Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-13459 | ||
Entity Registrant Name | AFFILIATED MANAGERS GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-3218510 | ||
Entity Address, Address Line One | 777 South Flagler Drive | ||
Entity Address, City or Town | West Palm Beach | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33401 | ||
City Area Code | 800 | ||
Local Phone Number | 345-1100 | ||
Entity Information [Line Items] | |||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,627,759,695 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after December 31, 2019 , and delivered to stockholders in connection with the registrant’s annual meeting of stockholders, are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001004434 | ||
Entity Common Stock, Shares Outstanding | 47,867,765 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Common Stock ($0.01 par value) | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | AMG | ||
Security Exchange Name | NYSE | ||
5.875% Junior Subordinated Notes due 2059 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.875% Junior Subordinated Notes due 2059 | ||
Trading Symbol | MGR | ||
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Consolidated revenue | $ 2,239.6 | $ 2,378.4 | $ 2,305 |
Consolidated expenses: | |||
Compensation and related expenses | 943 | 987.2 | 979 |
Selling, general and administrative | 376.8 | 417.7 | 373.1 |
Intangible amortization and impairments | 144.5 | 114.8 | 86.4 |
Interest expense | 76.2 | 80.6 | 87.8 |
Depreciation and other amortization | 21.3 | 22 | 20.3 |
Other expenses (net) | 57 | 69.7 | 58 |
Total consolidated expenses | 1,618.8 | 1,692 | 1,604.6 |
Equity method income (loss) (net) | (338) | (0.2) | 302.2 |
Investment and other income | 25.2 | 27.4 | 64.5 |
Income before income taxes | 308 | 713.6 | 1,067.1 |
Income tax expense | 2.9 | 181.3 | 58.4 |
Net income | 305.1 | 532.3 | 1,008.7 |
Net income (non-controlling interests) | (289.4) | (288.7) | (319.2) |
Net income (controlling interest) | $ 15.7 | $ 243.6 | $ 689.5 |
Average shares outstanding (basic) (in shares) | 50.5 | 53.6 | 56 |
Average shares outstanding (diluted) (in shares) | 50.6 | 53.8 | 58.6 |
Earnings per share (basic) (in dollars per share) | $ 0.31 | $ 4.55 | $ 12.30 |
Earnings per share (diluted) (in dollars per share) | $ 0.31 | $ 4.52 | $ 12.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 305.1 | $ 532.3 | $ 1,008.7 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | 10.9 | (102.1) | 128 |
Change in net realized and unrealized gain (loss) on derivative financial instruments | 1.7 | (0.1) | (0.8) |
Change in net unrealized loss on investment securities | 0 | 0 | (7.7) |
Other comprehensive income (loss), net of tax | 12.6 | (102.2) | 119.5 |
Comprehensive income | 317.7 | 430.1 | 1,128.2 |
Comprehensive income (non-controlling interests) | (301.8) | (273.7) | (337.6) |
Comprehensive income (controlling interest) | $ 15.9 | $ 156.4 | $ 790.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 539.6 | $ 565.5 | |
Receivables | 417.1 | 400.6 | |
Investments in marketable securities | 59.4 | 119.3 | |
Goodwill | 2,651.7 | 2,633.4 | |
Acquired client relationships (net) | 1,182 | 1,309.9 | |
Equity method investments in Affiliates (net) | 2,195.6 | 2,791 | |
Fixed assets (net) | 92.3 | 104.3 | |
Other investments | 211.8 | 201.1 | |
Other assets | 304 | 94 | |
Total assets | 7,653.5 | 8,219.1 | |
Liabilities and Equity | |||
Payable and accrued liabilities | 634.6 | 746.6 | |
Debt | 1,793.8 | 1,829.6 | |
Deferred income tax liability (net) | 450.2 | 511.6 | |
Other liabilities | 359.1 | 162.7 | |
Total liabilities | 3,237.7 | 3,250.5 | |
Commitments and contingencies (Note 7) | |||
Redeemable non-controlling interests | [1] | 916.7 | 833.7 |
Equity: | |||
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares outstanding in 2018 and 2019) | 0.6 | 0.6 | |
Additional paid-in capital | 707.2 | 835.6 | |
Accumulated other comprehensive loss | (108.8) | (109) | |
Retained earnings | 3,819.8 | 3,876.8 | |
Total stockholders' equity before treasury stock | 4,418.8 | 4,604 | |
Less: Treasury stock, at cost (6.5 shares in 2018 and 10.4 shares in 2019) | (1,481.3) | (1,146.6) | |
Total stockholders' equity | 2,937.5 | 3,457.4 | |
Non-controlling interests | 561.6 | 677.5 | |
Total equity | 3,499.1 | 4,134.9 | |
Total liabilities and equity | $ 7,653.5 | $ 8,219.1 | |
[1] | As of December 31, 2018 and 2019 , Redeemable non-controlling interests includes consolidated Affiliate sponsored investment products primarily attributable to third-party investors of $91.0 million and $21.6 million |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 10.4 | 6.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ 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 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 | (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 and other | 6.3 | 6.3 | |||||
Distributions to non-controlling interests | (352.2) | (352.2) | |||||
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 | (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) | |||||
Transfers to Redeemable non-controlling interests | (44.8) | (44.8) | |||||
Capital contributions and other | 17.8 | 17.8 | |||||
Distributions to non-controlling interests | (370.5) | (370.5) | |||||
Ending Balance at Dec. 31, 2018 | 4,134.9 | 0.6 | 835.6 | (109) | 3,876.8 | (1,146.6) | 677.5 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 305.1 | 15.7 | 289.4 | ||||
Other comprehensive income (loss) | 12.6 | 0.2 | 12.4 | ||||
Share-based compensation | 49.9 | 49.9 | |||||
Common stock issued under share-based incentive plans | (5.4) | (34) | 28.6 | ||||
Shares repurchases | (360.8) | 2.5 | (363.3) | ||||
Issuance costs and other | 0.1 | 0.1 | |||||
Dividends | (66.1) | (66.1) | |||||
Affiliate equity activity: | |||||||
Affiliate equity compensation | 40.5 | 9.6 | 30.9 | ||||
Issuances | 11.2 | (3.7) | 14.9 | ||||
Repurchases | 2.9 | 13.2 | (10.3) | ||||
Changes in redemption value of Redeemable non-controlling interests | (166) | (166) | |||||
Transfers to Redeemable non-controlling interests | (105) | (105) | |||||
Capital contributions and other | (0.3) | (0.3) | |||||
Distributions to non-controlling interests | (347.9) | (347.9) | |||||
Ending Balance at Dec. 31, 2019 | $ 3,499.1 | $ 0.6 | $ 707.2 | $ (108.8) | $ 3,819.8 | $ (1,481.3) | $ 561.6 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends (in dollars per share) | $ 1.28 | $ 1.20 | $ 0.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flow from (used in) operating activities: | |||
Net income | $ 305.1 | $ 532.3 | $ 1,008.7 |
Adjustments to reconcile Net income to cash flow from (used in) operating activities: | |||
Intangible amortization and impairments | 144.5 | 114.8 | 86.4 |
Depreciation and other amortization | 21.3 | 22 | 20.3 |
Deferred income tax expense (benefit) | (55.8) | 51.9 | (123.6) |
Equity method (income) loss (net) | 338 | 0.2 | (302.2) |
Distributions of earnings received from equity method investments | 252.4 | 466.3 | 429.8 |
Share-based compensation and Affiliate equity expense | 90.4 | 101.1 | 90.4 |
Other non-cash items | (17.7) | (2.7) | (26.3) |
Changes in assets and liabilities: | |||
Purchases of securities by consolidated Affiliate sponsored investment products | (42.3) | (190.8) | (34.1) |
Sales of securities by consolidated Affiliate sponsored investment products | 16.5 | 49.6 | 29.9 |
(Increase) decrease in receivables | (15.8) | 14.4 | (53.5) |
Increase in other assets | (51.4) | (11.7) | (7.7) |
Increase (decrease) in payables, accrued liabilities and other liabilities | (56.1) | (6.8) | 52.3 |
Cash flow from operating activities | 929.1 | 1,140.6 | 1,170.4 |
Cash flow from (used in) investing activities: | |||
Investments in Affiliates | (162.3) | (7.3) | (30.6) |
Divestments of Affiliates | 117.7 | 0 | 0 |
Purchase of fixed assets | (9.6) | (18.7) | (18.5) |
Purchase of investment securities | (43.1) | (40.8) | (37.2) |
Sale of investment securities | 72.9 | 48.6 | 100.1 |
Cash flow from (used in) investing activities | (24.4) | (18.2) | 13.8 |
Cash flow from (used in) financing activities: | |||
Borrowings of debt | 470.7 | 1,150 | 545 |
Repayments of debt | (510) | (1,180.6) | (805) |
Repurchase of common stock | (356.1) | (496.1) | (351.3) |
Dividends paid on common stock | (65.3) | (64.4) | (44.9) |
Distributions to non-controlling interests | (347.9) | (370.5) | (352.2) |
Affiliate equity repurchases and issuances (net) | (135.5) | (113.7) | (165.7) |
Subscriptions to consolidated Affiliate sponsored investment products, net of redemptions | 19 | 132.8 | 2.7 |
Other financing items | (9.6) | (40.6) | (18.3) |
Cash flow used in financing activities | (934.7) | (983.1) | (1,189.7) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 8.7 | (10.1) | 14.2 |
Net increase (decrease) in cash and cash equivalents | (21.3) | 129.2 | 8.7 |
Cash and cash equivalents at beginning of period | 565.5 | 439.5 | 430.8 |
Effect of deconsolidation of Affiliates and Affiliate sponsored investment products | (4.6) | (3.2) | 0 |
Cash and cash equivalents at end of period | 539.6 | 565.5 | 439.5 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 84.1 | 76.9 | 82.1 |
Income taxes paid | 102.7 | 160.2 | 165 |
Lease liabilities paid | 35.4 | ||
Supplemental disclosure of non-cash financing activities: | |||
Payables recorded for Affiliate equity repurchases | 19.8 | 36.2 | 47.3 |
Payables recorded for share repurchases | 10.6 | 6.9 | 23.1 |
Stock issued upon vesting of restricted stock units | 32.7 | 4.7 | 59.3 |
Stock received for tax withholdings on share-based payments | 6.4 | 14.7 | 20 |
Stock received for the exercise of stock options | 0 | $ 4.1 | $ 30.2 |
Right-of-use assets obtained in exchange for new operating leases | $ 189.7 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 high-quality boutique investment management firms, referred to as “Affiliates.” The Company’s Affiliates provide a comprehensive and diverse range of active, return-oriented strategies designed to assist institutional, retail and high net worth clients worldwide in achieving their investment objectives. The Company operates in one segment, global 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 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 and Affiliate management, 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 only Affiliate management participates in any increase or decrease in expenses. Under these structured partnership interests, the Company’s contractual share of revenue generally has priority over 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. (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 intercompany balances and transactions have been eliminated. 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 Affiliates and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to finance its activities independently, and when the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact its economic performance. An entity is a VIE when it lacks one or more of the characteristics of a VRE, 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 such 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. Substantially all of the Company’s consolidated Affiliates considered VIEs are controlled because the Company holds a majority of the voting interests or it is the managing member or general partner. Furthermore, an Affiliate’s assets can be used for purposes other than the settlement of the respective Affiliate’s obligations. 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. 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 management’s 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 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 transaction occurs. 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 Affiliate accounted for under the equity method 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 performs assessments to determine if fair value may have declined below related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be other-than temporary. Where the Company believes that such declines may have occurred, the Company determines the amount of impairment using valuation methods, such as discounted cash flow techniques. Impairments are recorded as an expense in Equity method income (loss) (net) to reduce the carrying value of the Affiliate to its fair value. 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’ interests are 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 consolidated Affiliate sponsored investment 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. Realized gains and losses are recorded on the trade date on a specific identified basis, except for consolidated Affiliate sponsored investment 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. In these valuation models, the Company is required to make judgments about growth rates of assets under management, client attrition, asset and performance based fee rates and expenses. These valuation models also require judgments about tax benefits, credit risk, interest rates, tax rates, discount rates and discounts for lack of marketability. 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 assesses these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived acquired client relationship 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. The Company has determined that certain of its acquired client relationships meet the criteria to be considered definite-lived assets, including investment advisory contracts between our Affiliates and their underlying investors, and are amortized over their expected period of economic benefit. The expected period of economic benefit of definite-lived acquired client relationships is a judgment based on 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 assesses for the possible impairment of indefinite and definite-lived acquired client relationships 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 considers various qualitative and quantitative factors (including market multiples) to determine if the fair value of each asset is greater than its carrying value. 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 an impairment assessment annually or more frequently whenever events or circumstances occur indicating that the carrying value of its single reporting unit is in excess of its fair value. In this assessment, the Company typically measures the fair value of our reporting unit using various qualitative and quantitative factors (including the Company’s market capitalization and market multiples for asset management businesses). If a potential impairment is more-likely-than-not, then the Company will perform a single step assessment 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 years to ten years . Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally three years 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 In the first quarter of 2019, the Company and its consolidated Affiliates adopted Accounting Standard Update (“ASU”) 2016-02, Leases (and related ASUs), using a modified retrospective method and, as a result, recorded a lease liability of $190.8 million and after certain reclassifications, primarily related to accrued lease payments and unamortized lease incentives, a right-of-use asset of $163.6 million . Additionally, the Company elected the transition practical expedients provided by ASU 2016-02, which allowed the Company to carry forward its historical lease classification. Leases are classified as either operating leases or finance leases. The Company and its Affiliates currently lease office space and equipment primarily under operating lease arrangements. As these leases expire, it is expected that, in the normal course of business, they will be renewed or replaced. Whether a lease is classified as an operating lease or a finance lease, the Company and its Affiliates must record a right-of-use asset and a lease liability at the commencement date of the lease, other than for leases with an initial term of 12 months or less. As permitted under ASU 2016-02, the Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Company’s Consolidated Balance Sheets. Right-of-use assets and lease liabilities are reported in Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. A lease liability is initially and subsequently reported at the present value of the outstanding lease payments determined by discounting those lease payments over the remaining lease term using the incremental borrowing rate of the legal entity entering into the lease as of the commencement date. A right-of-use asset is initially reported at the present value of the corresponding lease liability plus any prepaid lease payments and initial direct costs of entering into the lease, and reduced by any lease incentives. Subsequently, a right-of-use asset is reported at the present value of the lease liability adjusted for any prepaid or accrued lease payments, remaining balances of any lease incentives received, unamortized initial direct costs of entering into the lease and any impairments of the right-of-use asset. The Company and its Affiliates test for possible impairments of right-of-use assets annually or more frequently whenever events or changes in circumstances indicate that the carrying value of a right-of-use asset may exceed its fair value. If the carrying value of the right-of-use asset exceeds its fair value, then the carrying value of the right-of-use asset is reduced to its fair value and the expense is recorded in Other expenses (net) on the Consolidated Statements of Income. Subsequent to an impairment, the carrying value of the right-of-use asset is amortized on a straight-line basis over the remaining lease term. Lease liabilities and right-of-use assets based on variable lease payments that depend on an index or rate are initially measured using the index or rate at the commencement date with any subsequent changes in variable lease payments reported in Other expenses (net) as incurred. Most lease agreements for office space that are classified as operating leases contain renewal options, rent escalation clauses or other lease incentives provided by the lessor. Lease expense is accrued to recognize lease escalation provisions and renewal options that are reasonably certain to be exercised, as well as lease incentives provided by the lessor, on a straight-line basis over the lease term and is reported in Other expenses (net). If a right-of-use asset is impaired, the lease expense is subsequently reported in Other expenses (net) as the straight-line amortization of the right-of-use asset and the accretion of the lease liability, thereby transitioning to a front-loaded expense recognition profile for the associated lease. The Company and its Affiliates combine lease and non-lease components for their office space leases and separate non-lease components for their equipment leases in calculating their lease liabilities. Sublease income is reported in Investment and other 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, junior subordinated notes and junior convertible securities are amortized over the expected term of the security, and are included as a reduction of Debt 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 use 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 recorded 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 which is presented in Investment and other income. 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. Changes in fair value of a hedging instrument that are excluded from the assessment of hedge effectiveness, also known as excluded components, are recorded in earnings and amortized on a straight-line basis over the respective period of the contracts as a reduction to Interest expense. (m) Revenue Recognition Consolidated 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. Consolidated 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 include exceeding performance benchmarks or hurdle rates that 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 Consolidated revenue gross of any related expenses when the Company and its Affiliates are the principal in their 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 investments in Affiliates. 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 the investment in an Affiliate is consummated and records a liability in Other liabilities. 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 recorded 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. The recording of 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. 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 Earnings per share (basic) is based on the weighted average number of shares of the Company’ |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2019 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities The following is a summary of the cost, gross unrealized gains, unrealized losses and fair value of Investments in marketable securities: December 31, 2018 2019 Cost $ 126.8 $ 57.9 Unrealized gains 1.1 2.1 Unrealized losses (8.6 ) (0.6 ) Fair value $ 119.3 $ 59.4 For the years ended December 31, 2018 and 2019 , the Company received proceeds of $81.4 million and $38.0 million , respectively, from the sale of investments in marketable securities and recorded net gains of $6.9 million and $1.1 million , respectively. As of December 31, 2018 and 2019 , Investments in marketable securities includes consolidated Affiliate sponsored investment products with fair values of $105.1 million and $38.1 million |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2019 | |
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 net asset value (“NAV”) as a practical expedient. The income or loss related to these investments is recorded in Investment and other income. See Note 8. |
Investments in Affiliates and A
Investments in Affiliates and Affiliate Sponsored Investment Products | 12 Months Ended |
Dec. 31, 2019 | |
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 Affiliates accounted for under the equity method considered VIEs, and the Company’s carrying value and maximum exposure to loss, were as follows: December 31, 2018 December 31, 2019 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,102.9 $ 2,277.8 $ 1,141.4 $ 1,843.0 As of December 31, 2018 and 2019 , the carrying value and maximum exposure to loss for all of the Company’s Affiliates accounted for under the equity method was $2,791.0 million and $2,195.6 million , respectively, including Affiliates accounted for under the equity method considered VREs of $513.2 million and $352.6 million , respectively. Affiliate Sponsored Investment Products The Company’s carrying value, and maximum exposure to loss from unconsolidated Affiliate sponsored investment products, is its or its consolidated Affiliate’s interest in the unconsolidated net assets of the respective products. The net assets of unconsolidated VIEs attributable to Affiliate sponsored investment products, and the Company’s carrying value and maximum exposure to loss, were as follows: December 31, 2018 December 31, 2019 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 2,216.5 $ 1.1 $ 2,282.1 $ 0.9 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s Debt: December 31, 2018 2019 Senior bank debt $ 779.7 $ 449.7 Senior notes 742.5 743.8 Junior convertible securities 307.4 310.6 Junior subordinated notes — 289.7 Debt $ 1,829.6 $ 1,793.8 Long-term debt is carried at amortized cost. Unamortized discounts and debt issuance costs related to long-term debt are presented in the Consolidated Balance Sheets as an adjustment to the carrying value of the associated long-term debt. As of December 31, 2019, Debt with a par value of $450.0 million and $400.0 million matures in 2023 and 2024, respectively. Senior Bank Debt In 2019, the Company amended and restated its existing credit facilities to provide for a $1.25 billion senior unsecured multicurrency revolving credit facility and a $450.0 million senior unsecured term loan facility. The revolver matures on January 18, 2024, and the term loan matures on January 18, 2023. Subject to certain conditions, the Company may increase the commitments under the revolver by up to an additional $500.0 million and may borrow up to an additional $75.0 million under the term loan. The Company pays interest on any outstanding obligations under the credit facilities at specified rates, based either on an applicable LIBOR or prime rate, plus a marginal rate determined based on its credit rating. As of December 31, 2019 , the interest rate for the Company’s outstanding borrowings under the credit facilities was LIBOR plus 0.875% . 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. As of December 31, 2018 , the Company had outstanding borrowings under the revolver of $330.0 million , and the weighted-average interest rate on outstanding borrowings was 3.92% . As of December 31, 2019 , the Company had no outstanding borrowings under the revolver. As of December 31, 2018 and 2019 , the Company had outstanding borrowings under the term loan of $450.0 million , and the weighted-average interest rate on outstanding borrowings was 3.33% and 2.66% , respectively. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2018 and 2019 , these fees amounted to $1.6 million and $1.5 million , respectively. Senior Notes and Junior Subordinated Notes As of December 31, 2019 , the Company had senior notes and junior subordinated notes outstanding. The carrying value of the senior notes and junior subordinated notes is accreted to the principal amount at maturity over the remaining life of the underlying instrument. The principal terms of the senior notes and junior subordinated notes were as follows: 2024 2025 2059 Junior Subordinated Notes Issue date February 2014 February 2015 March 2019 Maturity date February 2024 August 2025 March 2059 Par value (in millions) $ 400.0 $ 350.0 $ 300.0 Stated coupon 4.25 % 3.50 % 5.875 % Coupon frequency Semi-annually Semi-annually Quarterly (3) Potential call date Any time (1) Any time (1) March 2024 (2) Call price As defined (1) As defined (1) As defined (2) Listing N.A. N.A. NYSE __________________________ (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% . (2) The junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, at 100% of the principal amount of the notes being redeemed plus any accrued and unpaid interest thereon. Prior to March 30, 2024, the junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the junior subordinated notes. (3) The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. As of December 31, 2019 , the effective interest rates of the 2024 senior notes, the 2025 senior notes and the 2059 junior subordinated notes were 4.42% , 3.66% and 5.96% , respectively. Junior Convertible Securities The following table summarizes the Company’s 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, 2018 December 31, 2019 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 312.5 $ 430.8 $ 315.4 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 18 years . The junior convertible securities bear interest at a rate of 5.15% per annum, payable quarterly in cash. 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 common stock, or a combination thereof, at the Company’s election. 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 $8.4 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. In August 2019, in accordance with the convertible securities indenture, the Company adjusted the conversion rate of the junior convertible securities to 0.2558 shares of common stock per $50.00 junior convertible security, equivalent to an adjusted conversion price of $195.47 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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 £325.3 million for $450.0 million in June 2021 and under the other forward contract, the Company will deliver £285.8 million for $400.0 million in February 2024. Under the collar contract expiring in 2021, 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. Under the collar contract expiring in 2024, 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. The combinations 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. 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. Certain of the Company’s Affiliates use forward foreign currency contracts to hedge the risk of foreign currency exchange rate movements, which were not significant for the years ended December 31, 2018 and 2019 , respectively. The following table summarizes the Company’s and its Affiliates’ derivative financial instruments measured at fair value on a recurring basis: December 31, 2018 December 31, 2019 Assets Liabilities Assets Liabilities Forward contracts $ 32.0 $ (1.4 ) $ 23.8 $ (1.0 ) Put options — (60.3 ) — (31.0 ) Call options 34.1 — 15.1 — Total $ 66.1 $ (61.7 ) $ 38.9 $ (32.0 ) The Company’s forward contracts and collar contracts with the counterparty are governed by an International Swaps and Derivative Association Master Agreement, which provides for legally enforceable rights to set-off. Given the contracts include this set-off right, the Company’s forward contracts and collar contracts were presented on a net basis in Other assets and were $4.9 million and $5.6 million , as of December 31, 2018 and 2019 , respectively. Certain of the Company’s consolidated Affiliates have entered into contracts that do not have set-off rights and are, therefore, presented on a gross basis in Other assets and Other liabilities and were $0.9 million and $1.4 million , respectively, as of December 31, 2018, and $2.2 million and $1.0 million , respectively, as of December 31, 2019 . 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, 2017, the Company and its Affiliates did not have any significant derivative financial instruments. For the Year Ended December 31, 2018 2019 Gain (Loss) Recorded in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Loss into Earnings Gain Recorded in Earnings from Excluded Components (1) Gain (Loss) Recorded in Other Comprehensive Income Gain Reclassified from Accumulated Other Comprehensive Income into Earnings Gain Recorded in Earnings from Excluded Components (1) Forward contracts $ 27.2 $ (0.1 ) $ 3.8 $ (21.7 ) $ 0.5 $ 13.9 Put options (17.8 ) — — 29.3 — — Call options (8.4 ) — — (19.0 ) — — Total $ 1.0 $ (0.1 ) $ 3.8 $ (11.4 ) $ 0.5 $ 13.9 __________________________ (1) The excluded components of the forward contracts are recorded in earnings on a straight-line basis over the respective period of the contracts as a reduction to Interest expense. 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 and 2019, the Company held $3.1 million and $8.7 million of cash collateral from the counterparty, respectively, and the counterparty held $28.0 million and no cash collateral from the Company, respectively. 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 give the Company 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 give rise to termination rights, if certain specified rating downgrades were to occur. As of December 31, 2019 , 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, 2019 | |
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, 2019 , these unfunded commitments were $127.2 million and may be called in future periods. As of December 31, 2019 , the Company was contingently liable to make payments of $150.0 million through 2021 and $40.0 million through 2022, related to the achievement of specified financial targets by certain of its Affiliates accounted for under the equity method. As of December 31, 2019 , the Company expected to make payments of approximately $25 million . The Company expected to make no payments in 2020. Affiliate equity interests provide holders with a conditional right to put their interests to the Company over time. See Note 18. In connection with one of the Company’s investments in an Affiliate, a minority owner has the right to elect to sell a portion of its ownership interest in the Affiliate to the Company annually. In the fourth quarter of 2019, the Company was notified by the minority owner that it had elected to sell a 5% ownership interest in the Affiliate to the Company. The transaction is expected to be completed during the first half of 2020; 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, it will continue to account for the Affiliate under the equity method. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
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, 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 — Fair Value Measurements December 31, 2019 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 59.4 $ 24.4 $ 35.0 $ — Derivative financial instruments (1) 7.9 — 7.9 — Financial Liabilities (2) Affiliate equity repurchase obligations $ 19.8 $ — $ — $ 19.8 Derivative financial instruments 1.0 — 1.0 — __________________________ (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, 2018 2019 Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Balance, beginning of period $ 9.4 $ 49.2 $ 1.9 $ 36.2 Net realized and unrealized losses (1) 1.3 — 0.1 0.1 Purchases and issuances (2) — 105.4 — 118.6 Settlements and reductions (8.8 ) (118.4 ) (2.0 ) (135.1 ) Balance, end of period $ 1.9 $ 36.2 $ — $ 19.8 Net change in unrealized losses relating to instruments still held at the reporting date $ 0.2 $ — $ — $ — __________________________ (1) Accretion expense for these arrangements is 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 recurring level 3 fair value measurements: Quantitative Information About Level 3 Fair Value Measurements December 31, 2018 December 31, 2019 Valuation Techniques Unobservable Input Fair Value Range Weighted Average (1) Fair Value Range Weighted Average (1) Contingent payment arrangements Discounted cash flow Growth rates (2) $ 1.9 7% 7% $ — — — Discount rates 15% 15% — — Affiliate equity repurchase obligations Discounted cash flow Growth rates (2) 36.2 (4)% - 9% 3% 19.8 (9)% - 7% 5% Discount rates 14% - 16% 15% 14% - 17% 15% __________________________ (1) Calculated by comparing the relative fair value of an arrangement or obligation to its respective total. (2) Represents growth rates of asset and performance based fees. Contingent payment arrangements represents the present value of the expected future settlement amounts related to the Company’s investments in consolidated Affiliates. Affiliate equity repurchase obligations include agreements to repurchase Affiliate equity. As of December 31, 2019 , 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 fair values of these investments and unfunded commitments: December 31, 2018 December 31, 2019 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 193.2 $ 131.0 $ 203.3 $ 127.2 Other funds (2) 7.9 — 8.5 — Other investments (3) $ 201.1 $ 131.0 $ 211.8 $ 127.2 __________________________ (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 third-party funds and 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 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 $123.2 million and $137.6 million as of December 31, 2018 and 2019 , respectively. Other Financial Assets and Liabilities Not Carried at Fair Value The Company has other financial assets and liabilities, which are not required to be carried at fair value, but the Company is required to disclose their fair values. 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 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, 2018 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 746.2 $ 747.5 $ 746.8 $ 797.4 Level 2 Junior convertible securities 312.5 391.5 315.4 415.7 Level 2 Junior subordinated notes — — 290.7 327.7 Level 2 |
Goodwill and Acquired Client Re
Goodwill and Acquired Client Relationships | 12 Months Ended |
Dec. 31, 2019 | |
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 2018 2019 Balance, beginning of period $ 2,662.5 $ 2,633.4 Foreign currency translation (29.1 ) 18.3 Balance, end of period $ 2,633.4 $ 2,651.7 As of September 30, 2019, the Company completed its impairment assessment on goodwill and no impairment was 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, 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 Intangible amortization and impairments — (93.4 ) (93.4 ) (51.1 ) (144.5 ) Foreign currency translation (0.4 ) — (0.4 ) 17.0 16.6 Transfers (1) (36.1 ) 36.1 — — — Balance, as of December 31, 2019 $ 1,256.0 $ (1,046.2 ) $ 209.8 $ 972.2 $ 1,182.0 __________________________ (1) Transfers includes acquired client relationships at Affiliates that were deconsolidated during the period. Definite-lived acquired client relationships at the Company’s consolidated Affiliates are amortized over their expected period of economic benefit. The Company recorded amortization expense in Intangible amortization and impairments for these relationships of $86.4 million , $114.4 million and $93.4 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. Based on relationships existing as of December 31, 2019 , the Company estimates that its consolidated annual amortization expense will be approximately $60 million in 2020, approximately $30 million in each of 2021, 2022 and 2023, and approximately $20 million in 2024. In the fourth quarter of 2019 , the Company completed its impairment assessment of its indefinite-lived acquired client relationships and determined that the fair value of an indefinite-lived acquired client relationship at one of its Affiliates had declined below its carrying value. Accordingly, the Company recorded an expense in Intangible amortization and impairments of $35.0 million ( $31.2 million attributable to the controlling interest) to reduce the carrying value to fair value of the asset. The decline in the fair value was a result of a projected decline in assets under management that decreased the forecasted revenue associated with the asset. The fair value of the asset was determined using a discounted cash flow analysis, a level 3 fair value measurement that included a projected growth rate of (9)% for assets under management, discount rate of 14.5% for asset based fees, and a market participant tax rate of 25% . No other impairments of indefinite-lived acquired client relationships were indicated. In addition, the Company recorded an expense in Intangible amortization and impairments of $16.1 million to reduce the carrying value to zero of certain indefinite-lived acquired client relationships due to the closure of certain retail investment products on its U.S. retail distribution platform. |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in Affiliates | Equity Method Investments in Affiliates In July 2019, the Company completed a minority investment in Garda Capital Partners LP. The Company’s purchase price allocation was measured using financial models that included assumptions of expected market performance, net client cash flows and discount rates. The majority of the consideration paid is deductible for U.S. tax purposes over a 15 year life. The following table presents the change in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2018 2019 Balance, beginning of period $ 3,304.7 $ 2,791.0 Earnings 370.6 289.4 Intangible amortization and impairments (370.8 ) (627.4 ) Distributions of earnings (466.3 ) (252.4 ) Foreign currency translation (34.5 ) (40.0 ) Investments in Affiliates 7.3 162.3 Divestments of Affiliates — (117.7 ) Other (20.0 ) (9.6 ) Balance, end of period $ 2,791.0 $ 2,195.6 Definite-lived acquired client relationships at the Company’s Affiliates accounted for under the equity method are amortized over their expected period of economic benefit. The Company recorded amortization expense for these relationships of $106.1 million , $97.5 million and $142.4 million , respectively, for the years ended December 31, 2017 , 2018 and 2019 . Based on relationships existing as of December 31, 2019 , the Company estimates the annual amortization expense attributable to its Affiliates will be approximately $130 million in 2020 and approximately $75 million in each of 2021, 2022, 2023 and 2024. In the second quarter of 2018, the Company recorded a $33.3 million expense to reduce the carrying value to zero of an Affiliate as the business was in liquidation. In the fourth quarter of 2018, the Company recorded a $240.0 million expense to reduce the carrying value to fair value of an Affiliate. The decline in the fair value of the Affiliate was due to a decline 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. The fair value of the investment was determined using a discounted cash flow analysis, a level 3 fair value measurement that included a projected future 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% . Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than-temporary. In connection with one of the Company’s investments in an Affiliate, a minority owner has the right to elect to sell a portion of its ownership interest in the Affiliate to the Company annually. In the second quarter of 2019 , the minority owner elected to sell a 5% ownership interest in the Affiliate to the Company for $25.7 million , which settled during the year. In the fourth quarter of 2019, the Company was notified by the minority owner that it had elected to sell an additional 5% ownership interest in the Affiliate to the Company, which is expected to be completed in the first half of 2020. As of December 31, 2019 , the minority owner maintains a 14% interest in the Affiliate. In the first quarter of 2019 , the Company recorded a $415.0 million expense to reduce the carrying value to fair value of an Affiliate. A series of precipitating events led the Company to conclude in March 2019 that the growth expectations of the Affiliate had declined significantly, which the Company determined constituted a triggering event. The Affiliate’s flagship product had underperformed. The cumulative effect of associated redemptions and scaled-down fundraising expectations reduced expected asset and performance based fees and operating margin at the Affiliate. This led to a significant decrease in projected operating cash flows available to fund the Affiliate’s growth strategy, prompting a change in the strategic objectives of the Affiliate, including exiting the systematic equity business and reducing the number of new investment strategies being pursued. The Company determined that the estimated fair value of the Affiliate had declined meaningfully. Therefore, the Company performed a valuation to determine whether the fair value of the Affiliate had declined below its carrying value. The fair value of the investment was determined using a discounted cash flow analysis, a level 3 fair value measurement, that included a projected compounded asset based fee growth over the first five years of (13)% , discount rates of 11% and 20% for asset and performance based fees, respectively, and a market participant tax rate of 25% . Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than-temporary. Subsequently, the Company sold its interest in the Affiliate on October 1, 2019, and the Company recorded no significant gain or loss on the transaction. In the third quarter of 2019 , the Company recorded a $10.0 million expense to reduce the carrying value to fair value of another Affiliate. The fair value of the investment was determined using a discounted cash flow analysis, a level 3 fair value measurement that included a projected growth rate of (20)% , discount rates of 11% and 20% for asset and performance based fees, respectively, and a market participant tax rate of 25% . Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than-temporary. In the fourth quarter of 2019, the Company recorded a $60.0 million expense to reduce the carrying value to fair value of an additional Affiliate. The decline in the fair value was a result of a decline in assets under management and a reduction in projected growth, which decreased the forecasted revenue associated with the investment. The fair value of the investment was determined using a discounted cash flow analysis, a level 3 fair value measurement that included a projected growth rate of 9% for assets under management, discount rates of 11% and 20% for asset and performance based fees, respectively, and a market participant tax rate of 25% . Based on the discounted cash flow analysis, the Company concluded that the fair value of its investment had declined below its carrying value and that the decline was other-than-temporary. The Company completed its other annual evaluations of equity method investments in Affiliates as of December 31, 2019 , and no other impairments were indicated. The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2017 2018 2019 Revenue (1) $ 3,126.3 $ 3,231.7 $ 2,760.9 Net income (1) 2,182.7 1,286.1 1,061.3 December 31, 2018 2019 Assets $ 2,730.4 $ 2,718.5 Liabilities and Non-controlling interests 1,235.1 1,212.7 __________________________ (1) Revenue and net income include asset and performance based fees, the impact of consolidated sponsored investment products and 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 is recorded in Equity method investments in Affiliates (net) and was $115.0 million as of December 31, 2019 . Under Rule 3-09 of Regulation S-X, the Company determined that one of its Affiliates accounted for under the equity method was significant for the years ended December 31, 2017 and 2018, and was not significant for the year ended December 31, 2019. This Affiliate reported revenue and net income of $844.8 million and $228.5 million , respectively, for the year ended December 31, 2019. This Affiliate’s total assets and total liabilities were $392.9 million and $299.8 million , respectively, as of December 31, 2019. This Affiliate’s cash flows from operating activities, cash flows used in investing activities and cash flows used in financing activities were $308.7 million , $7.4 million and $313.1 million , respectively, for the year ended December 31, 2019. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments The Company and its Affiliates currently lease office space and equipment under various operating leasing arrangements. The following table presents total lease costs (net): For the Year Ended December 31, 2019 Operating lease costs $ 41.7 Short-term lease costs 2.1 Variable lease costs 0.1 Sublease income (4.4 ) Total lease costs (net) $ 39.5 For the year ended December 31, 2019 , new right-of-use assets obtained in exchange for lease liabilities were $26.1 million . As of December 31, 2019 , the Company’s and its Affiliates’ weighted average operating lease term was eight years and the weighted average operating lease discount rate was 4% . As of December 31, 2019 , the maturity of lease liabilities were as follows: Year Operating Leases 2020 $ 38.9 2021 38.3 2022 31.4 2023 26.7 2024 21.1 Thereafter 82.4 Total undiscounted lease liabilities $ 238.8 __________________________ (1) Total undiscounted lease liabilities were $50.4 million greater than the operating leases recorded in Other liabilities primarily due to present value discounting. Both amounts exclude leases with initial terms of 12 months or less and leases that have not yet commenced. In connection with the Company’s adoption of ASU 2016-02, the Company was not required to, and did not, update prior period disclosures from the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The Company’s reported aggregate required minimum payments for operating leases having initial or non-cancelable lease terms greater than one year under the old standard as of December 31, 2018 were 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 2017 , 2018 and 2019 was $37.5 million , $40.5 million and $45.3 million , respectively, including an $8.1 million expense to reduce the carrying value to fair value of certain of the Company’s right-of-use assets related to a reduction in leased office space in the fourth quarter of 2019. The fair values of the right-of-use assets were determined using a discounted cash flow analysis, a Level 3 fair value measurement that included market rental rates ranging from $13 to $68 per square foot (weighted-average of $46 per square foot), weighted-average discount rates ranging from 3.3% to 5.5% and a market participant tax rate of 25% . No other impairments of right-of-use assets were indicated. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets (net) consisted of the following: December 31, 2018 2019 Building and leasehold improvements $ 117.8 $ 116.3 Software 51.0 52.6 Equipment 42.3 43.0 Furniture and fixtures 21.0 21.3 Land, improvements and other 18.6 17.9 Fixed assets, at cost 250.7 251.1 Accumulated depreciation and amortization (146.4 ) (158.8 ) Fixed assets (net) $ 104.3 $ 92.3 |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consisted of the following: December 31, 2018 2019 Accrued compensation $ 463.2 $ 421.5 Other 283.4 213.1 Payables and accrued liabilities $ 746.6 $ 634.6 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A prior owner of one of the Company’s consolidated Affiliates retains interests in certain of the Affiliate’s private equity partnerships and, as a result, is a related party of the Company. The prior owner’s interests are presented in Other liabilities and were $49.7 million and $38.5 million as of December 31, 2018 and 2019 , 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 the Company’s officers may serve as trustees or directors of certain investment vehicles from which the Company or an Affiliate earns fees. The Company has related party transactions in association with its Affiliate equity transactions, as more fully described in Notes 17 and 18. The Company’s executive officers and directors may invest from time to time in funds advised by its Affiliates on substantially the same terms as other investors. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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. 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 October 2019, January 2019 and January 2018, authorizing the Company to repurchase up to 6.0 million , 3.3 million and 3.4 million shares of its common stock, respectively, and these authorizations have no expiry. Purchases may be made from time to time, at management’s discretion, in the open market or in privately negotiated transactions, including through the use of derivative financial instruments and accelerated share repurchase programs. As of December 31, 2019 , there were a total of 6.9 million shares available for repurchase under the Company’s October 2019 and January 2019 share repurchase programs, and no shares remained under the January 2018 program. The following is a summary of the Company’s share repurchase activity: Year Shares Repurchased Average Price 2017 2.4 $ 173.19 2018 3.3 150.31 2019 4.1 88.73 Equity Distribution Program The Company entered into 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, 2019 , 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, 2019 | |
Share-based Payment Arrangement [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 accrue in cash or may be reinvested in the Company’s common stock. The total fair value of share-based compensation awards that vested was $59.4 million , $5.9 million and $18.9 million during the years ended December 31, 2017 , 2018 and 2019 , respectively. Share-Based Compensation The following table presents share-based compensation expense: Year Share-Based Compensation Expense Tax Benefit 2017 $ 40.4 $ 13.6 2018 44.7 11.2 2019 49.9 8.2 The excess tax benefit (deficiency) recognized from share-based incentive plans was $10.9 million , $0.7 million and ($3.2) million , respectively, for the years ended December 31, 2017, 2018 and 2019. As of December 31, 2018 , the Company had unrecognized share-based compensation expense of $54.1 million . As of December 31, 2019 , the Company had $106.6 million of unrecognized share-based compensation, which will be recognized over a weighted average period of approximately three years (assuming no forfeitures). Restricted Stock The following table summarizes transactions in the Company’s restricted stock units: Restricted Weighted Unvested units—December 31, 2018 0.6 $ 172.74 Units granted 0.7 98.48 Units vested (0.2 ) 168.95 Units forfeited (0.0 ) 145.59 Unvested units—December 31, 2019 1.1 123.70 The Company granted restricted stock unit awards with fair values of $36.9 million , $37.7 million and $59.7 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. These restricted stock units were valued based on the closing price of the Company’s common stock on the grant date and the number of shares expected to be delivered. Restricted stock units containing vesting conditions generally require service over a period of three years to four years and may also require the satisfaction of certain performance conditions. For certain of the Company’s awards with performance conditions, the number of restricted stock units expected to vest may change over time depending upon the performance level achieved. For the year ended December 31, 2019 , units granted includes a 0.1 million increase in the Company’s estimate of the number of shares expected to vest. As of December 31, 2019 , the Company had 0.2 million shares available for grant under its plans. Stock Options The following table summarizes transactions in the Company’s stock options: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Unexercised options outstanding—December 31, 2018 0.5 $ 130.81 Options granted 1.9 74.90 Options exercised (0.0 ) 71.49 Options forfeited (0.1 ) 121.94 Unexercised options outstanding—December 31, 2019 2.3 85.58 6.0 Exercisable at December 31, 2019 0.4 131.50 3.0 The Company granted stock options with fair values of $0.8 million , $1.0 million and $34.2 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. Stock options generally vest over a period of three years to five years and expire seven years after the grant date. All stock options have been granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. Substantially all of the Company’s outstanding stock options contain both service and performance conditions. For certain of the Company’s awards with performance conditions, the number of stock options expected to vest may change over time depending upon the performance level achieved. For the year ended December 31, 2019 , there were no changes in the Company’s estimate of the number of stock options expected to vest. The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of stock options exercised during the years ended December 31, 2017 , 2018 and 2019 was $50.8 million , $8.2 million and $0.2 million , respectively. The cash received for stock options exercised was $41.9 million , $9.7 million and $0.9 million during the years ended December 31, 2017 , 2018 and 2019 , respectively. As of December 31, 2019 , the exercisable stock options outstanding had no intrinsic value and 0.3 million options were available for grant under the Company’s option plans. The weighted average fair value of stock options was $48.05 , $48.64 and $18.36 , per option, for the years ended December 31, 2017 , 2018 and 2019 , respectively. The Company uses the Black-Scholes option pricing model to determine the fair value of options. The weighted average grant date assumptions used to estimate the fair value of stock options granted were as follows: For the Years Ended December 31, 2017 2018 2019 Dividend yield 0.5 % 0.8 % 1.7 % Expected volatility (1) 28.0 % 25.5 % 29.4 % Risk-free interest rate (2) 2.1 % 2.8 % 1.5 % Expected life of stock 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. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
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 years 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 2018 2019 Balance, beginning of period (1) $ 811.9 $ 833.7 Changes attributable to consolidated Affiliate sponsored investment products 51.6 (69.4 ) Transfers to Other liabilities (105.4 ) (118.6 ) Transfers from Non-controlling interests 44.8 105.0 Changes in redemption value 30.8 166.0 Balance, end of period (1) $ 833.7 $ 916.7 __________________________ (1) As of December 31, 2018 and 2019 , Redeemable non-controlling interests includes consolidated Affiliate sponsored investment products primarily attributable to third-party investors of $91.0 million and $21.6 million , respectively. |
Affiliate Equity
Affiliate Equity | 12 Months Ended |
Dec. 31, 2019 | |
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 $352.2 million , $370.5 million and $347.9 million for the years ended December 31, 2017 , 2018 and 2019 , 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 years 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 from and issues Affiliate equity to the Company’s consolidated Affiliate partners and its officers under agreements that provide the Company with a conditional right to call and Affiliate equity holders with a conditional right to put their Affiliate equity interests to the Company at certain intervals. The amount of cash paid for repurchases was $174.7 million , $120.0 million and $146.0 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. The total amount of cash received for issuances was $9.0 million , $6.3 million and $10.5 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. Sales and repurchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its consolidated 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, the 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, 2017 2018 2019 Controlling interest $ 13.2 $ 16.7 $ 9.6 Non-controlling interests 36.8 39.7 30.9 Total $ 50.0 $ 56.4 $ 40.5 The following table presents unrecognized Affiliate equity compensation expense: Year Controlling Interest Remaining Life Non-controlling Interests Remaining Life 2017 $ 33.3 5 years $ 95.9 6 years 2018 38.7 5 years 118.3 6 years 2019 40.9 4 years 124.6 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 and other related transactions. The total receivable was $16.2 million and $14.8 million as of December 31, 2018 and 2019 , respectively, and was included in Other assets. The total payable was $36.2 million and $19.8 million as of December 31, 2018 and 2019 , 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 recorded 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 applicable periods: For the Years Ended December 31, 2017 2018 2019 Net income (controlling interest) $ 689.5 $ 243.6 $ 15.7 Decrease in controlling interest paid-in capital from Affiliate equity issuances (1.0 ) (5.0 ) (3.1 ) Decrease in controlling interest paid-in capital from Affiliate equity repurchases (116.2 ) (67.9 ) (50.8 ) Net income (loss) (controlling interest) including the net impact of Affiliate equity transactions $ 572.3 $ 170.7 $ (38.2 ) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
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 $20.1 million , $20.8 million and $19.4 million for the years ended December 31, 2017 , 2018 and 2019 , respectively. The controlling interest’s portion of expenses related to these plans were $3.9 million , $4.8 million and $3.6 million for the years ended December 31, 2017 , 2018 and 2019 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Controlling interest: Current taxes $ 173.8 $ 117.2 $ 46.5 Intangible-related deferred taxes (98.5 ) 79.7 (51.3 ) Other deferred taxes (24.9 ) (27.5 ) (4.3 ) Total controlling interest 50.4 169.4 (9.1 ) Non-controlling interests: Current taxes $ 8.2 $ 12.2 $ 12.2 Deferred taxes (0.2 ) (0.3 ) (0.2 ) Total non-controlling interests 8.0 11.9 12.0 Income tax expense $ 58.4 $ 181.3 $ 2.9 Income before income taxes (controlling interest) $ 739.9 $ 413.0 $ 6.6 Effective tax rate (controlling interest) (1) 6.8 % 41.0 % (137.0 )% __________________________ (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, 2017 2018 2019 Current: Federal $ 109.0 $ 52.2 $ (18.2 ) State 18.9 28.6 (8.8 ) Foreign 54.1 48.6 85.7 Total current 182.0 129.4 58.7 Deferred: Federal (124.9 ) 51.3 (23.9 ) State 10.4 13.2 3.4 Foreign (9.1 ) (12.6 ) (35.3 ) Total deferred (123.6 ) 51.9 (55.8 ) Income tax expense $ 58.4 $ 181.3 $ 2.9 For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2017 2018 2019 Domestic $ 756.5 $ 637.3 $ 152.2 International 310.6 76.3 155.8 $ 1,067.1 $ 713.6 $ 308.0 The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2017 2018 2019 Statutory U.S. federal tax rate 35.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.7 3.7 3.5 Foreign operations (5.4 ) 1.3 (471.2 ) Compensation plans (0.7 ) 1.6 240.6 Changes in tax laws (25.2 ) — — Changes in valuation allowances 0.3 0.0 (107.2 ) Unrecognized tax benefits 0.5 0.5 420.4 Affiliate divestments — — (120.4 ) Reduction in carrying value of Affiliates — 13.0 — Changes in U.S. tax provision to return (0.0 ) (1.0 ) (195.7 ) Other (0.4 ) 0.9 72.0 Effective tax rate (controlling interest) 6.8 % 41.0 % (137.0 )% Effect of income from non-controlling interests (1.3 ) (15.6 ) 137.9 Effective tax rate 5.5 % 25.4 % 0.9 % The effective tax rate (controlling interest) in 2017 is lower than the marginal tax rate primarily due to a $194.1 million tax benefit due to changes in U.S. tax laws. The effective tax rate (controlling interest) in 2018 is higher than the marginal tax rate primarily due to a $240.0 million expense recorded to reduce the carrying value to fair value of one of the Company’s Affiliates for which the Company did not recognize an income tax benefit. The effective tax rate (controlling interest) in 2019 is lower than the marginal tax rate primarily due to lower Income before income taxes, as a result of increased Intangible amortization and impairments expense, and tax benefits related to an Affiliate divestment. Deferred income tax liability (net) reflects the expected future tax consequences of temporary differences between the financial reporting bases and tax bases of the Company’s assets and liabilities. The significant components of the Company’s Deferred income tax liability (net) are as follows: December 31, 2018 2019 Deferred Tax Assets Deferred compensation $ 18.0 $ 13.8 State net operating loss carryforwards 18.2 15.9 Foreign loss carryforwards 16.7 17.7 Tax benefit of uncertain tax positions 10.9 27.4 Deferred income 8.8 3.0 Lease liabilities — 12.3 Other 5.1 2.6 Total deferred tax assets 77.7 92.7 Valuation allowance (24.1 ) (16.9 ) Deferred tax assets, net of valuation allowance $ 53.6 $ 75.8 Deferred Tax Liabilities Intangible asset amortization $ (337.1 ) $ (293.7 ) Non-deductible intangible amortization (141.0 ) (110.9 ) Junior convertible securities interest (84.5 ) (91.6 ) Right-of-use assets — (10.3 ) Other (2.6 ) (4.1 ) Total deferred tax liabilities (565.2 ) (510.6 ) Deferred income tax liability (net) (1) $ (511.6 ) $ (434.8 ) __________________________ (1) As of December 31, 2019, the foreign loss carryforwards of $17.7 million , net of a $2.3 million valuation allowance, are presented in Other assets as they represent a net deferred tax asset position in a foreign jurisdiction. As of December 31, 2019 , the Company had available state net operating loss carryforwards of $245.9 million , a majority of which will expire over ten years to 15 years . As of December 31, 2019, the Company had foreign loss carryforwards of $66.9 million , of which $57.6 million will expire over 20 years and $9.3 million will carry forward indefinitely. The Company believed it was more-likely-than-not that the benefit from certain state and foreign loss carryforwards would not be fully realized, and, as of December 31, 2019, had valuation allowances of $12.0 million and $2.3 million on the state and foreign loss carryforwards, respectively. For the years ended December 31, 2018 and 2019 , there was no change and a $7.2 million reduction in the valuation allowances, respectively. The Company’s estimates and assumptions regarding the realization of its state and foreign loss carryforwards do not contemplate certain changes in ownership of the Company’s stock which could limit the utilization of these carryforwards. The Company does not 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, 2019 , the estimated amount of such difference was $249.4 million . A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2017 2018 2019 Balance, beginning of period $ 26.8 $ 32.4 $ 33.1 Additions based on current year tax positions 6.0 2.4 39.8 Additions based on prior years’ tax positions 1.5 8.4 3.2 Reduction for prior years’ tax positions — (2.0 ) (3.5 ) Reductions related to lapses of statutes of limitations (2.3 ) (6.3 ) (4.0 ) Settlements — (1.3 ) (0.4 ) Additions (reductions) related to foreign exchange rates 0.4 (0.5 ) (2.8 ) Balance, end of period $ 32.4 $ 33.1 $ 65.4 Included in the balance of unrecognized tax benefits as of December 31, 2017 , 2018 and 2019 were $32.4 million , $33.1 million and $65.4 million , respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective tax rate (controlling interest). As of December 31, 2019, certain of these benefits, if realized, would be offset by the utilization of indirect tax benefits, for which the Company has accrued deferred tax assets of $27.4 million . The Company records accrued interest and penalties, if any, related to unrecognized tax benefits in Income tax expense. For the years ended December 31, 2017, 2018 and 2019, interest and penalties related to unrecognized tax benefits were $0.3 million , $0.4 million and $8.4 million , respectively. As of December 31, 2018 and 2019, the Company had accrued interest and penalties related to unrecognized tax benefits of $2.1 million and $10.5 million , respectively. The Company is subject to U.S. federal, state and local, and foreign income tax in multiple jurisdictions and is 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 2015. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Numerator Net income (controlling interest) $ 689.5 $ 243.6 $ 15.7 Interest expense on junior convertible securities, net of taxes 15.5 — — Net income (controlling interest), as adjusted $ 705.0 $ 243.6 $ 15.7 Denominator Average shares outstanding (basic) 56.0 53.6 50.5 Effect of dilutive instruments: Stock options and restricted stock units 0.4 0.2 0.1 Junior convertible securities 2.2 — — Average shares outstanding (diluted) 58.6 53.8 50.6 Average shares outstanding (diluted) in the table above excludes share-based awards that have not satisfied applicable performance conditions and the anti-dilutive effect of the following: For the Years Ended December 31, 2017 2018 2019 Stock options and restricted stock units 0.1 0.2 2.6 Junior convertible securities — 2.2 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, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [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, 2017 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ 128.0 $ — $ 128.0 Change in net realized and unrealized 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 $ 112.3 $ 7.2 $ 119.5 For the Year Ended December 31, 2018 Pre-Tax Tax Expense Net of Tax Foreign currency translation adjustment $ (87.0 ) $ (15.1 ) $ (102.1 ) Change in net realized and unrealized loss on derivative financial instruments (0.1 ) — (0.1 ) Other comprehensive loss $ (87.1 ) $ (15.1 ) $ (102.2 ) For the Year Ended December 31, 2019 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (11.4 ) $ 22.3 $ 10.9 Change in net realized and unrealized gain on derivative financial instruments 1.7 — 1.7 Other comprehensive income (loss) $ (9.7 ) $ 22.3 $ 12.6 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 Total Balance, as of December 31, 2017 $ (85.9 ) $ (0.4 ) $ 2.1 $ (84.2 ) Other comprehensive loss before reclassifications (102.1 ) (0.2 ) — (102.3 ) Amounts reclassified — 0.1 (2.1 ) (2.0 ) Net other comprehensive loss (102.1 ) (0.1 ) (2.1 ) (104.3 ) Balance, as of December 31, 2018 $ (188.0 ) $ (0.5 ) $ — $ (188.5 ) Other comprehensive income before reclassifications 10.9 2.2 — 13.1 Amounts reclassified — (0.5 ) — (0.5 ) Net other comprehensive income 10.9 1.7 — 12.6 Balance, as of December 31, 2019 $ (177.1 ) $ 1.2 $ — $ (175.9 ) In connection with the adoption of ASU 2018-02 in 2019, the Company elected to reclassify to Retained earnings $6.6 million of tax effects stranded in Accumulated other comprehensive loss as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 : 2018 First Quarter Second Quarter (1) Third Quarter Fourth Quarter (1) 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 ) 2019 First Quarter (2) Second Quarter Third Quarter (2) Fourth Quarter (2) Consolidated revenue $ 543.1 $ 592.0 $ 549.0 $ 555.5 Income (loss) before income taxes (194.8 ) 215.9 192.6 94.3 Net income (loss) (133.0 ) 180.1 162.1 95.9 Net income (loss) (controlling interest) (200.8 ) 107.7 86.3 22.5 Earnings (loss) per share (diluted) $ (3.87 ) $ 2.11 $ 1.71 $ 0.46 __________________________ (1) In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. (2) In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million of expenses to reduce the carrying value to fair value of certain of its indefinite-lived acquired client relationships and a $16.1 million expense to reduce the carrying value to zero of certain indefinite-lived acquired client relationships due to the closure of certain retail investment products on our U.S. retail distribution platform. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Consolidated revenue United States $ 1,571.4 $ 1,611.7 $ 1,642.2 United Kingdom 587.3 628.8 515.2 Other 146.3 137.9 82.2 Total $ 2,305.0 $ 2,378.4 $ 2,239.6 December 31, 2018 2019 Fixed assets (net) United States $ 87.1 $ 75.6 United Kingdom 15.7 15.8 Other 1.5 0.9 Total $ 104.3 $ 92.3 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 18, 2020, the Company announced the completion of its investment in Comvest Partners (“Comvest”), a leading middle-market private equity and credit investment firm. The Company will account for its investment in Comvest under the equity method of accounting. The financial results of this investment will be included in the Company’s Consolidated Financial Statements one quarter in arrears. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 $ 24.1 $ 4.9 $ — $ 12.1 $ 16.9 2018 24.1 0.6 — 0.6 24.1 2017 22.1 1.1 0.9 — 24.1 Other Allowances (1) Year Ending December 31, 2019 $ 5.0 $ 1.0 $ — $ 1.9 $ 4.1 2018 3.6 6.4 — 5.0 5.0 2017 10.3 0.6 — 7.3 3.6 __________________________ (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 represented 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, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates |
Reclassifications | 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 Affiliates and other investments to determine if an investment is considered a voting rights entity (“VRE”) or a variable interest entity (“VIE”). An entity is a VRE when the total equity investment at risk is sufficient to enable the entity to finance its activities independently, and when the equity holders have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the entity that most significantly impact its economic performance. An entity is a VIE when it lacks one or more of the characteristics of a VRE, 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 such 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. Substantially all of the Company’s consolidated Affiliates considered VIEs are controlled because the Company holds a majority of the voting interests or it is the managing member or general partner. Furthermore, an Affiliate’s assets can be used for purposes other than the settlement of the respective Affiliate’s obligations. 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. 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 management’s 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 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 transaction occurs. 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 Affiliate accounted for under the equity method 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 performs assessments to determine if fair value may have declined below related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be other-than temporary. Where the Company believes that such declines may have occurred, the Company determines the amount of impairment using valuation methods, such as discounted cash flow techniques. Impairments are recorded as an expense in Equity method income (loss) (net) to reduce the carrying value of the Affiliate to its fair value. 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’ interests are 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 consolidated Affiliate sponsored investment 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. Realized gains and losses are recorded on the trade date on a specific identified basis, except for consolidated Affiliate sponsored investment 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. In these valuation models, the Company is required to make judgments about growth rates of assets under management, client attrition, asset and performance based fee rates and expenses. These valuation models also require judgments about tax benefits, credit risk, interest rates, tax rates, discount rates and discounts for lack of marketability. 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 assesses these assets annually or more frequently whenever events or circumstances occur indicating that the recorded indefinite-lived acquired client relationship 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. The Company has determined that certain of its acquired client relationships meet the criteria to be considered definite-lived assets, including investment advisory contracts between our Affiliates and their underlying investors, and are amortized over their expected period of economic benefit. The expected period of economic benefit of definite-lived acquired client relationships is a judgment based on 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 assesses for the possible impairment of indefinite and definite-lived acquired client relationships 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 considers various qualitative and quantitative factors (including market multiples) to determine if the fair value of each asset is greater than its carrying value. 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 an impairment assessment annually or more frequently whenever events or circumstances occur indicating that the carrying value of its single reporting unit is in excess of its fair value. In this assessment, the Company typically measures the fair value of our reporting unit using various qualitative and quantitative factors (including the Company’s market capitalization and market multiples for asset management businesses). If a potential impairment is more-likely-than-not, then the Company will perform a single step assessment 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 years to ten years . Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally three years 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 In the first quarter of 2019, the Company and its consolidated Affiliates adopted Accounting Standard Update (“ASU”) 2016-02, Leases (and related ASUs), using a modified retrospective method and, as a result, recorded a lease liability of $190.8 million and after certain reclassifications, primarily related to accrued lease payments and unamortized lease incentives, a right-of-use asset of $163.6 million . Additionally, the Company elected the transition practical expedients provided by ASU 2016-02, which allowed the Company to carry forward its historical lease classification. Leases are classified as either operating leases or finance leases. The Company and its Affiliates currently lease office space and equipment primarily under operating lease arrangements. As these leases expire, it is expected that, in the normal course of business, they will be renewed or replaced. Whether a lease is classified as an operating lease or a finance lease, the Company and its Affiliates must record a right-of-use asset and a lease liability at the commencement date of the lease, other than for leases with an initial term of 12 months or less. As permitted under ASU 2016-02, the Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Company’s Consolidated Balance Sheets. Right-of-use assets and lease liabilities are reported in Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. A lease liability is initially and subsequently reported at the present value of the outstanding lease payments determined by discounting those lease payments over the remaining lease term using the incremental borrowing rate of the legal entity entering into the lease as of the commencement date. A right-of-use asset is initially reported at the present value of the corresponding lease liability plus any prepaid lease payments and initial direct costs of entering into the lease, and reduced by any lease incentives. Subsequently, a right-of-use asset is reported at the present value of the lease liability adjusted for any prepaid or accrued lease payments, remaining balances of any lease incentives received, unamortized initial direct costs of entering into the lease and any impairments of the right-of-use asset. The Company and its Affiliates test for possible impairments of right-of-use assets annually or more frequently whenever events or changes in circumstances indicate that the carrying value of a right-of-use asset may exceed its fair value. If the carrying value of the right-of-use asset exceeds its fair value, then the carrying value of the right-of-use asset is reduced to its fair value and the expense is recorded in Other expenses (net) on the Consolidated Statements of Income. Subsequent to an impairment, the carrying value of the right-of-use asset is amortized on a straight-line basis over the remaining lease term. Lease liabilities and right-of-use assets based on variable lease payments that depend on an index or rate are initially measured using the index or rate at the commencement date with any subsequent changes in variable lease payments reported in Other expenses (net) as incurred. Most lease agreements for office space that are classified as operating leases contain renewal options, rent escalation clauses or other lease incentives provided by the lessor. Lease expense is accrued to recognize lease escalation provisions and renewal options that are reasonably certain to be exercised, as well as lease incentives provided by the lessor, on a straight-line basis over the lease term and is reported in Other expenses (net). If a right-of-use asset is impaired, the lease expense is subsequently reported in Other expenses (net) as the straight-line amortization of the right-of-use asset and the accretion of the lease liability, thereby transitioning to a front-loaded expense recognition profile for the associated lease. The Company and its Affiliates combine lease and non-lease components for their office space leases and separate non-lease components for their equipment leases in calculating their lease liabilities. Sublease income is reported in Investment and other 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, junior subordinated notes and junior convertible securities are amortized over the expected term of the security, and are included as a reduction of Debt 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 use 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 recorded 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 which is presented in Investment and other income. 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. Changes in fair value of a hedging instrument that are excluded from the assessment of hedge effectiveness, also known as excluded components, are recorded in earnings and amortized on a straight-line basis over the respective period of the contracts as a reduction to Interest expense. |
Revenue Recognition | Revenue Recognition Consolidated 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. Consolidated 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 include exceeding performance benchmarks or hurdle rates that 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 Consolidated revenue gross of any related expenses when the Company and its Affiliates are the principal in their 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 investments in Affiliates. 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 the investment in an Affiliate is consummated and records a liability in Other liabilities. 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 recorded 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. The recording of 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. |
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 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 Company had junior 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 compensation arrangements based on the number of awards expected to vest. The expense for awards without performance conditions is recognized on a straight-line basis over the requisite service period, including grants that are subject to graded vesting. The Company recognizes expenses for all other arrangements on a straight-line basis for each separately vesting portion of the award. |
Recent Accounting Developments | Recent Accounting Developments Effective January 1, 2019, the Company adopted the following ASUs: • ASU 2016-02, Leases (and related ASUs); • ASU 2018-02, Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; and • ASU 2014-09, Revenue from Contracts with Customers (and related ASUs, effective for the Company’s Affiliates accounted for under the equity method) While the Company and its consolidated Affiliates adopted ASU 2016-02 (and related ASUs) on January 1, 2019, the standard is effective for the Company’s equity method Affiliates for interim and annual periods beginning after December 15, 2020. The Company does not expect the adoption of this standard by its equity method investments to have a significant impact to its Consolidated Financial Statements. |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, unrealized losses and fair value of Investments in marketable securities: December 31, 2018 2019 Cost $ 126.8 $ 57.9 Unrealized gains 1.1 2.1 Unrealized losses (8.6 ) (0.6 ) Fair value $ 119.3 $ 59.4 |
Investments in Affiliates and_2
Investments in Affiliates and Affiliate Sponsored Investment Products (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Schedule of Net Assets and Liabilities and Maximum Risk of Losses Related to Unconsolidated VIEs | The unconsolidated assets, net of liabilities and non-controlling interests of Affiliates accounted for under the equity method considered VIEs, and the Company’s carrying value and maximum exposure to loss, were as follows: December 31, 2018 December 31, 2019 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,102.9 $ 2,277.8 $ 1,141.4 $ 1,843.0 maximum exposure to loss, were as follows: December 31, 2018 December 31, 2019 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 2,216.5 $ 1.1 $ 2,282.1 $ 0.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt | The following table summarizes the Company’s Debt: December 31, 2018 2019 Senior bank debt $ 779.7 $ 449.7 Senior notes 742.5 743.8 Junior convertible securities 307.4 310.6 Junior subordinated notes — 289.7 Debt $ 1,829.6 $ 1,793.8 |
Schedule of Principal Terms of Senior and Junior Subordinated Notes | The principal terms of the senior notes and junior subordinated notes were as follows: 2024 2025 2059 Junior Subordinated Notes Issue date February 2014 February 2015 March 2019 Maturity date February 2024 August 2025 March 2059 Par value (in millions) $ 400.0 $ 350.0 $ 300.0 Stated coupon 4.25 % 3.50 % 5.875 % Coupon frequency Semi-annually Semi-annually Quarterly (3) Potential call date Any time (1) Any time (1) March 2024 (2) Call price As defined (1) As defined (1) As defined (2) Listing N.A. N.A. NYSE __________________________ (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% . (2) The junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, at 100% of the principal amount of the notes being redeemed plus any accrued and unpaid interest thereon. Prior to March 30, 2024, the junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the junior subordinated notes. (3) The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. |
Schedule of Carrying Value of and Principal Amount at Maturity of Convertible Securities | The carrying value and principal amount at maturity of the junior convertible securities were as follows: December 31, 2018 December 31, 2019 Carrying Value Principal Amount at Maturity Carrying Value Principal Amount at Maturity Junior convertible securities (1) $ 312.5 $ 430.8 $ 315.4 $ 430.8 __________________________ (1) The carrying value is accreted to the principal amount at maturity over a remaining life of 18 years . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: December 31, 2018 December 31, 2019 Assets Liabilities Assets Liabilities Forward contracts $ 32.0 $ (1.4 ) $ 23.8 $ (1.0 ) Put options — (60.3 ) — (31.0 ) Call options 34.1 — 15.1 — Total $ 66.1 $ (61.7 ) $ 38.9 $ (32.0 ) |
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, 2017, the Company and its Affiliates did not have any significant derivative financial instruments. For the Year Ended December 31, 2018 2019 Gain (Loss) Recorded in Other Comprehensive Income Loss Reclassified from Accumulated Other Comprehensive Loss into Earnings Gain Recorded in Earnings from Excluded Components (1) Gain (Loss) Recorded in Other Comprehensive Income Gain Reclassified from Accumulated Other Comprehensive Income into Earnings Gain Recorded in Earnings from Excluded Components (1) Forward contracts $ 27.2 $ (0.1 ) $ 3.8 $ (21.7 ) $ 0.5 $ 13.9 Put options (17.8 ) — — 29.3 — — Call options (8.4 ) — — (19.0 ) — — Total $ 1.0 $ (0.1 ) $ 3.8 $ (11.4 ) $ 0.5 $ 13.9 __________________________ (1) The excluded components of the forward contracts are recorded in earnings on a straight-line basis over the respective period of the contracts as a reduction to Interest expense. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 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 — Fair Value Measurements December 31, 2019 Level 1 Level 2 Level 3 Financial Assets Investments in marketable securities $ 59.4 $ 24.4 $ 35.0 $ — Derivative financial instruments (1) 7.9 — 7.9 — Financial Liabilities (2) Affiliate equity repurchase obligations $ 19.8 $ — $ — $ 19.8 Derivative financial instruments 1.0 — 1.0 — __________________________ (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, 2018 2019 Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Contingent Payment Arrangements Affiliate Equity Repurchase Obligations Balance, beginning of period $ 9.4 $ 49.2 $ 1.9 $ 36.2 Net realized and unrealized losses (1) 1.3 — 0.1 0.1 Purchases and issuances (2) — 105.4 — 118.6 Settlements and reductions (8.8 ) (118.4 ) (2.0 ) (135.1 ) Balance, end of period $ 1.9 $ 36.2 $ — $ 19.8 Net change in unrealized losses relating to instruments still held at the reporting date $ 0.2 $ — $ — $ — __________________________ (1) Accretion expense for these arrangements is 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 recurring level 3 fair value measurements: Quantitative Information About Level 3 Fair Value Measurements December 31, 2018 December 31, 2019 Valuation Techniques Unobservable Input Fair Value Range Weighted Average (1) Fair Value Range Weighted Average (1) Contingent payment arrangements Discounted cash flow Growth rates (2) $ 1.9 7% 7% $ — — — Discount rates 15% 15% — — Affiliate equity repurchase obligations Discounted cash flow Growth rates (2) 36.2 (4)% - 9% 3% 19.8 (9)% - 7% 5% Discount rates 14% - 16% 15% 14% - 17% 15% __________________________ (1) Calculated by comparing the relative fair value of an arrangement or obligation to its respective total. (2) Represents growth rates of asset and performance based fees. |
Schedule of Investments | The following table summarizes the fair values of these investments and unfunded commitments: December 31, 2018 December 31, 2019 Category of Investment Fair Value Unfunded Commitments Fair Value Unfunded Commitments Private equity (1) $ 193.2 $ 131.0 $ 203.3 $ 127.2 Other funds (2) 7.9 — 8.5 — Other investments (3) $ 201.1 $ 131.0 $ 211.8 $ 127.2 __________________________ (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 third-party funds and 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 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 $123.2 million and $137.6 million as of December 31, 2018 and 2019 , 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, 2018 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 746.2 $ 747.5 $ 746.8 $ 797.4 Level 2 Junior convertible securities 312.5 391.5 315.4 415.7 Level 2 Junior subordinated notes — — 290.7 327.7 Level 2 |
Goodwill and Acquired Client _2
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2018 2019 Balance, beginning of period $ 2,662.5 $ 2,633.4 Foreign currency translation (29.1 ) 18.3 Balance, end of period $ 2,633.4 $ 2,651.7 |
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, 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 Intangible amortization and impairments — (93.4 ) (93.4 ) (51.1 ) (144.5 ) Foreign currency translation (0.4 ) — (0.4 ) 17.0 16.6 Transfers (1) (36.1 ) 36.1 — — — Balance, as of December 31, 2019 $ 1,256.0 $ (1,046.2 ) $ 209.8 $ 972.2 $ 1,182.0 __________________________ (1) Transfers includes acquired client relationships at Affiliates that were deconsolidated during the period. |
Equity Method Investments in _2
Equity Method Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Revenue (1) $ 3,126.3 $ 3,231.7 $ 2,760.9 Net income (1) 2,182.7 1,286.1 1,061.3 December 31, 2018 2019 Assets $ 2,730.4 $ 2,718.5 Liabilities and Non-controlling interests 1,235.1 1,212.7 __________________________ (1) Revenue and net income include asset and performance based fees, the impact of consolidated sponsored investment products and 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) 2018 2019 Balance, beginning of period $ 3,304.7 $ 2,791.0 Earnings 370.6 289.4 Intangible amortization and impairments (370.8 ) (627.4 ) Distributions of earnings (466.3 ) (252.4 ) Foreign currency translation (34.5 ) (40.0 ) Investments in Affiliates 7.3 162.3 Divestments of Affiliates — (117.7 ) Other (20.0 ) (9.6 ) Balance, end of period $ 2,791.0 $ 2,195.6 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Total Lease Costs (Net) | The Company and its Affiliates currently lease office space and equipment under various operating leasing arrangements. The following table presents total lease costs (net): For the Year Ended December 31, 2019 Operating lease costs $ 41.7 Short-term lease costs 2.1 Variable lease costs 0.1 Sublease income (4.4 ) Total lease costs (net) $ 39.5 |
Schedule of the Company's Maturity of Lease Liabilities | As of December 31, 2019 , the maturity of lease liabilities were as follows: Year Operating Leases 2020 $ 38.9 2021 38.3 2022 31.4 2023 26.7 2024 21.1 Thereafter 82.4 Total undiscounted lease liabilities $ 238.8 __________________________ (1) Total undiscounted lease liabilities were $50.4 million greater than the operating leases recorded in Other liabilities primarily due to present value discounting. Both amounts exclude leases with initial terms of 12 months or less and leases that have not yet commenced. |
Schedule Required Minimum Payments for Operating Leases Before Adoption of ASU 2016-02 | In connection with the Company’s adoption of ASU 2016-02, the Company was not required to, and did not, update prior period disclosures from the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The Company’s reported aggregate required minimum payments for operating leases having initial or non-cancelable lease terms greater than one year under the old standard as of December 31, 2018 were as follows: Year Required Minimum Payments 2019 $ 35.5 2020 36.9 2021 34.8 2022 27.7 2023 23.4 Thereafter 75.2 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets (net) consisted of the following: December 31, 2018 2019 Building and leasehold improvements $ 117.8 $ 116.3 Software 51.0 52.6 Equipment 42.3 43.0 Furniture and fixtures 21.0 21.3 Land, improvements and other 18.6 17.9 Fixed assets, at cost 250.7 251.1 Accumulated depreciation and amortization (146.4 ) (158.8 ) Fixed assets (net) $ 104.3 $ 92.3 |
Payables and Accrued Liabilit_2
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Payables and accrued liabilities consisted of the following: December 31, 2018 2019 Accrued compensation $ 463.2 $ 421.5 Other 283.4 213.1 Payables and accrued liabilities $ 746.6 $ 634.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2017 2.4 $ 173.19 2018 3.3 150.31 2019 4.1 88.73 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | The following table presents share-based compensation expense: Year Share-Based Compensation Expense Tax Benefit 2017 $ 40.4 $ 13.6 2018 44.7 11.2 2019 49.9 8.2 |
Schedule of Transactions in the Company's Restricted Stock | Restricted Stock The following table summarizes transactions in the Company’s restricted stock units: Restricted Weighted Unvested units—December 31, 2018 0.6 $ 172.74 Units granted 0.7 98.48 Units vested (0.2 ) 168.95 Units forfeited (0.0 ) 145.59 Unvested units—December 31, 2019 1.1 123.70 |
Schedule of Transactions in the Company's Stock Options | The following table summarizes transactions in the Company’s stock options: Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Unexercised options outstanding—December 31, 2018 0.5 $ 130.81 Options granted 1.9 74.90 Options exercised (0.0 ) 71.49 Options forfeited (0.1 ) 121.94 Unexercised options outstanding—December 31, 2019 2.3 85.58 6.0 Exercisable at December 31, 2019 0.4 131.50 3.0 |
Schedule of Assumptions Used to Determine Fair Value of Options Granted | The weighted average grant date assumptions used to estimate the fair value of stock options granted were as follows: For the Years Ended December 31, 2017 2018 2019 Dividend yield 0.5 % 0.8 % 1.7 % Expected volatility (1) 28.0 % 25.5 % 29.4 % Risk-free interest rate (2) 2.1 % 2.8 % 1.5 % Expected life of stock 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. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2018 2019 Balance, beginning of period (1) $ 811.9 $ 833.7 Changes attributable to consolidated Affiliate sponsored investment products 51.6 (69.4 ) Transfers to Other liabilities (105.4 ) (118.6 ) Transfers from Non-controlling interests 44.8 105.0 Changes in redemption value 30.8 166.0 Balance, end of period (1) $ 833.7 $ 916.7 __________________________ (1) As of December 31, 2018 and 2019 , Redeemable non-controlling interests includes consolidated Affiliate sponsored investment products primarily attributable to third-party investors of $91.0 million and $21.6 million , respectively. |
Affiliate Equity (Tables)
Affiliate Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Affiliate Equity | |
Schedule of Affiliate Equity Compensation Expense | The following table presents Affiliate equity compensation expense: For the Years Ended December 31, 2017 2018 2019 Controlling interest $ 13.2 $ 16.7 $ 9.6 Non-controlling interests 36.8 39.7 30.9 Total $ 50.0 $ 56.4 $ 40.5 |
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 2017 $ 33.3 5 years $ 95.9 6 years 2018 38.7 5 years 118.3 6 years 2019 40.9 4 years 124.6 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 applicable periods: For the Years Ended December 31, 2017 2018 2019 Net income (controlling interest) $ 689.5 $ 243.6 $ 15.7 Decrease in controlling interest paid-in capital from Affiliate equity issuances (1.0 ) (5.0 ) (3.1 ) Decrease in controlling interest paid-in capital from Affiliate equity repurchases (116.2 ) (67.9 ) (50.8 ) Net income (loss) (controlling interest) including the net impact of Affiliate equity transactions $ 572.3 $ 170.7 $ (38.2 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Controlling interest: Current taxes $ 173.8 $ 117.2 $ 46.5 Intangible-related deferred taxes (98.5 ) 79.7 (51.3 ) Other deferred taxes (24.9 ) (27.5 ) (4.3 ) Total controlling interest 50.4 169.4 (9.1 ) Non-controlling interests: Current taxes $ 8.2 $ 12.2 $ 12.2 Deferred taxes (0.2 ) (0.3 ) (0.2 ) Total non-controlling interests 8.0 11.9 12.0 Income tax expense $ 58.4 $ 181.3 $ 2.9 Income before income taxes (controlling interest) $ 739.9 $ 413.0 $ 6.6 Effective tax rate (controlling interest) (1) 6.8 % 41.0 % (137.0 )% __________________________ (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, 2017 2018 2019 Current: Federal $ 109.0 $ 52.2 $ (18.2 ) State 18.9 28.6 (8.8 ) Foreign 54.1 48.6 85.7 Total current 182.0 129.4 58.7 Deferred: Federal (124.9 ) 51.3 (23.9 ) State 10.4 13.2 3.4 Foreign (9.1 ) (12.6 ) (35.3 ) Total deferred (123.6 ) 51.9 (55.8 ) Income tax expense $ 58.4 $ 181.3 $ 2.9 |
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, 2017 2018 2019 Domestic $ 756.5 $ 637.3 $ 152.2 International 310.6 76.3 155.8 $ 1,067.1 $ 713.6 $ 308.0 |
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, 2017 2018 2019 Statutory U.S. federal tax rate 35.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.7 3.7 3.5 Foreign operations (5.4 ) 1.3 (471.2 ) Compensation plans (0.7 ) 1.6 240.6 Changes in tax laws (25.2 ) — — Changes in valuation allowances 0.3 0.0 (107.2 ) Unrecognized tax benefits 0.5 0.5 420.4 Affiliate divestments — — (120.4 ) Reduction in carrying value of Affiliates — 13.0 — Changes in U.S. tax provision to return (0.0 ) (1.0 ) (195.7 ) Other (0.4 ) 0.9 72.0 Effective tax rate (controlling interest) 6.8 % 41.0 % (137.0 )% Effect of income from non-controlling interests (1.3 ) (15.6 ) 137.9 Effective tax rate 5.5 % 25.4 % 0.9 % |
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, 2018 2019 Deferred Tax Assets Deferred compensation $ 18.0 $ 13.8 State net operating loss carryforwards 18.2 15.9 Foreign loss carryforwards 16.7 17.7 Tax benefit of uncertain tax positions 10.9 27.4 Deferred income 8.8 3.0 Lease liabilities — 12.3 Other 5.1 2.6 Total deferred tax assets 77.7 92.7 Valuation allowance (24.1 ) (16.9 ) Deferred tax assets, net of valuation allowance $ 53.6 $ 75.8 Deferred Tax Liabilities Intangible asset amortization $ (337.1 ) $ (293.7 ) Non-deductible intangible amortization (141.0 ) (110.9 ) Junior convertible securities interest (84.5 ) (91.6 ) Right-of-use assets — (10.3 ) Other (2.6 ) (4.1 ) Total deferred tax liabilities (565.2 ) (510.6 ) Deferred income tax liability (net) (1) $ (511.6 ) $ (434.8 ) __________________________ (1) As of December 31, 2019, the foreign loss carryforwards of $17.7 million , net of a $2.3 million valuation allowance, are presented in Other assets as they represent a net deferred tax asset position in a foreign jurisdiction. |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2017 2018 2019 Balance, beginning of period $ 26.8 $ 32.4 $ 33.1 Additions based on current year tax positions 6.0 2.4 39.8 Additions based on prior years’ tax positions 1.5 8.4 3.2 Reduction for prior years’ tax positions — (2.0 ) (3.5 ) Reductions related to lapses of statutes of limitations (2.3 ) (6.3 ) (4.0 ) Settlements — (1.3 ) (0.4 ) Additions (reductions) related to foreign exchange rates 0.4 (0.5 ) (2.8 ) Balance, end of period $ 32.4 $ 33.1 $ 65.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Numerator Net income (controlling interest) $ 689.5 $ 243.6 $ 15.7 Interest expense on junior convertible securities, net of taxes 15.5 — — Net income (controlling interest), as adjusted $ 705.0 $ 243.6 $ 15.7 Denominator Average shares outstanding (basic) 56.0 53.6 50.5 Effect of dilutive instruments: Stock options and restricted stock units 0.4 0.2 0.1 Junior convertible securities 2.2 — — Average shares outstanding (diluted) 58.6 53.8 50.6 |
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 applicable performance conditions and the anti-dilutive effect of the following: For the Years Ended December 31, 2017 2018 2019 Stock options and restricted stock units 0.1 0.2 2.6 Junior convertible securities — 2.2 2.2 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Tax Effects Allocated to each Component of Other Comprehensive Income (Loss) | The following tables present the tax effects allocated to each component of Other comprehensive income (loss): 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 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 $ 112.3 $ 7.2 $ 119.5 For the Year Ended December 31, 2018 Pre-Tax Tax Expense Net of Tax Foreign currency translation adjustment $ (87.0 ) $ (15.1 ) $ (102.1 ) Change in net realized and unrealized loss on derivative financial instruments (0.1 ) — (0.1 ) Other comprehensive loss $ (87.1 ) $ (15.1 ) $ (102.2 ) For the Year Ended December 31, 2019 Pre-Tax Tax Benefit (Expense) Net of Tax Foreign currency translation adjustment $ (11.4 ) $ 22.3 $ 10.9 Change in net realized and unrealized gain on derivative financial instruments 1.7 — 1.7 Other comprehensive income (loss) $ (9.7 ) $ 22.3 $ 12.6 |
Schedule of Components of Accumulated Other Comprehensive Income (Loss), 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 Total Balance, as of December 31, 2017 $ (85.9 ) $ (0.4 ) $ 2.1 $ (84.2 ) Other comprehensive loss before reclassifications (102.1 ) (0.2 ) — (102.3 ) Amounts reclassified — 0.1 (2.1 ) (2.0 ) Net other comprehensive loss (102.1 ) (0.1 ) (2.1 ) (104.3 ) Balance, as of December 31, 2018 $ (188.0 ) $ (0.5 ) $ — $ (188.5 ) Other comprehensive income before reclassifications 10.9 2.2 — 13.1 Amounts reclassified — (0.5 ) — (0.5 ) Net other comprehensive income 10.9 1.7 — 12.6 Balance, as of December 31, 2019 $ (177.1 ) $ 1.2 $ — $ (175.9 ) In connection with the adoption of ASU 2018-02 in 2019, the Company elected to reclassify to Retained earnings $6.6 million of tax effects stranded in Accumulated other comprehensive loss as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019 : 2018 First Quarter Second Quarter (1) Third Quarter Fourth Quarter (1) 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 ) 2019 First Quarter (2) Second Quarter Third Quarter (2) Fourth Quarter (2) Consolidated revenue $ 543.1 $ 592.0 $ 549.0 $ 555.5 Income (loss) before income taxes (194.8 ) 215.9 192.6 94.3 Net income (loss) (133.0 ) 180.1 162.1 95.9 Net income (loss) (controlling interest) (200.8 ) 107.7 86.3 22.5 Earnings (loss) per share (diluted) $ (3.87 ) $ 2.11 $ 1.71 $ 0.46 __________________________ (1) In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. (2) In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million of expenses to reduce the carrying value to fair value of certain of its indefinite-lived acquired client relationships and a $16.1 million expense to reduce the carrying value to zero of certain indefinite-lived acquired client relationships due to the closure of certain retail investment products on our U.S. retail distribution platform. |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2017 2018 2019 Consolidated revenue United States $ 1,571.4 $ 1,611.7 $ 1,642.2 United Kingdom 587.3 628.8 515.2 Other 146.3 137.9 82.2 Total $ 2,305.0 $ 2,378.4 $ 2,239.6 December 31, 2018 2019 Fixed assets (net) United States $ 87.1 $ 75.6 United Kingdom 15.7 15.8 Other 1.5 0.9 Total $ 104.3 $ 92.3 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019segment | Jan. 01, 2019USD ($) | |
Fixed Assets | ||
Number of operating segments | segment | 1 | |
ASU 2016-02 | ||
Fixed Assets | ||
Lease liability | $ 190.8 | |
Right-of-use asset | $ 163.6 | |
Equipment | Minimum | ||
Fixed Assets | ||
Estimated useful lives of fixed assets | 3 years | |
Equipment | Maximum | ||
Fixed Assets | ||
Estimated useful lives of fixed assets | 10 years | |
Computer software | Minimum | ||
Fixed Assets | ||
Estimated useful lives of fixed assets | 3 years | |
Computer software | Maximum | ||
Fixed Assets | ||
Estimated useful lives of fixed assets | 5 years | |
Buildings | Maximum | ||
Fixed Assets | ||
Estimated useful lives of fixed assets | 39 years |
Investments in Marketable Sec_3
Investments in Marketable Securities - Summary of the Cost, Gross Unrealized Gains and Losses, and Fair Value of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Abstract] | ||
Cost | $ 57.9 | $ 126.8 |
Unrealized gains | 2.1 | 1.1 |
Unrealized losses | (0.6) | (8.6) |
Fair value | $ 59.4 | $ 119.3 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Marketable Securities [Abstract] | ||
Proceeds from sale of investments in marketable securities | $ 38 | $ 81.4 |
Net gains on sales of marketable securities | 1.1 | 6.9 |
Affiliate sponsored investment products | ||
Marketable Securities [Line Items] | ||
Fair value of deconsolidated affiliate | $ 38.1 | $ 105.1 |
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, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Equity method investments in Affiliates (net) | $ 2,195.6 | $ 2,791 |
Carrying amount and maximum exposure to loss of equity method affiliates | 352.6 | 513.2 |
Affiliates accounted for under the equity method | ||
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | 1,141.4 | 1,102.9 |
Carrying Value and Maximum Exposure to Loss | $ 1,843 | $ 2,277.8 |
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, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | $ 2,282.1 | $ 2,216.5 |
Carrying Value and Maximum Exposure to Loss | $ 0.9 | $ 1.1 |
Debt - Summary of Company's Deb
Debt - Summary of Company's Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt | $ 1,793.8 | $ 1,829.6 |
Senior bank debt | ||
Debt Instrument [Line Items] | ||
Debt | 449.7 | 779.7 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Debt | 743.8 | 742.5 |
Junior convertible securities | ||
Debt Instrument [Line Items] | ||
Debt | 310.6 | 307.4 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt | $ 289.7 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | Aug. 09, 2019USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Debt, par value, maturing in 2023 | $ 450,000,000 | |||
Debt, par value, maturing in 2024 | 400,000,000 | |||
Term loan outstanding | 1,793,800,000 | $ 1,829,600,000 | ||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Term loan outstanding | $ 743,800,000 | 742,500,000 | ||
Senior notes | 2024 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 4.42% | |||
Stated interest rate | [1] | 4.25% | ||
Senior notes | 2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Effective interest rate | 3.66% | |||
Stated interest rate | [1] | 3.50% | ||
Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Term loan outstanding | $ 289,700,000 | 0 | ||
Effective interest rate | 5.96% | |||
Stated interest rate | [2],[3] | 5.875% | ||
Senior bank debt | ||||
Debt Instrument [Line Items] | ||||
Term loan outstanding | $ 449,700,000 | 779,700,000 | ||
Senior bank debt | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread over variable debt rate | 0.875% | |||
Senior bank debt | Revolver | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,250,000,000 | |||
Maximum borrowing capacity, additional amount | 500,000,000 | |||
Outstanding borrowings | 0 | $ 330,000,000 | ||
Weighted average debt interest rate | 3.92% | |||
Commitment fee amount | 1,500,000 | $ 1,600,000 | ||
Senior bank debt | Term Loan | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 450,000,000 | |||
Maximum borrowing capacity, additional amount | 75,000,000 | |||
Term loan outstanding | $ 450,000,000 | $ 450,000,000 | ||
Weighted average interest rate on amount outstanding | 2.66% | 3.33% | ||
Junior convertible securities | ||||
Debt Instrument [Line Items] | ||||
Term loan outstanding | $ 310,600,000 | $ 307,400,000 | ||
Stated interest rate | 5.15% | |||
Deferred tax liability | $ 8,400,000 | |||
Conversion ratio (in shares) | 0.2558 | |||
Principal amount at maturity | $ 50 | |||
Conversion price (in usd per share) | $ / shares | $ 195.47 | |||
Redemption closing price trigger (in usd per share) | $ / shares | $ 254.10 | |||
Number of trading days closing price has exceeded threshold | 20 | |||
Number of consecutive trading days | 30 | |||
[1] | f 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% | |||
[2] | The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. | |||
[3] | The junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, at 100% of the principal amount of the notes being redeemed plus any accrued and unpaid interest thereon. Prior to March 30, 2024, the junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the junior subordinated notes. |
Debt - Principal Terms of Senio
Debt - Principal Terms of Senior and Junior Subordinated Notes (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Senior notes | 2024 Senior Notes | ||
Debt Instrument [Line Items] | ||
Par value (in millions) | $ 400,000,000 | [1] |
Stated coupon | 4.25% | [1] |
Redemption price percentage | 100.00% | |
Senior notes | 2024 Senior Notes | Treasury Rate | ||
Debt Instrument [Line Items] | ||
Applicable basis spread over redemption price percentage | 0.25% | |
Senior notes | 2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Par value (in millions) | $ 350,000,000 | [1] |
Stated coupon | 3.50% | [1] |
Redemption price percentage | 100.00% | |
Senior notes | 2025 Senior Notes | Treasury Rate | ||
Debt Instrument [Line Items] | ||
Applicable basis spread over redemption price percentage | 0.25% | |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Par value (in millions) | $ 300,000,000 | [2],[3] |
Stated coupon | 5.875% | [2],[3] |
Junior subordinated notes | On or after March 30. 2024 | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100.00% | |
Junior subordinated notes | If changes in tax laws and interpretations occur | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 100.00% | |
Junior subordinated notes | If a rating agency makes certain changes relating to the equity credit criteria for securities | ||
Debt Instrument [Line Items] | ||
Redemption price percentage | 102.00% | |
[1] | f 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% | |
[2] | The Company may, at its option, and subject to certain conditions and restrictions, defer interest payments subject to the terms of the junior subordinated notes. | |
[3] | The junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, at 100% of the principal amount of the notes being redeemed plus any accrued and unpaid interest thereon. Prior to March 30, 2024, the junior subordinated notes may also be redeemed, in whole but not in part, at 100% of the principal amount, plus any accrued and unpaid interest, if certain changes in tax laws, regulations or interpretations occur; or at 102% of the principal amount, plus any accrued and unpaid interest, if a rating agency makes certain changes relating to the equity credit criteria for securities with features similar to the junior subordinated notes. |
Debt - Carrying Value and Princ
Debt - Carrying Value and Principal Amount at Maturity of Junior Convertible Securities (Details) - Junior convertible securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Carrying Value | [1] | $ 315.4 | $ 312.5 |
Par value (in millions) | [1] | $ 430.8 | $ 430.8 |
Debt instrument term | 18 years | ||
[1] | The carrying value is accreted to the principal amount at maturity over a remaining life of 18 years . |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) £ in Millions, $ in Millions | Dec. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($)derivative$ / unit | Dec. 31, 2018GBP (£)derivative$ / unit |
Derivative [Line Items] | |||
Number of contracts with a contingent feature in a net liability position | derivative | 0 | ||
Other Assets | |||
Derivative [Line Items] | |||
Derivative asset, gross | $ 2.2 | $ 0.9 | |
Other Liabilities | |||
Derivative [Line Items] | |||
Derivative liability, gross | 1 | $ 1.4 | |
Forward contracts | |||
Derivative [Line Items] | |||
Derivative, number of contracts | derivative | 2 | 2 | |
Cash collateral held from counterparty | 8.7 | $ 3.1 | |
Cash collateral held at counterparty | 0 | $ 28 | |
Collar contracts | |||
Derivative [Line Items] | |||
Derivative, number of contracts | derivative | 2 | 2 | |
Foreign contracts and collar contracts | Other Assets | |||
Derivative [Line Items] | |||
Derivative asset, net | $ 5.6 | $ 4.9 | |
Designated as Hedging Instrument | Net Investment Hedging | Forward contract expiring in June 2021 | |||
Derivative [Line Items] | |||
Derivative, notional amount | 450 | £ 325.3 | |
Designated as Hedging Instrument | Net Investment Hedging | Forward contract expiring in February 2024 | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 400 | £ 285.8 | |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-call option | Minimum | |||
Derivative [Line Items] | |||
Derivative, option strike price (in dollars per unit) | $ / unit | 1.318 | 1.318 | |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-call option | Maximum | |||
Derivative [Line Items] | |||
Derivative, option strike price (in dollars per unit) | $ / unit | 1.448 | 1.448 | |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-put option | Minimum | |||
Derivative [Line Items] | |||
Derivative, option strike price (in dollars per unit) | $ / unit | 1.288 | 1.288 | |
Designated as Hedging Instrument | Net Investment Hedging | Collar contract-put option | Maximum | |||
Derivative [Line Items] | |||
Derivative, option strike price (in dollars per unit) | $ / unit | 1.535 | 1.535 |
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 - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Assets | $ 38.9 | $ 66.1 |
Liabilities | (32) | (61.7) |
Forward contracts | ||
Derivative [Line Items] | ||
Assets | 23.8 | 32 |
Liabilities | (1) | (1.4) |
Put options | ||
Derivative [Line Items] | ||
Assets | 0 | 0 |
Liabilities | (31) | (60.3) |
Call options | ||
Derivative [Line Items] | ||
Assets | 15.1 | 34.1 |
Liabilities | $ 0 | $ 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 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Derivative [Line Items] | |||
Gain (Loss) Recorded in Other Comprehensive Income | $ (11.4) | $ 1 | |
Gain Reclassified from Accumulated Other Comprehensive Income into Earnings | 0.5 | (0.1) | |
Gain Recorded in Earnings from Excluded Components | [1] | 13.9 | 3.8 |
Forward contracts | |||
Derivative [Line Items] | |||
Gain (Loss) Recorded in Other Comprehensive Income | (21.7) | 27.2 | |
Gain Reclassified from Accumulated Other Comprehensive Income into Earnings | 0.5 | (0.1) | |
Gain Recorded in Earnings from Excluded Components | [1] | 13.9 | 3.8 |
Put options | |||
Derivative [Line Items] | |||
Gain (Loss) Recorded in Other Comprehensive Income | 29.3 | (17.8) | |
Gain Reclassified from Accumulated Other Comprehensive Income into Earnings | 0 | 0 | |
Gain Recorded in Earnings from Excluded Components | [1] | 0 | 0 |
Call options | |||
Derivative [Line Items] | |||
Gain (Loss) Recorded in Other Comprehensive Income | (19) | (8.4) | |
Gain Reclassified from Accumulated Other Comprehensive Income into Earnings | 0 | 0 | |
Gain Recorded in Earnings from Excluded Components | [1] | $ 0 | $ 0 |
[1] | The excluded components of the forward contracts are recorded in earnings on a straight-line basis over the respective period of the contracts as a reduction to Interest expense. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Commitments and Contingencies | ||
Co-investment commitments in partnership | $ 127,200,000 | |
Equity Method Investee | ||
Commitments and Contingencies | ||
Contingent payments through 2021 | 150,000,000 | |
Contingent payments through 2022 | 40,000,000 | |
Other commitment, expected payments | 25,000,000 | |
Expected payments in 2020 | $ 0 | |
Equity Method Investee | Non-US | ||
Commitments and Contingencies | ||
Noncontrolling interest, sale of ownership percentage | 5.00% | 5.00% |
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, 2019 | Dec. 31, 2018 | |
Financial Assets | |||
Investments in marketable securities | $ 59.4 | $ 119.3 | |
Derivative financial instruments | [1] | 7.9 | 5.8 |
Financial Liabilities | |||
Contingent payment arrangements | [2] | 1.9 | |
Affiliate equity repurchase obligations | [2] | 19.8 | 36.2 |
Derivative financial instruments | [2] | 1 | 1.4 |
Level 1 | |||
Financial Assets | |||
Investments in marketable securities | 24.4 | 119.3 | |
Derivative financial instruments | [1] | 0 | 0 |
Financial Liabilities | |||
Contingent payment arrangements | [2] | 0 | |
Affiliate equity repurchase obligations | [2] | 0 | 0 |
Derivative financial instruments | [2] | 0 | 0 |
Level 2 | |||
Financial Assets | |||
Investments in marketable securities | 35 | 0 | |
Derivative financial instruments | [1] | 7.9 | 5.8 |
Financial Liabilities | |||
Contingent payment arrangements | [2] | 0 | |
Affiliate equity repurchase obligations | [2] | 0 | 0 |
Derivative financial instruments | [2] | 1 | 1.4 |
Level 3 | |||
Financial Assets | |||
Investments in marketable securities | 0 | 0 | |
Derivative financial instruments | [1] | 0 | 0 |
Financial Liabilities | |||
Contingent payment arrangements | [2] | 1.9 | |
Affiliate equity repurchase obligations | [2] | 19.8 | 36.2 |
Derivative financial instruments | [2] | $ 0 | $ 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, 2019 | Dec. 31, 2018 | ||
Contingent Payment Arrangements | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | $ 1.9 | $ 9.4 | |
Net realized and unrealized (gains) losses | [1] | 0.1 | 1.3 |
Purchases and issuances | [2] | 0 | 0 |
Settlements and reductions | (2) | (8.8) | |
Balance, end of period | 0 | 1.9 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | 0 | 0.2 | |
Affiliate Equity Repurchase Obligations | |||
Changes in level 3 assets and liabilities | |||
Balance, beginning of period | 36.2 | 49.2 | |
Net realized and unrealized (gains) losses | [1] | 0.1 | 0 |
Purchases and issuances | [2] | 118.6 | 105.4 |
Settlements and reductions | (135.1) | (118.4) | |
Balance, end of period | 19.8 | 36.2 | |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ 0 | $ 0 | |
[1] | Accretion expense for these arrangements is 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, 2019USD ($) | Dec. 31, 2018USD ($) | |
Contingent payment arrangements | Growth rates | Minimum | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Contingent payment arrangement, measurement input | [1] | 0.07 | |
Contingent payment arrangements | Growth rates | Weighted Average | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Contingent payment arrangement, measurement input | [2] | 0.07 | |
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 | Weighted Average | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Contingent payment arrangement, measurement input | [2] | 0.15 | |
Affiliate equity repurchase obligations | Growth rates | Minimum | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Obligations to related parties, measurement input | [1] | (0.09) | (0.04) |
Affiliate equity repurchase obligations | Growth rates | Maximum | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Obligations to related parties, measurement input | [1] | 0.07 | 0.09 |
Affiliate equity repurchase obligations | Growth rates | Weighted Average | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Obligations to related parties, measurement input | [1],[2] | 0.05 | 0.03 |
Affiliate equity repurchase obligations | Discount rates | Minimum | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Obligations to related parties, measurement input | 0.14 | 0.14 | |
Affiliate equity repurchase obligations | Discount rates | Maximum | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Obligations to related parties, measurement input | 0.17 | 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 | [2] | 0.15 | 0.15 |
Level 3 | Contingent payment arrangements | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Fair value liabilities | $ 0 | $ 1.9 | |
Level 3 | Affiliate equity repurchase obligations | |||
Quantitative information for Level 3 Fair Value Measurements Liabilities | |||
Fair value liabilities | $ 19.8 | $ 36.2 | |
[1] | Includes transfers from Redeemable non-controlling interests. | ||
[2] | Calculated by comparing the relative fair value of an arrangement or obligation to its respective total. |
Fair Value Measurements - Natur
Fair Value Measurements - Nature of Investments and Related Liquidity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
NAV of investments at fair value | |||
Life of funds (in years) | 15 years | ||
Private equity | |||
NAV of investments at fair value | |||
Unfunded Commitments | [1] | $ 127.2 | $ 131 |
Other funds | |||
NAV of investments at fair value | |||
Unfunded Commitments | [2] | 0 | 0 |
Other investments | |||
NAV of investments at fair value | |||
Unfunded Commitments | [3] | 127.2 | 131 |
Other investments | Controlling interests | |||
NAV of investments at fair value | |||
Alternative Investment | 137.6 | 123.2 | |
Fair Value Measured at NAV | Private equity | |||
NAV of investments at fair value | |||
Alternative Investment | [1] | 203.3 | 193.2 |
Fair Value Measured at NAV | Other funds | |||
NAV of investments at fair value | |||
Alternative Investment | [2] | 8.5 | 7.9 |
Fair Value Measured at NAV | Other investments | |||
NAV of investments at fair value | |||
Alternative Investment | [3] | $ 211.8 | $ 201.1 |
[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 third-party funds and 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 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 $123.2 million and $137.6 million as of December 31, 2018 and 2019 , respectively. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Liabilities not Carried at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 746.8 | $ 746.2 |
Junior convertible securities | 315.4 | 312.5 |
Junior subordinated notes | 290.7 | 0 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 797.4 | 747.5 |
Junior convertible securities | 415.7 | 391.5 |
Junior subordinated notes | $ 327.7 | $ 0 |
Goodwill and Acquired Client _3
Goodwill and Acquired Client Relationships - Schedule of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in goodwill | ||
Balance, beginning of period | $ 2,633.4 | $ 2,662.5 |
Foreign currency translation | 18.3 | (29.1) |
Balance, end of period | $ 2,651.7 | $ 2,633.4 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Net Book Value | ||||
Beginning balance, net book value | $ 1,309.9 | |||
Intangible amortization and impairments | (144.5) | $ (114.8) | $ (86.4) | |
Ending balance, net book value | 1,182 | 1,309.9 | ||
Acquired Client Relationships (Net) | ||||
Definite-lived | ||||
Beginning balance, gross book value | 1,292.5 | 1,295.5 | ||
Beginning balance, accumulated amortization | (988.9) | (874.5) | ||
Beginning balance, net book value | 303.6 | 421 | ||
Intangible amortization and impairments | (93.4) | (114.4) | ||
Foreign currency translation | (0.4) | (3) | ||
Transfer and other, gross book value | [1] | (36.1) | ||
Transfer and other, accumulated amortization | [1] | 36.1 | ||
Ending balance, gross book value | 1,256 | 1,292.5 | 1,295.5 | |
Ending balance, accumulated amortization | (1,046.2) | (988.9) | (874.5) | |
Ending balance, net book value | 209.8 | 303.6 | 421 | |
Indefinite-lived | ||||
Beginning balance, net book value | 1,006.3 | 1,028.7 | ||
Intangible amortization and impairments | (51.1) | (0.4) | ||
Foreign currency translation | 17 | (22) | ||
Transfers(1) | [1] | 0 | ||
Ending balance, net book value | 972.2 | 1,006.3 | 1,028.7 | |
Net Book Value | ||||
Beginning balance, net book value | 1,309.9 | 1,449.7 | ||
Intangible amortization and impairments | (144.5) | (114.8) | ||
Transfers(1) | [1] | 0 | ||
Foreign currency translation | 16.6 | (25) | ||
Transfers(1) | [1] | 0 | ||
Ending balance, net book value | $ 1,182 | $ 1,309.9 | $ 1,449.7 | |
[1] | Transfers includes acquired client relationships at Affiliates that were deconsolidated during the period. |
Goodwill and Acquired Client _5
Goodwill and Acquired Client Relationships - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||||
Goodwill impairment | $ 0 | ||||
Intangible future amortization expense in 2022 | $ 30,000,000 | $ 30,000,000 | |||
Intangible future amortization expense in 2023 | 75,000,000 | 75,000,000 | |||
Acquired Client Relationships | |||||
Goodwill | |||||
Impairment of indefinite-lived intangibles | $ 35,000,000 | 0 | |||
Fair value assumptions, average projected growth rate | (9.00%) | ||||
Fair value assumptions, discount rate for asset based fees | 14.50% | ||||
Fair value assumptions, market participant tax rate | 25.00% | ||||
Acquired Client Relationships | Closure Of Certain Retail Investment Products | |||||
Goodwill | |||||
Impairment of indefinite-lived intangibles | $ 16,100,000 | ||||
Carrying value of indefinite-lived intangibles | 0 | 0 | |||
Acquired Client Relationships | Controlling interests | |||||
Goodwill | |||||
Impairment of indefinite-lived intangibles | 31,200,000 | ||||
Acquired Client Relationships | |||||
Goodwill | |||||
Intangible amortization expense | 93,400,000 | $ 114,400,000 | $ 86,400,000 | ||
Intangible future amortization expense in 2020 | 60,000,000 | 60,000,000 | |||
Intangible future amortization expense in 2021 | 30,000,000 | 30,000,000 | |||
Intangible future amortization expense in 2023 | 30,000,000 | 30,000,000 | |||
Intangible future amortization expense in 2024 | 20,000,000 | 20,000,000 | |||
Impairment of indefinite-lived intangibles | 51,100,000 | 400,000 | |||
Carrying value of indefinite-lived intangibles | $ 972,200,000 | $ 972,200,000 | $ 1,006,300,000 | $ 1,028,700,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Equity Method Investments in Affiliates [Roll Forward] | |||
Balance, beginning of period | $ 2,791 | ||
Distributions of earnings | (252.4) | $ (466.3) | $ (429.8) |
Balance, end of period | 2,195.6 | 2,791 | |
Equity Method Investee | |||
Change in Equity Method Investments in Affiliates [Roll Forward] | |||
Balance, beginning of period | 2,791 | 3,304.7 | |
Earnings | 289.4 | 370.6 | |
Intangible amortization and impairments | (627.4) | (370.8) | |
Distributions of earnings | (252.4) | (466.3) | |
Foreign currency translation | (40) | (34.5) | |
Investments in Affiliates | 162.3 | 7.3 | |
Divestments of Affiliates | (117.7) | 0 | |
Other | (9.6) | (20) | |
Balance, end of period | $ 2,195.6 | $ 2,791 | $ 3,304.7 |
Equity Method Investments in _4
Equity Method Investments in Affiliates - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Intangible future amortization expense in 2022 | $ 30,000,000 | $ 30,000,000 | |||||||||
Intangible future amortization expense in 2023 | 75,000,000 | 75,000,000 | |||||||||
Impairment of equity method investment | 0 | ||||||||||
Equity method investments in affiliates | 2,195,600,000 | $ 2,791,000,000 | 2,195,600,000 | $ 2,791,000,000 | |||||||
Undistributed earnings from equity method affiliates | 115,000,000 | 115,000,000 | |||||||||
Equity method investment, revenue | [1] | 2,760,900,000 | 3,231,700,000 | $ 3,126,300,000 | |||||||
Equity method investment, net income | 1,061,300,000 | [1] | 1,286,100,000 | 2,182,700,000 | |||||||
Assets | 2,718,500,000 | 2,730,400,000 | 2,718,500,000 | 2,730,400,000 | |||||||
Liabilities and Non-controlling interests | 1,212,700,000 | 1,235,100,000 | 1,212,700,000 | 1,235,100,000 | |||||||
U.S. Alternative Credit Affiliate | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Impairment of equity method investment | $ 415,000,000 | ||||||||||
Fair value assumptions, average projected growth rate | (13.00%) | ||||||||||
Fair value assumptions, discount rate for asset based fees | 11.00% | ||||||||||
Fair value assumptions, discount rate for performance based fees | 20.00% | ||||||||||
Fair value assumptions, market participant tax rate | 25.00% | ||||||||||
Fair value assumptions, average projected growth period | 5 years | ||||||||||
U.S. Alternative Affiliate | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Impairment of equity method investment | $ 60,000,000 | $ 10,000,000 | |||||||||
Fair value assumptions, average projected growth rate | 9.00% | (20.00%) | |||||||||
Fair value assumptions, discount rate for asset based fees | 11.00% | 11.00% | |||||||||
Fair value assumptions, discount rate for performance based fees | 20.00% | 20.00% | |||||||||
Fair value assumptions, market participant tax rate | 25.00% | 25.00% | |||||||||
Equity Method Investee | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investments in affiliates | $ 2,195,600,000 | 2,791,000,000 | 2,195,600,000 | 2,791,000,000 | 3,304,700,000 | ||||||
Equity method investment, revenue | 844,800,000 | ||||||||||
Equity method investment, net income | 228,500,000 | ||||||||||
Assets | 392,900,000 | 392,900,000 | |||||||||
Liabilities and Non-controlling interests | 299,800,000 | 299,800,000 | |||||||||
Equity method investment, cash flows from operating activities | 308,700,000 | ||||||||||
Equity method investment, cash flows used in investing activities | 7,400,000 | ||||||||||
Equity method investment, cash flows used in financing activities | 313,100,000 | ||||||||||
Equity Method Investee | Non-U.S. Alternative Investment | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Impairment of equity method investment | $ 240,000,000 | $ 33,300,000 | |||||||||
Equity method investments in affiliates | $ 0 | ||||||||||
Fair value assumptions, average projected growth rate | 2.50% | ||||||||||
Fair value assumptions, discount rate for asset based fees | 11.00% | ||||||||||
Fair value assumptions, discount rate for performance based fees | 20.00% | ||||||||||
Fair value assumptions, market participant tax rate | 25.00% | ||||||||||
Acquired Client Relationships Under Equity Method Investments | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Intangible amortization expense | 142,400,000 | $ 97,500,000 | $ 106,100,000 | ||||||||
Intangible future amortization expense in 2020 | 130,000,000 | 130,000,000 | |||||||||
Intangible future amortization expense in 2022 | 75,000,000 | 75,000,000 | |||||||||
Intangible future amortization expense in 2023 | 75,000,000 | 75,000,000 | |||||||||
Intangible future amortization expense in 2024 | $ 75,000,000 | $ 75,000,000 | |||||||||
Non-US | Equity Method Investee | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Noncontrolling interest, sale of ownership percentage | 5.00% | 5.00% | 5.00% | ||||||||
Payments to noncontrolling interests | $ 25,700,000 | ||||||||||
Ownership percentage held by minority interest in affiliated | 14.00% | 14.00% | |||||||||
[1] | Revenue and net income include asset and performance based fees, the impact of consolidated sponsored investment products and 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Equity Method Investments and Joint Ventures [Abstract] | |||||
Revenue | [1] | $ 2,760.9 | $ 3,231.7 | $ 3,126.3 | |
Net income | 1,061.3 | [1] | 1,286.1 | $ 2,182.7 | |
Assets | 2,718.5 | 2,730.4 | |||
Liabilities and Non-controlling interests | $ 1,212.7 | $ 1,235.1 | |||
[1] | Revenue and net income include asset and performance based fees, the impact of consolidated sponsored investment products and investments in new Affiliates for the full-year, regardless of the date of the Company’s investment. |
Lease Commitments - Total Lease
Lease Commitments - Total Lease Costs (Net) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 41.7 |
Short-term lease costs | 2.1 |
Variable lease costs | 0.1 |
Sublease income | (4.4) |
Total lease costs (net) | $ 39.5 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | ||||
Right-of-use assets obtained in exchange for new operating leases after adoption of ASC 842 | $ 26.1 | |||
Weighted average remaining lease term - operating leases | 8 years | 8 years | ||
Weighted average discount rate - operating leases | 4.00% | 4.00% | ||
Operating rent expense | $ 40.5 | $ 37.5 | ||
Consolidated rent expense | $ 45.3 | |||
Expense recorded to reduce carrying value of right-of-use assets to fair value | $ 8.1 | |||
Level 3 | Discounted Cash Flow | Price per square foot | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 13 | 13 | ||
Level 3 | Discounted Cash Flow | Price per square foot | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 68 | 68 | ||
Level 3 | Discounted Cash Flow | Price per square foot | Weighted Average | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 46 | 46 | ||
Level 3 | Discounted Cash Flow | Discount rate | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 0.033 | 0.033 | ||
Level 3 | Discounted Cash Flow | Discount rate | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 0.055 | 0.055 | ||
Level 3 | Discounted Cash Flow | Tax rate | ||||
Lessee, Lease, Description [Line Items] | ||||
Right-of-use assets, measurement input | 0.25 | 0.25 |
Lease Commitments - Maturity of
Lease Commitments - Maturity of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) | |
Leases [Abstract] | ||
2020 | $ 38.9 | |
2021 | 38.3 | |
2022 | 31.4 | |
2023 | 26.7 | |
2024 | 21.1 | |
Thereafter | 82.4 | |
Total undiscounted lease liabilities | 238.8 | [1] |
Present value discounting of operating lease liabilities | $ 50.4 | |
[1] | Total undiscounted lease liabilities were $50.4 million greater than the operating leases recorded in Other liabilities primarily due to present value discounting. Both amounts exclude leases with initial terms of 12 months or less and leases that have not yet commenced. |
Lease Commitments - Required Mi
Lease Commitments - Required Minimum Payments for Operating Leases Before Adoption of ASU 2016-02 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 35.5 |
2020 | 36.9 |
2021 | 34.8 |
2022 | 27.7 |
2023 | 23.4 |
Thereafter | $ 75.2 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed assets | ||
Fixed assets, at cost | $ 251.1 | $ 250.7 |
Accumulated depreciation and amortization | (158.8) | (146.4) |
Fixed assets (net) | 92.3 | 104.3 |
Building and leasehold improvements | ||
Fixed assets | ||
Fixed assets, at cost | 116.3 | 117.8 |
Software | ||
Fixed assets | ||
Fixed assets, at cost | 52.6 | 51 |
Equipment | ||
Fixed assets | ||
Fixed assets, at cost | 43 | 42.3 |
Furniture and fixtures | ||
Fixed assets | ||
Fixed assets, at cost | 21.3 | 21 |
Land, improvements and other | ||
Fixed assets | ||
Fixed assets, at cost | $ 17.9 | $ 18.6 |
Payables and Accrued Liabilit_3
Payables and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 421.5 | $ 463.2 |
Other | 213.1 | 283.4 |
Payables and accrued liabilities | $ 634.6 | $ 746.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transactions | ||
Other liabilities | $ 359.1 | $ 162.7 |
Private Equity Investment Partnerships of Affiliate | Prior Owner | ||
Related Party Transactions | ||
Other liabilities | $ 38.5 | $ 49.7 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Oct. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2018 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 153,000,000 | 153,000,000 | |||
Equity Distribution Program | |||||
Class of Stock [Line Items] | |||||
Proceeds from issuance of common stock | $ 500,000,000 | ||||
Stock program, maximum amount authorized | $ 0 | ||||
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 | October 2019 Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized (in shares) | 6,000,000 | ||||
Common Stock | January 2019 Program | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, number of shares authorized (in shares) | 3,300,000 | ||||
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) | 0 | ||||
Common Stock | January 2019 and October 2019 Programs | |||||
Class of Stock [Line Items] | |||||
Stock repurchase plan, number of remaining shares to be repurchased (in shares) | 6,900,000 | ||||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Shares repurchased (in shares) | 4.1 | 3.3 | 2.4 |
Average price of stock repurchased (in dollars per share) | $ 88.73 | $ 150.31 | $ 173.19 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Total fair value of share-based compensation awards vested | $ 18.9 | $ 5.9 | $ 59.4 |
Excess tax benefit (deficiency) recognized from share-based incentive plans | (3.2) | 0.7 | $ 10.9 |
Total compensation cost not yet recognized | $ 106.6 | $ 54.1 | |
Weighted average period for recognition (assuming no forfeitures) | 3 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Share-Based Compensation Expense | $ 49.9 | $ 44.7 | $ 40.4 |
Tax Benefit | $ 8.2 | $ 11.2 | $ 13.6 |
Share-Based Compensation - Tran
Share-Based Compensation - Transactions in the Company's Restricted Stock Units (Details) - Restricted Stock Units shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Stock Units | |
Unvested units - December 31, 2018 (in shares) | shares | 0.6 |
Units granted (in shares) | shares | 0.7 |
Units vested (in shares) | shares | (0.2) |
Units forfeited (in shares) | shares | 0 |
Unvested units - December 31, 2019 (in shares) | shares | 1.1 |
Weighted Average Grant Date Value | |
Unvested units - December 31, 2018 (in usd per share) | $ / shares | $ 172.74 |
Units granted (in usd per share) | $ / shares | 98.48 |
Units vested (in usd per share) | $ / shares | 168.95 |
Units forfeited (in usd per share) | $ / shares | 145.59 |
Unvested units - December 31, 2019 (in usd per share) | $ / shares | $ 123.70 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stocks granted | $ 18.9 | $ 5.9 | $ 59.4 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of restricted stocks granted | $ 59.7 | $ 37.7 | $ 36.9 |
Increase in estimated number of shares expected vest (in shares) | 100,000 | ||
Restricted stocks available for future grant under the Company's option plans (in shares) | 200,000 | ||
Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of restricted stocks | 3 years | ||
Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period of restricted stocks | 4 years |
Share-Based Compensation - Tr_2
Share-Based Compensation - Transactions of the Company's Stock Options (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Stock Options | |
Unexercised options outstanding - December 31, 2018 (in shares) | shares | 0.5 |
Options granted (in shares) | shares | 1.9 |
Options exercised (in shares) | shares | 0 |
Options forfeited (in shares) | shares | (0.1) |
Unexercised options outstanding - December 31, 2019 (in shares) | shares | 2.3 |
Exercisable at December 31, 2019 (in shares) | shares | 0.4 |
Weighted Average Exercise Price | |
Unexercised options outstanding - December 31, 2018 (in usd per share) | $ / shares | $ 130.81 |
Options granted (in usd per share) | $ / shares | 74.90 |
Options exercised (in usd per share) | $ / shares | 71.49 |
Options forfeited (in usd per share) | $ / shares | 121.94 |
Unexercised stock options outstanding - December 31, 2019 (in usd per share) | $ / shares | 85.58 |
Exercisable stock options at December 31, 2019 (in usd per share) | $ / shares | $ 131.50 |
Weighted Average Remaining Contractual Life (Years) | |
Stock options outstanding at December 31, 2019 (in years) | 6 years |
Exercisable stock options at December 31, 2019 (in years) | 3 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Fair value of stock options granted | $ 34,200,000 | $ 1,000,000 | $ 800,000 |
Total intrinsic value of options exercised | 200,000 | 8,200,000 | 50,800,000 |
Cash received for options exercised | 900,000 | $ 9,700,000 | $ 41,900,000 |
Intrinsic value of exercisable options outstanding | $ 0 | ||
Weighted average fair value of options granted (in usd per share) | $ 18.36 | $ 48.64 | $ 48.05 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Options available for future grant under the Company's option plans (in shares) | 0.3 | ||
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 | 5 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assumptions used to determine fair value of options granted | ||||
Dividend yield | 1.70% | 0.80% | 0.50% | |
Expected volatility | [1] | 29.40% | 25.50% | 28.00% |
Risk-free interest rate | [2] | 1.50% | 2.80% | 2.10% |
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. |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Redeemable Non-controlling Interests | ||||||
Balance, beginning of period | $ 833.7 | [1] | $ 811.9 | |||
Changes attributable to consolidated Affiliate sponsored investment products | (69.4) | 51.6 | ||||
Transfers to Other liabilities | (118.6) | (105.4) | ||||
Transfers from Non-controlling interests | 105 | 44.8 | $ 76.8 | |||
Changes in redemption value | 166 | 30.8 | ||||
Balance, end of period | 916.7 | [1] | 833.7 | [1] | $ 811.9 | |
Affiliate sponsored investment products | ||||||
Redeemable Non-controlling Interests | ||||||
Balance, beginning of period | [1] | 91 | ||||
Balance, end of period | [1] | $ 21.6 | $ 91 | |||
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, 2018 and 2019 , Redeemable non-controlling interests includes consolidated Affiliate sponsored investment products primarily attributable to third-party investors of $91.0 million and $21.6 million |
Affiliate Equity - Additional I
Affiliate Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Affiliate Equity | |||
Distributions paid to affiliate partners | $ 347.9 | $ 370.5 | $ 352.2 |
Payments to acquire interest in affiliates | 146 | 120 | 174.7 |
Issuance of interest in affiliates | 10.5 | 6.3 | $ 9 |
Other Assets | |||
Affiliate Equity | |||
Due from affiliates | 14.8 | 16.2 | |
Other Liabilities | |||
Affiliate Equity | |||
Due to affiliates | $ 19.8 | $ 36.2 | |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Affiliate Equity Expense | |||
Total | $ 40.5 | $ 56.4 | $ 50 |
Non-controlling Interests | |||
Affiliate Equity Expense | |||
Non-controlling interests | $ 30.9 | $ 39.7 | $ 36.8 |
Unrecognized Affiliate Equity Expense | |||
Remaining Life | 6 years | 6 years | 6 years |
Non-controlling Interests | $ 124.6 | $ 118.3 | $ 95.9 |
Controlling Interest | |||
Affiliate Equity Expense | |||
Controlling interest | 9.6 | 16.7 | 13.2 |
Unrecognized Affiliate Equity Expense | |||
Controlling Interest | $ 40.9 | $ 38.7 | $ 33.3 |
Remaining Life | 4 years | 5 years | 5 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, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | Jun. 30, 2018 | [2] | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Affiliate Equity [Abstract] | ||||||||||||||||
Net income (controlling interest) | $ 22.5 | $ 86.3 | $ 107.7 | $ (200.8) | $ (151.3) | $ 124.9 | $ 117 | $ 153 | $ 15.7 | $ 243.6 | $ 689.5 | |||||
Decrease in controlling interest paid-in capital from Affiliate equity issuances | (3.1) | (5) | (1) | |||||||||||||
Decrease in controlling interest paid-in capital from Affiliate equity repurchases | (50.8) | (67.9) | (116.2) | |||||||||||||
Net income (loss) (controlling interest) including the net impact of Affiliate equity transactions | $ (38.2) | $ 170.7 | $ 572.3 | |||||||||||||
[1] | In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million | |||||||||||||||
[2] | In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contributions to benefit plans | $ 19.4 | $ 20.8 | $ 20.1 |
Controlling interests | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contributions to benefit plans | $ 3.6 | $ 4.8 | $ 3.9 |
Income Taxes - Consolidated Pro
Income Taxes - Consolidated Provision Attributable to Controlling and Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income tax provision | ||||
Current taxes | $ 58.7 | $ 129.4 | $ 182 | |
Deferred taxes | (55.8) | 51.9 | (123.6) | |
Income tax expense | $ 2.9 | $ 181.3 | $ 58.4 | |
Effective tax rate (controlling interest) | (137.00%) | 41.00% | 6.80% | |
Controlling interests | ||||
Income tax provision | ||||
Current taxes | $ 46.5 | $ 117.2 | $ 173.8 | |
Intangible-related deferred taxes | (51.3) | 79.7 | (98.5) | |
Other deferred taxes | (4.3) | (27.5) | (24.9) | |
Income tax expense | (9.1) | 169.4 | 50.4 | |
Income before income taxes (controlling interest) | $ 6.6 | $ 413 | $ 739.9 | |
Effective tax rate (controlling interest) | [1] | (137.00%) | 41.00% | 6.80% |
Non-Controlling Interests | ||||
Income tax provision | ||||
Current taxes | $ 12.2 | $ 12.2 | $ 8.2 | |
Deferred taxes | (0.2) | (0.3) | (0.2) | |
Income tax expense | $ 12 | $ 11.9 | $ 8 | |
[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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (18.2) | $ 52.2 | $ 109 |
State | (8.8) | 28.6 | 18.9 |
Foreign | 85.7 | 48.6 | 54.1 |
Total current | 58.7 | 129.4 | 182 |
Deferred: | |||
Federal | (23.9) | 51.3 | (124.9) |
State | 3.4 | 13.2 | 10.4 |
Foreign | (35.3) | (12.6) | (9.1) |
Total deferred | (55.8) | 51.9 | (123.6) |
Income tax expense | $ 2.9 | $ 181.3 | $ 58.4 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 152.2 | $ 637.3 | $ 756.5 |
International | 155.8 | 76.3 | 310.6 |
Total | $ 308 | $ 713.6 | $ 1,067.1 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income tax provision | ||||
Statutory U.S. federal tax rate | 21.00% | 21.00% | 35.00% | |
State income taxes, net of federal benefit | 3.50% | 3.70% | 2.70% | |
Foreign operations | (471.20%) | 1.30% | (5.40%) | |
Compensation plans | 240.60% | 1.60% | (0.70%) | |
Changes in tax laws | 0.00% | 0.00% | (25.20%) | |
Changes in valuation allowances | (107.20%) | 0.00% | 0.30% | |
Unrecognized tax benefits | 420.40% | 0.50% | 0.50% | |
Affiliate divestments | (120.40%) | 0.00% | 0.00% | |
Reduction in carrying value of Affiliates | 0.00% | 13.00% | 0.00% | |
Changes in U.S. tax provision to return | (195.70%) | (1.00%) | 0.00% | |
Other | 72.00% | 0.90% | (0.40%) | |
Effective tax rate (controlling interest) | (137.00%) | 41.00% | 6.80% | |
Non-Controlling Interests | ||||
Income tax provision | ||||
Effect of income from non-controlling interests | 137.90% | (15.60%) | (1.30%) | |
Controlling interests | ||||
Income tax provision | ||||
Effective tax rate (controlling interest) | [1] | (137.00%) | 41.00% | 6.80% |
Effective tax rate | 0.90% | 25.40% | 5.50% | |
[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 ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Provisional one-time net benefit from changes in U.S. tax laws | $ 194,100,000 | ||
Foreign operating loss carryforwards, expiration period | 20 years | ||
Valuation allowance for deferred tax assets | $ 16,900,000 | $ 24,100,000 | |
Amount of temporary difference due to repatriation of earnings from sale or liquidation of subsidiary | 249,400,000 | ||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 65,400,000 | 33,100,000 | 32,400,000 |
Accrued deferred tax assets for indirect tax benefits associated with uncertain tax positions | 27,400,000 | 10,900,000 | |
Interest and penalties related to unrecognized tax benefits | 8,400,000 | 400,000 | $ 300,000 |
Accrued income tax interest and related charges | 10,500,000 | 2,100,000 | |
Operating Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance for deferred tax assets | $ (7,200,000) | 0 | |
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforwards, expiration period | 10 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforwards, expiration period | 15 years | ||
Non-US | |||
Operating Loss Carryforwards [Line Items] | |||
Expense recorded to reduce the carrying value of equity method affiliate | $ 240,000,000 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 245,900,000 | ||
State | Operating Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | 12,000,000 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 66,900,000 | ||
Foreign operating loss carryforward indefinitely | 9,300,000 | ||
Foreign | Operating Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | 2,300,000 | ||
Foreign | Expire over a 20-year period | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 57,600,000 | ||
Foreign and State | |||
Operating Loss Carryforwards [Line Items] | |||
Accrued deferred tax assets for indirect tax benefits associated with uncertain tax positions | $ 27,400,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets | |||
Deferred compensation | $ 13.8 | $ 18 | |
State net operating loss carryforwards | 15.9 | 18.2 | |
Foreign loss carryforwards | 17.7 | 16.7 | |
Tax benefit of uncertain tax positions | 27.4 | 10.9 | |
Deferred income | 3 | 8.8 | |
Lease liabilities | 12.3 | ||
Other | 2.6 | 5.1 | |
Total deferred tax assets | 92.7 | 77.7 | |
Valuation allowance | (16.9) | (24.1) | |
Deferred tax assets, net of valuation allowance | 75.8 | 53.6 | |
Deferred Tax Liabilities | |||
Intangible asset amortization | (293.7) | (337.1) | |
Non-deductible intangible amortization | (110.9) | (141) | |
Junior convertible securities interest | (91.6) | (84.5) | |
Right-of-use assets | (10.3) | ||
Other | (4.1) | (2.6) | |
Total deferred tax liabilities | (510.6) | (565.2) | |
Deferred income tax liability (net) | (434.8) | [1] | $ (511.6) |
Other Assets | |||
Deferred Tax Assets | |||
Foreign loss carryforwards | 17.7 | ||
Deferred Tax Liabilities | |||
Carryforwards valuation allowance | $ 2.3 | ||
[1] | he foreign loss carryforwards of $17.7 million , net of a $2.3 million valuation allowance, are presented in Other assets as they represent a net deferred tax asset position in a foreign jurisdiction. |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of period | $ 33.1 | $ 32.4 | $ 26.8 |
Additions based on current year tax positions | 39.8 | 2.4 | 6 |
Additions based on prior years’ tax positions | 3.2 | 8.4 | 1.5 |
Reduction for prior years’ tax positions | (3.5) | (2) | 0 |
Reductions related to lapses of statutes of limitations | (4) | (6.3) | (2.3) |
Settlements | (0.4) | (1.3) | 0 |
Additions (reductions) related to foreign exchange rates | (2.8) | (0.5) | 0.4 |
Balance, end of period | $ 65.4 | $ 33.1 | $ 32.4 |
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, 2019 | [1] | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | [1] | Dec. 31, 2018 | [2] | Sep. 30, 2018 | Jun. 30, 2018 | [2] | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator | ||||||||||||||||
Net income (controlling interest) | $ 22.5 | $ 86.3 | $ 107.7 | $ (200.8) | $ (151.3) | $ 124.9 | $ 117 | $ 153 | $ 15.7 | $ 243.6 | $ 689.5 | |||||
Interest expense on junior convertible securities, net of taxes | 0 | 0 | 15.5 | |||||||||||||
Net income (controlling interest), as adjusted | $ 15.7 | $ 243.6 | $ 705 | |||||||||||||
Denominator | ||||||||||||||||
Average shares outstanding (basic) (in shares) | 50.5 | 53.6 | 56 | |||||||||||||
Effect of dilutive instruments: | ||||||||||||||||
Stock options and restricted stock units (in shares) | 0.1 | 0.2 | 0.4 | |||||||||||||
Convertible securities (in shares) | 0 | 0 | 2.2 | |||||||||||||
Average shares outstanding (diluted) (in shares) | 50.6 | 53.8 | 58.6 | |||||||||||||
[1] | In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million | |||||||||||||||
[2] | In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. |
Earnings Per Share - Diluted Ea
Earnings Per Share - Diluted Earnings per Share Calculations Excluding the Anti-dilutive Effect of Shares (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.6 | 0.2 | 0.1 |
Junior convertible securities | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.2 | 2.2 | 0 |
Comprehensive Income - Tax Effe
Comprehensive Income - Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | $ (9.7) | $ (87.1) | $ 112.3 |
Tax Benefit (Expense) | 22.3 | (15.1) | 7.2 |
Other comprehensive income (loss), net of tax | 12.6 | (102.2) | 119.5 |
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | (11.4) | (87) | 128 |
Tax Benefit (Expense) | 22.3 | (15.1) | 0 |
Other comprehensive income (loss), net of tax | 10.9 | (102.1) | 128 |
Change in net realized and unrealized loss on derivative financial instruments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | 1.7 | (0.1) | (0.7) |
Tax Benefit (Expense) | 0 | 0 | (0.1) |
Other comprehensive income (loss), net of tax | $ 1.7 | $ (0.1) | (0.8) |
Change in net unrealized gain (loss) on investment securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | (15) | ||
Tax Benefit (Expense) | 7.3 | ||
Other comprehensive income (loss), net of tax | $ (7.7) |
Comprehensive Income - Componen
Comprehensive Income - Components of Other Comprehensive Income (Loss), Net of Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||
Beginning Balance | $ 4,134.9 | $ 4,578.5 | $ 4,426.5 |
Other comprehensive income | 12.6 | (102.2) | 119.5 |
Ending Balance | 3,499.1 | 4,134.9 | 4,578.5 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||
Beginning Balance | (188) | (85.9) | |
Other comprehensive income (loss) before reclassifications | 10.9 | (102.1) | |
Amounts reclassified | 0 | 0 | |
Other comprehensive income | 10.9 | (102.1) | 128 |
Ending Balance | (177.1) | (188) | (85.9) |
Realized and Unrealized Gains (Losses) on Derivative Financial Instruments | |||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||
Beginning Balance | (0.5) | (0.4) | |
Other comprehensive income (loss) before reclassifications | 2.2 | (0.2) | |
Amounts reclassified | (0.5) | 0.1 | |
Other comprehensive income | 1.7 | (0.1) | (0.8) |
Ending Balance | 1.2 | (0.5) | (0.4) |
Unrealized Gains (Losses) on Investment Securities | |||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 2.1 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified | 0 | (2.1) | |
Other comprehensive income | 0 | (2.1) | |
Ending Balance | 0 | 0 | 2.1 |
Total | |||
Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |||
Beginning Balance | (188.5) | (84.2) | |
Other comprehensive income (loss) before reclassifications | 13.1 | (102.3) | |
Amounts reclassified | (0.5) | (2) | |
Other comprehensive income | 12.6 | (104.3) | |
Ending Balance | $ (175.9) | $ (188.5) | $ (84.2) |
Comprehensive Income - Addition
Comprehensive Income - Additional Information (Details) $ in Millions | Jan. 01, 2019USD ($) |
ASU 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification to retained earnings of tax effects stranded in AOCI as result of enactment of Tax Cuts and Jobs Act | $ 6.6 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Consolidated revenue | $ 555,500,000 | [1] | $ 549,000,000 | [1] | $ 592,000,000 | $ 543,100,000 | [1] | $ 564,400,000 | [2] | $ 601,300,000 | $ 600,200,000 | [2] | $ 612,500,000 | $ 2,239,600,000 | $ 2,378,400,000 | $ 2,305,000,000 |
Income (loss) before income taxes | 94,300,000 | [1] | 192,600,000 | [1] | 215,900,000 | (194,800,000) | [1] | (63,600,000) | [2] | 250,400,000 | 239,300,000 | [2] | 287,500,000 | 308,000,000 | 713,600,000 | 1,067,100,000 |
Net income | 95,900,000 | [1] | 162,100,000 | [1] | 180,100,000 | (133,000,000) | [1] | (98,800,000) | [2] | 201,900,000 | 205,200,000 | [2] | 224,000,000 | 305,100,000 | 532,300,000 | 1,008,700,000 |
Net income (controlling interest) | $ 22,500,000 | [1] | $ 86,300,000 | [1] | $ 107,700,000 | $ (200,800,000) | [1] | $ (151,300,000) | [2] | $ 124,900,000 | $ 117,000,000 | [2] | $ 153,000,000 | $ 15,700,000 | $ 243,600,000 | $ 689,500,000 |
Earnings per share (diluted) (in dollars per share) | $ 0.46 | [1] | $ 1.71 | [1] | $ 2.11 | $ (3.87) | [1] | $ (2.88) | [2] | $ 2.34 | $ 2.16 | [2] | $ 2.77 | $ 0.31 | $ 4.52 | $ 12.03 |
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of equity method investment | $ 0 | |||||||||||||||
Acquired Client Relationships | ||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of indefinite-lived intangibles | $ 35,000,000 | 0 | ||||||||||||||
Acquired Client Relationships | Closure Of Certain Retail Investment Products | ||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of indefinite-lived intangibles | 16,100,000 | |||||||||||||||
Carrying value of indefinite-lived intangibles | 0 | $ 0 | ||||||||||||||
U.S. Alternative Credit Affiliate | ||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of equity method investment | $ 415,000,000 | |||||||||||||||
U.S. Alternative Affiliate | ||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of equity method investment | $ 60,000,000 | $ 10,000,000 | ||||||||||||||
Equity Method Investee | Non-U.S. Alternative Investment | ||||||||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||||||||
Impairment of equity method investment | $ 240,000,000 | $ 33,300,000 | ||||||||||||||
[1] | In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million | |||||||||||||||
[2] | In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | [1] | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | [2] | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Segment Reporting Information | ||||||||||||||||
Consolidated revenue | $ 555.5 | [1] | $ 549 | $ 592 | $ 543.1 | $ 564.4 | [2] | $ 601.3 | $ 600.2 | $ 612.5 | $ 2,239.6 | $ 2,378.4 | $ 2,305 | |||
Fixed assets (net) | 92.3 | 104.3 | 92.3 | 104.3 | ||||||||||||
United States | ||||||||||||||||
Segment Reporting Information | ||||||||||||||||
Consolidated revenue | 1,642.2 | 1,611.7 | 1,571.4 | |||||||||||||
Fixed assets (net) | 75.6 | 87.1 | 75.6 | 87.1 | ||||||||||||
United Kingdom | ||||||||||||||||
Segment Reporting Information | ||||||||||||||||
Consolidated revenue | 515.2 | 628.8 | 587.3 | |||||||||||||
Fixed assets (net) | 15.8 | 15.7 | 15.8 | 15.7 | ||||||||||||
Other | ||||||||||||||||
Segment Reporting Information | ||||||||||||||||
Consolidated revenue | 82.2 | 137.9 | $ 146.3 | |||||||||||||
Fixed assets (net) | $ 0.9 | $ 1.5 | $ 0.9 | $ 1.5 | ||||||||||||
[1] | In the first, third and fourth quarters of 2019, the Company recorded $415.0 million , $10.0 million and $60.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. In the fourth quarter of 2019, the Company recorded $35.0 million | |||||||||||||||
[2] | In the second and fourth quarter of 2018, the Company recorded $33.3 million and $240.0 million of expenses, respectively, to reduce the carrying value to fair value of certain of its Affiliates. |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Valuation Allowance | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | $ 24.1 | $ 24.1 | $ 22.1 | |
Additions Charged to Costs and Expenses | 4.9 | 0.6 | 1.1 | |
Additions Charged to Other Accounts | 0 | 0 | 0.9 | |
Deductions | 12.1 | 0.6 | 0 | |
Balance End of Period | 16.9 | 24.1 | 24.1 | |
Other Allowances | ||||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | ||||
Balance Beginning of Period | [1] | 5 | 3.6 | 10.3 |
Additions Charged to Costs and Expenses | [1] | 1 | 6.4 | 0.6 |
Additions Charged to Other Accounts | [1] | 0 | 0 | 0 |
Deductions | [1] | 1.9 | 5 | 7.3 |
Balance End of Period | [1] | $ 4.1 | $ 5 | $ 3.6 |
[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 represented the reversal of such reserves upon collection of the amounts due. |
Uncategorized Items - amg10-k12
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,600,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,600,000) |