Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 19, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,886,822,780 | ||
Entity Common Stock, Shares Outstanding | 52,048,705 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Consolidated revenue | $ 2,378.4 | $ 2,305 | $ 2,194.6 |
Consolidated expenses: | |||
Compensation and related expenses | 987.2 | 979 | 932.4 |
Selling, general and administrative | 417.7 | 373.1 | 398.1 |
Intangible amortization and impairments | 114.8 | 86.4 | 110.2 |
Interest expense | 80.6 | 87.8 | 91.7 |
Depreciation and other amortization | 22 | 20.3 | 19.5 |
Other expenses (net) | 69.7 | 58 | 43.3 |
Total consolidated expenses | 1,692 | 1,604.6 | 1,595.2 |
Equity method income (loss) (net) | (0.2) | 302.2 | 328.8 |
Investment and other income | 27.4 | 64.5 | 46.4 |
Income before income taxes | 713.6 | 1,067.1 | 974.6 |
Income tax expense | 181.3 | 58.4 | 235.6 |
Net income | 532.3 | 1,008.7 | 739 |
Net income (non-controlling interests) | (288.7) | (319.2) | (266.2) |
Net income (controlling interest) | $ 243.6 | $ 689.5 | $ 472.8 |
Average shares outstanding (basic) (in shares) | 53.6 | 56 | 54.2 |
Average shares outstanding (diluted) (in shares) | 53.8 | 58.6 | 57 |
Earnings per share (basic) (in dollars per share) | $ 4.55 | $ 12.30 | $ 8.73 |
Earnings per share (diluted) (in dollars per share) | $ 4.52 | $ 12.03 | $ 8.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 532.3 | $ 1,008.7 | $ 739 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | (102.1) | 128 | (115.3) |
Change in net realized and unrealized gain (loss) on derivative financial instruments | (0.1) | (0.8) | 0.1 |
Change in net unrealized gain (loss) on investment securities | 0 | (7.7) | (35.2) |
Other comprehensive income (loss), net of tax | (102.2) | 119.5 | (150.4) |
Comprehensive income | 430.1 | 1,128.2 | 588.6 |
Comprehensive income (non-controlling interests) | (273.7) | (337.6) | (220.6) |
Comprehensive income (controlling interest) | $ 156.4 | $ 790.6 | $ 368 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and cash equivalents | $ 565.5 | $ 439.5 | |
Receivables | 400.6 | 433.8 | |
Investments in marketable securities | 119.3 | 77.8 | |
Goodwill | 2,633.4 | 2,662.5 | |
Acquired client relationships (net) | 1,309.9 | 1,449.7 | |
Equity method investments in Affiliates (net) | 2,791 | 3,304.7 | |
Fixed assets (net) | 104.3 | 111 | |
Other investments | 201.1 | 165 | |
Other assets | 94 | 58.1 | |
Total assets | 8,219.1 | 8,702.1 | |
Liabilities and Equity | |||
Payable and accrued liabilities | 746.6 | 807.2 | |
Senior bank debt | 779.7 | 809 | |
Senior notes | 742.5 | 741.3 | |
Convertible securities | 307.4 | 304.4 | |
Deferred income tax liability (net) | 511.6 | 467.4 | |
Other liabilities | 162.7 | 182.4 | |
Total liabilities | 3,250.5 | 3,311.7 | |
Commitments and contingencies (Note 10) | |||
Redeemable non-controlling interests | [1] | 833.7 | 811.9 |
Equity: | |||
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares outstanding in 2017 and 2018) | 0.6 | 0.6 | |
Additional paid-in capital | 835.6 | 808.6 | |
Accumulated other comprehensive loss | (109) | (21.8) | |
Retained earnings | 3,876.8 | 3,698.5 | |
Total stockholders' equity before treasury stock | 4,604 | 4,485.9 | |
Less: Treasury stock, at cost (3.4 shares in 2017 and 6.5 shares in 2018) | (1,146.6) | (663.7) | |
Total stockholders' equity | 3,457.4 | 3,822.2 | |
Non-controlling interests | 677.5 | 756.3 | |
Total equity | 4,134.9 | 4,578.5 | |
Total liabilities and equity | $ 8,219.1 | $ 8,702.1 | |
[1] | As of December 31, 2017 and 2018, Redeemable non-controlling interests include Affiliate sponsored consolidated products primarily attributable to third-party investors of $39.4 million and $91.0 million, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 58.5 |
Treasury stock, shares (in shares) | 6.5 | 3.4 |
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, 2015 | 55.8 | ||||||
Beginning 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 compensation | 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 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,008.7 | 689.5 | 319.2 | ||||
Other comprehensive income (loss) | 119.5 | 101.1 | 18.4 | ||||
Share-based compensation | 40.4 | 40.4 | |||||
Common stock issued under share-based incentive plans | 21 | (117.6) | 138.6 | ||||
Shares repurchases | (416.3) | (416.3) | |||||
Issuance costs and other | 0.6 | 0.6 | |||||
Dividends ($0.80 and $1.20 per share) | (45.4) | (45.4) | |||||
Affiliate equity activity: | |||||||
Affiliate equity compensation | 50 | 13.2 | 36.8 | ||||
Issuances | 3.1 | (0.6) | 3.7 | ||||
Repurchases | 34.6 | 40.6 | (6) | ||||
Changes in redemption value of Redeemable non-controlling interests | (241.5) | (241.5) | |||||
Transfers to Redeemable non-controlling interests | (76.8) | (76.8) | |||||
Capital contributions by Affiliate equity holders | 6.3 | 6.3 | |||||
Distributions to non-controlling interests | $ (352.2) | (352.2) | |||||
Ending Balance (in shares) at Dec. 31, 2017 | 58.5 | 58.5 | |||||
Ending Balance at Dec. 31, 2017 | $ 4,578.5 | $ 0.6 | 808.6 | (21.8) | 3,698.5 | (663.7) | 756.3 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 532.3 | 243.6 | 288.7 | ||||
Other comprehensive income (loss) | (102.2) | (87.2) | (15) | ||||
Share-based compensation | 44.7 | 44.7 | |||||
Common stock issued under share-based incentive plans | (5) | (11.6) | 6.6 | ||||
Shares repurchases | (489.5) | (489.5) | |||||
Issuance costs and other | (0.5) | (0.5) | |||||
Dividends ($0.80 and $1.20 per share) | (65.3) | (65.3) | |||||
Affiliate equity activity: | |||||||
Affiliate equity compensation | 56.4 | 16.7 | 39.7 | ||||
Issuances | 7.5 | (6.8) | 14.3 | ||||
Repurchases | 6.3 | 15.3 | (9) | ||||
Changes in redemption value of Redeemable non-controlling interests | (30.8) | (30.8) | 0 | ||||
Transfers to Redeemable non-controlling interests | (44.8) | (44.8) | |||||
Capital contributions by Affiliate equity holders | 17.8 | 17.8 | |||||
Distributions to non-controlling interests | $ (370.5) | (370.5) | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 58.5 | 58.5 | |||||
Ending Balance at Dec. 31, 2018 | $ 4,134.9 | $ 0.6 | $ 835.6 | $ (109) | $ 3,876.8 | $ (1,146.6) | $ 677.5 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 1.20 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow from (used in) operating activities: | |||
Net income | $ 532.3 | $ 1,008.7 | $ 739 |
Adjustments to reconcile Net income to net cash flow from operating activities: | |||
Intangible amortization and impairments | 114.8 | 86.4 | 110.2 |
Depreciation and other amortization | 22 | 20.3 | 19.5 |
Deferred income tax provision | 51.9 | (123.6) | 59.3 |
Equity method (income) loss (net) | 0.2 | (302.2) | (328.8) |
Distributions of earnings received from equity method investments | 466.3 | 429.8 | 346.4 |
Share-based compensation and Affiliate equity expense | 101.1 | 90.4 | 80.4 |
Other non-cash items | (2.7) | (26.3) | (16.1) |
Changes in assets and liabilities: | |||
Purchases of securities by Affiliate sponsored consolidated products | (190.8) | (34.1) | (86.2) |
Sales of securities by Affiliate sponsored consolidated products | 49.6 | 29.9 | 82.8 |
(Increase) decrease in receivables | 14.4 | (53.5) | 29.6 |
Increase in other assets | (11.7) | (7.7) | (6.1) |
Increase (decrease) in payables, accrued liabilities and other liabilities | (6.8) | 52.3 | 20.3 |
Cash flow from operating activities | 1,140.6 | 1,170.4 | 1,050.3 |
Cash flow from (used in) investing activities: | |||
Investments in Affiliates | (7.3) | (30.6) | (1,361.3) |
Purchase of fixed assets | (18.7) | (18.5) | (20.2) |
Purchase of investment securities | (40.8) | (37.2) | (16) |
Sale of investment securities | 48.6 | 100.1 | 65.3 |
Cash flow from (used in) investing activities | (18.2) | 13.8 | (1,332.2) |
Cash flow from (used in) financing activities: | |||
Borrowings of senior bank debt and senior notes | 1,150 | 545 | 1,350 |
Repayments of senior bank debt and senior notes | (1,180.6) | (805) | (1,125) |
Repurchase of common stock | (505.8) | (393.2) | (33.4) |
Issuance of common stock | 9.7 | 41.9 | 465.8 |
Dividends paid on common stock | (64.4) | (44.9) | 0 |
Distributions to non-controlling interests | (370.5) | (352.2) | (354.1) |
Affiliate equity issuances and repurchases | (113.7) | (165.7) | (104) |
Subscriptions to Affiliate sponsored consolidated products, net of redemptions | 132.8 | 2.7 | 9.1 |
Other financing items | (40.6) | (18.3) | (7.5) |
Cash flow from (used in) financing activities | (983.1) | (1,189.7) | 200.9 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (10.1) | 14.2 | (49.9) |
Net increase (decrease) in cash and cash equivalents | 129.2 | 8.7 | (130.9) |
Cash and cash equivalents at beginning of period | 439.5 | 430.8 | 563.8 |
Net cash outflows upon the consolidation and deconsolidation of Affiliate sponsored products | (3.2) | 0 | (2.1) |
Cash and cash equivalents at end of period | 565.5 | 439.5 | 430.8 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 76.9 | 82.1 | 85 |
Income taxes paid | 160.2 | 165 | 152.3 |
Supplemental disclosure of non-cash financing activities: | |||
Payables recorded for Affiliate equity repurchases | 36.2 | 47.3 | 12.1 |
Payables recorded for share repurchases | 6.9 | 23.1 | 0 |
Stock issued upon vesting of restricted stock units | 4.7 | 59.3 | 17.2 |
Stock received for tax withholdings on share-based payments | 14.7 | 20 | 9.8 |
Stock received for the exercise of stock options | $ 4.1 | $ 30.2 | $ 11.2 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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.” The Company’s Affiliates provide active, return-oriented strategies to assist institutional, retail and high net worth clients worldwide in achieving their investment objectives. The Company operates in one segment, global active asset management. Each of the Company’s Affiliates operates through distinct legal entities, which affords the Company the flexibility to design a separate operating agreement for each Affiliate. Each operating agreement reflects the specific terms of the Company’s economic participation in the Affiliate, which, in each case, uses a “structured partnership interest.” For a majority of the Company’s Affiliates, the Company uses structured partnership interests in which the Company contractually shares in the Affiliate’s revenue without regard to expenses. In this type of structured partnership interest, the Affiliate allocates a specified percentage of its revenue to the Company, while using the remainder of its revenue for operating expenses and for distributions to Affiliate management. The Company and Affiliate management, therefore, participate in any increase or decrease in revenue and Affiliate management participates in any increase or decrease in expenses. The Company’s contractual share of revenue generally has priority over the distributions to Affiliate management. For other Affiliates, the Company uses structured partnership interests in which the Company contractually shares in the Affiliate’s revenue less agreed-upon expenses. This type of partnership interest allows the Company to benefit from any increase in revenue or any decrease in the agreed-upon expenses, but also exposes the Company to any decrease in revenue or any increase in such expenses. The degree of the Company’s exposure to expenses from these structured partnership interests varies by Affiliate and includes Affiliates in which the Company fully shares in the expenses of the business. (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. All material intercompany balances and transactions have been eliminated. In 2018, the Company changed its Consolidated Financial Statement presentation to present non-classified Consolidated Statements of Income. This change and other reclassifications have been made to the prior period’s financial statements to conform to the current period’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. (c) Principles of Consolidation 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, 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, which for the Company are Affiliate investments structured as partnerships (or similar entities) where the Company is a limited partner and lacks substantive kick-out or substantive participation rights over the general partner. 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 entity. When the Company lacks control, but is deemed to have significant influence, the Company accounts for the entity under the equity method. Other investments in which the Company does not have rights to exercise significant influence are recorded at fair value, with changes in fair value reflected within Investment and other income on the Consolidated Statements of Income. The Company consolidates VIEs when it is the primary beneficiary of the entity, 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. The Company applies the equity method of accounting to VIEs where the Company is not the primary beneficiary, but has the ability to exercise significant influence over operating and financial matters of the VIE. See Note 4 for additional information about the Company’s VREs and VIEs. Investments in Affiliates Substantially all of the Company’s Affiliates are considered VIEs and are either consolidated or accounted for under the equity method. A limited number of the Company’s Affiliates are considered VREs and most of these are accounted for under the equity method. When an Affiliate is consolidated, the portion of the earnings attributable to Affiliate managements’ equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Undistributed earnings attributable to Affiliate managements’ equity ownership, along with their share of any tangible or intangible net assets, are presented within Non-controlling interests on the Consolidated Balance Sheets. Affiliate equity interests where the holder has certain rights to demand settlement are presented, at their current redemption values, as Redeemable non-controlling interests on the Consolidated Balance Sheets. The Company periodically issues, sells and repurchases the Affiliate equity of its consolidated Affiliates. Because these transactions take place between entities under common control, any gains or losses attributable to these transactions are required to be included within Additional paid-in capital on the Consolidated Balance Sheets, net of any related income tax effects in the period the transactions occur. When an Affiliate is accounted for under the equity method, the Company’s share of an Affiliate’s earnings or losses, net of amortization and impairments, is included in Equity method income (loss) (net) in the Consolidated Statements of Income and the carrying value of the Affiliate is reported in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. Any deferred taxes recorded upon acquisition of an equity method Affiliate are presented on a gross basis within Equity method investments in Affiliates (net) and Deferred income tax liability (net) in the Consolidated Balance Sheets. The Company’s share of income taxes incurred directly by Affiliates accounted for under the equity method is recorded within Income tax expense in the Consolidated Statements of Income. The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses whether or not 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 carrying value of the investment is reduced to its fair value and the expense is recorded in Equity method income (loss) (net). Affiliate Sponsored Investment Products The Company’s Affiliates sponsor various investment products where they also act as the investment adviser. These investment products are typically owned primarily by third-party investors; however, certain products are funded with general partner and seed capital investments from the Company and its Affiliates. Third-party investors in Affiliate sponsored investment products are generally entitled to substantially all of the economics of these products, except for the asset and performance based fees earned by the Company’s Affiliates or any gains or losses attributable to the Company’s or its Affiliates’ investments in these products. As a result, the Company does not generally consolidate these products unless the Company’s or its consolidated Affiliates’ interest in the product is considered substantial. When the Company’s or its consolidated Affiliates’ interest is considered substantial and the products are consolidated, 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 Investment and other income. Purchases and sales of securities are presented within purchases and sales by Affiliate sponsored consolidated products in the Consolidated Statements of Cash Flows and the third-party investors’ interest is recorded in Redeemable non-controlling interests. When the Company or its consolidated Affiliates no longer control these products, due to a reduction in ownership or other reasons, the products are deconsolidated with only the Company’s or its consolidated Affiliate’s investment in the product reported from the date of deconsolidation. (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 and performance based fees, which are billed based on the terms of the related contracts. Billed but uncollected asset and performance based 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, the Company’s Affiliates and the sponsored investment products. (f) Investments in Marketable Securities Realized and unrealized gains or losses on investments in marketable securities are reported within Investment and other income in the Consolidated Statements of Income. Realized gains and losses are recorded on the trade date on a specific identified basis, except for Affiliate sponsored consolidated products, which use an average cost basis. (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 in the principal or most advantageous market 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 that 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 the Company believes market participants would use in pricing the asset or liability. (h) 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 the contracts to be renewed annually 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 expense would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. The expected period of economic benefit 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 these 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 period of economic benefit 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 may not be 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 expense would be recorded in Intangible amortization and impairments in the Consolidated Statements of Income to reduce the carrying value of the asset to fair value. Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not separately recognized. Goodwill is not amortized, but is instead reviewed for impairment. The Company performs a qualitative impairment test at least annually to determine if the carrying value of its single reporting unit is in excess of its fair value. If a potential impairment is more likely than not, then the Company will perform a single step quantitative test with any excess of carrying value over fair value recorded as an expense in Intangible amortization and impairments. (i) Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three to ten years . Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally three to five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease. Buildings are amortized over their expected useful lives, generally not to exceed 39 years. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land and artwork are not depreciated; artwork is included in Other assets on the Consolidated Balance Sheets. (j) 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 expenses (net) on the Consolidated Statements of Income. (k) 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” and, together with the revolver, the “credit facilities”), which approximates the effective interest method. Issuance costs associated with the revolver are included in Other assets. Issuance costs associated with the term loan are included as a reduction of the related debt balance. 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. (l) Derivative Financial Instruments The Company and its Affiliates may utilize derivative financial instruments to offset exposure to changes in interest rates, foreign currency exchange rates and markets. The Company records derivatives in the Consolidated Balance Sheets at fair value. If the Company’s or its Affiliates’ derivative financial instruments do not qualify as cash flow, net investment or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other income. If the Company’s or its Affiliates’ derivative financial instruments qualify as cash flow or net investment hedges, the effective portion of the unrealized gain or loss is recorded in Other comprehensive income (loss) as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. For cash flow hedges, hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future cash flows of the hedged contract with the present value of the cumulative change in the expected future cash flows of the hedged item. For net investment hedges, hedge effectiveness is measured using the spot rate method. For fair value hedges, the entire change in the fair value of the hedging instrument is presented in earnings with the hedged item, unless the changes in fair value are not equal, which would result in hedge ineffectiveness. Any hedge ineffectiveness is recorded in Investment and other income. The Company assesses hedge effectiveness on a quarterly basis. Changes in fair value of a hedging instrument that are excluded from the assessment of hedge effectiveness, also known as excluded components, are amortized over the period of the designated hedge. (m) Revenue Recognition Revenue primarily represents asset and performance based fees earned by the Company and its Affiliates for managing the assets of clients. Substantially all of the Company’s and its Affiliates’ contracts contain a single performance obligation, which is the provision of investment management services. Investment management, broker-dealer and administrative services are performed and consumed simultaneously and, therefore, the Company recognizes these asset based fees ratably over time. Substantially all the Company’s asset based fees for services are based on the value of client assets over time, which are typically determined using observable market data. Services may be invoiced in advance or in arrears and are payable upon receipt. Any asset based fees collected in advance are deferred and recognized as the services are performed and consumed. Revenue recognized by the Company is adjusted for any expense reimbursement arrangements. Performance based fees, including carried interests, are recognized only upon the satisfaction of performance obligations, the resolution of any constraints (which may extend over one or more reporting periods) and when it is improbable that there will be a significant reversal in the amount of revenue recognized. As a result, any performance based fees or carried interest recognized in the current reporting period may relate to performance obligations satisfied in a previous reporting period. The Company and its Affiliates have contractual arrangements with third parties to provide distribution-related services. Fees received and expenses incurred under these arrangements are primarily based on the value of client assets over time. Distribution-related fees are presented in revenue gross of any related expenses when the Company and its Affiliates are the principal in its role as primary obligor under their distribution-related services arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses in the Consolidated Statements of Income. The Company and its Affiliates may enter into contracts for which the costs to obtain or fulfill the contract are based upon a percentage of the value of a client’s future assets under management. The Company records these variable costs when incurred because they are subject to market volatility and are not estimable upon the inception of a contract with a client. Any expenses paid in advance are capitalized and amortized on a systematic basis, consistent with the transfer of services, which is the equivalent of recognizing the costs as incurred. (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 specified financial targets 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 in Other liabilities on the 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. Gains and losses resulting from changes to expected payments are reflected in Other expenses (net) and the accretion of these obligations to their expected payment amounts are reflected within Interest expense. For Affiliates accounted for under the equity method of accounting, the Company records a liability in Payables and accrued liabilities when a payment becomes probable, with a corresponding increase to the carrying value of the Affiliate in Equity method investments in Affiliates (net). (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 tax expense 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 it would not be able to realize its deferred tax assets, it records a valuation allowance to reflect the deferred tax assets at their current value. Adjustments to the valuation allowance will increase or decrease Income tax expense. 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 that 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 tax expense. Interest and penalties related to unrecognized tax benefits are also recorded in Income tax expense. On December 22, 2017, changes in U.S. tax laws were enacted, which significantly revised U.S. corporate income tax by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system and imposing a one-time transition tax on deemed repatriated foreign earnings and profits. The U.S. Securities and Exchange Commission (the “SEC”) issued Staff Accounting Bulletin No. 118 to address the application of GAAP in situations when a company did not have the necessary information available, prepared or analyzed to complete the accounting for certain income tax effects of the changes in U.S. tax laws as of December 31, 2017 and allowed companies to record provisional amounts. Changes to provisional amounts or new amounts resulting from new guidance, interpretations or other information or from further evaluation of the impact of the changes in U.S. tax laws are recorded in subsequent reporting periods not to extend beyond one year from the enactment date. The Company finalized its accounting for the impact of changes in U.S. tax laws in the three months ended December 31, 2018. No significant adjustments to the provisional amount were made. The Company has elected to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred (the “period cost method”). (p) Foreign Currency Translation Assets and liabilities denominated in a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expenses denominated in a functional currency other than the U.S. dollar 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 its Affiliates, net translation exchange gains and losses resulting from foreign currency translation are recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity on the Consolidated Balance Sheets. 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 and derivative financial instruments. The Company and its Affiliates maintain cash and cash equivalents, investments and, at times, certain derivative financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which the Company and its Affiliates operate. For the Company and certain of its Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. (r) 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. Earnings per share (diluted) is similar to Earnings per share (basic), 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 Earnings per share (diluted). 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. (s) 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. Tax windfalls or shortfalls are recognized in Income tax expense 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 in the Consolidated Statements of Cash Flows. (t) Recent Accounting Developments During the year ended December 31, 2018, the Company adopted several Accounting Standard Updates (“ASUs”) as follows: Effective January 1, 2018: • ASU 2014-09, Revenue from Contracts with Customers; • ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities; • ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments; • ASU 2017-01, Clarifying the Definition of a Business; • ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, • ASU 2017-09, Compensation - Stock Compensation; and • ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Effective September 1, 2018: • ASU 2018-13, Fair Value Measurements: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement None of these ASUs had a significant impact on the Company’s Consolidated Financial Statements. While the Company and the Company’s consolidated Affiliates adopted ASU 2014-09 on January 1, 2018, the standard is effective for the Company’s equity method Affiliates for interim and annual periods beginning after December 15, 2018. The Company does not expect a significant impact to its Consolidated Financial Statements upon adoption of the standard by its equity method Affiliates. Also, on September 1, 2018, the Company early adopted the eliminated and modified disclosures of ASU 2018-13 and, as a result, updated its financial statement disclosures accordingly |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities Investments in marketable securities at December 31, 2017 and 2018 were $77.8 million and $119.3 million , respectively. The following is a summary of the cost, gross unrealized gains and losses and fair value of Investments in marketable securities: December 31, 2017 2018 Cost $ 67.1 $ 126.8 Unrealized gains 13.0 1.1 Unrealized losses (2.3 ) (8.6 ) Fair value $ 77.8 $ 119.3 For the years ended December 31, 2017 and 2018 , the Company received proceeds of $112.2 million and $81.4 million , respectively, from the sale of investments in marketable securities and recorded net gains of $35.8 million and $6.9 million , respectively. |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Other Investments Other investments consist of investments in funds advised by the Company’s Affiliates that are carried at fair value. The income or loss related to these investments is recorded in Investment and other income. See Note 11 for additional information. |
Investments in Affiliates and A
Investments in Affiliates and Affiliate Sponsored Investment Products | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities | |
Investments in Affiliates and Affiliate Sponsored Investment Products | Investments in Affiliates and Affiliate Sponsored Investment Products Investments in Affiliates The Company’s Affiliates are consolidated or accounted for under the equity method, depending upon the underlying structure of and relationship with each Affiliate. Substantially all of the Company’s consolidated Affiliates are considered VIEs. The unconsolidated assets, net of liabilities and non-controlling interests of equity method Affiliates considered VIEs, and the Company’s carrying value and maximum exposure to loss, were as follows: December 31, 2017 December 31, 2018 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,594.4 $ 2,765.7 $ 1,102.9 $ 2,277.8 As of December 31, 2017 and 2018 , the carrying value and maximum exposure to loss for all of the Company’s equity method Affiliates was $3,304.7 million and $2,791.0 million , including equity method Affiliates considered VREs of $539.0 million and $513.2 million , respectively. Affiliate Sponsored Investment Products The net assets of Affiliate sponsored investment products that were considered VIEs accounted for under the equity method and the Company’s carrying value and maximum exposure to loss were as follows: December 31, 2017 December 31, 2018 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 2,154.6 $ 10.2 $ 2,216.5 $ 1.1 |
Senior Bank Debt
Senior Bank Debt | 12 Months Ended |
Dec. 31, 2018 | |
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. As of December 31, 2018, the borrowing capacity under the revolver was $1.45 billion , with the ability, subject to certain conditions, to further increase commitments by up to $350.0 million . During 2018, the Company amended its term loan to increase the borrowings to $450.0 million , with the ability to borrow an additional $75.0 million , subject to certain conditions. 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. The revolver matures on September 30, 2020 and the term loan matures on May 31, 2021. As of December 31, 2017 and 2018 , the Company had outstanding borrowings under the revolver of $ 425.0 million and $ 330.0 million , respectively, and the weighted-average interest rate on outstanding borrowings was 2.76% and 3.92% , respectively. As of December 31, 2017 and 2018 , the Company had outstanding borrowings under the term loan of $385.0 million and $450.0 million , and the weighted-average interest rate on outstanding borrowings was 2.69% and 3.33% , respectively. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2017 and 2018 , these fees amounted to $1.5 million and $1.6 million , respectively. |
Senior Notes
Senior Notes | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes In 2017, the Company redeemed, canceled and retired all $200.0 million principal amount outstanding of its 6.375% senior unsecured notes due 2042 at a redemption price equal to 100% of the principal amount. At December 31, 2018 , the Company had two senior notes outstanding. The carrying value of the senior notes is accreted to the principal amount at maturity over a remaining life of the underlying instrument. The respective principal terms of the senior notes are presented below: 2024 Senior Notes 2025 Senior Notes Issue date February 2014 February 2015 Maturity date February 2024 August 2025 Potential Call Date (1) Any Time Any Time Par value (in millions) $ 400.0 $ 350.0 Call Price (1) As Defined As Defined Stated coupon 4.25 % 3.50 % Coupon frequency Semi-annually Semi-annually __________________________ (1) The senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. The make-whole redemption price, in each case, is equal to the greater of 100% of the principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed (excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the redemption date at the applicable treasury rate plus 0.25% . |
Convertible Securities
Convertible Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Securities | Convertible Securities At December 31, 2018 , 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, 2017 December 31, 2018 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 309.9 $ 430.8 $ 312.5 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 19 years. The junior convertible securities bear interest at a rate of 5.15% per annum, payable quarterly in cash. Effective August 10, 2018 and in accordance with the convertible securities indenture, the Company adjusted the conversion rate of the junior convertible securities from 0.2500 shares of common stock to 0.2525 shares of common stock per $50.00 junior convertible security, equivalent to an adjusted conversion price of $198.02 per share of common stock. The adjustment was the result of the Company’s cumulative declared dividends on its common stock since the initiation of its dividend through August 2018. 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 $257.43 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 will generate annual deferred tax liabilities of $7.8 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. |
Equity Distribution Program
Equity Distribution Program | 12 Months Ended |
Dec. 31, 2018 | |
Forward Equity Sale Agreements | |
Equity Distribution Program | Equity Distribution Program The Company has equity distribution and forward equity agreements with several major securities firms under which it may, from time to time, 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, 2018 , no sales had occurred under the equity distribution program. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company and its Affiliates may use derivative financial instruments to offset exposure to changes in interest rates, foreign currency exchange rates and markets. In 2018, the Company entered into two separate pound sterling-denominated forward foreign currency contracts (the “forward contracts”) with a large financial institution (the “counterparty”). Concurrent to entering into each of the forward contracts, the Company also entered into two separate collar contracts (the “collar contracts”) with the same counterparty for the same notional amounts and expiration dates as each of the forward contracts. Under one of the forward contracts, the Company will deliver £285.8 million for $400.0 million in 2024 and under the other forward contract, the Company will deliver £325.3 million for $450.0 million in 2021. Under one of the collar contracts, the Company sold a put option with a lower strike price of 1.288 U.S. dollars per one pound sterling and purchased a call option with an upper strike price of 1.535 U.S. dollars per one pound sterling. Under the other collar contract, the Company sold a put option with a lower strike price of 1.318 U.S. dollars per one pound sterling and purchased a call option with an upper strike price of 1.448 U.S. dollars per one pound sterling. The forward contracts and the collar contracts provide net settlement rights and require the parties to post collateral throughout the term of the contracts. The combination of the forward contracts and the collar contracts were designated as net investment hedges against fluctuations in foreign currency exchange rates on certain of the Company’s investments in Affiliates with the pound sterling as their functional currency. The forward contracts’ excluded component is recognized in earnings on a straight-line basis over the respective periods of the forward contracts as a reduction to Interest expense. All other changes in the fair values of the effective net investment hedges are reported in Foreign currency translation gain (loss) in the Consolidated Statements of Comprehensive Income. The Company assesses hedge effectiveness on a quarterly basis. The Company’s Affiliates use forward foreign currency contracts to hedge the risk of foreign currency exchange rate movements, none of which were significant. Derivative financial instruments are presented in Other assets when in an unrealized gain position and in Other liabilities when in an unrealized loss position. When a right to offset exists between derivative financial instruments they are presented net in the Consolidated Balance Sheets. The following table summarizes the Company’s and its Affiliates’ derivative financial instruments measured at fair value on a recurring basis. As of December 31, 2017 , the Company and its Affiliates did not have any significant derivative financial instruments. December 31, 2018 Assets Liabilities Forward contracts $ 32.0 $ (1.4 ) Put options — (60.3 ) Call options 34.1 — Total $ 66.1 $ (61.7 ) The following table summarizes the effect of the derivative financial instruments on the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Income: For the Year Ended December 31, 2018 Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Recognized in Earnings from Excluded Components (1) Forward contracts $ 27.2 $ 3.8 Put options (17.8 ) — Call options (8.4 ) — Total $ 1.0 $ 3.8 (1) The excluded components are recorded as a reduction in Interest expense. As of December 31, 2018 , the Company and its Affiliates did not have any significant gains (losses) reclassified from accumulated other comprehensive income (loss) into earnings. The terms of the Company’s forward contracts and collar contracts require the Company and the counterparty to post cash collateral in certain circumstances throughout the duration of the contracts. As of December 31, 2018 , the Company held $3.1 million of cash collateral from the counterparty, and the counterparty held $28.0 million of cash collateral from the Company. The counterparty to the Company’s derivative contracts is a large financial institution. The derivative contracts are governed by an International Swaps and Derivative Association (“ISDA”) Master Agreement with the counterparty, which provides for settlement netting and close-out netting between the Company and the counterparty, which are legally enforceable rights to setoff. The Company also actively monitors its counterparty credit risk related to derivative financial instruments. The Company’s derivative contracts include provisions to protect against counterparty rating downgrades, which in certain cases may result in the counterparty posting additional collateral to the Company, or give rise to a termination right. The Company considers set-off rights and counterparty credit risk in the valuation of its positions, and recognizes a credit valuation adjustment as appropriate. The Company’s forward contracts and collar contracts include contingent features that could require the Company or the counterparty to post additional collateral, or give rise to termination rights, if certain specified rating downgrades were to occur. As of December 31, 2018, there were no derivative arrangements with a contingent feature that were in a net liability position. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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. The Company has committed to co-invest in certain Affiliate sponsored investment products. As of December 31, 2018 , these unfunded commitments were $131.0 million and may be called in future periods. As of December 31, 2018 , the Company was contingently liable, upon achievement by certain of its Affiliates of specified financial targets, to make payments through 2020 related to the Company’s investments in these Affiliates. For its consolidated Affiliates, the Company was contingently liable for up to $2.5 million , and expected to make payments of $1.9 million (all of which are expected to be made in 2019). The present value of the total expected payments was $1.9 million . For its equity method Affiliates, the Company was contingently liable to make payments up to $150.0 million through 2020, and expected to make no payments. Affiliate equity interests provide holders with a conditional right to put their interests to the Company over time. See Note 20 for additional information. In addition, in connection with one of the Company’s investments in a non-U.S. alternative 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 elect to sell a portion of its 19% ownership interest in the Affiliate to the Company annually. The purchase price of these conditional purchases will be at fair market value. During the three months ended December 31, 2018, the Company was notified by the minority owner that it may, after determining the fair market value of its interest, elect to sell a 5% ownership interest in the Affiliate to the Company. If the minority owner elects to sell this interest, the transaction is expected to be completed during the first half of 2019; however, the Company cannot currently predict the amount that may be paid to settle this commitment. If the Company acquires the minority owner’s interest over time, it will continue to account for the Affiliate under the equity method. The Company and certain of its consolidated Affiliates operate under regulatory authorities that require the maintenance of 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, 2018 | |
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, 2017 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 77.8 $ 77.8 $ — $ — Derivative financial instruments (1) 0.2 — 0.2 — Financial Liabilities (2) Contingent payment arrangements $ 9.4 $ — $ — $ 9.4 Affiliate equity repurchase obligations 49.2 — — 49.2 Derivative financial instruments 0.6 — 0.6 — Fair Value Measurements December 31, 2018 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 119.3 $ 119.3 $ — $ — Derivative financial instruments (1) 5.8 — 5.8 — Financial Liabilities (2) Contingent payment arrangements $ 1.9 $ — $ — $ 1.9 Affiliate equity repurchase obligations 36.2 — — 36.2 Derivative financial instruments 1.4 — 1.4 — __________________________ (1) Amounts are presented within Other assets. (2) Amounts are presented within Other liabilities. Level 3 Financial Assets and Liabilities The following table presents the changes in level 3 liabilities: For the Years Ended December 31, 2017 2018 Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Balance, beginning of period $ 8.6 $ 12.1 $ 9.4 $ 49.2 Net realized and unrealized losses (1) 7.6 5.5 1.3 — Purchases and issuances (2) — 206.1 — 105.4 Settlements and reductions (6.8 ) (174.5 ) (8.8 ) (118.4 ) Balance, end of period $ 9.4 $ 49.2 $ 1.9 $ 36.2 Net change in unrealized losses relating to instruments still held at the reporting date (1) $ 2.8 $ — $ 0.2 $ — __________________________ (1) For the years ended December 31, 2017 and 2018, net realized and unrealized losses resulting from changes to contingent payment arrangements were $6.6 million and $0.6 million , respectively, and were recorded in Other expenses (net). For the years ended December 31, 2017 and 2018, the accretion expense for these arrangements was $1.0 million and $0.7 million , respectively, and was recorded in Interest expense. (2) Includes transfers from Redeemable non-controlling interests. The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 fair value measurements: Quantitative Information about Level 3 Fair Value Measurements Valuation Techniques Unobservable Input Fair Value at Range at December 31, 2017 Weighted Average at December 31, 2017 Fair Value at Range at December 31, 2018 Weighted Average at December 31, 2018 Contingent payment arrangements Discounted cash flow Growth rates $ 9.4 7% - 8% 7% $ 1.9 7% 7% Discount rates 15% - 16% 15% 15% 15% Affiliate equity repurchase obligations Discounted cash flow Growth rates 49.2 0% - 11% 6% 36.2 (4)% - 9% 3% Discount rates 12% - 16% 14% 14% - 16% 15% Contingent payment arrangements represents the present value of the expected future settlement amounts related to the Company’s investments in consolidated Affiliates. As of December 31, 2018 , there were no changes to growth rates or discount rates that had a significant impact to contingent payment arrangements. Affiliate equity repurchase obligations include agreements to repurchase Affiliate equity. As of December 31, 2018 , there were no changes to growth or discount rates that had a significant impact to Affiliate equity repurchase obligations recorded in prior periods. Investments Measured at NAV as a Practical Expedient The Company’s Affiliates sponsor investment products in which the Company and its Affiliates may make general partner and seed capital investments. The Company uses the NAV of these investments as a practical expedient for their fair value and reports these products within Other investments. The following table summarizes the nature of the Company’s investments, unfunded commitments, and any related liquidity restrictions or other factors that may impact the ultimate value realized: December 31, 2017 December 31, 2018 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 156.1 $ 98.8 $ 193.2 $ 131.0 Other funds (2) 8.9 — 7.9 — Other investments (3) $ 165.0 $ 98.8 $ 201.1 $ 131.0 __________________________ (1) The Company uses NAV as a practical expedient one quarter in arrears (adjusted for current period calls and distributions) to determine the fair value. These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . (2) These are multi-disciplinary funds that invest across various asset classes and strategies, including long/short equity, credit and real estate. Investments are generally redeemable on a daily, monthly or quarterly basis. (3) Fair value attributable to the controlling interest was $80.1 million and $123.2 million as of December 31, 2017 and 2018 , respectively. Other Financial Assets and Liabilities Not Carried at Fair Value The carrying amount of Cash and cash equivalents, Receivables and Payables and accrued liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of notes receivable, which is reported in Other assets, approximates fair value because interest rates and other terms are at market rates. The carrying value of the credit facilities, which is reported in Senior bank debt in the Consolidated Balance Sheets, approximates fair value because the credit facilities have 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, 2017 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 745.7 $ 765.2 $ 746.2 $ 747.5 Level 2 Convertible securities 309.9 549.8 312.5 391.5 Level 2 |
Goodwill and Acquired Client Re
Goodwill and Acquired Client Relationships | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Client Relationships | Goodwill and Acquired Client Relationships The following tables present the changes in the Company’s consolidated Affiliates’ Goodwill and components of Acquired client relationships (net): Goodwill 2017 2018 Balance, beginning of period $ 2,628.1 $ 2,662.5 Foreign currency translation 34.4 (29.1 ) Balance, end of period $ 2,662.5 $ 2,633.4 As of September 30, 2018, the Company completed its impairment assessment on goodwill and no impairments were indicated. Acquired Client Relationships (Net) Definite-lived Indefinite-lived Total Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balance, as of December 31, 2016 $ 1,290.0 $ (788.1 ) $ 501.9 $ 995.5 $ 1,497.4 Intangible amortization and impairments — (86.4 ) (86.4 ) — (86.4 ) Foreign currency translation 5.5 — 5.5 33.2 38.7 Balance, as of December 31, 2017 $ 1,295.5 $ (874.5 ) $ 421.0 $ 1,028.7 $ 1,449.7 Intangible amortization and impairments — (114.4 ) (114.4 ) (0.4 ) (114.8 ) Foreign currency translation (3.0 ) — (3.0 ) (22.0 ) (25.0 ) Balance, as of December 31, 2018 $ 1,292.5 $ (988.9 ) $ 303.6 $ 1,006.3 $ 1,309.9 Definite-lived acquired client relationships are amortized over their expected period of economic benefit. The Company recorded amortization expense within Intangible amortization and impairments for these relationships of $107.7 million , $86.4 million and $114.4 million , respectively, for the years ended December 31, 2016 , 2017 and 2018 . Based on relationships existing as of December 31, 2018 , the Company estimates that its consolidated annual amortization expense will be approximately $110 million in 2019, $55 million in 2020, and $30 million in 2021, 2022 and 2023. During 2018 , the Company completed impairment assessments on its definite-lived and indefinite-lived acquired client relationships and no impairments were indicated. |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
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 (net): Equity Method Investments in Affiliates (Net) 2017 2018 Balance, beginning of period $ 3,368.3 $ 3,304.7 Equity method earnings 501.4 370.6 Equity method intangible amortization and impairments (199.2 ) (370.8 ) Distributions of earnings from equity method investments (429.8 ) (466.3 ) Investments 29.8 7.3 Foreign currency translation 62.3 (34.5 ) Other (1) (28.1 ) (20.0 ) Balance, end of period $ 3,304.7 $ 2,791.0 __________________________ (1) Primarily reflects the Company’s share of entity level taxes. Definite-lived acquired relationships at the Company’s equity method Affiliates are amortized over their expected period of economic benefit. The Company recognized amortization expense for these relationships of $59.2 million , $106.1 million and $97.5 million , respectively, for the years ended December 31, 2016 , 2017 and 2018 . Based on relationships existing as of December 31, 2018 , the Company estimates the annual amortization expense attributable to its equity method Affiliates will be approximately $95 million in 2019, 2020 and 2021 and $75 million in 2022 and 2023. For the year ended December 31, 2017, the Company determined that the fair value of a U.S. alternative Affiliate had declined below its carrying value. The decline in the fair value of this Affiliate was the result of a cumulative decline in assets under management, coupled with the recent loss of a significant client, which had decreased the forecasted revenue of the Affiliate. The fair value of this Affiliate was determined using a discounted cash flow analysis, a level 3 fair value measurement, that projected future cash flows associated with the investment and discount rates that were developed with input from valuation experts. The significant assumptions used in the cash flow analysis include a projected growth rate of 10.0% , discount rates of 14.0% and 25.0% for asset and performance based fees, respectively, and a market participant tax rate of 25.0% . The Company considered the decline in fair value to be other-than-temporary and, accordingly, the Company recognized a $93.1 million expense to reduce the asset to fair value. For the year ended December 31, 2018, the Company determined that the fair value of the U.S. alternative Affiliate and the fair value of one of its non-U.S. alternative Affiliates had declined below their respective carrying values. The decline in the fair values of these Affiliates was caused by declines in assets under management as a result of client redemptions, coupled with recent negative investment returns, which resulted in the decrease of forecasted performance based fees for these Affiliates. For the U.S. alternative Affiliate for which the Company recorded an expense to reduce the carrying value to fair value in 2017, the Company recorded an additional $33.3 million expense to reduce the carrying value of this Affiliate to zero as the business was liquidated. For the non-U.S. alternative Affiliate, the Company determined the fair value using a discounted cash flow analysis, a level 3 fair value measurement, that projected future cash flows associated with the investment and discount rates that were developed with input from valuation experts. The significant assumptions used in the cash flow analysis include a projected growth rate of 2.5% , discount rates of 11.0% and 20.0% for asset and performance based fees, respectively, and a market participant tax rate of 25.0% . The Company considered the decline in fair value to be other-than-temporary and, accordingly, the Company recognized a $240.0 million expense to reduce the asset to fair value. For the Company’s remaining equity method investments in Affiliates, the Company completed its annual evaluations as of December 31, 2017 and 2018 and no other impairments were identified. The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2016 (2) 2017 2018 Revenue (1) $ 2,200.9 $ 3,126.3 $ 3,231.7 Net income (1) 1,068.9 2,182.7 1,286.1 December 31, 2017 2018 Assets $ 3,324.9 $ 2,730.4 Liabilities and Non-controlling interests 1,405.5 1,235.1 __________________________ (1) Revenue and the associated net income include asset and performance based fees and the impact of consolidated investment products. (2) Revenue and net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. The Company’s share of undistributed earnings from equity method investments was $92.4 million as of December 31, 2018 . The Company has determined that one of its equity method Affiliates is significant under Rule 10-01(b)(1) of Regulation S-X. For the years ended December 31, 2017 and 2018, this equity method Affiliate recognized revenue of $1,317.8 million and $1,137.5 million , respectively, and net income of $806.6 million and $524.5 million , respectively. |
Fixed Assets and Lease Commitme
Fixed Assets and Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Fixed Assets and Lease Commitments [Abstract] | |
Fixed Assets and Lease Commitments | Fixed Assets and Lease Commitments Fixed assets (net) consisted of the following: December 31, 2017 2018 Building and leasehold improvements $ 111.9 $ 117.8 Software 50.8 51.0 Equipment 44.5 42.3 Furniture and fixtures 21.4 21.0 Land, improvements and other 18.7 18.6 Fixed assets, at cost 247.3 250.7 Accumulated depreciation and amortization (136.3 ) (146.4 ) Fixed assets (net) $ 111.0 $ 104.3 The Company and its consolidated Affiliates lease office space and equipment for their operations. At December 31, 2018 , 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: Year Required Minimum Payments 2019 $ 35.5 2020 36.9 2021 34.8 2022 27.7 2023 23.4 Thereafter 75.2 Consolidated rent expense for 2016 , 2017 and 2018 was $35.5 million , $37.5 million and $40.5 million , respectively. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consisted of the following: December 31, 2017 2018 Accrued compensation $ 472.5 $ 463.2 Accrued income taxes 93.0 42.9 Other 241.7 240.5 Payables and accrued liabilities $ 807.2 $ 746.6 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A prior owner of one of the Company’s consolidated Affiliates retained an interest in certain of the Affiliate’s private equity investment partnerships. The prior owner’s interests are presented in Other liabilities and were $61.2 million and $49.7 million at December 31, 2017 and 2018 , respectively. The Company and its Affiliates earn asset and performance based fees and incur distribution and other expenses for services provided to Affiliate sponsored investment products. In addition, Affiliate management owners and Company officers may serve as trustees or directors of certain investment vehicles from which an Affiliate earns fees. The Company had liabilities to related parties for contingent payment arrangements in connection with certain business combinations. The net present value of the total amounts payable were $9.4 million and $1.9 million as of December 31, 2017 and 2018 , respectively, and were included in Other liabilities. For the years ended December 31, 2017 and 2018 , the Company made $6.8 million and $8.8 million of payments associated with these liabilities, respectively. For the years ended December 31, 2017 and 2018 , the Company adjusted its estimates of contingent payment arrangements and recorded expenses of $6.6 million and $0.6 million , respectively. These amounts are included in Other expenses (net). The Company has related party transactions in association with its Affiliate equity transactions, as more fully described in Notes 19 and 20. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 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 2018 and January 2017, authorizing the Company to repurchase up to 3.4 million and 1.9 million shares of its common stock, respectively, and these authorizations have no expiry. For the year ended December 31, 2018 , the Company repurchased 3.3 million shares of this total authorized amount, at an average price per share of $150.31 . As of December 31, 2018 , 1.7 million shares remained available for repurchase under the January 2018 share repurchase program and no shares remained available for repurchase under the January 2017 program. The following is a summary of the Company’s share repurchase activity: Year Shares Repurchased Average Price 2016 0.2 $ 161.16 2017 2.4 173.19 2018 3.3 150.31 Forward Equity and Equity Distribution Program In 2016, the Company entered into an agreement to sell approximately 2.9 million shares of its common stock at a price of $167.25 per share on a forward basis. In 2016, 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 . This agreement is no longer in effect. In 2016, the Company entered into separate equity distribution and forward equity agreements with several major securities firms under which the Company may, from time to time, 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, 2018 , no sales had occurred under the equity distribution program. 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. 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 financial instruments. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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. 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. The total fair value of share-based compensation awards that vested was $20.7 million , $59.4 million and $5.9 million during the years ended December 31, 2016, 2017 and 2018, respectively. Share-Based Incentive Compensation The following is a summary of share-based compensation expense: Year Share-Based Compensation Expense Tax Benefit 2016 $ 39.2 $ 15.1 2017 40.4 13.6 2018 44.7 11.2 The excess tax benefit recognized from share-based incentive plans was $10.9 million and $0.7 million during the years ended December 31, 2017 and 2018 , respectively, and classified as an operating cash flow. As of December 31, 2017, the Company had $63.5 million of unrecognized share-based compensation expense. As of December 31, 2018 , the Company had $54.1 million of unrecognized share-based compensation, which will be recognized over a weighted average period of approximately two years (assuming no forfeitures). Stock Options The following table summarizes the transactions in the Company’s stock options: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Unexercised options outstanding—December 31, 2017 0.6 $ 122.04 Options granted 0.0 179.54 Options exercised (0.1 ) 99.57 Options forfeited (0.0 ) 122.40 Unexercised options outstanding—December 31, 2018 0.5 130.81 3.7 Exercisable at December 31, 2018 0.1 138.97 2.3 The Company granted stock options with fair values of $16.4 million , $0.8 million and $1.0 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. Stock options generally vest over a period of three to four years and expire seven years after the grant date. All options have been granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. In certain circumstances, option awards also require certain performance conditions to be satisfied in order for the options to be exercised. The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of options exercised during the years ended December 31, 2016 , 2017 and 2018 was $27.7 million , $50.8 million and $8.2 million , respectively. The cash received for options exercised was $25.6 million , $41.9 million and $9.7 million during the years ended December 31, 2016 , 2017 and 2018 , respectively. As of December 31, 2018 , the intrinsic value of exercisable options outstanding was $0.3 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 and were $39.02 , $48.05 and $48.64 , per option, for the years ended December 31, 2016, 2017 and 2018, respectively. The weighted average grant date assumptions used to estimate the fair value of options granted were as follows: For the Years Ended December 31, 2016 2017 2018 Dividend yield 0.0 % 0.5 % 0.8 % Expected volatility (1) 30.7 % 28.0 % 25.5 % Risk-free interest rate (2) 1.6 % 2.1 % 2.8 % Expected life of options (in years) (3) 5.7 5.7 5.7 Forfeiture rate 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 in the Company’s restricted stock units: Restricted Stock Weighted Average Grant Date Value Unvested units—December 31, 2017 0.4 $ 162.32 Units granted 0.2 201.75 Units vested (0.0 ) 188.93 Units forfeited (0.0 ) 154.92 Unvested units—December 31, 2018 0.6 172.74 The Company granted awards with fair values of $28.0 million , $36.9 million and $37.7 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. These awards were valued based on the closing price of the Company’s common stock on the grant date and the number of awards expected to be delivered. Awards containing vesting conditions generally require service over a period of three to four years and may also require the satisfaction of certain performance conditions. In certain cases, awards with performance conditions may use structures whereby the number of shares of the Company’s common stock that an employee ultimately receives at vesting will be equal to the base number of restricted stock units granted, multiplied by a predetermined percentage determined in accordance with the level of attainment of Company performance measures during the performance period and could be higher or lower than the original restricted stock unit grant. During the years ended December 31, 2017 and 2018, there were no changes in the Company’s estimate of the number of shares expected to be delivered. As of December 31, 2018 , the Company had 0.9 million shares available for grant under its plans. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests Affiliate equity interests provide holders with an equity interest in one of the Company’s Affiliates, consistent with the structured partnership interests in place at the respective Affiliate. Affiliate equity holders generally have a conditional right to put their interests to the Company at certain intervals (between five and 15 years from the date the equity interest is received or on an annual basis following an Affiliate equity holder’s departure). Prior to becoming redeemable, the value of the Company’s Affiliate equity is presented within Non-controlling interests. Upon becoming redeemable, the value of these interests is reclassified and the current redemption value of these interests is presented as Redeemable non-controlling interests. Changes in the current redemption value are recorded to Additional paid-in capital. When the Company receives a put notice and, therefore, has an unconditional obligation to repurchase Affiliate equity interests, they are reclassified to Other liabilities. The following table presents the changes in Redeemable non-controlling interests: Redeemable Non-controlling Interests 2017 2018 Balance, beginning of period $ 673.5 $ 811.9 Changes attributable to Affiliate sponsored consolidated products 12.4 51.6 Transfers to Other liabilities (192.3 ) (105.4 ) Transfers from Non-controlling interests 76.8 44.8 Changes in redemption value 241.5 30.8 Balance, end of period (1) $ 811.9 $ 833.7 __________________________ (1) As of December 31, 2017 and 2018, Redeemable non-controlling interests include Affiliate sponsored consolidated products primarily attributable to third-party investors of $39.4 million and $91.0 million , respectively. |
Affiliate Equity
Affiliate Equity | 12 Months Ended |
Dec. 31, 2018 | |
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 (non-controlling interests) were $354.1 million , $352.2 million and $370.5 million for the years ended December 31, 2016 , 2017 and 2018 , 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 15 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 repurchases Affiliate equity interests from and issues Affiliate equity interests to its Affiliate partners and its officers. The amount of cash paid for repurchases was $115.8 million , $174.7 million and $120.0 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. The total amount of cash received for issuances was $11.8 million , $9.0 million and $6.3 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its Affiliate partners and its 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 in Compensation and related expenses in the Consolidated Statements of Income over the requisite service period. The following table presents Affiliate equity compensation expense: For the Years Ended December 31, 2016 2017 2018 Controlling interest $ 10.0 $ 13.2 $ 16.7 Non-controlling interests 31.2 36.8 39.7 Total $ 41.2 $ 50.0 $ 56.4 The following table presents unrecognized Affiliate equity compensation expense: Year Controlling Interest Remaining Life Non-controlling Interests Remaining Life 2016 $ 31.3 4 years $ 70.7 5 years 2017 33.3 5 years 95.9 6 years 2018 38.7 5 years 118.3 6 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 $12.4 million and $16.2 million at December 31, 2017 and 2018 , respectively, and was included in Other assets. The total payable was $49.2 million and $36.2 million as of December 31, 2017 and 2018 , 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 the Consolidated Statements of 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 presents 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, 2016 2017 2018 Net income (controlling interest) $ 472.8 $ 689.5 $ 243.6 Increase (decrease) in controlling interest paid-in capital from Affiliate equity issuances 1.6 (1.0 ) (5.0 ) Decrease in controlling interest paid-in capital from Affiliate equity repurchases (38.0 ) (116.2 ) (67.9 ) Net income (controlling interest) including the net impact of Affiliate equity transactions $ 436.4 $ 572.3 $ 170.7 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has a defined contribution plan that is a qualified employee profit-sharing plan, covering substantially all of its employees. Under this plan, the Company is able to make discretionary contributions for the benefit of its employees that are qualified plan participants, up to Internal Revenue Service limits. The Company’s consolidated Affiliates have their own qualified defined contribution retirement plans covering their respective employees or, for several Affiliates, have their employees covered under the Company’s plan. In each case, the relevant Affiliate is able to make discretionary contributions for the benefit of its employees, as applicable, that are qualified plan participants, up to Internal Revenue Service limits. Consolidated expenses related to these plans were $18.9 million , $20.1 million and $20.8 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. The controlling interest’s portion of expenses related to these plans were $3.7 million , $3.9 million and $4.8 million for the years ended December 31, 2016 , 2017 and 2018 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s consolidated income tax provision includes taxes attributable to the controlling interest and, to a lesser extent, taxes attributable to non-controlling interests. The following table presents the consolidated provision for income taxes: For the Years Ended December 31, 2016 2017 2018 Controlling interest: Current tax $ 168.1 $ 173.8 $ 117.2 Intangible-related deferred taxes 84.3 (98.5 ) 79.7 Other deferred taxes (23.2 ) (24.9 ) (27.5 ) Total controlling interest 229.2 50.4 169.4 Non-controlling interests: Current tax $ 8.2 $ 8.2 $ 12.2 Deferred taxes (1.8 ) (0.2 ) (0.3 ) Total non-controlling interests 6.4 8.0 11.9 Income tax expense $ 235.6 $ 58.4 $ 181.3 Income before income taxes (controlling interest) $ 702.0 $ 739.9 $ 413.0 Effective tax rate (controlling interest) (1) 32.6 % 6.8 % 41.0 % __________________________ (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, 2016 2017 2018 Current: Federal $ 103.4 $ 109.0 $ 52.2 State 22.9 18.9 28.6 Foreign 50.0 54.1 48.6 Total current 176.3 182.0 129.4 Deferred: Federal 62.3 (124.9 ) 51.3 State 10.0 10.4 13.2 Foreign (13.0 ) (9.1 ) (12.6 ) Total deferred 59.3 (123.6 ) 51.9 Income tax expense $ 235.6 $ 58.4 $ 181.3 For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2016 2017 2018 Domestic $ 688.1 $ 756.5 $ 637.3 International 286.5 310.6 76.3 $ 974.6 $ 1,067.1 $ 713.6 The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2016 2017 2018 Statutory U.S. federal tax rate 35.0 % 35.0 % 21.0 % State income taxes, net of federal benefit 2.9 2.7 3.7 Effect of foreign operations (4.6 ) (5.4 ) 1.3 Effect of changes in tax law, rates (0.3 ) (25.2 ) — Reduction in carrying value of an equity method investment — — 13.0 Other (0.4 ) (0.3 ) 2.0 Effective tax rate (controlling interest) 32.6 % 6.8 % 41.0 % Effect of income from non-controlling interests (8.4 ) (1.3 ) (15.6 ) Effective tax rate 24.2 % 5.5 % 25.4 % For the year ended December 31, 2018, the effective tax rate (controlling interest) was 41.0% compared to 6.8% for the year ended December 31, 2017. The increase in the effective tax rate (controlling interest) in 2018 was primarily due to a provisional one-time benefit of $194.1 million recorded in 2017 as a result of changes in U.S. tax laws, which did not recur in 2018. The provisional one-time benefit was primarily due to a $216.9 million benefit from the re-measurement of the Company’s deferred tax liabilities associated with its intangible assets and convertible securities, partially offset by a $22.8 million transition tax on deemed repatriated foreign earnings. The increase in the effective tax rate (controlling interest) in 2018 was also due to a $240.0 million expense recorded to reduce the carrying value to fair value of one of the Company’s non-U.S. alternative Affiliates accounted for under the equity method for which the Company did no t recognize an income tax benefit under GAAP. The Company finalized its accounting for the changes in U.S. tax laws in the three months ended December 31, 2018 and no significant adjustments were made to the provisional amount. For the year ended December 31, 2017, the effective tax rate (controlling interest) was 6.8% compared to 32.6% for the year ended December 31, 2016. The decrease in the effective tax rate (controlling interest) in 2017 was primarily due to the provisional one-time benefit recorded for the changes in U.S. tax laws. Deferred income tax liability (net) reflects 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 tax liability (net) are as follows: December 31, 2017 2018 Deferred Tax Assets Deferred compensation $ 10.4 $ 18.0 State net operating loss carryforwards 16.8 18.2 Foreign loss carryforwards 16.3 16.7 Tax benefit of uncertain tax positions 11.4 10.9 Deferred income — 8.8 Accrued expenses 1.3 3.6 Other — 1.5 Total deferred tax assets 56.2 77.7 Valuation allowance (24.1 ) (24.1 ) Deferred tax assets, net of valuation allowance $ 32.1 $ 53.6 Deferred Tax Liabilities Intangible asset amortization $ (258.6 ) $ (337.1 ) Convertible securities interest (77.9 ) (84.5 ) Non-deductible intangible amortization (150.8 ) (141.0 ) Deferred income (5.9 ) — Other (6.3 ) (2.6 ) Total deferred tax liabilities (499.5 ) (565.2 ) Deferred income tax liability (net) $ (467.4 ) $ (511.6 ) At December 31, 2018 , the Company had available state net operating loss carryforwards of $455.0 million , a majority of which will expire over a 15 -to- 20 -year period. At December 31, 2018, the Company had foreign loss carryforwards of $63.1 million , of which $54.1 million will expire over a 20 -year period and the balance will carry forward indefinitely. The Company believes that it is more-likely-than-not that the benefit from its state and foreign loss carryforwards will not be fully realized and recorded a valuation allowance of $9.8 million and $14.3 million on the state and foreign loss carryforwards, respectively. For the year ended December 31, 2017 , the Company increased its valuation allowance $2.0 million . For the year ended December 31, 2018 , the Company made no adjustments to the valuation allowance. The Company continues not to provide for U.S. income taxes on the excess of the financial reporting bases over tax bases 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 foreign subsidiaries. While a 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, as of December 31, 2018 , the estimated amount of such difference was $225.4 million . A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2016 2017 2018 Balance, beginning of period $ 26.9 $ 26.8 $ 32.4 Additions based on current year tax positions 3.8 6.0 2.4 Additions based on prior years’ tax positions 0.6 1.5 8.4 Reduction for prior years’ tax positions — — (2.0 ) Reductions related to lapses of statutes of limitations (4.7 ) (2.3 ) (6.3 ) Settlements — — (1.3 ) Additions (reductions) related to foreign exchange rates 0.2 0.4 (0.5 ) Balance, end of period $ 26.8 $ 32.4 $ 33.1 Included in the balance of unrecognized tax benefits at December 31, 2016 , 2017 and 2018 were $26.0 million , $32.4 million and $33.1 million , respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective tax rate (controlling interest). The Company records accrued interest and penalties, if any, related to unrecognized tax benefits in Income tax expense. The Company had $1.4 million , $1.7 million and $2.1 million in interest related to unrecognized tax benefits accrued at December 31, 2016 , 2017 and 2018 , respectively, which are included in the table above. For the years ended December 31, 2016 , 2017 and 2018 , no significant penalties were recorded in Income tax expense. The Company does not expect any significant changes to its liability for unrecognized tax benefits during the next 12 months. The Company is subject to U.S. federal, state and local, and foreign income tax in multiple jurisdictions and 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 2012. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The calculation of Earnings per share (basic) is based on the weighted average number of shares of the Company’s common stock outstanding during the period. Earnings per share (diluted) is similar to Earnings per share (basic), but adjusts for the dilutive effect of the potential issuance of incremental shares of the Company’s common stock. The following is a reconciliation of the numerator and denominator used in the calculation of basic and diluted earnings per share available to common stockholders: For the Years Ended December 31, 2016 2017 2018 Numerator Net income (controlling interest) $ 472.8 $ 689.5 $ 243.6 Interest expense on convertible securities, net of taxes 15.5 15.5 — Net income (controlling interest), as adjusted $ 488.3 $ 705.0 $ 243.6 Denominator Average shares outstanding (basic) 54.2 56.0 53.6 Effect of dilutive instruments: Stock options and restricted stock units 0.6 0.4 0.2 Convertible securities 2.2 2.2 — Average shares outstanding (diluted) 57.0 58.6 53.8 Average shares outstanding (diluted) in the table above excludes share-based awards that have not satisfied performance conditions and the anti-dilutive effect of the following: For the Years Ended December 31, 2016 2017 2018 Stock options and restricted stock units 0.6 0.1 0.2 Convertible securities — — 2.2 The Company may settle portions of its Affiliate equity purchases in shares of its common stock. Because it is the Company’s intention to settle these potential purchases in cash, the calculation of Average shares outstanding (diluted) excludes any potential dilutive effect from possible share settlements of Affiliate equity purchases. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income | Comprehensive Income The following tables present the tax effects allocated to each component of Other comprehensive income (loss): For the Year Ended December 31, 2016 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (115.3 ) $ — $ (115.3 ) Change in net realized and unrealized gain (loss) on derivative financial instruments 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 ) For the Year Ended December 31, 2017 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ 128.0 $ — $ 128.0 Change in net realized and unrealized gain (loss) on derivative financial instruments (0.7 ) (0.1 ) (0.8 ) Change in net unrealized gain (loss) on investment securities (15.0 ) 7.3 (7.7 ) Other comprehensive income (loss) $ 112.3 $ 7.2 $ 119.5 For the Year Ended December 31, 2018 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (87.0 ) $ (15.1 ) $ (102.1 ) Change in net realized and unrealized gain (loss) on derivative financial instruments (0.1 ) — (0.1 ) Other comprehensive income (loss) $ (87.1 ) $ (15.1 ) $ (102.2 ) The components of accumulated other comprehensive income (loss), net of taxes, were as follows: Foreign Currency Translation Adjustment Realized and Unrealized Gains (Losses) on Derivative Financial Instruments Unrealized Gains (Losses) on Investment Securities (1) Total Balance, as of December 31, 2016 $ (213.9 ) $ 0.4 $ 9.8 $ (203.7 ) Other comprehensive income (loss) before reclassifications 128.0 (1.6 ) 15.7 142.1 Amounts reclassified — 0.8 (23.4 ) (22.6 ) Net other comprehensive income (loss) 128.0 (0.8 ) (7.7 ) 119.5 Balance, as of December 31, 2017 $ (85.9 ) $ (0.4 ) $ 2.1 $ (84.2 ) Other comprehensive income (loss) before reclassifications (102.1 ) (0.2 ) — (102.3 ) Amounts reclassified — 0.1 (2.1 ) (2.0 ) Net other comprehensive income (loss) (102.1 ) (0.1 ) (2.1 ) (104.3 ) Balance, as of December 31, 2018 $ (188.0 ) $ (0.5 ) $ — $ (188.5 ) __________________________ (1) In connection with the Company’s adoption of ASU 2016-01, the unrealized gains on investment securities, which related to the non-controlling interests, were reclassified to Non-controlling interests. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 and 2018 : 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Consolidated revenue $ 544.3 $ 570.9 $ 585.7 $ 604.1 Income before income taxes 253.3 266.9 282.9 264.0 Net income 193.7 204.4 216.8 393.8 Net income (controlling interest) 122.5 126.3 125.4 315.4 Earnings per share (diluted) $ 2.13 $ 2.22 $ 2.22 $ 5.50 2018 First Quarter Second Quarter Third Quarter (2) Fourth Quarter (2) Consolidated revenue $ 612.5 $ 600.2 $ 601.3 $ 564.4 Income (loss) before income taxes 287.5 239.3 250.4 (63.6 ) Net income (loss) 224.0 205.2 201.9 (98.8 ) Net income (loss) (controlling interest) 153.0 117.0 124.9 (151.3 ) Earnings (loss) per share (diluted) $ 2.77 $ 2.16 $ 2.34 $ (2.88 ) __________________________ (1) In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). (2) For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table presents Consolidated revenue and Fixed assets (net) of the Company by geographic location. This information is primarily based on the location of the headquarters of the Affiliate. For the Years Ended December 31, 2016 2017 2018 Consolidated revenue United States $ 1,477.5 $ 1,571.4 $ 1,611.7 United Kingdom 566.4 587.3 628.8 Other 150.7 146.3 137.9 Total $ 2,194.6 $ 2,305.0 $ 2,378.4 December 31, 2016 2017 2018 Fixed Assets (net) United States $ 97.3 $ 97.8 $ 87.1 United Kingdom 9.9 11.4 15.7 Other 2.9 1.8 1.5 Total $ 110.1 $ 111.0 $ 104.3 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 $ 24.1 $ 0.6 $ — $ 0.6 $ 24.1 2017 22.1 1.1 0.9 — 24.1 2016 20.5 1.3 0.3 — 22.1 Other Allowances (1) Year Ending December 31, 2018 $ 3.6 $ 6.4 $ — $ 5.0 $ 5.0 2017 10.3 0.6 — 7.3 3.6 2016 10.6 5.0 — 5.3 10.3 __________________________ (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. Deductions represent the reversal of such reserves upon collection of the amounts due. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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. All material intercompany balances and transactions have been eliminated. In 2018, the Company changed its Consolidated Financial Statement presentation to present non-classified Consolidated Statements of Income. This change and other reclassifications have been made to the prior period’s financial statements to conform to the current period’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 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, 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, which for the Company are Affiliate investments structured as partnerships (or similar entities) where the Company is a limited partner and lacks substantive kick-out or substantive participation rights over the general partner. 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 entity. When the Company lacks control, but is deemed to have significant influence, the Company accounts for the entity under the equity method. Other investments in which the Company does not have rights to exercise significant influence are recorded at fair value, with changes in fair value reflected within Investment and other income on the Consolidated Statements of Income. The Company consolidates VIEs when it is the primary beneficiary of the entity, 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. The Company applies the equity method of accounting to VIEs where the Company is not the primary beneficiary, but has the ability to exercise significant influence over operating and financial matters of the VIE. See Note 4 for additional information about the Company’s VREs and VIEs. Investments in Affiliates Substantially all of the Company’s Affiliates are considered VIEs and are either consolidated or accounted for under the equity method. A limited number of the Company’s Affiliates are considered VREs and most of these are accounted for under the equity method. When an Affiliate is consolidated, the portion of the earnings attributable to Affiliate managements’ equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Undistributed earnings attributable to Affiliate managements’ equity ownership, along with their share of any tangible or intangible net assets, are presented within Non-controlling interests on the Consolidated Balance Sheets. Affiliate equity interests where the holder has certain rights to demand settlement are presented, at their current redemption values, as Redeemable non-controlling interests on the Consolidated Balance Sheets. The Company periodically issues, sells and repurchases the Affiliate equity of its consolidated Affiliates. Because these transactions take place between entities under common control, any gains or losses attributable to these transactions are required to be included within Additional paid-in capital on the Consolidated Balance Sheets, net of any related income tax effects in the period the transactions occur. When an Affiliate is accounted for under the equity method, the Company’s share of an Affiliate’s earnings or losses, net of amortization and impairments, is included in Equity method income (loss) (net) in the Consolidated Statements of Income and the carrying value of the Affiliate is reported in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. Any deferred taxes recorded upon acquisition of an equity method Affiliate are presented on a gross basis within Equity method investments in Affiliates (net) and Deferred income tax liability (net) in the Consolidated Balance Sheets. The Company’s share of income taxes incurred directly by Affiliates accounted for under the equity method is recorded within Income tax expense in the Consolidated Statements of Income. The Company periodically evaluates its equity method investments for impairment. In such impairment evaluations, the Company assesses whether or not 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 carrying value of the investment is reduced to its fair value and the expense is recorded in Equity method income (loss) (net). Affiliate Sponsored Investment Products The Company’s Affiliates sponsor various investment products where they also act as the investment adviser. These investment products are typically owned primarily by third-party investors; however, certain products are funded with general partner and seed capital investments from the Company and its Affiliates. Third-party investors in Affiliate sponsored investment products are generally entitled to substantially all of the economics of these products, except for the asset and performance based fees earned by the Company’s Affiliates or any gains or losses attributable to the Company’s or its Affiliates’ investments in these products. As a result, the Company does not generally consolidate these products unless the Company’s or its consolidated Affiliates’ interest in the product is considered substantial. When the Company’s or its consolidated Affiliates’ interest is considered substantial and the products are consolidated, 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 Investment and other income. Purchases and sales of securities are presented within purchases and sales by Affiliate sponsored consolidated products in the Consolidated Statements of Cash Flows and the third-party investors’ interest is recorded in Redeemable non-controlling interests. When the Company or its consolidated Affiliates no longer control these products, due to a reduction in ownership or other reasons, the products are deconsolidated with only the Company’s or its consolidated Affiliate’s investment in the product reported from the date of deconsolidation. |
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 and performance based fees, which are billed based on the terms of the related contracts. Billed but uncollected asset and performance based 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, the Company’s Affiliates and the sponsored investment products. |
Investments in Marketable Securities | Investments in Marketable Securities Realized and unrealized gains or losses on investments in marketable securities are reported within Investment and other income in the Consolidated Statements of Income. Realized gains and losses are recorded on the trade date on a specific identified basis, except for Affiliate sponsored consolidated products, which use an average cost basis. |
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 in the principal or most advantageous market 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 that 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 the Company believes market participants would use in pricing the asset or liability. |
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 the contracts to be renewed annually 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 expense would be recorded in an amount equal to any such excess and these assets would be reclassified to definite-lived. The expected period of economic benefit 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 these 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 period of economic benefit 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 may not be 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 expense would be recorded in Intangible amortization and impairments in the Consolidated Statements of Income to reduce the carrying value of the asset to fair value. Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not separately recognized. Goodwill is not amortized, but is instead reviewed for impairment. The Company performs a qualitative impairment test at least annually to determine if the carrying value of its single reporting unit is in excess of its fair value. If a potential impairment is more likely than not, then the Company will perform a single step quantitative test with any excess of carrying value over fair value recorded as an expense in Intangible amortization and impairments. |
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 five years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the term of the lease. Buildings are amortized over their expected useful lives, generally not to exceed 39 years. The costs of improvements that extend the life of a fixed asset are capitalized, while the cost of repairs and maintenance are expensed as incurred. Land and artwork are not depreciated; artwork is included in Other assets on the Consolidated Balance Sheets. |
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 expenses (net) on the Consolidated Statements of Income. |
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” and, together with the revolver, the “credit facilities”), which approximates the effective interest method. Issuance costs associated with the revolver are included in Other assets. Issuance costs associated with the term loan are included as a reduction of the related debt balance. 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 and its Affiliates may utilize derivative financial instruments to offset exposure to changes in interest rates, foreign currency exchange rates and markets. The Company records derivatives in the Consolidated Balance Sheets at fair value. If the Company’s or its Affiliates’ derivative financial instruments do not qualify as cash flow, net investment or fair value hedges, changes in the fair value of the derivatives are recognized as a gain or loss in Investment and other income. If the Company’s or its Affiliates’ derivative financial instruments qualify as cash flow or net investment hedges, the effective portion of the unrealized gain or loss is recorded in Other comprehensive income (loss) as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. For cash flow hedges, hedge effectiveness is generally measured by comparing the present value of the cumulative change in the expected future cash flows of the hedged contract with the present value of the cumulative change in the expected future cash flows of the hedged item. For net investment hedges, hedge effectiveness is measured using the spot rate method. For fair value hedges, the entire change in the fair value of the hedging instrument is presented in earnings with the hedged item, unless the changes in fair value are not equal, which would result in hedge ineffectiveness. Any hedge ineffectiveness is recorded in Investment and other income. The Company assesses hedge effectiveness on a quarterly basis. Changes in fair value of a hedging instrument that are excluded from the assessment of hedge effectiveness, also known as excluded components, are amortized over the period of the designated hedge. |
Revenue Recognition | Revenue Recognition Revenue primarily represents asset and performance based fees earned by the Company and its Affiliates for managing the assets of clients. Substantially all of the Company’s and its Affiliates’ contracts contain a single performance obligation, which is the provision of investment management services. Investment management, broker-dealer and administrative services are performed and consumed simultaneously and, therefore, the Company recognizes these asset based fees ratably over time. Substantially all the Company’s asset based fees for services are based on the value of client assets over time, which are typically determined using observable market data. Services may be invoiced in advance or in arrears and are payable upon receipt. Any asset based fees collected in advance are deferred and recognized as the services are performed and consumed. Revenue recognized by the Company is adjusted for any expense reimbursement arrangements. Performance based fees, including carried interests, are recognized only upon the satisfaction of performance obligations, the resolution of any constraints (which may extend over one or more reporting periods) and when it is improbable that there will be a significant reversal in the amount of revenue recognized. As a result, any performance based fees or carried interest recognized in the current reporting period may relate to performance obligations satisfied in a previous reporting period. The Company and its Affiliates have contractual arrangements with third parties to provide distribution-related services. Fees received and expenses incurred under these arrangements are primarily based on the value of client assets over time. Distribution-related fees are presented in revenue gross of any related expenses when the Company and its Affiliates are the principal in its role as primary obligor under their distribution-related services arrangements. Distribution-related expenses are presented within Selling, general and administrative expenses in the Consolidated Statements of Income. The Company and its Affiliates may enter into contracts for which the costs to obtain or fulfill the contract are based upon a percentage of the value of a client’s future assets under management. The Company records these variable costs when incurred because they are subject to market volatility and are not estimable upon the inception of a contract with a client. Any expenses paid in advance are capitalized and amortized on a systematic basis, consistent with the transfer of services, which is the equivalent of recognizing the costs as incurred. |
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 specified financial targets 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 in Other liabilities on the 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. Gains and losses resulting from changes to expected payments are reflected in Other expenses (net) and the accretion of these obligations to their expected payment amounts are reflected within Interest expense. For Affiliates accounted for under the equity method of accounting, the Company records a liability in Payables and accrued liabilities when a payment becomes probable, with a corresponding increase to the carrying value of the Affiliate in Equity method investments in Affiliates (net). |
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 tax expense 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 it would not be able to realize its deferred tax assets, it records a valuation allowance to reflect the deferred tax assets at their current value. Adjustments to the valuation allowance will increase or decrease Income tax expense. 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 that 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 tax expense. Interest and penalties related to unrecognized tax benefits are also recorded in Income tax expense. On December 22, 2017, changes in U.S. tax laws were enacted, which significantly revised U.S. corporate income tax by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system and imposing a one-time transition tax on deemed repatriated foreign earnings and profits. The U.S. Securities and Exchange Commission (the “SEC”) issued Staff Accounting Bulletin No. 118 to address the application of GAAP in situations when a company did not have the necessary information available, prepared or analyzed to complete the accounting for certain income tax effects of the changes in U.S. tax laws as of December 31, 2017 and allowed companies to record provisional amounts. Changes to provisional amounts or new amounts resulting from new guidance, interpretations or other information or from further evaluation of the impact of the changes in U.S. tax laws are recorded in subsequent reporting periods not to extend beyond one year from the enactment date. The Company finalized its accounting for the impact of changes in U.S. tax laws in the three months ended December 31, 2018. No significant adjustments to the provisional amount were made. The Company has elected to treat taxes due on U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred (the “period cost method”). |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities denominated in a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expenses denominated in a functional currency other than the U.S. dollar 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 its Affiliates, net translation exchange gains and losses resulting from foreign currency translation are recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity on the Consolidated Balance Sheets. 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 and derivative financial instruments. The Company and its Affiliates maintain cash and cash equivalents, investments and, at times, certain derivative financial instruments with various high credit-quality financial institutions. These financial institutions are typically located in countries in which the Company and its Affiliates operate. For the Company and certain of its Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. |
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. Earnings per share (diluted) is similar to Earnings per share (basic), 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 Earnings per share (diluted). 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. Tax windfalls or shortfalls are recognized in Income tax expense 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 in the Consolidated Statements of Cash Flows. |
Recent Accounting Developments | Recent Accounting Developments During the year ended December 31, 2018, the Company adopted several Accounting Standard Updates (“ASUs”) as follows: Effective January 1, 2018: • ASU 2014-09, Revenue from Contracts with Customers; • ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Liabilities; • ASU 2016-15, Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments; • ASU 2017-01, Clarifying the Definition of a Business; • ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Accounting for Goodwill Impairment, • ASU 2017-09, Compensation - Stock Compensation; and • ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities Effective September 1, 2018: • ASU 2018-13, Fair Value Measurements: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement None of these ASUs had a significant impact on the Company’s Consolidated Financial Statements. While the Company and the Company’s consolidated Affiliates adopted ASU 2014-09 on January 1, 2018, the standard is effective for the Company’s equity method Affiliates for interim and annual periods beginning after December 15, 2018. The Company does not expect a significant impact to its Consolidated Financial Statements upon adoption of the standard by its equity method Affiliates. Also, on September 1, 2018, the Company early adopted the eliminated and modified disclosures of ASU 2018-13 and, as a result, updated its financial statement disclosures accordingly. A modified narrative description of measurement uncertainty for level 3 fair value measurements was applied prospectively, with all other amendments applied retrospectively. As permitted by ASU 2018-13, the Company will present the additional disclosures required in the interim and annual periods beginning after December 15, 2019. In February 2016, the Financial Accounting Standards Board issued ASU 2016-02, Leases, and subsequently issued several related amendments. The standard requires lessees to record right-of-use assets and lease liabilities arising from most operating leases on their statement of financial position. The standard is effective for interim and annual periods beginning after December 15, 2018 for the Company and its consolidated Affiliates, and for interim and annual periods beginning after December 15, 2019 for the Company’s equity method Affiliates. The Company plans to adopt the standard using a modified retrospective method. The Company does not expect the adoption to significantly impact its Consolidated Statements of Income or its Consolidated Statements of Cash Flows. The Company anticipates recording a lease liability and a corresponding right-of-use asset of approximately $200 million on its Consolidated Balance Sheets. The Company will elect the transition practical expedients provided by ASU 2016-02, which allows the Company to carryforward its historical lease classification. As permitted under ASU 2016-02, the Company will elect not to record short-term leases with an initial lease term less than 12-months on its Consolidated Balance Sheets. Additionally, the Company will make an accounting policy election to include non-lease components for real estate leases and to separate non-lease components for non-real estate leases for the calculation of its lease liabilities. The Company will continue to assess the impact of adoption for its equity method Affiliates. |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Schedule of 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 in marketable securities: December 31, 2017 2018 Cost $ 67.1 $ 126.8 Unrealized gains 13.0 1.1 Unrealized losses (2.3 ) (8.6 ) Fair value $ 77.8 $ 119.3 |
Investments in Affiliates and_2
Investments in Affiliates and Affiliate Sponsored Investment Products (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities | |
Schedule of Net Assets and Liabilities and Maximum Risk of Losses Related to Unconsolidated VIEs | The net assets of Affiliate sponsored investment products that were considered VIEs accounted for under the equity method and the Company’s carrying value and maximum exposure to loss were as follows: December 31, 2017 December 31, 2018 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 2,154.6 $ 10.2 $ 2,216.5 $ 1.1 Substantially all of the Company’s consolidated Affiliates are considered VIEs. The unconsolidated assets, net of liabilities and non-controlling interests of equity method Affiliates considered VIEs, and the Company’s carrying value and maximum exposure to loss, were as follows: December 31, 2017 December 31, 2018 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,594.4 $ 2,765.7 $ 1,102.9 $ 2,277.8 |
Senior Notes (Tables)
Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Principal Terms of Senior Notes Outstanding | At December 31, 2018 , the Company had two senior notes outstanding. The carrying value of the senior notes is accreted to the principal amount at maturity over a remaining life of the underlying instrument. The respective principal terms of the senior notes are presented below: 2024 Senior Notes 2025 Senior Notes Issue date February 2014 February 2015 Maturity date February 2024 August 2025 Potential Call Date (1) Any Time Any Time Par value (in millions) $ 400.0 $ 350.0 Call Price (1) As Defined As Defined Stated coupon 4.25 % 3.50 % Coupon frequency Semi-annually Semi-annually __________________________ (1) The senior notes may be redeemed at any time, in whole or in part, at a make-whole redemption price plus accrued and unpaid interest. The make-whole redemption price, in each case, is equal to the greater of 100% of the principal amount of the notes to be redeemed and the remaining principal and interest payments on the notes being redeemed (excluding accrued but unpaid interest to, but not including, the redemption date) discounted to their present value as of the redemption date at the applicable treasury rate plus 0.25% . |
Convertible Securities (Tables)
Convertible Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 December 31, 2018 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 309.9 $ 430.8 $ 312.5 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 19 years. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Company's Derivative Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s and its Affiliates’ derivative financial instruments measured at fair value on a recurring basis. As of December 31, 2017 , the Company and its Affiliates did not have any significant derivative financial instruments. December 31, 2018 Assets Liabilities Forward contracts $ 32.0 $ (1.4 ) Put options — (60.3 ) Call options 34.1 — Total $ 66.1 $ (61.7 ) |
Schedule of Effect of Derivative Financial Instruments on the Consolidated Statements of Comprehensive Income and Statements of Income | The following table summarizes the effect of the derivative financial instruments on the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Income: For the Year Ended December 31, 2018 Gain (Loss) Recognized in Other Comprehensive Income Gain (Loss) Recognized in Earnings from Excluded Components (1) Forward contracts $ 27.2 $ 3.8 Put options (17.8 ) — Call options (8.4 ) — Total $ 1.0 $ 3.8 (1) The excluded components are recorded as a reduction in Interest expense. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 77.8 $ 77.8 $ — $ — Derivative financial instruments (1) 0.2 — 0.2 — Financial Liabilities (2) Contingent payment arrangements $ 9.4 $ — $ — $ 9.4 Affiliate equity repurchase obligations 49.2 — — 49.2 Derivative financial instruments 0.6 — 0.6 — Fair Value Measurements December 31, 2018 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 119.3 $ 119.3 $ — $ — Derivative financial instruments (1) 5.8 — 5.8 — Financial Liabilities (2) Contingent payment arrangements $ 1.9 $ — $ — $ 1.9 Affiliate equity repurchase obligations 36.2 — — 36.2 Derivative financial instruments 1.4 — 1.4 — __________________________ (1) Amounts are presented within Other assets. (2) Amounts are presented within 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, 2017 2018 Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Balance, beginning of period $ 8.6 $ 12.1 $ 9.4 $ 49.2 Net realized and unrealized losses (1) 7.6 5.5 1.3 — Purchases and issuances (2) — 206.1 — 105.4 Settlements and reductions (6.8 ) (174.5 ) (8.8 ) (118.4 ) Balance, end of period $ 9.4 $ 49.2 $ 1.9 $ 36.2 Net change in unrealized losses relating to instruments still held at the reporting date (1) $ 2.8 $ — $ 0.2 $ — __________________________ (1) For the years ended December 31, 2017 and 2018, net realized and unrealized losses resulting from changes to contingent payment arrangements were $6.6 million and $0.6 million , respectively, and were recorded in Other expenses (net). For the years ended December 31, 2017 and 2018, the accretion expense for these arrangements was $1.0 million and $0.7 million , respectively, and was recorded in Interest expense. (2) Includes transfers from Redeemable non-controlling interests. |
Schedule of Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in valuing the Company’s level 3 fair value measurements: Quantitative Information about Level 3 Fair Value Measurements Valuation Techniques Unobservable Input Fair Value at Range at December 31, 2017 Weighted Average at December 31, 2017 Fair Value at Range at December 31, 2018 Weighted Average at December 31, 2018 Contingent payment arrangements Discounted cash flow Growth rates $ 9.4 7% - 8% 7% $ 1.9 7% 7% Discount rates 15% - 16% 15% 15% 15% Affiliate equity repurchase obligations Discounted cash flow Growth rates 49.2 0% - 11% 6% 36.2 (4)% - 9% 3% Discount rates 12% - 16% 14% 14% - 16% 15% |
Schedule of Investments | The following table summarizes the nature of the Company’s investments, unfunded commitments, and any related liquidity restrictions or other factors that may impact the ultimate value realized: December 31, 2017 December 31, 2018 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 156.1 $ 98.8 $ 193.2 $ 131.0 Other funds (2) 8.9 — 7.9 — Other investments (3) $ 165.0 $ 98.8 $ 201.1 $ 131.0 __________________________ (1) The Company uses NAV as a practical expedient one quarter in arrears (adjusted for current period calls and distributions) to determine the fair value. These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . (2) These are multi-disciplinary funds that invest across various asset classes and strategies, including long/short equity, credit and real estate. Investments are generally redeemable on a daily, monthly or quarterly basis. (3) Fair value attributable to the controlling interest was $80.1 million and $123.2 million as of December 31, 2017 and 2018 , respectively. |
Schedule of Financial Liabilities not Carried at Fair Value | The following table summarizes the Company’s other financial liabilities not carried at fair value: December 31, 2017 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 745.7 $ 765.2 $ 746.2 $ 747.5 Level 2 Convertible securities 309.9 549.8 312.5 391.5 Level 2 |
Goodwill and Acquired Client _2
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following tables present the changes in the Company’s consolidated Affiliates’ Goodwill and components of Acquired client relationships (net): Goodwill 2017 2018 Balance, beginning of period $ 2,628.1 $ 2,662.5 Foreign currency translation 34.4 (29.1 ) Balance, end of period $ 2,662.5 $ 2,633.4 |
Schedule of Changes in, and the Components of, Acquired Client Relationships | Acquired Client Relationships (Net) Definite-lived Indefinite-lived Total Gross Book Value Accumulated Amortization Net Book Value Net Book Value Net Book Value Balance, as of December 31, 2016 $ 1,290.0 $ (788.1 ) $ 501.9 $ 995.5 $ 1,497.4 Intangible amortization and impairments — (86.4 ) (86.4 ) — (86.4 ) Foreign currency translation 5.5 — 5.5 33.2 38.7 Balance, as of December 31, 2017 $ 1,295.5 $ (874.5 ) $ 421.0 $ 1,028.7 $ 1,449.7 Intangible amortization and impairments — (114.4 ) (114.4 ) (0.4 ) (114.8 ) Foreign currency translation (3.0 ) — (3.0 ) (22.0 ) (25.0 ) Balance, as of December 31, 2018 $ 1,292.5 $ (988.9 ) $ 303.6 $ 1,006.3 $ 1,309.9 |
Equity Method Investments in _2
Equity Method Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 (2) 2017 2018 Revenue (1) $ 2,200.9 $ 3,126.3 $ 3,231.7 Net income (1) 1,068.9 2,182.7 1,286.1 December 31, 2017 2018 Assets $ 3,324.9 $ 2,730.4 Liabilities and Non-controlling interests 1,405.5 1,235.1 __________________________ (1) Revenue and the associated net income include asset and performance based fees and the impact of consolidated investment products. (2) Revenue and net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. The following table presents the change in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2017 2018 Balance, beginning of period $ 3,368.3 $ 3,304.7 Equity method earnings 501.4 370.6 Equity method intangible amortization and impairments (199.2 ) (370.8 ) Distributions of earnings from equity method investments (429.8 ) (466.3 ) Investments 29.8 7.3 Foreign currency translation 62.3 (34.5 ) Other (1) (28.1 ) (20.0 ) Balance, end of period $ 3,304.7 $ 2,791.0 |
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, 2016 (2) 2017 2018 Revenue (1) $ 2,200.9 $ 3,126.3 $ 3,231.7 Net income (1) 1,068.9 2,182.7 1,286.1 December 31, 2017 2018 Assets $ 3,324.9 $ 2,730.4 Liabilities and Non-controlling interests 1,405.5 1,235.1 __________________________ (1) Revenue and the associated net income include asset and performance based fees and the impact of consolidated investment products. (2) Revenue and net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. The following table presents the change in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2017 2018 Balance, beginning of period $ 3,368.3 $ 3,304.7 Equity method earnings 501.4 370.6 Equity method intangible amortization and impairments (199.2 ) (370.8 ) Distributions of earnings from equity method investments (429.8 ) (466.3 ) Investments 29.8 7.3 Foreign currency translation 62.3 (34.5 ) Other (1) (28.1 ) (20.0 ) Balance, end of period $ 3,304.7 $ 2,791.0 |
Fixed Assets and Lease Commit_2
Fixed Assets and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fixed Assets and Lease Commitments [Abstract] | |
Schedule of Fixed Assets | Fixed assets (net) consisted of the following: December 31, 2017 2018 Building and leasehold improvements $ 111.9 $ 117.8 Software 50.8 51.0 Equipment 44.5 42.3 Furniture and fixtures 21.4 21.0 Land, improvements and other 18.7 18.6 Fixed assets, at cost 247.3 250.7 Accumulated depreciation and amortization (136.3 ) (146.4 ) Fixed assets (net) $ 111.0 $ 104.3 |
Schedule of Aggregate Future Minimum Payments for Operating Leases | At December 31, 2018 , 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: Year Required Minimum Payments 2019 $ 35.5 2020 36.9 2021 34.8 2022 27.7 2023 23.4 Thereafter 75.2 |
Payables and Accrued Liabilit_2
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Payables and accrued liabilities consisted of the following: December 31, 2017 2018 Accrued compensation $ 472.5 $ 463.2 Accrued income taxes 93.0 42.9 Other 241.7 240.5 Payables and accrued liabilities $ 807.2 $ 746.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Recent Share Repurchase Activity | The following is a summary of the Company’s share repurchase activity: Year Shares Repurchased Average Price 2016 0.2 $ 161.16 2017 2.4 173.19 2018 3.3 150.31 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Recent Share-Based Compensation Expense | The following is a summary of share-based compensation expense: Year Share-Based Compensation Expense Tax Benefit 2016 $ 39.2 $ 15.1 2017 40.4 13.6 2018 44.7 11.2 |
Schedule of Transactions of the Company's Stock Options | The following table summarizes the transactions in the Company’s stock options: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Unexercised options outstanding—December 31, 2017 0.6 $ 122.04 Options granted 0.0 179.54 Options exercised (0.1 ) 99.57 Options forfeited (0.0 ) 122.40 Unexercised options outstanding—December 31, 2018 0.5 130.81 3.7 Exercisable at December 31, 2018 0.1 138.97 2.3 |
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 and were $39.02 , $48.05 and $48.64 , per option, for the years ended December 31, 2016, 2017 and 2018, respectively. The weighted average grant date assumptions used to estimate the fair value of options granted were as follows: For the Years Ended December 31, 2016 2017 2018 Dividend yield 0.0 % 0.5 % 0.8 % Expected volatility (1) 30.7 % 28.0 % 25.5 % Risk-free interest rate (2) 1.6 % 2.1 % 2.8 % Expected life of options (in years) (3) 5.7 5.7 5.7 Forfeiture rate 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. |
Schedule of Transactions of the Company's Restricted Stock | The following table summarizes the transactions in the Company’s restricted stock units: Restricted Stock Weighted Average Grant Date Value Unvested units—December 31, 2017 0.4 $ 162.32 Units granted 0.2 201.75 Units vested (0.0 ) 188.93 Units forfeited (0.0 ) 154.92 Unvested units—December 31, 2018 0.6 172.74 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Changes in Redeemable Non-Controlling Interests | The following table presents the changes in Redeemable non-controlling interests: Redeemable Non-controlling Interests 2017 2018 Balance, beginning of period $ 673.5 $ 811.9 Changes attributable to Affiliate sponsored consolidated products 12.4 51.6 Transfers to Other liabilities (192.3 ) (105.4 ) Transfers from Non-controlling interests 76.8 44.8 Changes in redemption value 241.5 30.8 Balance, end of period (1) $ 811.9 $ 833.7 __________________________ (1) As of December 31, 2017 and 2018, Redeemable non-controlling interests include Affiliate sponsored consolidated products primarily attributable to third-party investors of $39.4 million and $91.0 million , respectively. |
Affiliate Equity (Tables)
Affiliate Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Affiliate Equity | |
Schedule of Affiliate Equity Compensation Expense | The following table presents Affiliate equity compensation expense: For the Years Ended December 31, 2016 2017 2018 Controlling interest $ 10.0 $ 13.2 $ 16.7 Non-controlling interests 31.2 36.8 39.7 Total $ 41.2 $ 50.0 $ 56.4 |
Schedule of Affiliate Equity Unrecognized Compensation Expense | The following table presents unrecognized Affiliate equity compensation expense: Year Controlling Interest Remaining Life Non-controlling Interests Remaining Life 2016 $ 31.3 4 years $ 70.7 5 years 2017 33.3 5 years 95.9 6 years 2018 38.7 5 years 118.3 6 years |
Schedule of the Effect of Changes in the Company's Ownership Interest in its Affiliates on the Controlling Interest's Equity | 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 presents 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, 2016 2017 2018 Net income (controlling interest) $ 472.8 $ 689.5 $ 243.6 Increase (decrease) in controlling interest paid-in capital from Affiliate equity issuances 1.6 (1.0 ) (5.0 ) Decrease in controlling interest paid-in capital from Affiliate equity repurchases (38.0 ) (116.2 ) (67.9 ) Net income (controlling interest) including the net impact of Affiliate equity transactions $ 436.4 $ 572.3 $ 170.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision Attributable to Controlling and Non-Controlling Interests | The following table presents the consolidated provision for income taxes: For the Years Ended December 31, 2016 2017 2018 Controlling interest: Current tax $ 168.1 $ 173.8 $ 117.2 Intangible-related deferred taxes 84.3 (98.5 ) 79.7 Other deferred taxes (23.2 ) (24.9 ) (27.5 ) Total controlling interest 229.2 50.4 169.4 Non-controlling interests: Current tax $ 8.2 $ 8.2 $ 12.2 Deferred taxes (1.8 ) (0.2 ) (0.3 ) Total non-controlling interests 6.4 8.0 11.9 Income tax expense $ 235.6 $ 58.4 $ 181.3 Income before income taxes (controlling interest) $ 702.0 $ 739.9 $ 413.0 Effective tax rate (controlling interest) (1) 32.6 % 6.8 % 41.0 % __________________________ (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, 2016 2017 2018 Current: Federal $ 103.4 $ 109.0 $ 52.2 State 22.9 18.9 28.6 Foreign 50.0 54.1 48.6 Total current 176.3 182.0 129.4 Deferred: Federal 62.3 (124.9 ) 51.3 State 10.0 10.4 13.2 Foreign (13.0 ) (9.1 ) (12.6 ) Total deferred 59.3 (123.6 ) 51.9 Income tax expense $ 235.6 $ 58.4 $ 181.3 |
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, 2016 2017 2018 Domestic $ 688.1 $ 756.5 $ 637.3 International 286.5 310.6 76.3 $ 974.6 $ 1,067.1 $ 713.6 |
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, 2016 2017 2018 Statutory U.S. federal tax rate 35.0 % 35.0 % 21.0 % State income taxes, net of federal benefit 2.9 2.7 3.7 Effect of foreign operations (4.6 ) (5.4 ) 1.3 Effect of changes in tax law, rates (0.3 ) (25.2 ) — Reduction in carrying value of an equity method investment — — 13.0 Other (0.4 ) (0.3 ) 2.0 Effective tax rate (controlling interest) 32.6 % 6.8 % 41.0 % Effect of income from non-controlling interests (8.4 ) (1.3 ) (15.6 ) Effective tax rate 24.2 % 5.5 % 25.4 % |
Schedule of Components of Deferred Tax Assets and Liabilities | The significant components of the Company’s Deferred income tax liability (net) are as follows: December 31, 2017 2018 Deferred Tax Assets Deferred compensation $ 10.4 $ 18.0 State net operating loss carryforwards 16.8 18.2 Foreign loss carryforwards 16.3 16.7 Tax benefit of uncertain tax positions 11.4 10.9 Deferred income — 8.8 Accrued expenses 1.3 3.6 Other — 1.5 Total deferred tax assets 56.2 77.7 Valuation allowance (24.1 ) (24.1 ) Deferred tax assets, net of valuation allowance $ 32.1 $ 53.6 Deferred Tax Liabilities Intangible asset amortization $ (258.6 ) $ (337.1 ) Convertible securities interest (77.9 ) (84.5 ) Non-deductible intangible amortization (150.8 ) (141.0 ) Deferred income (5.9 ) — Other (6.3 ) (2.6 ) Total deferred tax liabilities (499.5 ) (565.2 ) Deferred income tax liability (net) $ (467.4 ) $ (511.6 ) |
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, 2016 2017 2018 Balance, beginning of period $ 26.9 $ 26.8 $ 32.4 Additions based on current year tax positions 3.8 6.0 2.4 Additions based on prior years’ tax positions 0.6 1.5 8.4 Reduction for prior years’ tax positions — — (2.0 ) Reductions related to lapses of statutes of limitations (4.7 ) (2.3 ) (6.3 ) Settlements — — (1.3 ) Additions (reductions) related to foreign exchange rates 0.2 0.4 (0.5 ) Balance, end of period $ 26.8 $ 32.4 $ 33.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 2017 2018 Numerator Net income (controlling interest) $ 472.8 $ 689.5 $ 243.6 Interest expense on convertible securities, net of taxes 15.5 15.5 — Net income (controlling interest), as adjusted $ 488.3 $ 705.0 $ 243.6 Denominator Average shares outstanding (basic) 54.2 56.0 53.6 Effect of dilutive instruments: Stock options and restricted stock units 0.6 0.4 0.2 Convertible securities 2.2 2.2 — Average shares outstanding (diluted) 57.0 58.6 53.8 |
Schedule of Diluted Earnings per Share Calculations, Excluding the Anti-dilutive Effect of Shares | Average shares outstanding (diluted) in the table above excludes share-based awards that have not satisfied performance conditions and the anti-dilutive effect of the following: For the Years Ended December 31, 2016 2017 2018 Stock options and restricted stock units 0.6 0.1 0.2 Convertible securities — — 2.2 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Tax Effects Allocated to each Component of Other Comprehensive Income | The following tables present the tax effects allocated to each component of Other comprehensive income (loss): For the Year Ended December 31, 2016 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (115.3 ) $ — $ (115.3 ) Change in net realized and unrealized gain (loss) on derivative financial instruments 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 ) For the Year Ended December 31, 2017 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ 128.0 $ — $ 128.0 Change in net realized and unrealized gain (loss) on derivative financial instruments (0.7 ) (0.1 ) (0.8 ) Change in net unrealized gain (loss) on investment securities (15.0 ) 7.3 (7.7 ) Other comprehensive income (loss) $ 112.3 $ 7.2 $ 119.5 For the Year Ended December 31, 2018 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (87.0 ) $ (15.1 ) $ (102.1 ) Change in net realized and unrealized gain (loss) on derivative financial instruments (0.1 ) — (0.1 ) Other comprehensive income (loss) $ (87.1 ) $ (15.1 ) $ (102.2 ) |
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 Gains (Losses) on Derivative Financial Instruments Unrealized Gains (Losses) on Investment Securities (1) Total Balance, as of December 31, 2016 $ (213.9 ) $ 0.4 $ 9.8 $ (203.7 ) Other comprehensive income (loss) before reclassifications 128.0 (1.6 ) 15.7 142.1 Amounts reclassified — 0.8 (23.4 ) (22.6 ) Net other comprehensive income (loss) 128.0 (0.8 ) (7.7 ) 119.5 Balance, as of December 31, 2017 $ (85.9 ) $ (0.4 ) $ 2.1 $ (84.2 ) Other comprehensive income (loss) before reclassifications (102.1 ) (0.2 ) — (102.3 ) Amounts reclassified — 0.1 (2.1 ) (2.0 ) Net other comprehensive income (loss) (102.1 ) (0.1 ) (2.1 ) (104.3 ) Balance, as of December 31, 2018 $ (188.0 ) $ (0.5 ) $ — $ (188.5 ) __________________________ (1) In connection with the Company’s adoption of ASU 2016-01, the unrealized gains on investment securities, which related to the non-controlling interests, were reclassified to Non-controlling interests. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2017 and 2018 : 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Consolidated revenue $ 544.3 $ 570.9 $ 585.7 $ 604.1 Income before income taxes 253.3 266.9 282.9 264.0 Net income 193.7 204.4 216.8 393.8 Net income (controlling interest) 122.5 126.3 125.4 315.4 Earnings per share (diluted) $ 2.13 $ 2.22 $ 2.22 $ 5.50 2018 First Quarter Second Quarter Third Quarter (2) Fourth Quarter (2) Consolidated revenue $ 612.5 $ 600.2 $ 601.3 $ 564.4 Income (loss) before income taxes 287.5 239.3 250.4 (63.6 ) Net income (loss) 224.0 205.2 201.9 (98.8 ) Net income (loss) (controlling interest) 153.0 117.0 124.9 (151.3 ) Earnings (loss) per share (diluted) $ 2.77 $ 2.16 $ 2.34 $ (2.88 ) __________________________ (1) In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). (2) For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Fixed Assets, net of the Company by Geographic Location | The following table presents Consolidated revenue and Fixed assets (net) of the Company by geographic location. This information is primarily based on the location of the headquarters of the Affiliate. For the Years Ended December 31, 2016 2017 2018 Consolidated revenue United States $ 1,477.5 $ 1,571.4 $ 1,611.7 United Kingdom 566.4 587.3 628.8 Other 150.7 146.3 137.9 Total $ 2,194.6 $ 2,305.0 $ 2,378.4 December 31, 2016 2017 2018 Fixed Assets (net) United States $ 97.3 $ 97.8 $ 87.1 United Kingdom 9.9 11.4 15.7 Other 2.9 1.8 1.5 Total $ 110.1 $ 111.0 $ 104.3 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018segment | Jan. 01, 2019USD ($) | |
Fixed Assets | ||
Number of operating segments | segment | 1 | |
ASU 2016-02 | Scenario, Forecast | ||
Fixed Assets | ||
Lease liability | $ 200 | |
Right-of-use asset | $ 200 | |
Equipment | Minimum | ||
Fixed Assets | ||
Estimated useful lives of office equipment, furniture and fixtures | 3 years | |
Equipment | Maximum | ||
Fixed Assets | ||
Estimated useful lives of office equipment, furniture and fixtures | 10 years | |
Computer software | Minimum | ||
Fixed Assets | ||
Estimated useful lives of office equipment, furniture and fixtures | 3 years | |
Computer software | Maximum | ||
Fixed Assets | ||
Estimated useful lives of office equipment, furniture and fixtures | 5 years | |
Buildings | Maximum | ||
Fixed Assets | ||
Estimated useful lives of office equipment, furniture and fixtures | 39 years |
Investments in Marketable Sec_3
Investments in Marketable Securities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Securities [Abstract] | ||
Investments in marketable securities | $ 119.3 | $ 77.8 |
Proceeds from sale of investments in marketable securities | 81.4 | 112.2 |
Net gains on sales of marketable securities | $ 6.9 | $ 35.8 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Summary of the Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Marketable Securities [Abstract] | ||
Cost | $ 126.8 | $ 67.1 |
Unrealized gains | 1.1 | 13 |
Unrealized losses | (8.6) | (2.3) |
Fair value | $ 119.3 | $ 77.8 |
Investments in Affiliates and_3
Investments in Affiliates and Affiliate Sponsored Investment Products - Affiliate Accounted For Under Equity Method (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Equity method investments in Affiliates (net) | $ 2,791 | $ 3,304.7 |
Carrying amount and maximum exposure to loss of equity method affiliates | 513.2 | 539 |
Affiliates accounted for under the equity method | ||
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | 1,102.9 | 1,594.4 |
Carrying Value and Maximum Exposure to Loss | $ 2,277.8 | $ 2,765.7 |
Investments in Affiliates and_4
Investments in Affiliates and Affiliate Sponsored Investment Products - Affiliated Sponsored Investment Products (Details) - Affiliate sponsored investment products - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | $ 2,216.5 | $ 2,154.6 |
Carrying Value and Maximum Exposure to Loss | $ 1.1 | $ 10.2 |
Senior Bank Debt (Details)
Senior Bank Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | ||
Term loan outstanding | $ 779,700,000 | $ 809,000,000 |
Unsecured Debt | Revolver | ||
Debt Instrument | ||
Maximum borrowing capacity | 1,450,000,000 | |
Maximum borrowing capacity, additional amount | 350,000,000 | |
Outstanding borrowings | $ 330,000,000 | $ 425,000,000 |
Weighted average interest rate | 3.92% | 2.76% |
Commitment fee amount | $ 1,600,000 | $ 1,500,000 |
Unsecured Debt | Term Loan | ||
Debt Instrument | ||
Maximum borrowing capacity | 450,000,000 | |
Maximum borrowing capacity, additional amount | 75,000,000 | |
Term loan outstanding | $ 450,000,000 | $ 385,000,000 |
Weighted average interest rate on amount outstanding | 3.33% | 2.69% |
Senior Notes - Additional Infor
Senior Notes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)note | |
Debt Instrument | |
Number of senior notes outstanding | note | 2 |
2022 Senior Notes | |
Debt Instrument | |
Notes redeemed, canceled and retired | $ | $ 200,000,000 |
Stated interest rate | 6.375% |
Redemption price percentage | 100.00% |
Senior Notes - Principal Terms
Senior Notes - Principal Terms of Senior Notes Outstanding (Details) - Senior Notes | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
2024 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $ 400,000,000 | [1] |
Stated coupon | 4.25% | [1] |
Redemption price percentage | 100.00% | |
2024 Senior Notes | Treasury Rate | ||
Debt Instrument | ||
Applicable basis spread over redemption price percentage | 0.25% | |
2025 Senior Notes | ||
Debt Instrument | ||
Par value (in millions) | $ 350,000,000 | [1] |
Stated coupon | 3.50% | [1] |
Redemption price percentage | 100.00% | |
2025 Senior Notes | Treasury Rate | ||
Debt Instrument | ||
Applicable basis spread over redemption price percentage | 0.25% | |
[1] | The 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 - Carryi
Convertible Securities - Carrying Value and Principal Amount of Junior Convertible Securities (Details) - Junior convertible securities - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | ||
Carrying Value | $ 312,500,000 | $ 309,900,000 |
Principal Amount at Maturity | $ 430,800,000 | $ 430,800,000 |
Debt instrument term | 19 years |
Convertible Securities - Additi
Convertible Securities - Additional Information (Details) - Junior Convertible Securities | Aug. 10, 2018USD ($)trading_day$ / shares | Aug. 09, 2018 | Dec. 31, 2018USD ($) |
Debt Instrument | |||
Stated interest rate | 5.15% | ||
Principal amount at maturity | $ | $ 50 | ||
Conversion ratio (in shares) | 0.2525 | 0.2500 | |
Conversion price (in usd per share) | $ / shares | $ 198.02 | ||
Redemption closing price trigger (in usd per share) | $ / shares | $ 257.43 | ||
Number of trading days closing price has exceeded threshold | trading_day | 20 | ||
Number of consecutive trading days | trading_day | 30 | ||
Deferred tax liability | $ | $ 7,800,000 |
Equity Distribution Program (De
Equity Distribution Program (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Proceeds from issuance of common stock | $ 9,700,000 | $ 41,900,000 | $ 465,800,000 |
Equity Distribution Program | |||
Class of Stock [Line Items] | |||
Stock program, maximum amount authorized | $ 500,000,000 | ||
Proceeds from issuance of common stock | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - Dec. 31, 2018 £ in Millions, $ in Millions | USD ($)derivative$ / unit | GBP (£)derivative$ / unit |
Derivative [Line Items] | ||
Number of contracts with a contingent feature in a net liability position | derivative | 0 | 0 |
Forward contracts | ||
Derivative [Line Items] | ||
Derivative, number of contracts | derivative | 2 | 2 |
Cash collateral held from counterparty | $ | $ 3.1 | |
Cash collateral held at counterparty | $ | $ 28 | |
Collar contracts | ||
Derivative [Line Items] | ||
Derivative, number of contracts | derivative | 2 | 2 |
Designated as Hedging Instrument | Net Investment Hedging | Forward contract expiring 2024 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 400 | £ 285.8 |
Designated as Hedging Instrument | Net Investment Hedging | Forward contract expiring 2021 | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 450 | £ 325.3 |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-call option | Minimum | ||
Derivative [Line Items] | ||
Derivative, option strike price (in dollars per unit) | 1.288 | 1.288 |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-call option | Maximum | ||
Derivative [Line Items] | ||
Derivative, option strike price (in dollars per unit) | 1.535 | 1.535 |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-put option | Minimum | ||
Derivative [Line Items] | ||
Derivative, option strike price (in dollars per unit) | 1.318 | 1.318 |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-put option | Maximum | ||
Derivative [Line Items] | ||
Derivative, option strike price (in dollars per unit) | 1.448 | 1.448 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - Designated as Hedging Instrument - Derivatives in Net Investment Hedging Relationship $ in Millions | Dec. 31, 2018USD ($) |
Other Investments | |
Derivative [Line Items] | |
Assets | $ 66.1 |
Other Liabilities | |
Derivative [Line Items] | |
Liabilities | (61.7) |
Forward contracts | Other Investments | |
Derivative [Line Items] | |
Assets | 32 |
Forward contracts | Other Liabilities | |
Derivative [Line Items] | |
Liabilities | (1.4) |
Put options | Other Investments | |
Derivative [Line Items] | |
Assets | 0 |
Put options | Other Liabilities | |
Derivative [Line Items] | |
Liabilities | (60.3) |
Call options | Other Investments | |
Derivative [Line Items] | |
Assets | 34.1 |
Call options | Other Liabilities | |
Derivative [Line Items] | |
Liabilities | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect on Statement of Comprehensive Income and Statement of Income (Details) - Designated as Hedging Instrument - Derivatives in Net Investment Hedging Relationship $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income | $ 1 | |
Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings from Excluded Components | 3.8 | [1] |
Forward contracts | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income | 27.2 | |
Forward contracts | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings from Excluded Components | 3.8 | [1] |
Put options | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income | (17.8) | |
Put options | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings from Excluded Components | 0 | [1] |
Call options | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Other Comprehensive Income | (8.4) | |
Call options | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings from Excluded Components | $ 0 | [1] |
[1] | The excluded components are recorded as a reduction in Interest expense. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies | ||
Co-investment commitments in partnership | $ 131,000,000 | |
Noncontrolling interest, sale of ownership percentage | 5.00% | |
Consolidated Affiliates | ||
Commitments and Contingencies | ||
Other commitments | $ 2,500,000 | |
Other commitment, expected payments | 1,900,000 | |
Other commitments, present value of expected payments | $ 1,900,000 | |
Equity Method Investee | Scenario, Forecast | ||
Commitments and Contingencies | ||
Other commitments | $ 150,000,000 | |
Other commitment, expected payments | $ 0 | |
Equity Method Investee | Non-US | ||
Commitments and Contingencies | ||
Ownership percentage held by minority interest in affiliated to the Company | 19.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measured on a Recurring Basis - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Financial Assets | |||
Investments in marketable securities | $ 119.3 | $ 77.8 | |
Derivative financial instruments | 5.8 | [1] | 0.2 |
Financial Liabilities | |||
Contingent payment arrangements | 1.9 | [2] | 9.4 |
Affiliate equity repurchase obligations | 36.2 | [2] | 49.2 |
Derivative financial instruments | 1.4 | [2] | 0.6 |
Level 1 | |||
Financial Assets | |||
Investments in marketable securities | 119.3 | 77.8 | |
Derivative financial instruments | 0 | [1] | 0 |
Financial Liabilities | |||
Contingent payment arrangements | 0 | [2] | 0 |
Affiliate equity repurchase obligations | 0 | [2] | 0 |
Derivative financial instruments | 0 | [2] | 0 |
Level 2 | |||
Financial Assets | |||
Investments in marketable securities | 0 | 0 | |
Derivative financial instruments | 5.8 | [1] | 0.2 |
Financial Liabilities | |||
Contingent payment arrangements | 0 | [2] | 0 |
Affiliate equity repurchase obligations | 0 | [2] | 0 |
Derivative financial instruments | 1.4 | [2] | 0.6 |
Level 3 | |||
Financial Assets | |||
Investments in marketable securities | 0 | 0 | |
Derivative financial instruments | 0 | [1] | 0 |
Financial Liabilities | |||
Contingent payment arrangements | 1.9 | [2] | 9.4 |
Affiliate equity repurchase obligations | 36.2 | [2] | 49.2 |
Derivative financial instruments | $ 0 | [2] | $ 0 |
[1] | Amounts are presented within Other assets. | ||
[2] | Amounts are presented within Other liabilities. |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Other Expense, Net | |||
Changes in level 3 assets and liabilities | |||
Losses resulting from changes in expected payments | $ 0.6 | $ 6.6 | |
Interest Expense | |||
Changes in level 3 assets and liabilities | |||
Accretion expenses | 0.7 | 1 | |
Contingent Payment Arrangements | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | 9.4 | 8.6 | |
Net realized and unrealized (gains) losses | [1] | 1.3 | 7.6 |
Purchases and issuances | [2] | 0 | 0 |
Settlements and reductions | (8.8) | (6.8) | |
Balance, end of period | 1.9 | 9.4 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | [1] | 0.2 | 2.8 |
Affiliate Equity Repurchase Obligations | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | 49.2 | 12.1 | |
Net realized and unrealized (gains) losses | [1] | 0 | 5.5 |
Purchases and issuances | [2] | 105.4 | 206.1 |
Settlements and reductions | (118.4) | (174.5) | |
Balance, end of period | 36.2 | 49.2 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | [1] | $ 0 | $ 0 |
[1] | For the years ended December 31, 2017 and 2018, net realized and unrealized losses resulting from changes to contingent payment arrangements were $6.6 million and $0.6 million, respectively, and were recorded in Other expenses (net). For the years ended December 31, 2017 and 2018, the accretion expense for these arrangements was $1.0 million and $0.7 million, respectively, and was recorded in Interest expense. | ||
[2] | Includes transfers from Redeemable non-controlling interests. |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level 3 (Details) - Discounted cash flow $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Contingent payment arrangements | Growth rates | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.07 | |
Contingent payment arrangements | Growth rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.07 | |
Contingent payment arrangements | Growth rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.08 | |
Contingent payment arrangements | Growth rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.07 | 0.07 |
Contingent payment arrangements | Discount rates | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.15 | |
Contingent payment arrangements | Discount rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.15 | |
Contingent payment arrangements | Discount rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.16 | |
Contingent payment arrangements | Discount rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Contingent payment arrangement, measurement input | 0.15 | |
Affiliate equity repurchase obligations | Growth rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | (0.04) | 0 |
Affiliate equity repurchase obligations | Growth rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.09 | 0.11 |
Affiliate equity repurchase obligations | Growth rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.03 | 0.06 |
Affiliate equity repurchase obligations | Discount rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.14 | 0.12 |
Affiliate equity repurchase obligations | Discount rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.16 | 0.16 |
Affiliate equity repurchase obligations | Discount rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.15 | 0.14 |
Level 3 | Contingent payment arrangements | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value liabilities | $ 1.9 | $ 9.4 |
Level 3 | Affiliate equity repurchase obligations | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair value liabilities | $ 36.2 | $ 49.2 |
Fair Value Measurements - Natur
Fair Value Measurements - Nature of Investments and Related Liquidity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
NAV of investments at fair value | |||
Life of funds (in years) | 15 years | ||
Private equity | |||
NAV of investments at fair value | |||
Unfunded Commitments | [1] | $ 131 | $ 98.8 |
Other funds | |||
NAV of investments at fair value | |||
Unfunded Commitments | [2] | 0 | 0 |
Other investments | |||
NAV of investments at fair value | |||
Unfunded Commitments | [3] | 131 | 98.8 |
Other investments | Controlling interests | |||
NAV of investments at fair value | |||
Alternative Investment | 123.2 | 80.1 | |
Fair Value Measured at Net Asset Value Per Share [Member] | Private equity | |||
NAV of investments at fair value | |||
Alternative Investment | [1] | 193.2 | 156.1 |
Fair Value Measured at Net Asset Value Per Share [Member] | Other funds | |||
NAV of investments at fair value | |||
Alternative Investment | [2] | 7.9 | 8.9 |
Fair Value Measured at Net Asset Value Per Share [Member] | Other investments | |||
NAV of investments at fair value | |||
Alternative Investment | [3] | $ 201.1 | $ 165 |
[1] | The Company uses NAV as a practical expedient one quarter in arrears (adjusted for current period calls and distributions) to determine the fair value. These funds primarily invest in a broad range of private equity funds, as well as making direct investments. Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years. | ||
[2] | These are multi-disciplinary funds that invest across various asset classes and strategies, including long/short equity, credit and real estate. Investments are generally redeemable on a daily, monthly or quarterly basis. | ||
[3] | Fair value attributable to the controlling interest was $80.1 million and $123.2 million as of December 31, 2017 and 2018, respectively. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Liabilities not Carried at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 746.2 | $ 745.7 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 747.5 | 765.2 |
Convertible securities | $ 391.5 | $ 549.8 |
Goodwill and Acquired Client _3
Goodwill and Acquired Client Relationships - Schedule of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in goodwill | ||
Balance, beginning of period | $ 2,662.5 | $ 2,628.1 |
Foreign currency translation | (29.1) | 34.4 |
Balance, end of period | $ 2,633.4 | $ 2,662.5 |
Goodwill and Acquired Client _4
Goodwill and Acquired Client Relationships - Schedule of Changes in Acquired Client Relationships (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Book Value | |||
Beginning balance, net book value | $ 1,449.7 | ||
Intangible amortization and impairments | (114.8) | $ (86.4) | $ (110.2) |
Ending balance, net book value | 1,309.9 | 1,449.7 | |
Acquired Client Relationships (Net) | |||
Definite-lived | |||
Beginning balance, gross book value | 1,295.5 | 1,290 | |
Beginning balance, accumulated amortization | (874.5) | (788.1) | |
Beginning balance, net book value | 421 | 501.9 | |
Intangible amortization and impairments | (114.4) | (86.4) | |
Foreign currency translation | (3) | 5.5 | |
Ending balance, gross book value | 1,292.5 | 1,295.5 | 1,290 |
Ending balance, accumulated amortization | (988.9) | (874.5) | (788.1) |
Ending balance, net book value | 303.6 | 421 | 501.9 |
Indefinite-lived | |||
Beginning balance, net book value | 1,028.7 | 995.5 | |
Intangible amortization and impairments | (0.4) | 0 | |
Foreign currency translation | (22) | 33.2 | |
Ending balance, net book value | 1,006.3 | 1,028.7 | 995.5 |
Net Book Value | |||
Beginning balance, net book value | 1,449.7 | 1,497.4 | |
Intangible amortization and impairments | (114.8) | (86.4) | |
Foreign currency translation | (25) | 38.7 | |
Ending balance, net book value | $ 1,309.9 | $ 1,449.7 | $ 1,497.4 |
Goodwill and Acquired Client _5
Goodwill and Acquired Client Relationships - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||||
Goodwill impairment | $ 0 | |||
Definite-lived and indefinite-lived intangibles impairments | $ 0 | |||
Acquired Client Relationships (Net) | ||||
Goodwill | ||||
Intangible amortization expense | 114,400,000 | $ 86,400,000 | $ 107,700,000 | |
Intangible future amortization expense in 2019 | 110,000,000 | |||
Intangible future amortization expense in 2020 | 55,000,000 | |||
Intangible future amortization expense in 2021 | 30,000,000 | |||
Intangible future amortization expense in 2022 | 30,000,000 | |||
Intangible future amortization expense in 2023 | $ 30,000,000 |
Equity Method Investments in _3
Equity Method Investments in Affiliates - Change in Equity Method Investments in Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Change in Equity Method Investments in Affiliates [Roll Forward] | ||||
Balance, beginning of period | $ 3,304.7 | |||
Distributions of earnings from equity method investments | (466.3) | $ (429.8) | $ (346.4) | |
Balance, end of period | 2,791 | 3,304.7 | ||
Equity Method Investee | ||||
Change in Equity Method Investments in Affiliates [Roll Forward] | ||||
Balance, beginning of period | 3,304.7 | 3,368.3 | ||
Equity method earnings | 370.6 | 501.4 | ||
Equity method intangible amortization and impairments | (370.8) | (199.2) | ||
Distributions of earnings from equity method investments | (466.3) | (429.8) | ||
Investments | 7.3 | 29.8 | ||
Foreign currency translation | (34.5) | 62.3 | ||
Other | [1] | (20) | (28.1) | |
Balance, end of period | $ 2,791 | $ 3,304.7 | $ 3,368.3 | |
[1] | Primarily reflects the Company’s share of entity level taxes. |
Equity Method Investments in _4
Equity Method Investments in Affiliates - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Fair value assumptions, average projected growth rate | 2.50% | 10.00% | ||||
Fair value assumptions, discount rate for asset based fees | 11.00% | 14.00% | ||||
Fair value assumptions, discount rate for performance based fees | 20.00% | 25.00% | ||||
Fair value assumptions, market participant tax rate | 25.00% | 25.00% | ||||
Impairment of equity method investment | $ 240,000,000 | $ 93,100,000 | ||||
Equity method investments in Affiliates (net) | 2,791,000,000 | 3,304,700,000 | ||||
Equity method and cost method impairments | 0 | |||||
Undistributed earnings from equity method affiliates | 92,400,000 | |||||
Revenue of equity method investment affiliate investment | [1] | 3,231,700,000 | 3,126,300,000 | $ 2,200,900,000 | [2] | |
Net income of equity method affiliate investment | [1] | 1,286,100,000 | 2,182,700,000 | 1,068,900,000 | [2] | |
Equity Method Investee | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Equity method investments in Affiliates (net) | 2,791,000,000 | 3,304,700,000 | 3,368,300,000 | |||
Revenue of equity method investment affiliate investment | 1,137,500,000 | 1,317,800,000 | ||||
Net income of equity method affiliate investment | 524,500,000 | 806,600,000 | ||||
Equity Method Investee | Investment One | ||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Impairment of equity method investment | $ 33,300,000 | |||||
Equity method investments in Affiliates (net) | $ 0 | 0 | ||||
Acquired Client Relationships Under Equity Method Investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Intangible amortization expense | 97,500,000 | $ 106,100,000 | $ 59,200,000 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Intangible future amortization expense in 2019 | 95,000,000 | |||||
Intangible future amortization expense in 2020 | 95,000,000 | |||||
Intangible future amortization expense in 2021 | 95,000,000 | |||||
Intangible future amortization expense in 2022 | 75,000,000 | |||||
Intangible future amortization expense in 2023 | $ 75,000,000 | |||||
[1] | Revenue and the associated net income include asset and performance based fees and the impact of consolidated investment products. | |||||
[2] | Revenue and net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. |
Equity Method Investments in _5
Equity Method Investments in Affiliates - Financial Information for Affiliates Accounted for Under the Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2] | ||
Equity Method Investments and Joint Ventures [Abstract] | |||||
Revenue | [1] | $ 3,231.7 | $ 3,126.3 | $ 2,200.9 | |
Net income | [1] | 1,286.1 | 2,182.7 | $ 1,068.9 | |
Assets | 2,730.4 | 3,324.9 | |||
Liabilities and Non-controlling interests | $ 1,235.1 | $ 1,405.5 | |||
[1] | Revenue and the associated net income include asset and performance based fees and the impact of consolidated investment products. | ||||
[2] | Revenue and net income reflect investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. |
Fixed Assets and Lease Commit_3
Fixed Assets and Lease Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed assets | |||
Fixed assets, at cost | $ 250.7 | $ 247.3 | |
Accumulated depreciation and amortization | (146.4) | (136.3) | |
Fixed assets (net) | 104.3 | 111 | $ 110.1 |
Building and leasehold improvements | |||
Fixed assets | |||
Fixed assets, at cost | 117.8 | 111.9 | |
Software | |||
Fixed assets | |||
Fixed assets, at cost | 51 | 50.8 | |
Equipment | |||
Fixed assets | |||
Fixed assets, at cost | 42.3 | 44.5 | |
Furniture and fixtures | |||
Fixed assets | |||
Fixed assets, at cost | 21 | 21.4 | |
Land, improvements and other | |||
Fixed assets | |||
Fixed assets, at cost | $ 18.6 | $ 18.7 |
Fixed Assets and Lease Commit_4
Fixed Assets and Lease Commitments - Aggregate Future Minimum Payments for Operating Leases and Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed Assets and Lease Commitments [Abstract] | |||
2,019 | $ 35.5 | ||
2,020 | 36.9 | ||
2,021 | 34.8 | ||
2,022 | 27.7 | ||
2,023 | 23.4 | ||
Thereafter | 75.2 | ||
Consolidated rent expense | $ 40.5 | $ 37.5 | $ 35.5 |
Payables and Accrued Liabilit_3
Payables and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 463.2 | $ 472.5 |
Accrued income taxes | 42.9 | 93 |
Other | 240.5 | 241.7 |
Payables and accrued liabilities | $ 746.6 | $ 807.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Prior Owner | Other Liabilities | ||
Related Party Transactions | ||
Investment partnerships with prior owners | $ 49,700,000 | $ 61,200,000 |
Affiliated Entity | ||
Related Party Transactions | ||
Imputed interest expenses of contingent payment arrangements | 600,000 | 6,600,000 |
Affiliated Entity | Other Liabilities | ||
Related Party Transactions | ||
Contingent liabilities arrangements to related parties | 1,900,000 | 9,400,000 |
Payments associated with contingent liabilities arrangements to related parties | $ 8,800,000 | $ 6,800,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 153,000,000 | 153,000,000 | |||
Proceeds from issuance of common stock | $ 9,700,000 | $ 41,900,000 | $ 465,800,000 | ||
Common stock, shares outstanding (in shares) | 58,500,000 | 58,500,000 | |||
Forward Equity Agreement | |||||
Class of Stock [Line Items] | |||||
Proceeds from issuance of common stock | $ 0 | ||||
Stock program, maximum amount authorized | $ 500,000,000 | ||||
Voting Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 150,000,000 | ||||
Common Class B | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 3,000,000 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (in shares) | 3,300,000 | 2,400,000 | 200,000 | ||
Average price of stock repurchased (in dollars per share) | $ 150.31 | $ 173.19 | $ 161.16 | ||
Common Stock | Forward Equity Agreement | |||||
Class of Stock [Line Items] | |||||
Maximum number of shares available for sale under agreement (in shares) | 2,900,000 | ||||
Average share price on forward basis (in dollars per share) | $ 167.25 | ||||
Number of shares issued to settle portion of forward equity sale (in shares) | 2,700,000 | ||||
Proceeds from issuance of common stock | $ 440,300,000 | ||||
Number of shares issued to settle portion of forward equity sale in cash (in shares) | 200,000 | ||||
Average share price of shares settled in cash (in dollars per share) | $ 144.59 | ||||
Common stock, shares outstanding (in shares) | 0 | ||||
Common Stock | January 2018 Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized (in shares) | 3,400,000 | ||||
Stock repurchase plan, number of remaining shares to be repurchased (in shares) | 1,700,000 | ||||
Common Stock | January 2017 Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized (in shares) | 1,900,000 | ||||
Stock repurchase plan, number of remaining shares to be repurchased (in shares) | 0 | ||||
Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 5,000,000 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Activity (Details) - Common Stock - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 3.3 | 2.4 | 0.2 |
Average price of stock repurchased (in dollars per share) | $ 150.31 | $ 173.19 | $ 161.16 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total fair value of share-based compensation awards vested | $ 5.9 | $ 59.4 | $ 20.7 |
Excess tax benefit recognized from share-based incentive plans | 0.7 | 10.9 | |
Total compensation cost not yet recognized | $ 54.1 | $ 63.5 | |
Weighted average period for recognition (in years) | 2 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-Based Compensation Expense | $ 44.7 | $ 40.4 | $ 39.2 |
Tax Benefit | $ 11.2 | $ 13.6 | $ 15.1 |
Share-Based Compensation - Tran
Share-Based Compensation - Transactions of the Company's Stock Options (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Stock Options | |
Unexercised options outstanding - December 31, 2017 (in shares) | shares | 0.6 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | (0.1) |
Options forfeited (in shares) | shares | 0 |
Unexercised options outstanding - December 31, 2018 (in shares) | shares | 0.5 |
Exercisable at December 31, 2018 (in shares) | shares | 0.1 |
Weighted Average Exercise Price | |
Unexercised options outstanding - December 31, 2017 (in usd per share) | $ / shares | $ 122.04 |
Options granted (in usd per share) | $ / shares | 179.54 |
Options exercised (in usd per share) | $ / shares | 99.57 |
Options forfeited (in usd per share) | $ / shares | 122.40 |
Unexercised stock options outstanding - December 31, 2018 (in usd per share) | $ / shares | 130.81 |
Exercisable stock options at December 31, 2018 (in usd per share) | $ / shares | $ 138.97 |
Weighted Average Remaining Contractual Life (years) | |
Stock options outstanding at December 31, 2018 (in years) | 3 years 8 months 12 days |
Exercisable stock options at December 31, 2018 (in years) | 2 years 3 months 18 days |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of stock options granted | $ 1 | $ 0.8 | $ 16.4 |
Total intrinsic value of options exercised | 8.2 | 50.8 | 27.7 |
Cash received for options exercised | 9.7 | $ 41.9 | $ 25.6 |
Intrinsic value of exercisable options outstanding | $ 0.3 | ||
Weighted average fair value of options granted (in usd per share) | $ 48.64 | $ 48.05 | $ 39.02 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options available for future grant under the Company's option plans (in shares) | 3.1 | ||
Stock Options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of options | 3 years | ||
Expiration period of options | 7 years | ||
Stock Options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of options | 4 years |
Share-Based Compensation - Assu
Share-Based Compensation - Assumptions Used to Determine Fair Value of Options Granted (Details) - Stock Options | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Assumptions used to determine fair value of options granted | ||||
Dividend yield | 0.80% | 0.50% | 0.00% | |
Expected volatility | [1] | 25.50% | 28.00% | 30.70% |
Risk-free interest rate | [2] | 2.80% | 2.10% | 1.60% |
Expected life of options (in years) | [3] | 5 years 8 months 12 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Forfeiture rate | 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 - Tr_2
Share-Based Compensation - Transactions of the Company's Restricted Stock (Details) - Restricted Stock shares in Millions | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock | |
Unvested units - December 31, 2017 (in shares) | shares | 0.4 |
Units granted (in shares) | shares | 0.2 |
Units vested (in shares) | shares | 0 |
Units forfeited (in shares) | shares | 0 |
Unvested units - December 31, 2018 (in shares) | shares | 0.6 |
Weighted Average Grant Date Value | |
Unvested units - December 31, 2017 (in usd per share) | $ / shares | $ 162.32 |
Units granted (in usd per share) | $ / shares | 201.75 |
Units vested (in usd per share) | $ / shares | 188.93 |
Units forfeited (in usd per share) | $ / shares | 154.92 |
Unvested units - December 31, 2018 (in usd per share) | $ / shares | $ 172.74 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stocks granted | $ 5.9 | $ 59.4 | $ 20.7 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stocks granted | $ 37.7 | $ 36.9 | $ 28 |
Restricted stocks available for future grant under the Company's option plans (in shares) | 900,000 | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of restricted stocks | 3 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of restricted stocks | 4 years |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Redeemable Non-controlling Interests | ||||||
Balance, beginning of period | $ 811.9 | [1] | $ 673.5 | |||
Changes attributable to Affiliate sponsored consolidated products | 51.6 | 12.4 | ||||
Transfers to Other liabilities | (105.4) | (192.3) | ||||
Transfers from Non-controlling interests | 44.8 | 76.8 | ||||
Changes in redemption value | 30.8 | 241.5 | $ 71.4 | |||
Balance, end of period | 833.7 | [1] | 811.9 | [1] | $ 673.5 | |
Affiliate sponsored investment products | ||||||
Redeemable Non-controlling Interests | ||||||
Balance, beginning of period | [1] | 39.4 | ||||
Balance, end of period | [1] | $ 91 | $ 39.4 | |||
Minimum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Term of conditional right put interest | 5 years | |||||
Maximum | ||||||
Noncontrolling Interest [Line Items] | ||||||
Term of conditional right put interest | 15 years | |||||
[1] | As of December 31, 2017 and 2018, Redeemable non-controlling interests include Affiliate sponsored consolidated products primarily attributable to third-party investors of $39.4 million and $91.0 million, respectively. |
Affiliate Equity - Additional I
Affiliate Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Affiliate Equity | |||
Distributions paid to affiliate partners | $ 370.5 | $ 352.2 | $ 354.1 |
Payments to acquire interest in affiliates | 120 | 174.7 | 115.8 |
Issuance of interest in affiliates | 6.3 | 9 | $ 11.8 |
Other Assets | |||
Affiliate Equity | |||
Due from affiliates | 16.2 | 12.4 | |
Other Liabilities | |||
Affiliate Equity | |||
Due to affiliates | $ 36.2 | $ 49.2 | |
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 - Recognized a
Affiliate Equity - Recognized and Unrecognized Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Affiliate Equity Expense | |||
Total | $ 56.4 | $ 50 | $ 41.2 |
Non- controlling Interests | |||
Affiliate Equity Expense | |||
Non-controlling interests | 39.7 | 36.8 | 31.2 |
Total | $ 39.7 | $ 36.8 | $ 31.2 |
Unrecognized Affiliate Equity Expense | |||
Remaining Life | 6 years | 6 years | 5 years |
Non-controlling Interests | $ 118.3 | $ 95.9 | $ 70.7 |
Controlling Interest | |||
Affiliate Equity Expense | |||
Controlling interest | 16.7 | 13.2 | 10 |
Unrecognized Affiliate Equity Expense | |||
Controlling Interest | $ 38.7 | $ 33.3 | $ 31.3 |
Remaining Life | 5 years | 5 years | 4 years |
Affiliate Equity - Effect of Ch
Affiliate Equity - 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, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [2] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Affiliate Equity [Abstract] | ||||||||||||||
Net income (controlling interest) | $ (151.3) | $ 124.9 | $ 117 | $ 153 | $ 315.4 | $ 125.4 | $ 126.3 | $ 122.5 | $ 243.6 | $ 689.5 | $ 472.8 | |||
Increase (decrease) in controlling interest paid-in capital from Affiliate equity issuances | (5) | (1) | 1.6 | |||||||||||
Decrease in controlling interest paid-in capital from Affiliate equity repurchases | (67.9) | (116.2) | (38) | |||||||||||
Net income (controlling interest) including the net impact of Affiliate equity transactions | $ 170.7 | $ 572.3 | $ 436.4 | |||||||||||
[1] | For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). | |||||||||||||
[2] | In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). |
Benefit Plans Benefit Plans (De
Benefit Plans Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contributions to benefit plans | $ 20.8 | $ 20.1 | $ 18.9 |
Non- controlling Interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contributions to benefit plans | $ 4.8 | $ 3.9 | $ 3.7 |
Income Taxes - Consolidated Pro
Income Taxes - Consolidated Provision Attributable to Controlling and Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income tax provision | ||||
Current tax | $ 129.4 | $ 182 | $ 176.3 | |
Deferred taxes | 51.9 | (123.6) | 59.3 | |
Income tax expense | $ 181.3 | $ 58.4 | $ 235.6 | |
Effective tax rate (controlling interest) | 41.00% | 6.80% | 32.60% | |
Controlling interests | ||||
Income tax provision | ||||
Current tax | $ 117.2 | $ 173.8 | $ 168.1 | |
Intangible-related deferred taxes | 79.7 | (98.5) | 84.3 | |
Other deferred taxes | (27.5) | (24.9) | (23.2) | |
Income tax expense | 169.4 | 50.4 | 229.2 | |
Income before income taxes (controlling interest) | $ 413 | $ 739.9 | $ 702 | |
Effective tax rate (controlling interest) | [1] | 41.00% | 6.80% | 32.60% |
Non-Controlling Interests | ||||
Income tax provision | ||||
Current tax | $ 12.2 | $ 8.2 | $ 8.2 | |
Deferred taxes | (0.3) | (0.2) | (1.8) | |
Income tax expense | $ 11.9 | $ 8 | $ 6.4 | |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Consolidated P_2
Income Taxes - Consolidated Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 52.2 | $ 109 | $ 103.4 |
State | 28.6 | 18.9 | 22.9 |
Foreign | 48.6 | 54.1 | 50 |
Total current | 129.4 | 182 | 176.3 |
Deferred: | |||
Federal | 51.3 | (124.9) | 62.3 |
State | 13.2 | 10.4 | 10 |
Foreign | (12.6) | (9.1) | (13) |
Total deferred | 51.9 | (123.6) | 59.3 |
Income tax expense | $ 181.3 | $ 58.4 | $ 235.6 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 637.3 | $ 756.5 | $ 688.1 |
International | 76.3 | 310.6 | 286.5 |
Total | $ 713.6 | $ 1,067.1 | $ 974.6 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Details) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income tax provision | ||||
Statutory U.S. federal tax rate | 21.00% | 35.00% | 35.00% | |
State income taxes, net of federal benefit | 3.70% | 2.70% | 2.90% | |
Effect of foreign operations | 1.30% | (5.40%) | (4.60%) | |
Effect of changes in tax law, rates | (0.00%) | (25.20%) | (0.30%) | |
Reduction in carrying value of an equity method investment | 13.00% | 0.00% | 0.00% | |
Other | 2.00% | (0.30%) | (0.40%) | |
Effective tax rate (controlling interest) | 41.00% | 6.80% | 32.60% | |
Non-Controlling Interests | ||||
Income tax provision | ||||
Effect of income from non-controlling interests | (15.60%) | (1.30%) | (8.40%) | |
Controlling interests | ||||
Income tax provision | ||||
Effective tax rate (controlling interest) | [1] | 41.00% | 6.80% | 32.60% |
Effective tax rate | 25.40% | 5.50% | 24.20% | |
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate (controlling interest) | 41.00% | 6.80% | 32.60% | ||
Provisional one-time net benefit from changes in U.S. tax laws | $ 194,100,000 | ||||
Net income tax benefit resulting from re-measurement of Company's deferred tax assets and liabilities | 216,900,000 | ||||
Transition tax deemed on repatriated foreign earnings and profits | 22,800,000 | ||||
Income tax benefit related to equity method investment fair value adjustment | $ (181,300,000) | (58,400,000) | $ (235,600,000) | ||
Foreign operating loss carryforwards, expiration period | 20 years | ||||
Operating loss carryforwards, valuation allowance | $ 24,100,000 | $ 24,100,000 | 24,100,000 | ||
Amount of temporary difference due to repatriation of earnings from sale or liquidation of subsidiary | 225,400,000 | 225,400,000 | |||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 33,100,000 | 33,100,000 | 32,400,000 | 26,000,000 | |
Accrued income tax interest and related charges | 2,100,000 | 2,100,000 | 1,700,000 | 1,400,000 | |
Valuation Allowance, Operating Loss Carryforwards | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase in valuation allowance on deferred tax assets | $ 0 | ||||
Minimum | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating loss carryforwards, expiration period | 15 years | ||||
Maximum | |||||
Operating Loss Carryforwards [Line Items] | |||||
State net operating loss carryforwards, expiration period | 20 years | ||||
Non-US | |||||
Operating Loss Carryforwards [Line Items] | |||||
Expense recorded to reduce the carrying value of equity method affiliate | $ 240,000,000 | ||||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 455,000,000 | 455,000,000 | |||
State and Local Jurisdiction | Valuation Allowance, Operating Loss Carryforwards | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase in valuation allowance on deferred tax assets | 9,800,000 | ||||
Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 63,100,000 | 63,100,000 | |||
Foreign Tax Authority | Valuation Allowance, Operating Loss Carryforwards | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase in valuation allowance on deferred tax assets | 14,300,000 | 2,000,000 | |||
Foreign Tax Authority | Expire over a 20-year period | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | 54,100,000 | 54,100,000 | |||
Non- controlling Interests | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit related to equity method investment fair value adjustment | $ (11,900,000) | $ (8,000,000) | $ (6,400,000) | ||
Non- controlling Interests | Non-US | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax benefit related to equity method investment fair value adjustment | $ 0 | ||||
Controlling interests | |||||
Operating Loss Carryforwards [Line Items] | |||||
Effective tax rate (controlling interest) | [1] | 41.00% | 6.80% | 32.60% | |
Income tax benefit related to equity method investment fair value adjustment | $ (169,400,000) | $ (50,400,000) | $ (229,200,000) | ||
[1] | Taxes attributable to the controlling interest divided by Income before income taxes (controlling interest). |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Deferred compensation | $ 18 | $ 10.4 |
State net operating loss carryforwards | 18.2 | 16.8 |
Foreign loss carryforwards | 16.7 | 16.3 |
Tax benefit of uncertain tax positions | 10.9 | 11.4 |
Deferred income | 8.8 | 0 |
Accrued expenses | 3.6 | 1.3 |
Other | 1.5 | 0 |
Total deferred tax assets | 77.7 | 56.2 |
Valuation allowance | (24.1) | (24.1) |
Deferred tax assets, net of valuation allowance | 53.6 | 32.1 |
Deferred Tax Liabilities | ||
Intangible asset amortization | (337.1) | (258.6) |
Convertible securities interest | (84.5) | (77.9) |
Non-deductible intangible amortization | (141) | (150.8) |
Deferred income | 0 | (5.9) |
Other | (2.6) | (6.3) |
Total deferred tax liabilities | (565.2) | (499.5) |
Deferred income tax liability (net) | $ (511.6) | $ (467.4) |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of period | $ 32.4 | $ 26.8 | $ 26.9 |
Additions based on current year tax positions | 2.4 | 6 | 3.8 |
Additions based on prior years’ tax positions | 8.4 | 1.5 | 0.6 |
Reduction for prior years’ tax positions | (2) | 0 | 0 |
Reductions related to lapses of statutes of limitations | (6.3) | (2.3) | (4.7) |
Settlements | (1.3) | 0 | 0 |
Additions (reductions) related to foreign exchange rates | (0.5) | 0.4 | 0.2 |
Balance, end of period | $ 33.1 | $ 32.4 | $ 26.8 |
Earnings Per Share - Reconcilia
Earnings Per Share - 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, 2018 | [1] | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | [2] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator | ||||||||||||||
Net income (controlling interest) | $ (151.3) | $ 124.9 | $ 117 | $ 153 | $ 315.4 | $ 125.4 | $ 126.3 | $ 122.5 | $ 243.6 | $ 689.5 | $ 472.8 | |||
Interest expense on convertible securities, net of taxes | 0 | 15.5 | 15.5 | |||||||||||
Net income (controlling interest), as adjusted | $ 243.6 | $ 705 | $ 488.3 | |||||||||||
Denominator | ||||||||||||||
Average shares outstanding (basic) (in shares) | 53.6 | 56 | 54.2 | |||||||||||
Effect of dilutive instruments: | ||||||||||||||
Stock options and restricted stock units (in shares) | 0.2 | 0.4 | 0.6 | |||||||||||
Convertible securities (in shares) | 0 | 2.2 | 2.2 | |||||||||||
Average shares outstanding (diluted) (in shares) | 53.8 | 58.6 | 57 | |||||||||||
[1] | For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). | |||||||||||||
[2] | In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock options and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 0.1 | 0.6 |
Convertible securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.2 | 0 | 0 |
Comprehensive Income - Tax Effe
Comprehensive Income - Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Pre-Tax | $ (87.1) | $ 112.3 | $ (173.3) | |
Tax Benefit (Expense) | (15.1) | 7.2 | 22.9 | |
Other comprehensive income (loss), net of tax | (102.2) | 119.5 | (150.4) | |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Pre-Tax | (87) | 128 | (115.3) | |
Tax Benefit (Expense) | (15.1) | 0 | 0 | |
Other comprehensive income (loss), net of tax | (102.1) | 128 | (115.3) | |
Change in net realized and unrealized gain (loss) on derivative financial instruments | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Pre-Tax | (0.1) | (0.7) | 0.3 | |
Tax Benefit (Expense) | 0 | (0.1) | (0.2) | |
Other comprehensive income (loss), net of tax | $ (0.1) | (0.8) | 0.1 | |
Change in net unrealized gain (loss) on investment securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Pre-Tax | (15) | (58.3) | ||
Tax Benefit (Expense) | 7.3 | 23.1 | ||
Other comprehensive income (loss), net of tax | $ (7.7) | [1] | $ (35.2) | |
[1] | In connection with the Company’s adoption of ASU 2016-01, the unrealized gains on investment securities, which related to the non-controlling interests, were reclassified to Non-controlling interests. |
Comprehensive Income - Componen
Comprehensive Income - Components of Accumulated Other Comprehensive Income, Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | $ 4,578.5 | $ 4,426.5 | $ 3,769.1 | ||
Other comprehensive income (loss) | (102.2) | 119.5 | (150.4) | ||
Ending Balance | 4,134.9 | 4,578.5 | 4,426.5 | ||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | (85.9) | (213.9) | |||
Other comprehensive income (loss) before reclassifications | (102.1) | 128 | |||
Amounts reclassified | 0 | 0 | |||
Other comprehensive income (loss) | (102.1) | 128 | (115.3) | ||
Ending Balance | (188) | (85.9) | (213.9) | ||
Realized and Unrealized Gains (Losses) on Derivative Financial Instruments | |||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | (0.4) | 0.4 | |||
Other comprehensive income (loss) before reclassifications | (0.2) | (1.6) | |||
Amounts reclassified | 0.1 | 0.8 | |||
Other comprehensive income (loss) | (0.1) | (0.8) | 0.1 | ||
Ending Balance | (0.5) | (0.4) | 0.4 | ||
Change in net unrealized gain (loss) on investment securities | |||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | 9.8 | |||
Other comprehensive income (loss) before reclassifications | [1] | 15.7 | |||
Amounts reclassified | [1] | (23.4) | |||
Other comprehensive income (loss) | (7.7) | [1] | (35.2) | ||
Ending Balance | [1] | 9.8 | |||
Noncontrolling Interest | |||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | [1] | 2.1 | |||
Other comprehensive income (loss) before reclassifications | [1] | 0 | |||
Amounts reclassified | [1] | (2.1) | |||
Other comprehensive income (loss) | [1] | (2.1) | |||
Ending Balance | [1] | 0 | 2.1 | ||
Total | |||||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||||
Beginning Balance | (84.2) | (203.7) | |||
Other comprehensive income (loss) before reclassifications | (102.3) | 142.1 | |||
Amounts reclassified | (2) | (22.6) | |||
Other comprehensive income (loss) | (104.3) | 119.5 | |||
Ending Balance | $ (188.5) | $ (84.2) | $ (203.7) | ||
[1] | In connection with the Company’s adoption of ASU 2016-01, the unrealized gains on investment securities, which related to the non-controlling interests, were reclassified to Non-controlling interests. |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Consolidated revenue | $ 564,400,000 | [1] | $ 601,300,000 | $ 600,200,000 | $ 612,500,000 | $ 604,100,000 | [2] | $ 585,700,000 | $ 570,900,000 | $ 544,300,000 | $ 2,378,400,000 | $ 2,305,000,000 | $ 2,194,600,000 | |
Income before income taxes | (63,600,000) | [1] | 250,400,000 | 239,300,000 | 287,500,000 | 264,000,000 | [2] | 282,900,000 | 266,900,000 | 253,300,000 | 713,600,000 | 1,067,100,000 | 974,600,000 | |
Net income | (98,800,000) | [1] | 201,900,000 | 205,200,000 | 224,000,000 | 393,800,000 | [2] | 216,800,000 | 204,400,000 | 193,700,000 | 532,300,000 | 1,008,700,000 | 739,000,000 | |
Net income (controlling interest) | $ (151,300,000) | [1] | $ 124,900,000 | $ 117,000,000 | $ 153,000,000 | $ 315,400,000 | [2] | $ 125,400,000 | $ 126,300,000 | $ 122,500,000 | $ 243,600,000 | $ 689,500,000 | $ 472,800,000 | |
Earnings per share (diluted) (in dollars per share) | $ (2.88) | [1] | $ 2.34 | $ 2.16 | $ 2.77 | $ 5.50 | [2] | $ 2.22 | $ 2.22 | $ 2.13 | $ 4.52 | $ 12.03 | $ 8.57 | |
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||
Equity method investments in Affiliates (net) | $ 2,791,000,000 | $ 3,304,700,000 | $ 2,791,000,000 | $ 3,304,700,000 | ||||||||||
Equity Method Investee | ||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||
Equity method investments in Affiliates (net) | 2,791,000,000 | $ 3,304,700,000 | 2,791,000,000 | $ 3,304,700,000 | $ 3,368,300,000 | |||||||||
Investment One | Equity Method Investee | ||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||
Equity method investments in Affiliates (net) | $ 0 | $ 0 | $ 0 | |||||||||||
[1] | For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). | |||||||||||||
[2] | In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information | ||||||||||||||
Consolidated revenue | $ 564.4 | [1] | $ 601.3 | $ 600.2 | $ 612.5 | $ 604.1 | [2] | $ 585.7 | $ 570.9 | $ 544.3 | $ 2,378.4 | $ 2,305 | $ 2,194.6 | |
Fixed Assets (net) | 104.3 | 111 | 104.3 | 111 | 110.1 | |||||||||
United States | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Consolidated revenue | 1,611.7 | 1,571.4 | 1,477.5 | |||||||||||
Fixed Assets (net) | 87.1 | 97.8 | 87.1 | 97.8 | 97.3 | |||||||||
United Kingdom | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Consolidated revenue | 628.8 | 587.3 | 566.4 | |||||||||||
Fixed Assets (net) | 15.7 | 11.4 | 15.7 | 11.4 | 9.9 | |||||||||
Other | ||||||||||||||
Segment Reporting Information | ||||||||||||||
Consolidated revenue | 137.9 | 146.3 | 150.7 | |||||||||||
Fixed Assets (net) | $ 1.5 | $ 1.8 | $ 1.5 | $ 1.8 | $ 2.9 | |||||||||
[1] | For the year ended December 31, 2018, the Company recorded expenses to reduce the carrying value of the U.S. alternative Affiliate to zero and one of its non-U.S. alternative Affiliates accounted for under the equity method to fair value (see Note 13 for additional information). | |||||||||||||
[2] | In the fourth quarter of 2017, the Company recorded a one-time net benefit from changes in U.S. tax laws (see Note 22 for additional information) and an expense to reduce the carrying value of one of its U.S. alternative Affiliates accounted for under the equity method (see Note 13 for additional information). |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Valuation Allowance | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | $ 24.1 | $ 22.1 | $ 20.5 | |
Additions Charged to Costs and Expenses | 0.6 | 1.1 | 1.3 | |
Additions Charged to Other Accounts | 0 | 0.9 | 0.3 | |
Deductions | 0.6 | 0 | 0 | |
Balance End of Period | 24.1 | 24.1 | 22.1 | |
Other Allowances | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | [1] | 3.6 | 10.3 | 10.6 |
Additions Charged to Costs and Expenses | [1] | 6.4 | 0.6 | 5 |
Additions Charged to Other Accounts | [1] | 0 | 0 | 0 |
Deductions | [1] | 5 | 7.3 | 5.3 |
Balance End of Period | [1] | $ 5 | $ 3.6 | $ 10.3 |
[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. Deductions represent the reversal of such reserves upon collection of the amounts due. |