 3.2 2.9 Total $ 95.4 $ 114.1 $ 110.1 |
Business and Summary of Signi57
Business and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016segmentchannel | |
Segment Information [Abstract] | |
Number of operating segments | segment | 3 |
Number of principal distribution channels | channel | 3 |
Office Equipment and Furniture and Fixtures | Minimum | |
Fixed Assets | |
Estimated useful life | 3 years |
Office Equipment and Furniture and Fixtures | Maximum | |
Fixed Assets | |
Estimated useful life | 10 years |
Computer software | Minimum | |
Fixed Assets | |
Estimated useful life | 3 years |
Computer software | Maximum | |
Fixed Assets | |
Estimated useful life | 7 years |
Business and Summary of Signi58
Business and Summary of Significant Accounting Policies - Revision of Prior Periods (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Income | |||||||||||
Income taxes | $ 235.6 | $ 263.4 | $ 246.1 | ||||||||
Net income | 739 | 827.2 | 767.4 | ||||||||
Net income (controlling interest) | $ 150.2 | $ 110.2 | $ 108.3 | $ 104 | $ 147.5 | $ 107.7 | $ 127.6 | $ 126.7 | $ 472.8 | $ 509.5 | $ 433.9 |
Earnings per share - basic (in dollars per share) | $ 8.73 | $ 9.37 | $ 7.89 | ||||||||
Earnings per share - diluted (in dollars per share) | $ 2.67 | $ 2.02 | $ 1.98 | $ 1.90 | $ 2.67 | $ 1.96 | $ 2.29 | $ 2.26 | $ 8.57 | $ 9.17 | $ 7.70 |
Consolidated Balance Sheet | |||||||||||
Additional paid-in capital | $ 1,073.5 | $ 694.9 | $ 1,073.5 | $ 694.9 | |||||||
Retained earnings | $ 3,054.4 | 2,581.6 | 3,054.4 | 2,581.6 | |||||||
Consolidated Statements of Cash Flows | |||||||||||
Net income | 739 | 827.2 | $ 767.4 | ||||||||
Deferred income tax provision | $ 59.3 | 101.2 | 81 | ||||||||
Adjustment for Deferred Tax Benefit | Scenario, Previously Reported | |||||||||||
Consolidated Statements of Income | |||||||||||
Income taxes | 256.9 | 227.9 | |||||||||
Net income | 833.7 | 785.6 | |||||||||
Net income (controlling interest) | $ 516 | $ 452.1 | |||||||||
Earnings per share - basic (in dollars per share) | $ 9.49 | $ 8.22 | |||||||||
Earnings per share - diluted (in dollars per share) | $ 9.28 | $ 8.01 | |||||||||
Consolidated Balance Sheet | |||||||||||
Additional paid-in capital | 597.2 | $ 597.2 | |||||||||
Retained earnings | 2,679.3 | 2,679.3 | |||||||||
Consolidated Statements of Cash Flows | |||||||||||
Net income | 833.7 | $ 785.6 | |||||||||
Deferred income tax provision | 94.7 | 62.8 | |||||||||
Adjustment for Deferred Tax Benefit | Restatement Adjustment | |||||||||||
Consolidated Statements of Income | |||||||||||
Income taxes | 6.5 | 18.2 | |||||||||
Net income | (6.5) | (18.2) | |||||||||
Net income (controlling interest) | $ (6.5) | $ (18.2) | |||||||||
Earnings per share - basic (in dollars per share) | $ (0.12) | $ (0.33) | |||||||||
Earnings per share - diluted (in dollars per share) | $ (0.11) | $ (0.31) | |||||||||
Consolidated Balance Sheet | |||||||||||
Additional paid-in capital | 97.7 | $ 97.7 | |||||||||
Retained earnings | $ (97.7) | (97.7) | |||||||||
Consolidated Statements of Cash Flows | |||||||||||
Net income | (6.5) | $ (18.2) | |||||||||
Deferred income tax provision | $ 6.5 | $ 18.2 |
Investments in Marketable Sec59
Investments in Marketable Securities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cost of investments in marketable securities, gross unrealized gains and losses | ||
Investments in marketable securities | $ 122.4 | $ 199.9 |
Proceeds from sale of investment classified as available-for-sale | 61.1 | 18.1 |
Realized gains (losses) on available-for-sale securities | 19.9 | 8.8 |
Realized gains on trading securities | 4.4 | 0.8 |
Realized losses on trading securities | $ 3.4 | $ 0.1 |
Investments in Marketable Sec60
Investments in Marketable Securities - Summary of the Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) - Equity Securities - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-Sale | ||
Cost | $ 66.1 | $ 104.7 |
Unrealized Gains | 17.6 | 77.6 |
Unrealized Losses | (1.8) | (1.8) |
Fair Value | 81.9 | 180.5 |
Trading | ||
Cost | 34.4 | 19.8 |
Unrealized Gains | 6.6 | 1.9 |
Unrealized Losses | (0.5) | (2.3) |
Fair Value | $ 40.5 | $ 19.4 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entities | |||
Equity method investments in Affiliates | $ 3,368.3 | $ 1,937.1 | $ 1,783.5 |
Sponsored Investment Funds | |||
Variable Interest Entities | |||
Unconsolidated VIE net assets | 1,756.6 | 6,688.9 | |
Carrying value and maximum exposure to loss | 9.4 | 1.4 | |
Variable Interest Entities Previously Accounted for Under the Equity Method | |||
Variable Interest Entities | |||
Unconsolidated VIE net assets | 1,000 | 1,200 | |
Equity method investments in Affiliates | $ 2,800 | $ 1,900 |
Senior Bank Debt (Details)
Senior Bank Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2016 | |
Debt Instrument | |||
Term loan outstanding | $ 868.6 | $ 643.3 | |
Senior Unsecured Multicurrency Revolving Credit Facility | |||
Debt Instrument | |||
Maximum borrowing capacity | 1,450 | $ 1,300 | |
Maximum borrowing capacity, additional amount | 350 | ||
Line of credit facility amount outstanding | $ 485 | $ 295 | |
Weighted average interest rate | 1.88% | 2.52% | |
Commitment fee amount | $ 1 | $ 1.9 | |
Senior Unsecured Term Loan | |||
Debt Instrument | |||
Principal Amount at Maturity | 385 | $ 350 | |
Maximum borrowing capacity, additional amount | 65 | ||
Term loan outstanding | $ 385 | $ 350 | |
Weighted average interest rate on amount outstanding | 1.87% | 1.45% |
Senior Notes - Additional Infor
Senior Notes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)senior_note | |
Debt Instrument | |
Number of senior notes outstanding | senior_note | 3 |
2022 Senior Notes | |
Debt Instrument | |
Notes redeemed, canceled and retired | $ | $ 140,000,000 |
Stated interest rate | 5.25% |
Redemption price (as percentage) | 100.00% |
Senior Notes - Summary of Princ
Senior Notes - Summary of Principle Terms of Senior Notes (Details) - Senior Notes $ in Millions | Dec. 31, 2016USD ($) | |
2024 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $ 400 | [1] |
Stated coupon | 4.25% | [1] |
2025 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $ 350 | [1] |
Stated coupon | 3.50% | [1] |
2042 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $ 200 | |
Stated coupon | 6.375% | |
[1] | The 2024 and 2025 senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. |
Convertible Securities - Schedu
Convertible Securities - Schedule of Carrying Value of Convertible Securities (Details) - Junior Convertible Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument | |||
Carrying value | [1] | $ 307.5 | $ 305.2 |
Principal Amount at Maturity | [1] | $ 430.8 | $ 430.8 |
Debt instrument term | 21 years | ||
[1] | The carrying value is accreted to the principal amount at maturity over a remaining life of 21 years |
Convertible Securities - Additi
Convertible Securities - Additional Information (Details) - Junior Convertible Securities | 12 Months Ended |
Dec. 31, 2016USD ($)trading_day$ / shares | |
Debt Instrument | |
Stated interest rate | 5.15% |
Principal amount at maturity | $ | $ 50 |
Conversion ratio (in shares) | 0.25 |
Conversion price (in usd per share) | $ / shares | $ 200 |
Redemption closing price trigger | $ / shares | $ 260 |
Number of trading days closing price has exceeded threshold | trading_day | 20 |
Consecutive trading days | 30 days |
Deferred tax liability | $ | $ 10,200,000 |
Forward Equity and Equity Dis67
Forward Equity and Equity Distribution Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock | |||||
Proceeds from issuance of common stock | $ 465.8 | $ 57.8 | $ 41.4 | ||
Common stock, shares outstanding (in shares) | 58,500,000 | 55,800,000 | 55,800,000 | 53,900,000 | |
Equity Distribution Program | |||||
Class of Stock | |||||
Maximum number of shares available for sale under agreement (in shares) | 2,900,000 | ||||
Common stock price (in dollars per share) | $ 167.25 | ||||
Number of common shares issued (in shares) | 2,700,000 | ||||
Proceeds from issuance of common stock | $ 440.3 | ||||
Number of shares net settled for cash (in shares) | 200,000 | ||||
Average share price of shares net settled for cash (in dollars per share) | $ 144.59 | ||||
Common stock, shares outstanding (in shares) | 0 | ||||
Stock repurchase program, maximum amount authorized | $ 500 |
Derivative Financial Instrume68
Derivative Financial Instruments (Details) - Foreign Currency Forward Contract $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)instrument | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of contracts outstanding | instrument | 0 | |
Affiliate Partners | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains realized upon settlement of foreign currency forward contracts | $ 0.2 | $ 3.2 |
Losses realized upon settlement of foreign currency forward contract on Derivative | 1.2 | $ 1.7 |
Unrealized gains related to outstanding foreign currency contracts | 0.6 | |
Unrealized losses related to outstanding foreign currency contracts | $ 0.5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)claim | |
Commitments and Contingencies | ||
Co-investment commitments in partnership | $ 92,200,000 | |
Prior Owner | ||
Commitments and Contingencies | ||
Reimbursable amount of investment commitments | 11,800,000 | |
Affiliate Partners | ||
Commitments and Contingencies | ||
Acquisition agreements contingency liability | 84,900,000 | |
Contingent payment obligations | 10,300,000 | |
Affiliate Partners | Scenario, Forecast | ||
Commitments and Contingencies | ||
Contingent payment obligations | $ 3,000,000 | |
Equity Method Investee | ||
Commitments and Contingencies | ||
Acquisition agreements contingency liability | 312,000,000 | |
Contingent payment obligations | $ 0 | |
Third Avenue Focused Credit Fund | Affiliate Partners | ||
Commitments and Contingencies | ||
Number of actions pending | claim | 1 | |
Loss contingency reserve | $ 15,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in marketable securities | |||
Other investments | $ 174.6 | $ 198.3 | |
Fair Value Measured on a Recurring Basis | ASU 2015-07 | |||
Investments in marketable securities | |||
Other investments | 144.1 | 126 | |
Fair Value Measured on a Recurring Basis | Level 1 | |||
Financial Assets | |||
Cash equivalents | 64.1 | 65.9 | |
Investments in marketable securities | |||
Trading | [1] | 40.5 | 19.4 |
Available-for-Sale | [1] | 81.9 | 180.5 |
Other investments | [2] | 3.4 | 20.7 |
Foreign currency forward contracts | [3] | 0 | |
Financial Liabilities | |||
Contingent payment arrangements | [3] | 0 | 0 |
Obligations to related parties | [3] | 0 | 0 |
Forward currency forward contracts | [3] | 0 | |
Fair Value Measured on a Recurring Basis | Level 2 | |||
Financial Assets | |||
Cash equivalents | 0 | 0 | |
Investments in marketable securities | |||
Trading | [1] | 0 | 0 |
Available-for-Sale | [1] | 0 | 0 |
Other investments | [2] | 0 | 2.6 |
Foreign currency forward contracts | [3] | 0.6 | |
Financial Liabilities | |||
Contingent payment arrangements | [3] | 0 | 0 |
Obligations to related parties | [3] | 0 | 0 |
Forward currency forward contracts | [3] | 0.5 | |
Fair Value Measured on a Recurring Basis | Level 3 | |||
Financial Assets | |||
Cash equivalents | 0 | 0 | |
Investments in marketable securities | |||
Trading | [1] | 0 | 0 |
Available-for-Sale | [1] | 0 | 0 |
Other investments | [2] | 0 | 0 |
Foreign currency forward contracts | [3] | 0 | |
Financial Liabilities | |||
Contingent payment arrangements | [3] | 8.6 | 10.2 |
Obligations to related parties | [3] | 12.1 | 62.3 |
Forward currency forward contracts | [3] | 0 | |
Fair Value Measured on a Recurring Basis | Fair Value | |||
Financial Assets | |||
Cash equivalents | 64.1 | 65.9 | |
Investments in marketable securities | |||
Trading | [1] | 40.5 | 19.4 |
Available-for-Sale | [1] | 81.9 | 180.5 |
Other investments | [2] | 3.4 | 23.3 |
Foreign currency forward contracts | [3] | 0.6 | |
Financial Liabilities | |||
Contingent payment arrangements | [3] | 8.6 | 10.2 |
Obligations to related parties | [3] | 12.1 | $ 62.3 |
Forward currency forward contracts | [3] | $ 0.5 | |
[1] | Principally investments in equity securities. | ||
[2] | Amounts are presented within Other assets or Other liabilities. | ||
[3] | Amounts are presented within Other assets or Other liabilities. |
Fair Value Measurements - Sch71
Fair Value Measurements - Schedule of Changes in Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Contingent Payment Arrangements | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | $ 10.2 | $ 59.3 | |
Net (gains) losses | [1] | (1.6) | (40.9) |
Purchases and issuances | 0 | 9.3 | |
Settlements and reductions | 0 | (17.5) | |
Balance, end of period | 8.6 | 10.2 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | (1.6) | (40.9) | |
Obligations to Related Parties | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | 62.3 | 21.5 | |
Net (gains) losses | 3.1 | (1.4) | |
Purchases and issuances | 69.1 | 158 | |
Settlements and reductions | (122.4) | (115.8) | |
Balance, end of period | 12.1 | 62.3 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ 0 | $ 0 | |
[1] | Accretion and changes in the expected value of the Company’s contingent payment arrangements are recorded in Imputed interest expense and contingent payment arrangements. |
Fair Value Measurements - Sch72
Fair Value Measurements - Schedule of Quantitative Information (Details) - Discounted Cash Flow - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Contingent Payment Arrangements | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | $ 8.6 | $ 10.2 |
Growth rate (as a percent) | 3.00% | |
Discount rate (as a percent) | 15.00% | |
Contingent Payment Arrangements | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 3.00% | |
Discount rate (as a percent) | 14.00% | |
Contingent Payment Arrangements | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 8.00% | 8.00% |
Discount rate (as a percent) | 15.00% | |
Affiliate Equity Repurchase Obligations | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value Liabilities | $ 12.1 | $ 62.3 |
Affiliate Equity Repurchase Obligations | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 4.00% | 1.00% |
Discount rate (as a percent) | 15.00% | 14.00% |
Affiliate Equity Repurchase Obligations | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Growth rate (as a percent) | 9.00% | 9.00% |
Discount rate (as a percent) | 16.00% | 15.00% |
Fair Value Measurements - Sch73
Fair Value Measurements - Schedule of Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
NAV of investments at fair value | |||
Fair value | $ 174.6 | $ 198.3 | |
Unfunded commitments | $ 92.2 | 76.8 | |
Life of funds (in years) | 15 years | ||
Private Equity Fund-of-Funds | |||
NAV of investments at fair value | |||
Fair value | [1] | $ 137.8 | 126 |
Unfunded commitments | [1] | 92.2 | 76.8 |
Other Funds | |||
NAV of investments at fair value | |||
Fair value | [2] | 36.8 | 72.3 |
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. The fair value of private equity funds is determined using NAV one quarter in arrears (adjusted for current period calls and distributions). | ||
[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, monthly or quarterly basis. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Liabilities not Carried at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 945.1 | $ 944.6 |
Convertible securities | 307.5 | 305.2 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 936 | 966.3 |
Convertible securities | $ 466.9 | $ 483.6 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition | ||
Amortization period for tax deductible goodwill | 15 years | |
Payments to related party for contingent payment arrangements | $ 0 | $ 17,500,000 |
Gain or loss recognized in changes of related party contingent liability | 2,800,000 | 44,700,000 |
New Affiliates | ||
Business Acquisition | ||
New affiliate investments contributed revenue | 15,300,000 | |
New affiliate investments contributed earnings | 1,300,000 | |
Other Liabilities | Affiliated Entity | ||
Business Acquisition | ||
Contingent payment obligations | $ 8,600,000 | $ 10,200,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Purchase Price Allocation for Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | |
Business Acquisition | |||
Goodwill | $ 2,668.4 | $ 2,628.1 | $ 2,652.8 |
Baker Street Advisors, LLC and myCIO Wealth Partners, L.P. | |||
Business Acquisition | |||
Consideration paid | 76.1 | ||
Contingent payment obligations | 9.3 | ||
Non-controlling interests | 33.8 | ||
Enterprise value | 119.2 | ||
Acquired client relationships | 52.5 | ||
Tangible assets, net | 2.4 | ||
Goodwill | 64.3 | ||
Total | $ 119.2 |
Business Combinations - Sched77
Business Combinations - Schedule of Goodwill Allocation by Segment (Details) - Baker Street Advisors, LLC and myCIO Wealth Partners, L.P. | Dec. 31, 2016 |
Institutional | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 14.40% |
Mutual Fund | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 0.00% |
High Net Worth | |
Business Acquisition | |
Goodwill allocation to business segments (percent) | 85.60% |
Business Combinations - Sched78
Business Combinations - Schedule of Unaudited Pro Forma Financial Results (Details) - Baker Street Advisors, LLC and myCIO Wealth Partners, L.P. - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition | ||
Revenue | $ 2,499.4 | $ 2,538.2 |
Net income (controlling interest) | $ 511.4 | $ 436.3 |
Earnings per share—basic (in dollars per share) | $ 9.41 | $ 7.93 |
Earnings per share—diluted (in dollars per share) | $ 9.20 | $ 7.74 |
Goodwill and Acquired Client 79
Goodwill and Acquired Client Relationships - Schedule of Changes in Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | ||
Goodwill impairment | $ 0 | $ 0 |
Changes in goodwill | ||
Balance at the beginning of the period | 2,668,400,000 | 2,652,800,000 |
Goodwill acquired | 0 | 64,300,000 |
Foreign currency translation | (40,300,000) | (48,700,000) |
Balance at the end of the period | 2,628,100,000 | 2,668,400,000 |
Institutional | ||
Changes in goodwill | ||
Balance at the beginning of the period | 1,141,300,000 | 1,159,100,000 |
Goodwill acquired | 0 | 9,200,000 |
Foreign currency translation | (5,100,000) | (27,000,000) |
Balance at the end of the period | 1,136,200,000 | 1,141,300,000 |
Mutual Fund | ||
Changes in goodwill | ||
Balance at the beginning of the period | 1,119,500,000 | 1,125,300,000 |
Goodwill acquired | 0 | 0 |
Foreign currency translation | (37,000,000) | (5,800,000) |
Balance at the end of the period | 1,082,500,000 | 1,119,500,000 |
High Net Worth | ||
Changes in goodwill | ||
Balance at the beginning of the period | 407,600,000 | 368,400,000 |
Goodwill acquired | 0 | 55,100,000 |
Foreign currency translation | 1,800,000 | (15,900,000) |
Balance at the end of the period | $ 409,400,000 | $ 407,600,000 |
Goodwill and Acquired Client 80
Goodwill and Acquired Client Relationships - Schedule of Changes in, and the Components of, Acquired Client Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Book Value | |||
Net book value balance at the beginning of the period | $ 1,686.4 | ||
Intangible amortization and impairments | (110.2) | $ (115.4) | $ (122.2) |
Net book value balance at the end of the period | 1,497.4 | 1,686.4 | |
Customer Relationships | |||
Definite-lived | |||
Gross book value, balance at the beginning of the period | 1,301.8 | 1,255.1 | |
Accumulated amortization, balance at the beginning of the period | (680.4) | (565) | |
Net book value, balance at the beginning of the period | 621.4 | 690.1 | |
New Investments | 0 | 52.5 | |
Intangible amortization and impairments | (107.7) | (115.4) | |
Foreign currency translation | (11.8) | (5.8) | |
Gross book value, balance at the end of the period | 1,290 | 1,301.8 | 1,255.1 |
Accumulated amortization, balance at the end of the period | (788.1) | (680.4) | (565) |
Net book value, balance at the end of the period | 501.9 | 621.4 | 690.1 |
Indefinite-lived | |||
Net book value, balance at the beginning of the period | 1,065 | 1,088.3 | |
New investments | 0 | 0 | |
Impairment | (2.5) | 0 | |
Foreign currency translation | (67) | (23.3) | |
Net book value, balance at the end of the period | 995.5 | 1,065 | 1,088.3 |
Net Book Value | |||
Net book value balance at the beginning of the period | 1,686.4 | 1,778.4 | |
New investments | 0 | 52.5 | |
Intangible amortization and impairments | (110.2) | (115.4) | |
Foreign currency translation | (78.8) | (29.1) | |
Net book value balance at the end of the period | $ 1,497.4 | $ 1,686.4 | $ 1,778.4 |
Goodwill and Acquired Client 81
Goodwill and Acquired Client Relationships - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | |||
Intangible amortization and impairments | $ 110,200,000 | $ 115,400,000 | $ 122,200,000 |
Definite-lived and indefinite-lived intangibles impairments | $ 0 | 0 | |
Customer Relationships | |||
Goodwill | |||
Weighted average life | 10 years | ||
Intangible amortization and impairments | $ 107,700,000 | $ 115,400,000 | |
Intangible Future Annual Amortization Expense, Year 1 | 100,000,000 | ||
Intangible Future Annual Amortization Expense, Year 2 | 100,000,000 | ||
Intangible Future Annual Amortization Expense, Year 3 | 100,000,000 | ||
Intangible Future Annual Amortization Expense, Year 4 | 100,000,000 | ||
Intangible Future Annual Amortization Expense, Year 5 | $ 100,000,000 |
Equity Method Investments in 82
Equity Method Investments in Affiliates - Change in Equity Method Investments in Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Change in Equity Method Investments in Affiliates [Roll Forward] | ||||
Balance at the beginning of the year | $ 1,937.1 | $ 1,783.5 | ||
Equity method earnings | 388 | 323.2 | ||
Equity method intangible amortization | (59.2) | (34.3) | ||
Distributions from equity method investments | (346.4) | (346.1) | $ (366.9) | |
Consideration for new investments | 1,361.3 | 223.4 | ||
Foreign currency translation | 8 | (4.7) | ||
Other | [1] | 79.5 | (7.9) | |
Balance at the end of the year | 3,368.3 | 1,937.1 | $ 1,783.5 | |
Incremental basis related to income taxes | $ 93.3 | $ 4.3 | ||
[1] | Includes incremental basis related to deferred income taxes of $4.3 million and $93.3 million in 2015 and 2016, respectively. |
Equity Method Investments in 83
Equity Method Investments in Affiliates - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments | |||
Amortization period for tax deductible goodwill | 15 years | ||
Amortization expense during the period | $ 110.2 | $ 115.4 | $ 122.2 |
Undistributed earnings from equity method affiliates | $ 134.3 | ||
Acquired Client Relationships Under Equity Method Investments | |||
Schedule of Equity Method Investments | |||
Amortization period for tax deductible goodwill | 15 years | ||
Payment of contingent payment liability | $ 23.3 | ||
Weighted average life | 14 years | ||
Amortization expense during the period | $ 59.2 | $ 34.3 | |
Annual amortization expense Year 1 | 80 | ||
Annual amortization expense Year 2 | 80 | ||
Annual amortization expense Year 3 | 80 | ||
Annual amortization expense Year 4 | 80 | ||
Annual amortization expense Year 5 | $ 80 |
Equity Method Investments in 84
Equity Method Investments in Affiliates - Schedule of Financial Information for Affiliates Accounted for Under the Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [2] | |||
Equity Method Investments and Joint Ventures [Abstract] | ||||||
Revenue | [1] | $ 2,200.9 | $ 2,217.1 | [2] | $ 1,869.3 | |
Net income | 1,068.9 | 431.5 | [1],[2] | $ 253.8 | [1] | |
Assets | 1,915.3 | 30,663.4 | ||||
Liabilities and Non-controlling interest | $ 862.4 | $ 29,434.7 | ||||
[1] | Revenue and Net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. | |||||
[2] | Revenue includes advisory fees for asset management services and net investment income from consolidated investment partnerships. |
Fixed Assets and Lease Commit85
Fixed Assets and Lease Commitments - Schedule of Fixed Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed assets | |||
Fixed assets, at cost | $ 234.2 | $ 231 | |
Accumulated depreciation and amortization | (124.1) | (116.9) | |
Fixed assets, net | 110.1 | 114.1 | $ 95.4 |
Building and Leasehold Improvements | |||
Fixed assets | |||
Fixed assets, at cost | 103.5 | 104.7 | |
Software | |||
Fixed assets | |||
Fixed assets, at cost | 52.5 | 45.4 | |
Equipment | |||
Fixed assets | |||
Fixed assets, at cost | 39.5 | 39.9 | |
Furniture and Fixtures | |||
Fixed assets | |||
Fixed assets, at cost | 20.8 | 22.4 | |
Land and Improvements | |||
Fixed assets | |||
Fixed assets, at cost | $ 17.9 | $ 18.6 |
Fixed Assets and Lease Commit86
Fixed Assets and Lease Commitments - Schedule of Aggregate Future Minimum Payments for Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating Leased Assets [Line Items] | ||||
2,017 | [1] | $ 37.7 | ||
2,018 | [1] | 34.7 | ||
2,019 | [1] | 31.7 | ||
2,020 | [1] | 30 | ||
2,021 | [1] | 27.4 | ||
Thereafter | [1] | 57.4 | ||
Consolidated rent expense | 35.5 | $ 36.3 | $ 30.5 | |
Majority Shareholder | ||||
Operating Leased Assets [Line Items] | ||||
2,017 | 11.5 | |||
2,018 | 11.4 | |||
2,019 | 10.8 | |||
2,020 | 10 | |||
2,021 | 9.3 | |||
Thereafter | $ 29.3 | |||
[1] | The controlling interest portion is $11.5 million through 2017, $11.4 million in 2018, $10.8 million in 2019, $10.0 million in 2020, $9.3 million in 2021 and $29.3 million thereafter. |
Payables and Accrued Liabilit87
Payables and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 418.5 | $ 455 |
Unsettled fund share payables | 83.2 | 76.6 |
Accrued income taxes | 87.7 | 67.9 |
Accrued professional fees | 26.1 | 31.4 |
Other | 113.8 | 98.5 |
Accounts payable and accrued liabilities | $ 729.3 | $ 729.4 |
Related Party Transactions (Det
Related Party Transactions (Details) - Prior Owner - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities | ||
Related Party Transactions | ||
Investment partnerships with prior owners | $ 67.8 | $ 75 |
Non-Controlling Interests | ||
Related Party Transactions | ||
Investment partnerships with prior owners | $ 2.5 | $ 5.1 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - $ / shares | 2 Months Ended | 12 Months Ended | ||||
Feb. 21, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2017 | May 31, 2015 | |
Stockholders' equity | ||||||
Common stock, shares authorized (in shares) | 153,000,000 | 153,000,000 | ||||
Subsequent Event | ||||||
Share repurchase activity | ||||||
Shares repurchased (in shares) | 400,000 | |||||
Average price (in usd per share) | $ 159.91 | |||||
Preferred Stock | ||||||
Stockholders' equity | ||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | |||||
Common Stock | ||||||
Share repurchase activity | ||||||
Shares repurchased (in shares) | 200,000 | 1,700,000 | 1,200,000 | |||
Average price (in usd per share) | $ 161.16 | $ 209.39 | $ 204.72 | |||
Common Stock | 2017 Authorization | ||||||
Stockholders' equity | ||||||
Stock repurchase program, authorized amount (in shares) | 200,000 | |||||
Share repurchase activity | ||||||
Average price (in usd per share) | $ 161.16 | |||||
Common Stock | 2017 Authorization | Subsequent Event | ||||||
Stockholders' equity | ||||||
Stock repurchase program, authorized amount (in shares) | 1,900,000 | |||||
Common Stock | 2015 Authorization | ||||||
Stockholders' equity | ||||||
Stock repurchase program, authorized amount (in shares) | 3,000,000 | |||||
Voting Common Stock | ||||||
Stockholders' equity | ||||||
Common stock, shares authorized (in shares) | 150,000,000 | |||||
Class B Non-Voting Common Stock | ||||||
Stockholders' equity | ||||||
Common stock, shares authorized (in shares) | 3,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Recent Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense | $ 39.2 | $ 34.2 | $ 29.3 |
Tax benefit | 15.1 | 13.2 | $ 11.3 |
Cash received from stock options exercised | 25.6 | 57.8 | |
Tax benefit realized from exercise of stock options | 5.1 | 44.5 | |
Total compensation cost not yet recognized | $ 66.4 | $ 70.6 | |
Weighted average period for recognition (in years) | 3 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Transactions of the Company's Stock Options (Details) - Stock Options and Other Awards shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock Options | |
Stock options outstanding at the beginning of the period (in shares) | shares | 1.4 |
Options granted (in shares) | shares | 0.4 |
Options exercised (in shares) | shares | (0.4) |
Options forfeited (in shares) | shares | 0 |
Stock options outstanding at the end of the period (in shares) | shares | 1.4 |
Exercisable stock options, at the end of the period (in shares) | shares | 0.9 |
Weighted Average Exercise Price | |
Stock options outstanding, at the beginning of the period (in usd per share) | $ / shares | $ 96.18 |
Options granted (in usd per share) | $ / shares | 122.82 |
Options exercised (in usd per share) | $ / shares | 81.08 |
Options forfeited (in usd per share) | $ / shares | 131.91 |
Stock options outstanding, at the end of the period (in usd per share) | $ / shares | 108.53 |
Exercisable stock options, at the end of the period (in usd per share) | $ / shares | $ 101.38 |
Weighted Average Remaining Contractual Life (years) | |
Stock options outstanding, at the end of the period (in years) | 2 years 9 months |
Exercisable stock options, at the end of the period (in years) | 1 year 3 months |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) - Stock Options and Other Awards - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of stock options granted | $ 16.4 | $ 1 | $ 0.6 |
Intrinsic value of stock options exercised | 27.7 | $ 130.2 | $ 92.6 |
Intrinsic value of exercisable options outstanding | $ 43.1 | ||
Options available for future grant under the Company's option plans (in shares) | 3.1 | ||
Weighted average fair value of options granted (in usd per share) | $ 39.02 | $ 54.92 | $ 60.20 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting Period | 3 years | ||
Expiration Period | 7 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting Period | 5 years | ||
Expiration Period | 10 years |
Share-Based Compensation - Sc93
Share-Based Compensation - Schedule of Assumptions Used to Determine Fair Value of Options Granted (Details) - Stock Options and Other Awards | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Assumptions used to determine fair value of options granted | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | |
Expected volatility | [1] | 30.70% | 26.70% | 29.70% |
Risk-free interest rate | [2] | 1.60% | 1.50% | 1.80% |
Expected life of options (in years) | [3] | 5 years 8 months 12 days | 5 years | 5 years |
Forfeiture rate | [3] | 0.00% | 0.00% | 0.00% |
[1] | Expected volatility is based on historical and implied volatility. | |||
[2] | Risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. | |||
[3] | Expected life of options (in years) is based on the Company’s historical and expected exercise behavior. |
Share-Based Compensation - Su94
Share-Based Compensation - Summary of Transactions of the Company's Restricted Stock (Details) - Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Restricted Stock | |
Units outstanding at the beginning of the period (in shares) | shares | 0.6 |
Units granted (in shares) | shares | 0.2 |
Units vested (in shares) | shares | (0.2) |
Units forfeited (in shares) | shares | 0 |
Units outstanding at the end of the period (in shares) | shares | 0.6 |
Weighted Average Grant Date Value | |
Units outstanding at the beginning of the period (in usd per share) | $ / shares | $ 192.04 |
Units granted (in usd per share) | $ / shares | 122.59 |
Units vested (in usd per share) | $ / shares | 181.87 |
Units forfeited (in usd per share) | $ / shares | 171.51 |
Units outstanding at the end of the period (in usd per share) | $ / shares | $ 168.84 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock (Details) - Restricted Stock - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award fair value | $ 28 | $ 50.7 | $ 8 |
Options available for future grant under the Company's option plans (in shares) | 1,300,000 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting Period | 4 years |
Redeemable Non-Controlling In96
Redeemable Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in redeemable non-controlling interests during the period | |||
Beginning balance | $ 612.5 | $ 645.5 | |
Repurchases of redeemable Affiliate equity | (69.1) | (161.3) | |
Repurchases of redeemable Affiliate equity | (42.6) | (49.5) | |
Changes in redemption value | 71.4 | 81.6 | $ 43 |
Changes attributable to consolidated products | 16.1 | (2.8) | |
Ending balance | $ 673.5 | $ 612.5 | $ 645.5 |
Affiliate Equity - Additional I
Affiliate Equity - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Affiliate Equity | ||||
Distributions paid to affiliate partners | $ 354.1 | $ 431.4 | $ 569.4 | |
Payments to acquire interest in Affiliates | 115.8 | 130.8 | 32.6 | |
Issuance of interest in Affiliates | 11.8 | 6.1 | $ 11 | |
Other Assets | ||||
Affiliate Equity | ||||
Due from Affiliates | 22.9 | 22.6 | ||
Other Liabilities | ||||
Affiliate Equity | ||||
Due to Affiliates | $ 12.1 | $ 62.3 | ||
Minimum | ||||
Affiliate Equity | ||||
Affiliate equity, conditional right to put interest, period | 5 years | |||
Maximum | ||||
Affiliate Equity | ||||
Affiliate equity, conditional right to put interest, period | 15 years |
Affiliate Equity - Summary of A
Affiliate Equity - Summary of Affiliate Equity Expense (Recognized and Unrecognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Affiliate Equity | |||
Non-controlling interest | $ 31.2 | $ 51.6 | $ 37 |
Total | 41.2 | 68.5 | 84.4 |
Non-Controlling Interests | |||
Affiliate Equity | |||
Total | 31.2 | 51.6 | 37 |
Unrecognized Affiliate Equity Expense | |||
Non-Controlling Interest | $ 70.7 | $ 51.9 | $ 41.6 |
Remaining Life | 5 years | 5 years | 6 years |
Affiliate Partners | |||
Affiliate Equity | |||
Controlling interest | $ 10 | $ 16.9 | $ 47.4 |
Unrecognized Affiliate Equity Expense | |||
Controlling Interest | $ 31.3 | $ 22.4 | $ 29.5 |
Remaining Life | 4 years | 3 years | 3 years |
Afilliate Equity - Schedule of
Afilliate Equity - Schedule of the Effect of Changes in the Company's Ownership Interest in its Affiliates on the Controlling Interest's Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Affiliate Equity [Abstract] | |||||||||||
Net income (controlling interest) | $ 150.2 | $ 110.2 | $ 108.3 | $ 104 | $ 147.5 | $ 107.7 | $ 127.6 | $ 126.7 | $ 472.8 | $ 509.5 | $ 433.9 |
Increase in controlling interest paid-in capital from purchases and sales of Affiliate equity issuances | 1.6 | 0.9 | 4.1 | ||||||||
Decrease in controlling interest paid-in capital related to Affiliate equity repurchases | (38) | (87.6) | (33.2) | ||||||||
Net income attributable to controlling interest and transfers (to) or from Non-controlling interests | $ 436.4 | $ 422.8 | $ 404.8 |
Benefit Plans (Details)
Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |||
Number of defined contribution plans | plan | 3 | ||
Consolidated expenses related to benefit plans | $ | $ 18.9 | $ 18.7 | $ 17.2 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision Attributable to Controlling and Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income tax provision | ||||
Current tax | $ 176.3 | $ 162.2 | $ 165.1 | |
Deferred taxes | 59.3 | 101.2 | 81 | |
Provision for income taxes | $ 235.6 | $ 263.4 | $ 246.1 | |
Effective tax rate attributable to controlling interests | 32.60% | 33.60% | 34.80% | |
Parent | ||||
Income tax provision | ||||
Current tax | $ 168.1 | $ 152.4 | $ 149.8 | |
Intangible-related deferred taxes | 84.3 | 77.7 | 47.8 | |
Other deferred taxes | (23.2) | 27.7 | 34 | |
Provision for income taxes | 229.2 | 257.8 | 231.6 | |
Income before income taxes (controlling interest) | $ 702 | $ 767.3 | $ 665.5 | |
Effective tax rate attributable to controlling interests | [1] | 32.60% | 33.60% | 34.80% |
Non-Controlling Interests | ||||
Income tax provision | ||||
Current tax | $ 8.2 | $ 9.8 | $ 15.3 | |
Deferred taxes | (1.8) | (4.2) | (0.8) | |
Provision for income taxes | $ 6.4 | $ 5.6 | $ 14.5 | |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Schedule of Cons
Income Taxes - Schedule of Consolidated Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 103.4 | $ 106.3 | $ 93.8 |
State | 22.9 | 18.3 | 27.1 |
Foreign | 50 | 37.6 | 44.2 |
Total current | 176.3 | 162.2 | 165.1 |
Deferred: | |||
Federal | 62.3 | 103.8 | 89 |
State | 10 | 14.8 | 2.8 |
Foreign | (13) | (17.4) | (10.8) |
Total deferred | 59.3 | 101.2 | 81 |
Provision for income taxes | $ 235.6 | $ 263.4 | $ 246.1 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 688.1 | $ 827.6 | $ 784.1 |
International | 286.5 | 263 | 229.5 |
Total | $ 974.6 | $ 1,090.6 | $ 1,013.6 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Computed Using Income before Income Taxes and Applying U.S. Federal Income Tax Rate (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income tax provision | ||||
Statutory U.S. federal tax rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of federal benefit | 2.90% | 2.60% | 2.30% | |
Effect of foreign operations | [1] | (4.60%) | (3.50%) | (5.30%) |
Equity Compensation | (0.40%) | 0.80% | 2.50% | |
Effect of changes in tax law, rates | [2] | (0.30%) | (0.80%) | (0.00%) |
Other | 0.00% | (0.50%) | 0.30% | |
Effective tax rate (controlling interest) | 32.60% | 33.60% | 34.80% | |
Parent | ||||
Income tax provision | ||||
Effective tax rate (controlling interest) | [3] | 32.60% | 33.60% | 34.80% |
Effective tax rate | 24.20% | 24.40% | 25.20% | |
Non-Controlling Interests | ||||
Income tax provision | ||||
Effect of income from non-controlling interests | (8.40%) | (9.20%) | (9.60%) | |
[1] | Effect of foreign operations includes the effect of undistributed foreign earnings the Company deems indefinitely reinvested in foreign operations, and the effect of differences in the financial reporting basis over tax basis in the Company’s investments in foreign subsidiaries considered permanent in duration. | |||
[2] | Effect of changes in tax law, rates reflects the impact of the reduction in the UK tax rates in years 2015 and 2016. | |||
[3] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Schedule of C105
Income Taxes - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Deferred compensation | $ 34.1 | $ 30.5 |
State net operating loss carryforwards | 17.4 | 17.1 |
Foreign loss carryforwards | 14.6 | 12.3 |
Tax benefit of uncertain tax positions | 12.1 | 14.6 |
Foreign tax credits | 10 | 0 |
Accrued expenses | 3.9 | 4.4 |
Total deferred tax assets | 92.1 | 78.9 |
Valuation allowance | (22.1) | (20.5) |
Deferred tax assets, net of valuation allowance | 70 | 58.4 |
Deferred Tax Liabilities | ||
Intangible asset amortization | (396.8) | (320.2) |
Non-deductible intangible amortization | (177) | (109.8) |
Convertible securities interest | (109) | (99.8) |
Deferred income | (47.2) | (92.8) |
Other | (0.8) | (1.5) |
Total deferred tax liabilities | (730.8) | (624.1) |
Net deferred tax liability | $ (660.8) | $ (565.7) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforwards, expiration period | 19 years | ||
Foreign operating loss carryforwards, expiration period | 20 years | ||
Operating loss carryforwards, valuation allowance | $ 22.1 | $ 20.5 | |
Amount of deferred taxes not recognized | 65 | ||
Amount of temporary difference due to repatriation of earnings from sale or liquidation of subsidiary | 222.9 | ||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 26 | 25.3 | $ 26.4 |
Accrued income tax interest and related charges | 1.4 | 1.8 | $ 1.6 |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 489.7 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 55.1 | ||
Tax credit carryforward | 10 | ||
Foreign Tax Authority | Valuation Allowance, Operating Loss Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards, valuation allowance | 22.1 | ||
Increase (decrease) in valuation allowance, state net operating loss carryforward and realized deferred tax benefit | (1.6) | $ (2.1) | |
Foreign Tax Authority | Expire in 2036 Tax Year | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 47.7 |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Beginning balance | $ 26.9 | $ 28.8 | $ 20.4 |
Additions based on current year tax positions | 3.8 | 2.2 | 2.6 |
Additions based on prior years’ tax positions | 0.6 | 1.6 | 10.8 |
Reductions related to lapses of statutes of limitations | (4.7) | (4.3) | (4.1) |
Additions (reductions) related to foreign exchange rates | (0.2) | 1.4 | 0.9 |
Ending balance | $ 26.8 | $ 26.9 | $ 28.8 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of the Numerator and Denominator used in the Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator | |||||||||||
Net income (controlling interest) | $ 150.2 | $ 110.2 | $ 108.3 | $ 104 | $ 147.5 | $ 107.7 | $ 127.6 | $ 126.7 | $ 472.8 | $ 509.5 | $ 433.9 |
Interest expense on convertible securities, net of taxes | 15.5 | 15.3 | 15.2 | ||||||||
Net income (controlling interest), as adjusted | $ 488.3 | $ 524.8 | $ 449.1 | ||||||||
Denominator | |||||||||||
Average shares outstanding - basic (in shares) | 54.2 | 54.3 | 55 | ||||||||
Effect of dilutive instruments: | |||||||||||
Stock options and other awards (in shares) | 0.6 | 0.7 | 1.2 | ||||||||
Forward sale (in shares) | 0 | 0 | 0 | ||||||||
Junior convertible securities (in shares) | 2.2 | 2.2 | 2.2 | ||||||||
Average shares outstanding - diluted (in shares) | 57 | 57.2 | 58.4 |
Earnings Per Share - Diluted Ea
Earnings Per Share - Diluted Earnings per Share Calculations Excluding the Anti-dilutive Effect of Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options and Other Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.6 | 0 | 0 |
Junior Convertible Securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0.4 |
Comprehensive Income - Summary
Comprehensive Income - Summary of the Tax Effects Allocated to each Component of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss), Pre-Tax | |||
Foreign currency translation gain (loss) | $ (115.3) | $ (93.2) | $ (62) |
Change in net realized and unrealized gain (loss) on derivative securities | 0.3 | 2.3 | 0.6 |
Change in net unrealized gain (loss) on investment securities | (58.3) | 34.8 | 5.6 |
Other comprehensive income (loss) | (173.3) | (56.1) | (55.8) |
Other Comprehensive Income (Loss), Tax Benefit (Expense) | |||
Foreign currency translation gain (loss) | 0 | 0 | 0 |
Change in net realized and unrealized gain (loss) on derivative securities | (0.2) | (0.4) | (0.3) |
Change in net unrealized gain (loss) on investment securities | 23.1 | (12.7) | (2.2) |
Other comprehensive income (loss) | 22.9 | (13.1) | (2.5) |
Other Comprehensive Income (Loss), Net of Tax | |||
Foreign currency translation gain (loss) | (115.3) | (93.2) | (62) |
Change in net realized and unrealized gain (loss) on derivative securities | 0.1 | 1.9 | 0.3 |
Change in net unrealized gain (loss) on investment securities | (35.2) | 22.1 | 3.4 |
Other comprehensive income (loss) | $ (150.4) | $ (69.2) | $ (58.3) |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Components of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 3,769.1 | $ 3,643.2 | $ 3,144.6 | |
Other comprehensive income (loss) before reclassifications | (138.8) | (78.9) | ||
Amounts reclassified from other comprehensive income | (11.6) | 9.7 | ||
Other comprehensive income (loss) | (150.4) | (69.2) | (58.3) | |
Ending Balance | 4,426.5 | 3,769.1 | 3,643.2 | |
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Beginning Balance | (98.6) | (5.4) | ||
Other comprehensive income (loss) before reclassifications | (115.3) | (93.2) | ||
Amounts reclassified from other comprehensive income | 0 | 0 | ||
Other comprehensive income (loss) | (115.3) | (93.2) | ||
Ending Balance | (213.9) | (98.6) | (5.4) | |
Realized and Unrealized Losses on Derivative Securities | ||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Beginning Balance | 0.3 | (1.6) | ||
Other comprehensive income (loss) before reclassifications | (1) | 0.8 | ||
Amounts reclassified from other comprehensive income | 1.1 | 1.1 | ||
Other comprehensive income (loss) | 0.1 | 1.9 | ||
Ending Balance | 0.4 | 0.3 | (1.6) | |
Unrealized Gain (Loss) on Investment Securities | ||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Beginning Balance | [1] | 45 | 22.9 | |
Other comprehensive income (loss) before reclassifications | [1] | (22.5) | 13.5 | |
Amounts reclassified from other comprehensive income | [1] | (12.7) | 8.6 | |
Other comprehensive income (loss) | [1] | (35.2) | 22.1 | |
Ending Balance | [1] | 9.8 | 45 | 22.9 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Beginning Balance | (53.3) | 15.9 | ||
Ending Balance | $ (203.7) | $ (53.3) | $ 15.9 | |
[1] | See Note 2 for amounts reclassified from Other comprehensive income. |
Selected Quarterly Financial112
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Results of Operations(Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 550.3 | $ 544.7 | $ 554.1 | $ 545.4 | $ 589.8 | $ 613.1 | $ 646.6 | $ 635 | $ 2,194.6 | $ 2,484.5 | $ 2,510.9 |
Operating income | 173.8 | 171 | 181.8 | 178.8 | 193.2 | 215.2 | 195.2 | 231.4 | 705.3 | 835 | 815.2 |
Income before income taxes | 281.9 | 226.2 | 235.9 | 230.5 | 289.2 | 249.1 | 262 | 290.3 | 974.6 | 1,090.6 | 1,013.5 |
Net income (controlling interest) | $ 150.2 | $ 110.2 | $ 108.3 | $ 104 | $ 147.5 | $ 107.7 | $ 127.6 | $ 126.7 | $ 472.8 | $ 509.5 | $ 433.9 |
Earnings per share - diluted (in dollars per share) | $ 2.67 | $ 2.02 | $ 1.98 | $ 1.90 | $ 2.67 | $ 1.96 | $ 2.29 | $ 2.26 | $ 8.57 | $ 9.17 | $ 7.70 |
Segment and Geographic Infor113
Segment and Geographic Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016segmentchannel | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 3 |
Number of principal distribution channels | channel | 3 |
Segment adn Geographic Informat
Segment adn Geographic Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Revenue | $ 550.3 | $ 544.7 | $ 554.1 | $ 545.4 | $ 589.8 | $ 613.1 | $ 646.6 | $ 635 | $ 2,194.6 | $ 2,484.5 | $ 2,510.9 |
Net income (controlling interest) | 150.2 | $ 110.2 | $ 108.3 | $ 104 | 147.5 | $ 107.7 | $ 127.6 | $ 126.7 | 472.8 | 509.5 | 433.9 |
Total assets | 8,749.1 | 7,769.4 | 8,749.1 | 7,769.4 | 7,683.5 | ||||||
Goodwill | 2,628.1 | 2,668.4 | 2,628.1 | 2,668.4 | 2,652.8 | ||||||
Equity method investments in Affiliates | 3,368.3 | 1,937.1 | 3,368.3 | 1,937.1 | 1,783.5 | ||||||
Institutional | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 878.5 | 979.4 | 1,022.8 | ||||||||
Net income (controlling interest) | 246.7 | 226.4 | 217.9 | ||||||||
Total assets | 4,386.4 | 3,717.1 | 4,386.4 | 3,717.1 | 3,731.4 | ||||||
Goodwill | 1,136.2 | 1,141.3 | 1,136.2 | 1,141.3 | 1,159.1 | ||||||
Equity method investments in Affiliates | 2,796.9 | 1,609.3 | 2,796.9 | 1,609.3 | 1,533.8 | ||||||
Mutual Fund | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 1,036 | 1,238.2 | 1,242.6 | ||||||||
Net income (controlling interest) | 177.8 | 226.8 | 172.9 | ||||||||
Total assets | 3,360.4 | 3,070.5 | 3,360.4 | 3,070.5 | 3,077.5 | ||||||
Goodwill | 1,082.5 | 1,119.5 | 1,082.5 | 1,119.5 | 1,125.3 | ||||||
Equity method investments in Affiliates | 412.2 | 185.7 | 412.2 | 185.7 | 150.3 | ||||||
High Net Worth | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 280.1 | 266.9 | 245.5 | ||||||||
Net income (controlling interest) | 48.3 | 56.3 | 43.1 | ||||||||
Total assets | 1,002.3 | 981.8 | 1,002.3 | 981.8 | 874.6 | ||||||
Goodwill | 409.4 | 407.6 | 409.4 | 407.6 | 368.4 | ||||||
Equity method investments in Affiliates | $ 159.2 | $ 142.1 | $ 159.2 | $ 142.1 | $ 99.4 |
Segment and Geographic Infor115
Segment and Geographic Information Segment and Geographic Information - Revenues and Assets by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Revenue | $ 550.3 | $ 544.7 | $ 554.1 | $ 545.4 | $ 589.8 | $ 613.1 | $ 646.6 | $ 635 | $ 2,194.6 | $ 2,484.5 | $ 2,510.9 |
Fixed Assets, net | 110.1 | 114.1 | 110.1 | 114.1 | 95.4 | ||||||
United States | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 1,477.5 | 1,657.2 | 1,731.5 | ||||||||
Fixed Assets, net | 97.3 | 98.6 | 97.3 | 98.6 | 80.2 | ||||||
United Kingdom | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 566.4 | 645.3 | 567.1 | ||||||||
Fixed Assets, net | 9.9 | 12.3 | 9.9 | 12.3 | 11.9 | ||||||
Other | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 150.7 | 182 | 212.3 | ||||||||
Fixed Assets, net | $ 2.9 | $ 3.2 | $ 2.9 | $ 3.2 | $ 3.3 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - $ / shares shares in Millions | Jan. 30, 2017 | Feb. 21, 2017 |
Subsequent Event [Line Items] | ||
Cash dividends declared (in usd per share) | $ 0.20 | |
Shares repurchased (in shares) | 0.4 | |
Average price (in usd per share) | $ 159.91 |
Schedule II Valuation and Qu117
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Tax Valuation Allowance | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | $ 20.5 | $ 18.4 | $ 36.6 | |
Additions Charged to Costs and Expenses | 1.3 | 2.1 | 0 | |
Additions Charged to Other Accounts | 0.3 | 0 | 0 | |
Deductions | 0 | 0 | 18.2 | |
Balance End of Period | 22.1 | 20.5 | 18.4 | |
Other Allowances | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | [1] | 10.6 | 12.1 | 8.8 |
Additions Charged to Costs and Expenses | [1] | 5 | 0.7 | 4.7 |
Additions Charged to Other Accounts | [1] | 0 | 0 | 0 |
Deductions | [1] | 5.3 | 2.2 | 1.4 |
Balance End of Period | [1] | $ 10.3 | $ 10.6 | $ 12.1 |
[1] | Other Allowances represented reserves on notes received in connection with transfers of our interests in certain Affiliates as well as other receivable amounts, which we considered uncollectible. |