Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 14, 2024 | Jun. 30, 2023 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2023 | ||
Entity Public Float | $ 5,227,465,462 | ||
Entity Common Stock, Shares Outstanding (in shares) | 32,794,127 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after December 31, 2023, and delivered to stockholders in connection with the registrant’s annual meeting of stockholders, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001004434 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Common Stock ($0.01 par value) | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | AMG | ||
Security Exchange Name | NYSE | ||
5.875% Junior Subordinated Notes due 2059 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.875% Junior Subordinated Notes due 2059 | ||
Trading Symbol | MGR | ||
Security Exchange Name | NYSE | ||
4.750% Junior Subordinated Notes due 2060 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.750% Junior Subordinated Notes due 2060 | ||
Trading Symbol | MGRB | ||
Security Exchange Name | NYSE | ||
2061 Junior Subordinated Notes | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.200% Junior Subordinated Notes due 2061 | ||
Trading Symbol | MGRD | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Boston, Massachusetts |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Consolidated revenue | $ 2,057.8 | $ 2,329.6 | $ 2,412.4 |
Consolidated expenses: | |||
Compensation and related expenses | 907.5 | 1,071.5 | 1,047.1 |
Selling, general and administrative | 358.2 | 385.5 | 347.1 |
Intangible amortization and impairments | 48.3 | 51.6 | 35.7 |
Interest expense | 123.8 | 114.4 | 111.4 |
Depreciation and other amortization | 13 | 15.8 | 16.6 |
Other expenses (net) | 45.8 | 34.7 | 73.5 |
Total consolidated expenses | 1,496.6 | 1,673.5 | 1,631.4 |
Equity method income (net) | 280 | 338.1 | 242.5 |
Affiliate Transaction gains (Notes 8 and 9) | 133.1 | 641.9 | 0 |
Investment and other income | 117.1 | 110.3 | 117.6 |
Income before income taxes | 1,091.4 | 1,746.4 | 1,141.1 |
Income tax expense | 185.3 | 358.3 | 251 |
Net income | 906.1 | 1,388.1 | 890.1 |
Net income (non-controlling interests) | (233.2) | (242.2) | (324.4) |
Net income (controlling interest) | $ 672.9 | $ 1,145.9 | $ 565.7 |
Average shares outstanding (basic) (in shares) | 35.1 | 38.5 | 41.5 |
Average shares outstanding (diluted) (in shares) | 42.2 | 49 | 44.8 |
Earnings per share (basic) (in dollars per share) | $ 19.18 | $ 29.77 | $ 13.65 |
Earnings per share (diluted) (in dollars per share) | $ 17.42 | $ 25.35 | $ 13.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 906.1 | $ 1,388.1 | $ 890.1 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gain (loss) | 41.1 | (141.3) | 6.8 |
Change in net realized and unrealized gain (loss) on derivative financial instruments | 0.3 | (0.5) | 0.4 |
Change in net unrealized gain (loss) on available-for-sale debt securities | 0.5 | (1) | 0 |
Other comprehensive income (loss), net of tax | 41.9 | (142.8) | 7.2 |
Comprehensive income | 948 | 1,245.3 | 897.3 |
Comprehensive income (non-controlling interests) | (239.3) | (214.9) | (321.2) |
Comprehensive income (controlling interest) | $ 708.7 | $ 1,030.4 | $ 576.1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 813.6 | $ 429.2 |
Receivables | 368.4 | 316 |
Investments in marketable securities | 461 | 716.9 |
Goodwill | 2,523.6 | 2,648.7 |
Acquired client relationships (net) | 1,812.4 | 1,876 |
Equity method investments in Affiliates (net) | 2,288.5 | 2,139.5 |
Fixed assets (net) | 67.3 | 68.5 |
Other investments | 480.9 | 421.6 |
Other assets | 243.9 | 264.6 |
Total assets | 9,059.6 | 8,881 |
Liabilities and Equity | ||
Payable and accrued liabilities | 628.5 | 778.3 |
Debt | 2,537.5 | 2,535.3 |
Deferred income tax liability (net) | 463.8 | 464.7 |
Other liabilities | 466.3 | 461.7 |
Total liabilities | 4,096.1 | 4,240 |
Commitments and contingencies (Note 7) | ||
Redeemable non-controlling interests | 393.4 | 465.4 |
Equity: | ||
Common stock ($0.01 par value, 153.0 shares authorized; 58.5 shares issued in 2022 and 2023) | 0.6 | 0.6 |
Additional paid-in capital | 741.4 | 695.5 |
Accumulated other comprehensive loss | (167.6) | (203.4) |
Retained earnings | 6,389.6 | 5,718.2 |
Total stockholders' equity before treasury stock | 6,964 | 6,210.9 |
Less: Treasury stock, at cost (22.7 shares in 2022 and 25.3 shares in 2023) | (3,376.1) | (2,980.6) |
Total stockholders' equity | 3,587.9 | 3,230.3 |
Non-controlling interests | 982.2 | 945.3 |
Total equity | 4,570.1 | 4,175.6 |
Total liabilities and equity | $ 9,059.6 | $ 8,881 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
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 issued (in shares) | 58.5 | 58.5 |
Treasury stock, shares (in shares) | 25.3 | 22.7 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock at Cost | Non-controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 3,317.3 | $ 0.6 | $ 728.9 | $ (98.3) | $ 4,005.5 | $ (1,857) | $ 537.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 890.1 | 565.7 | 324.4 | |||||||
Other comprehensive income (loss), net of tax | 7.2 | 10.4 | (3.2) | |||||||
Share-based compensation | 63.4 | 63.4 | ||||||||
Common stock issued under share-based incentive plans | (16.7) | (53.5) | 36.8 | |||||||
Repurchases of junior convertible securities | (7.1) | (7.1) | ||||||||
Share repurchases | (509.9) | 17.3 | (527.2) | |||||||
Dividends | (1.7) | (1.7) | ||||||||
Investments in Affiliates | 247 | 247 | ||||||||
Affiliate equity activity: | ||||||||||
Affiliate equity compensation | 62.9 | 17 | 45.9 | |||||||
Issuances | 103.9 | (16.7) | 120.6 | |||||||
Purchases | 2.8 | 23.9 | (21.1) | |||||||
Changes in redemption value of Redeemable non-controlling interests | (121.6) | (121.6) | ||||||||
Transfer (to) from Redeemable non-controlling interests | (3.9) | (3.9) | ||||||||
Capital contributions and other | 11.2 | 11.2 | ||||||||
Distributions to non-controlling interests | (334.3) | (334.3) | ||||||||
Ending balance at Dec. 31, 2021 | $ 3,710.6 | $ (76.1) | 0.6 | 651.6 | $ (80.6) | (87.9) | 4,569.5 | $ 4.5 | (2,347.4) | 924.2 |
Affiliate equity activity: | ||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||||
Net income | $ 1,388.1 | 1,145.9 | 242.2 | |||||||
Other comprehensive income (loss), net of tax | (142.8) | (115.5) | (27.3) | |||||||
Share-based compensation | 62.4 | 62.4 | ||||||||
Common stock issued under share-based incentive plans | (17.1) | (38.6) | 21.5 | |||||||
Share repurchases | (699.7) | (45) | (654.7) | |||||||
Dividends | (1.7) | (1.7) | ||||||||
Affiliate equity compensation | 55.9 | 9.5 | 46.4 | |||||||
Issuances | 19.2 | (12.2) | 31.4 | |||||||
Purchases | (12) | 2.6 | (14.6) | |||||||
Changes in redemption value of Redeemable non-controlling interests | 145.8 | 145.8 | ||||||||
Transfer (to) from Redeemable non-controlling interests | (1.8) | (1.8) | ||||||||
Capital contributions and other | 86.7 | 86.7 | ||||||||
Distributions to non-controlling interests | (341.9) | (341.9) | ||||||||
Ending balance at Dec. 31, 2022 | 4,175.6 | 0.6 | 695.5 | (203.4) | 5,718.2 | (2,980.6) | 945.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 906.1 | 672.9 | 233.2 | |||||||
Other comprehensive income (loss), net of tax | 41.9 | 35.8 | 6.1 | |||||||
Share-based compensation | 59.4 | 59.4 | ||||||||
Common stock issued under share-based incentive plans | (31.3) | (47.2) | 15.9 | |||||||
Share repurchases | (352.3) | 59.1 | (411.4) | |||||||
Dividends | (1.5) | (1.5) | ||||||||
Affiliate equity activity: | ||||||||||
Affiliate equity compensation | 52.5 | 13.4 | 39.1 | |||||||
Issuances | 16.4 | (13.7) | 30.1 | |||||||
Purchases | 8.1 | 13.6 | (5.5) | |||||||
Changes in redemption value of Redeemable non-controlling interests | (55.5) | (55.5) | ||||||||
Transfer (to) from Redeemable non-controlling interests | 8.9 | 8.9 | ||||||||
Capital contributions and other | 13.5 | 13.5 | ||||||||
Distributions to non-controlling interests | (271.3) | (271.3) | ||||||||
Effect of deconsolidation of Affiliates | (0.4) | 16.8 | (17.2) | |||||||
Ending balance at Dec. 31, 2023 | $ 4,570.1 | $ 0.6 | $ 741.4 | $ (167.6) | $ 6,389.6 | $ (3,376.1) | $ 982.2 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends (in dollars per share) | $ 0.04 | $ 0.04 | $ 0.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow from (used in) operating activities: | |||
Net income | $ 906.1 | $ 1,388.1 | $ 890.1 |
Adjustments to reconcile Net income to cash flow from (used in) operating activities: | |||
Intangible amortization and impairments | 48.3 | 51.6 | 35.7 |
Depreciation and other amortization | 13 | 15.8 | 16.6 |
Deferred income tax expense | 31.4 | 32 | 91.2 |
Equity method income (net) | (280) | (338.1) | (242.5) |
Distributions received from equity method investments | 490.8 | 393.5 | 337.5 |
Affiliate Transaction gains | (133.1) | (641.9) | 0 |
Share-based compensation and Affiliate equity compensation expense | 112.1 | 113.8 | 126.7 |
Net realized and unrealized gains on investment securities | (84.2) | (103.5) | (108.7) |
Other non-cash items | (10.8) | 17.8 | 44.2 |
Changes in assets and liabilities: | |||
Purchases of securities by consolidated Affiliate sponsored investment products | (45) | (46.7) | (109.6) |
Sales of securities by consolidated Affiliate sponsored investment products | 54.3 | 33.8 | 58 |
Decrease (increase) in receivables | (48.4) | 87 | 31.7 |
Decrease in other assets | 9.2 | 41.6 | 23.8 |
Increase (decrease) in payables, accrued liabilities, and other liabilities | (189.4) | 9.9 | 64.5 |
Cash flow from operating activities | 874.3 | 1,054.7 | 1,259.2 |
Cash flow from (used in) investing activities: | |||
Investments in Affiliates, net of cash acquired | (294.7) | (291.1) | (562.6) |
Proceeds from Affiliate Transactions | 294 | 223.6 | 0 |
Return of capital from equity method investments | 0.2 | 0.8 | 4.4 |
Purchase of fixed assets | (12.4) | (11.4) | (8.4) |
Purchase of investment securities | (731.1) | (312) | (73.5) |
Maturities and sales of investment securities | 1,008.5 | 280.2 | 56.4 |
Cash flow from (used in) investing activities | 264.5 | (109.9) | (583.7) |
Cash flow from (used in) financing activities: | |||
Borrowings of senior bank debt | 25 | 0 | 200 |
Repayments of senior bank debt and junior convertible securities | (25) | (60.8) | (33) |
Repurchase of common stock (net) | (341.9) | (713.8) | (595.3) |
Dividends paid on common stock | (1.5) | (1.6) | (1.7) |
Distributions to non-controlling interests | (271.3) | (341.9) | (334.3) |
Affiliate equity purchases | (67.4) | (61.5) | (150.5) |
Affiliate equity issuances | 13.4 | 15.2 | 117.7 |
Subscriptions (redemptions) to consolidated Affiliate sponsored investment products, net | (12.6) | 13 | 40.9 |
Settlement of deferred payments, net | (21.7) | (201) | (21.7) |
Other financing items | (55.3) | (50.5) | (20.4) |
Cash flow used in financing activities | (758.3) | (1,402.9) | (798.3) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 6.9 | (22.6) | (0.8) |
Net (decrease) increase in cash and cash equivalents | 387.4 | (480.7) | (123.6) |
Cash and cash equivalents at beginning of period | 429.2 | 908.5 | 1,039.7 |
Effect of (deconsolidation) consolidation of Affiliates and Affiliate sponsored investment products | (3) | 1.4 | (7.6) |
Cash and cash equivalents at end of period | 813.6 | 429.2 | 908.5 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net | 314.5 | 120.2 | 87.1 |
Interest paid | 110.4 | 109.4 | 103 |
Lease liabilities paid | 37.7 | 41.8 | 38.8 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Payables recorded for investments in Affiliates and contingent payment obligations | 57.6 | 31.2 | 287.8 |
Right-of-use assets obtained in exchange for new operating leases | 17.5 | 69.4 | 26.3 |
Stock issued upon vesting of restricted stock units and exercise of stock options | 55 | 41.2 | 82.6 |
Stock received for tax withholdings on share-based payments | 31.4 | 19.4 | 19.9 |
Shares received for settlement of accelerated share repurchase agreement | 0 | 0 | 14.1 |
Payables recorded for share repurchases | 12 | 0 | 16.7 |
Payables recorded for Affiliate equity purchases | 43 | 27.2 | 11 |
EQT ordinary shares received from BPEA Transaction | 0 | 515.2 | 0 |
Other investments from BPEA Transaction | $ 0 | $ 51.7 | $ 0 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 strategic partner to leading independent investment management firms globally. AMG’s strategy is to generate long-term value by investing in a diverse array of high-quality independent partner-owned firms, referred to as “Affiliates.” The Company’s Affiliates provide a comprehensive and diverse range of differentiated investment strategies designed to assist institutional and wealth clients worldwide in achieving their investment objectives. The Company operates in one segment, global investment 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.” The form of the Company’s structured partnership interests in Affiliates differs from Affiliate to Affiliate and ranges from structures where the Company contractually shares in the Affiliate’s revenue without regard to expenses, comprising Affiliates that contribute a majority of the Company’s Consolidated revenue, to others where the Company contractually shares in the Affiliate’s revenue less agreed-upon expenses. Further, the structure at a particular Affiliate, or the expenses that the Company agrees to share in, may change during the course of the Company’s investment. Where the Company shares in the Affiliate’s revenue without regard to expenses, the Affiliate allocates a specified percentage of its revenue to the Company and Affiliate management, while using the remainder for operating expenses and additional 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. Where the Company shares in the Affiliate’s revenue less agreed-upon expenses, the Company benefits from any increase in revenue or any decrease in the agreed-upon expenses, but also has exposure to any decrease in revenue or any increase in such agreed-upon expenses. The degree of the Company’s exposure to agreed-upon expenses from these structured partnership interests varies by Affiliate, and includes several Affiliates in which the Company fully shares in the expenses of the business. (b) Basis of Presentation and Use of Estimates The Consolidated Financial Statements of the Company have been 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. 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 VRE under the equity method. Investments with readily determinable fair values in which the Company does not have rights to exercise significant influence are recorded at fair value on the Consolidated Balance Sheets, with changes in fair value included in 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 5. 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 and any co-investor’s equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Undistributed earnings attributable to Affiliate management’s and any co-investor’s equity ownership, along with their share of any tangible or intangible net assets, are included in 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 or Other liabilities on the Consolidated Balance Sheets. The Company periodically issues, sells, and purchases 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 in 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 (net) in the Consolidated Statements of Income and the carrying value of the Affiliate is recorded in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. The Company periodically performs assessments to determine if the fair value of an investment may have declined below its related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be other-than-temporary. The Company performs these assessments if certain triggering events occur or annually during the fourth quarter. The Company first considers whether certain qualitative factors indicate an increased likelihood of a decline in the fair value of an Affiliate during the reporting period. If such a decline is identified, and it is likely that an investment’s fair value may have declined below its carrying value, the Company performs a quantitative assessment to determine if an impairment exists. Impairments are recorded as an expense in Equity method income (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 the Affiliate also acts 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 generally does not consolidate these products. However, for certain products, the Company’s consolidated Affiliates, as the investment manager, have the power to direct the activities of the investment product and have an exposure to the economics of the VIE that is more than insignificant, though generally only for a short period while the product is established and has yet to attract significant third-party investors. When 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 on the Consolidated Balance Sheets, with corresponding changes in the investments’ fair values included in Investment and other income. Purchases and sales of securities are included in purchases and sales by consolidated Affiliate sponsored investment products in the Consolidated Statements of Cash Flows, respectively, and the third-party investors’ interests are 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 certain 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 recorded in 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 Equity securities Realized and unrealized gains or losses on investments in equity securities are recorded in 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. Debt securities Investments in debt securities are classified as either trading, available-for-sale, or held-to-maturity based on the Company’s intent and ability to hold the security to maturity. Securities classified as trading are measured at fair value with unrealized gains and losses recorded in Investment and other income. Securities classified as available-for-sale are measured at fair value with unrealized gains and losses recorded in Accumulated other comprehensive loss as a separate component of stockholders’ equity on the Consolidated Balance Sheets. Securities classified as held-to-maturity are measured at amortized cost. Realized gains and losses on debt securities are recorded in Investment and other income. (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, volatility, 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 its 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 its 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 two years to ten years and three years to ten years, respectively. Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally two 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 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 Accounting Standard Update (“ASU”) 2016-02 Leases (and related ASUs), the Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Consolidated Balance Sheets. Right-of-use assets and lease liabilities are included in Other assets and Other liabilities, respectively. 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) in 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 recorded 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 recorded in Other expenses (net). If a right-of-use asset is impaired, the lease expense is subsequently recorded 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 recorded in Investment and other income. (k) Debt The Company’s debt instruments are carried at amortized cost. Unamortized discounts and debt issuance costs associated with its debt instruments, with the exception of the Company’s senior unsecured multicurrency revolving credit facility (the “revolver”), are presented on the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt. The carrying value of the debt is accreted to the principal amount at maturity over the remaining life of the underlying debt. The accretion of the debt and the amortization of debt issuance costs, are recorded in Interest expense in the Consolidated Statements of Income, using the effective interest method. Unamortized issuance costs associated with the revolver are recorded in Other assets and amortized over the remaining term of the revolver to Interest expense. Gains and losses on repurchases or settlement of debt are recorded in Interest expense. (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 on the Consolidated Balance Sheets at fair value. The Company assesses hedge effectiveness at derivative inception and 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 on a straight-line basis over the respective period of the contracts. For derivative financial instruments designated as cash flow hedges, the Company uses a qualitative method of assessing hedge effectiveness by comparing the notional amounts, timing of payments, currencies (for forward foreign currency contracts), and interest rates (for interest rate swaps). The effective portion of the unrealized gain or loss is recorded in Other comprehensive income (loss), net of tax as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. If the qualitative assessment indicates ineffectiveness, then the Company performs a quantitative assessment which 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. Upon termination of these instruments or the repayment of the Company’s outstanding Secured Overnight Financing Rate (“SOFR”)-based borrowings, any gain or loss recorded in Accumulated other comprehensive loss will be reclassified into earnings. Changes in the fair values of cash flow hedges are recorded in Change in net realized and unrealized gain (loss) on derivative financial instruments in the Consolidated Statements of Comprehensive Income. For net investment hedges, hedge effectiveness is measured using the spot rate method. 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. Changes in the fair values of the effective net investment hedges are recorded in Foreign currency translation gain (loss) in the Consolidated Statements of Comprehensive Income. Upon the sale or liquidation of the underlying investment, any gain or loss remaining in Accumulated other comprehensive loss will be reclassified to earnings. If the Company’s or its Affiliates’ derivative financial instruments do not qualify as effective hedges, changes in the fair value of the derivatives are recorded as a gain or loss in Investment and other income. (m) Revenue Recognition Consolidated revenue primarily represents asset- and performance-based fees earned by the Company and its consolidated 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, or on committed capital. 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. The Company’s Affiliates may periodically either waive or reduce fees in order to attract or retain client assets or for other reasons. Fee waivers or reductions are presented as a reduction to Consolidated revenue in the Consolidated Statements of Income. Performance-based fees, including carried interests, are recognized 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 recorded in Consolidated revenue gross of any related expenses when the Company and its consolidated Affiliates are the principal in their role as primary obligor under their distribution-related services arrangements. Distribution-related expenses are recorded in 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 Obligations The Company periodically enters into contingent payment obligations in connection with its investments in Affiliates. In these obligations, 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 included in Other expenses (net) and the accretion of these obligations to their expected payment amounts are included in Interest expense. For Affiliates accounted for under the equity method, the Company records a liability in Other 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 te |
Investments in Marketable Secur
Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities [Abstract] | |
Investments in Marketable Securities | Investments in Marketable Securities Equity Securities The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in equity securities: December 31, 2022 2023 Cost $ 394.4 $ 35.3 Unrealized gains 59.9 2.6 Unrealized losses (6.4) (0.0 ) Fair value $ 447.9 $ 37.9 As of December 31, 2022, investments in equity securities include ordinary shares of EQT AB (“EQT”), a public company listed on Nasdaq Stockholm (EQT.ST), with fair value of $405.1 million. The Company received the EQT shares through the sale of its equity interest in Baring Private Equity Asia (“BPEA”), in connection with the strategic combination of BPEA and EQT, which was completed in the fourth quarter of 2022. As of December 31, 2022 and 2023, investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $23.5 million and $15.8 million, respectively. For the years ended December 31, 2022 and 2023, the Company recognized net unrealized gains on equity securities still held as of December 31, 2022 and 2023 of $35.5 million and $2.9 million, respectively. Debt Securities The following table summarizes the cost, unrealized gains, unrealized losses, and fair value of investments in U.S. Treasury securities classified as available-for-sale, all of which mature in 2024, and consolidated Affiliate sponsored investment products classified as trading: Available-for-Sale Trading December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 Cost $ 252.3 $ 405.4 $ 19.7 $ 17.9 Unrealized gains — 0.0 — — Unrealized losses (1.3) (0.1) (1.7) (0.1) Fair value $ 251.0 $ 405.3 $ 18.0 $ 17.8 For the year ended December 31, 2022, there were no maturities or sales of available-for-sale securities. For the year ended December 31, 2023, the Company received $511.1 million of proceeds from the maturity of available-for-sale securities. For the years ended December 31 2022 and 2023, the Company recognized net unrealized gains (losses) on debt securities classified as trading still held as of December 31, 2022 and 2023 of $(2.2) million and $0.8 million, respectively. |
Other Investments
Other Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Other Investments Other investments consists primarily of investments in funds advised by the Company’s Affiliates that are carried at NAV as a practical expedient and other investments without readily determinable fair values. Any gain or loss related to these investments is recorded in Investment and other income. Investments Measured at NAV as a Practical Expedient The Company’s Affiliates sponsor funds in which the Company and its Affiliates may make general partner and seed capital investments. These funds operate in partnership form and apply the specialized fair value accounting for investment companies. The Company accounts for its interests in these funds using the equity method of accounting and is required to retain the specialized accounting of the investment companies. Because the funds’ investments do not have readily determinable fair values, the Company uses the NAV of these investments as a practical expedient for their fair values. The following table summarizes the fair values of these investments and any related unfunded commitments: December 31, 2022 December 31, 2023 Fair Value Unfunded Fair Value Unfunded Private equity funds (1) $ 356.4 $ 158.3 $ 424.4 $ 187.2 Investments in other strategies (2) 14.8 — 6.1 — Total (3) $ 371.2 $ 158.3 $ 430.5 $ 187.2 ___________________________ (1) The Company accounts for the majority of its interests in private equity funds one quarter in arrears (adjusted for current period calls and distributions). 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 and credit. Investments are generally redeemable on a daily, monthly, or quarterly basis. (3) Fair value attributable to the controlling interest was $275.1 million and $324.9 million as of December 31, 2022 and 2023, respectively. Investments Without Readily Determinable Fair Values The Company made an investment in a private corporation where it does not exercise significant influence. Because this investment does not have a readily determinable fair value, the Company has elected to measure this investment at its cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments in the private corporation. The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values: December 31, 2022 2023 Cost $ 8.5 $ 8.5 Cumulative unrealized gains 41.9 41.9 Carrying amount $ 50.4 $ 50.4 For the year ended December 31, 2023, the Company recorded no gains or losses on the underlying investment. The following table presents the changes in Other investments: For the Years Ended December 31, 2022 2023 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period $ 324.8 $ 50.4 $ 375.2 $ 371.2 $ 50.4 $ 421.6 Net realized and unrealized gains (1) 1.7 — 1.7 34.2 — 34.2 Additions and commitments 104.3 — 104.3 82.5 — 82.5 Sales and distributions (59.6) — (59.6) (57.4) — (57.4) Balance, end of period $ 371.2 $ 50.4 $ 421.6 $ 430.5 $ 50.4 $ 480.9 ___________________________ (1) Recorded in Investment and other income. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2022 Level 1 Level 2 Level 3 Financial Assets Investments in equity securities (1) $ 447.9 $ 305.6 $ 142.3 $ — Investments in debt securities (1) 269.0 — 269.0 — Financial Liabilities (3) Contingent payment obligations $ 21.0 $ — $ — $ 21.0 Affiliate equity purchase obligations 24.5 — — 24.5 Fair Value Measurements December 31, 2023 Level 1 Level 2 Level 3 Financial Assets Investments in equity securities (1) $ 37.9 $ 37.9 $ — $ — Investments in debt securities (1) 423.1 — 423.1 — Financial Liabilities (3) Contingent payment obligations $ 14.7 $ — $ — $ 14.7 Affiliate equity purchase obligations 53.9 — — 53.9 ___________________________ (1) Amounts are recorded in Investments in marketable securities. (2) Amounts are recorded in Other assets. (3) Amounts are recorded in Other liabilities. Level 3 Financial Liabilities The following table presents the changes in Level 3 liabilities: For the Years Ended December 31, 2022 2023 Contingent Payment Obligations Affiliate Contingent Payment Obligations Affiliate Balance, beginning of period $ 40.3 $ 12.6 $ 21.0 $ 24.5 Purchases and issuances (1) — 75.8 — 113.7 Settlements and reductions — (52.1) — (75.4) Net realized and unrealized gains (2) (19.3) (11.8) (6.3) (8.9) Balance, end of period $ 21.0 $ 24.5 $ 14.7 $ 53.9 Net change in unrealized (gains) losses relating to instruments still held at the reporting date (1) $ (19.3) $ (5.9) $ (6.3) $ (4.0) ___________________________ (1) Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests. (2) Gains and losses resulting from changes to expected payments are included in Other expenses (net) and the accretion of these obligations is included in Interest expense. 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, 2022 December 31, 2023 Valuation Unobservable Input Fair Value Range Weighted Average (1) Fair Value Range Weighted Average (1) Contingent payment obligations Monte Carlo simulation Volatility $ 21.0 18% - 25% 18 % $ 14.7 19% - 25% 21 % Discount rates 6% 6 % 6% 6 % Affiliate equity purchase obligations Discounted cash flow Growth rates (2) $ 24.5 (3)% - 6% 1 % $ 53.9 (6)% - 7% 1 % Discount rates 14% - 17% 14 % 14% - 17% 14 % ___________________________ (1) Calculated by comparing the relative fair value of an obligation to its respective total. (2) Represents growth rates of asset- and performance-based fees. Contingent payment obligations represent the fair value of the expected future settlement amounts related to the Company’s investments in its consolidated Affiliates. Changes to assumed volatility and discount rates change the fair value of contingent payment obligations. Increases to the volatility rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. Affiliate equity purchase obligations include agreements to purchase Affiliate equity. As of December 31, 2023, there were no changes to growth or discount rates that had a significant impact to Affiliate equity purchase obligations recorded in prior periods. Other Financial Assets and Liabilities Not Carried at Fair Value The following table summarizes the Company’s other financial liabilities not carried at fair value: December 31, 2022 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 1,098.7 $ 1,024.6 $ 1,099.4 $ 1,049.8 Level 2 Junior subordinated notes 765.9 552.3 765.9 612.0 Level 2 Junior convertible securities 341.7 346.9 341.7 340.9 Level 2 The Company has other financial assets and liabilities that are not required to be carried at fair value, but are required to be disclosed at fair value. The carrying amount of Cash and cash equivalents, Receivables, Payables and accrued liabilities, and certain Other liabilities approximates fair value because of the short-term nature of these instruments. The carrying value of the credit facilities (as defined in Note 6) approximates fair value because the credit facilities have variable interest based on selected short-term rates. |
Investments in Affiliates and A
Investments in Affiliates and Affiliate Sponsored Investment Products | 12 Months Ended |
Dec. 31, 2023 | |
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, 2022 December 31, 2023 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,273.5 $ 2,051.6 $ 1,492.4 $ 2,198.2 As of December 31, 2022 and 2023, the carrying value and maximum exposure to loss for all of the Company’s Affiliates accounted for under the equity method was $2,139.5 million and $2,288.5 million, respectively, including Affiliates accounted for under the equity method considered VREs of $87.9 million and $90.3 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 Affiliates’ interests 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, 2022 December 31, 2023 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 4,878.6 $ 15.3 $ 5,788.3 $ 29.8 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the Company’s Debt: December 31, 2022 2023 Senior bank debt $ 349.9 $ 349.9 Senior notes 1,095.2 1,096.9 Junior subordinated notes 751.6 751.8 Junior convertible securities 338.6 338.9 Debt $ 2,535.3 $ 2,537.5 Senior Bank Debt The Company has a $1.25 billion revolver and a $350.0 million senior unsecured term loan facility (the “term loan” and, together with the revolver, the “credit facilities”). The revolver matures on October 25, 2027 and the term loan matures on October 23, 2026. 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, currently based either on an applicable term-SOFR plus a SOFR adjustment of 0.10%, or prime rate, plus a marginal rate determined based on its credit rating. As of December 31, 2023, the interest rate for the Company’s outstanding borrowings under the term loan was term-SOFR plus a SOFR adjustment of 0.10%, plus the marginal rate of 0.85%. 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, 2022 and 2023, the Company had no outstanding borrowings under the revolver. As of December 31, 2022 and 2023, the Company had outstanding borrowings under the term loan of $350.0 million, and the weighted average interest rate on outstanding borrowings was 5.27% and 6.31%, respectively. The Company pays commitment fees on the unused portion of its revolver. For the years ended December 31, 2022 and 2023, these fees amounted to $1.3 million. Senior Notes As of December 31, 2023, the Company had senior notes outstanding, the respective principal terms and effective interest rates of which are presented below: 2024 2025 2030 Issue date February 2014 February 2015 June 2020 Maturity date February 2024 August 2025 June 2030 Par value (in millions) $ 400.0 $ 350.0 $ 350.0 Stated coupon 4.25 % 3.50 % 3.30 % Coupon frequency Semi-annually Semi-annually Semi-annually Potential call date Any time Any time Any time Call price As defined As defined As defined Effective interest rate 4.44 % 3.67 % 3.39 % The senior notes may be redeemed, in whole or in part, at any time, in the case of the 2024 and 2025 senior notes, and at any time prior to March 15, 2030, in the case of the 2030 senior notes. In each case, the senior notes may be redeemed 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%, in the case of the 2024 and the 2025 senior notes, and to their present value as of the redemption date on a semi-annual basis at the applicable treasury rate plus 0.40%, in the case of the 2030 senior notes. On February 15, 2024, the Company’s $400.0 million 4.25% senior notes due 2024 matured and were fully repaid. Junior Subordinated Notes As of December 31, 2023, the Company had junior subordinated notes outstanding, the respective principal terms and effective interest rates of which are presented below: 2059 2060 2061 Issue date March 2019 September 2020 July 2021 Maturity date March 2059 September 2060 September 2061 Par value (in millions) $ 300.0 $ 275.0 $ 200.0 Stated coupon 5.875 % 4.75 % 4.20 % Coupon frequency Quarterly Quarterly Quarterly Potential call date March 2024 September 2025 September 2026 Call price As defined As defined As defined Listing NYSE NYSE NYSE Effective interest rate 5.91 % 4.78 % 4.23 % The junior subordinated notes may be redeemed at any time, in whole or in part, on or after March 30, 2024, in the case of the 2059 junior subordinated notes, on or after September 30, 2025, in the case of the 2060 junior subordinated notes, and on or after September 30, 2026, in the case of the 2061 junior subordinated notes. In each case, the junior subordinated notes may be redeemed at 100% of the principal amount of the notes being redeemed, plus any accrued and unpaid interest thereon. Prior to the applicable redemption date, at the Company’s option, the applicable 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 applicable notes. 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. Junior Convertible Securities As of December 31, 2023, the Company had $341.7 million of principal outstanding in its 5.15% junior convertible trust preferred securities (the “junior convertible securities”), maturing in 2037. The junior convertible securities bear interest at a rate of 5.15% per annum, payable quarterly in cash. As of December 31, 2022 and 2023, the unamortized issuance costs related to the junior convertible securities were $3.1 million and $2.9 million, respectively. The following table presents interest expense recorded in connection with the junior convertible securities: For the Years Ended December 31, 2021 2022 2023 Contractual interest expense $ 22.2 $ 18.3 $ 17.6 Amortization of debt issuance costs 0.4 0.2 0.2 Amortization of debt discount 3.1 — — Total $ 25.7 $ 18.5 $ 17.8 Effective interest rate 5.99 % 5.21 % 5.21 % Holders of the junior convertible securities have no rights to put these securities to the Company. The holder may convert the securities to 0.2558 shares of common stock per $50.00 junior convertible security, equivalent to an adjusted conversion price of $195.47 per share. The conversion rate is subject to adjustments as described in the Amended and Restated Declaration of Trust of AMG Capital Trust II and the related indenture, both dated October 17, 2007 and filed as exhibits to this Annual Report on Form 10-K. Upon conversion, holders will receive cash or shares of the Company’s common stock, or a combination thereof, at the Company’s election. The Company may redeem the junior convertible securities if the closing price of its common stock for 20 trading days in a period of 30 consecutive trading days exceeds 130% of the then prevailing conversion price, and may also repurchase junior convertible securities in the open market or in privately negotiated transactions from time to time at management’s discretion. 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. The Company estimates that these deductions will generate annual deferred tax liabilities of approximately $9 million. For the year ended December 31, 2022, the Company repurchased a portion of its junior convertible securities for a purchase price of $60.9 million and as a result of these repurchases, the Company reduced its Deferred income tax liability (net) by $11.4 million. The Company did not repurchase any of its junior convertible securities during the year ended December 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, these unfunded commitments were $187.2 million and may be called in future periods. As of December 31, 2023, the Company was obligated to make deferred payments and was contingently liable to make payments in connection with certain of its consolidated Affiliates, which are included in Other liabilities, as follows: Earliest Payable Controlling Interest Co-Investor Total 2024 2025 Deferred payment obligations $ 43.3 $ — $ 43.3 $ 21.7 $ 21.6 Contingent payment obligations (1) 12.3 2.4 14.7 9.5 5.2 ___________________________ (1) Fair value as of December 31, 2023. The Company is contingently liable to make maximum contingent payments of up to $110.0 million ($24.9 million attributable to the co-investor), of which $100.0 million and $10.0 million may become payable in 2024 and 2025, respectively. As of December 31, 2023, the Company was obligated to make deferred payments of $59.8 million related to certain of its investments in Affiliates accounted for under the equity method, all of which is payable in 2024. Deferred payment obligations are included in Other liabilities. As of December 31, 2023, the Company was contingently liable to make payments of $237.1 million related to the achievement of specified financial targets by certain of its Affiliates accounted for under the equity method, of which $89.5 million may become payable in 2024 and $147.6 million may become payable from 2025 through 2029. As of December 31, 2023, the Company agreed to provide one of its Affiliates accounted for under the equity method up to $50.0 million of contingent financing. In the event that certain financial targets are not met, the Company may receive payments from one of its Affiliates accounted for under the equity method of up to $12.5 million and also has the option to reduce its ownership interest and receive an incremental payment of $25.0 million. Affiliate equity interests provide holders at consolidated Affiliates with a conditional right to put their interests to the Company over time. See Note 17. The Company and certain of its consolidated Affiliates operate under regulatory authorities that require the maintenance of minimum financial or capital requirements. The Company’s management is not aware of any significant violations of such requirements. |
Goodwill and Acquired Client Re
Goodwill and Acquired Client Relationships | 12 Months Ended |
Dec. 31, 2023 | |
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 2022 2023 Balance, beginning of period $ 2,689.2 $ 2,648.7 Veritable Transaction (1) — (136.5) Foreign currency translation (40.5) 16.5 Other — (5.1) Balance, end of period $ 2,648.7 $ 2,523.6 ___________________________ (1) Represents Goodwill allocated to Veritable as of the closing date, including $3.5 million attributable to the non-controlling interests. As of September 30, 2023, the Company completed its annual impairment assessment on goodwill and no impairment was indicated. Acquired Client Relationships (Net) Definite-lived Indefinite-lived Total Gross Book Accumulated Net Book Net Book Net Book Balance, as of December 31, 2021 $ 1,364.2 $ (1,028.1) $ 336.1 $ 1,630.3 $ 1,966.4 Intangible amortization and impairments — (49.1) (49.1) (2.5) (51.6) Foreign currency translation (9.1) 7.5 (1.6) (37.2) (38.8) Balance, as of December 31, 2022 $ 1,355.1 $ (1,069.7) $ 285.4 $ 1,590.6 $ 1,876.0 Veritable Transaction (1) (85.1) 57.0 (28.1) — (28.1) Intangible amortization and impairments — (48.3) (48.3) — (48.3) Foreign currency translation 0.8 (0.5) 0.3 16.6 16.9 Transfers (2) (10.3) 10.3 — (4.1) (4.1) Balance, as of December 31, 2023 $ 1,260.5 $ (1,051.2) $ 209.3 $ 1,603.1 $ 1,812.4 ___________________________ (1) Represents acquired client relationships attributable to Veritable as of the closing date, including $6.7 million attributable to the non-controlling interests. (2) Transfers include 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 $35.7 million, $49.1 million, and $48.3 million for the years ended December 31, 2021, 2022, and 2023, respectively. Based on relationships existing as of December 31, 2023, the Company estimates that its consolidated amortization expense will be approximately $30 million in 2024 and approximately $25 million in each of 2025, 2026, 2027, and 2028. As of December 31, 2023, no impairments of definite-lived acquired client relationships were indicated. As of December 31, 2023, no impairments of indefinite-lived acquired client relationships were indicated. Veritable Transaction In the third quarter of 2023, the Company completed the sale of its equity interest in Veritable, LP (“Veritable”), one of the Company’s consolidated Affiliates, (the “Veritable Transaction”). Pursuant to the terms of the agreement, under which a third party acquired 100% of the outstanding equity interests in Veritable, the Company received $287.4 million in cash, net of transaction costs. Veritable is included in the Company’s results through the closing date, and the Company’s gain on the transaction was $133.1 million, which is recorded in Affiliate Transaction gains in the Consolidated Statements of Income. |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments in Affiliates | Equity Method Investments in Affiliates In the third quarter of 2023, the Company completed a minority investment in Forbion Group Holding B.V., a private markets firm focused on investing in high-quality life sciences companies, and in the fourth quarter of 2023, the Company completed a minority investment in Ara Partners Group, LLC (“Ara Partners”), a private markets firm specializing in industrial decarbonization. The majority of the consideration paid for Ara Partners will be deductible for U.S. tax purposes over a 15-year life. The Company’s provisional purchase price allocation for each investment was measured using financial models that include assumptions of expected market performance, net client cash flows, and discount rates. The financial results of certain Affiliates accounted for under the equity method are recognized in the Consolidated Financial Statements one quarter in arrears. Equity method investments in Affiliates (net) consisted of the following: December 31, 2022 2023 Goodwill $ 1,262.4 $ 1,323.3 Definite-lived acquired client relationships (net) 479.4 652.5 Indefinite-lived acquired client relationships (net) 119.0 122.6 Undistributed earnings and tangible capital 278.7 190.1 Equity method investments in Affiliates (net) $ 2,139.5 $ 2,288.5 The following table presents the change in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2022 2023 Balance, beginning of period $ 2,134.4 $ 2,139.5 Investments in Affiliates 326.1 349.8 BPEA Transaction (1) (150.6) — Earnings 497.2 375.6 Intangible amortization and impairments (159.1) (95.6) Distributions of earnings (394.7) (492.1) Return of capital (0.8) (0.2) Foreign currency translation (68.5) 29.3 Other (44.5) (17.8) Balance, end of period $ 2,139.5 $ 2,288.5 ___________________________ (1) Represents the Company’s equity method investment in BPEA as of the closing date. 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 $123.0 million, $109.1 million, and $86.0 million for the years ended December 31, 2021, 2022, and 2023, respectively. Based on relationships existing as of December 31, 2023, the Company estimates the amortization expense attributable to its Affiliates will be approximately $65 million in 2024, approximately $62 million in 2025, approximately $55 million in each of 2026 and 2027, and approximately $50 million in 2028. For the year ended December 31, 2022, the Company recorded a $50.0 million expense to reduce the carrying value of an Affiliate to fair value. The decline in the fair value was a result of a decline in assets under management and a reduction in projected margin, which decreased the forecasted income associated with the investment. The fair value of the investment was determined using a probability-weighted discounted cash flow analysis, a Level 3 fair value measurement that included a projected compounded growth in assets under management over the first five years of 2%, long-term growth rate of 5%, 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. For the year ended December 31, 2023, the Company recorded $9.6 million of expenses to reduce the carrying values of certain of its Affiliates because it concluded that the fair value of its investments had declined below their carrying values and that the declines were other-than-temporary. For the year ended December 31, 2023, the Company completed its annual assessme nt of its investments in Affiliates accounted for under the equity method and no other impairments were indicated. The Company had 20 and 22 Affiliates accounted for under the equity method as of December 31, 2022 and 2023, respectively. The majority of these Affiliates are partnerships with structured interests that define how the Company will participate in Affiliate earnings, typically based upon a fixed percentage of revenue reduced by, in some cases, certain agreed-upon expenses. The partnership agreements do not define a fixed percentage for the Company’s ownership of the equity of the Affiliate. These percentages would be subject to a separate future negotiation if an Affiliate were to be sold or liquidated. The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2021 2022 2023 Revenue (1) $ 3,228.1 $ 3,239.5 $ 3,115.6 Net income (1) 1,656.6 1,358.7 1,313.0 December 31, 2022 2023 Assets $ 2,816.7 $ 3,269.1 Liabilities and Non-controlling interests 1,221.4 1,467.3 ___________________________ (1) Revenue and net income include asset- and performance-based fees, the impact of consolidated sponsored investment products, and new Affiliate investments for the full-year, regardless of the date of the Company’s investment. BPEA Transaction In the fourth quarter of 2022, the Company completed the sale of its equity interest in BPEA, an Affiliate accounted for by the Company under the equity method, to EQT (the “BPEA Transaction”) in connection with the strategic combination of BPEA and EQT. Pursuant to the terms of the Securities Purchase and Merger Agreement with EQT, under which the Company and each of the other owners agreed to sell their respective equity interests in BPEA, the Company received $223.6 million in cash, net of transaction costs, and 28.68 million EQT ordinary shares (25% of which were subject to a six-month lock-up, which expired in April 2023), and other investments. BPEA is included in the Company’s results through the closing date, and the Company’s gain on the transaction was $641.9 million, which is recorded in Affiliate Transaction gains. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
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 Years Ended December 31, 2021 2022 2023 Operating lease costs $ 33.8 $ 38.5 $ 36.4 Short-term lease costs 0.8 1.0 1.1 Variable lease costs 0.0 0.0 0.0 Sublease income (7.9) (7.7) (6.5) Total lease costs (net) $ 26.7 $ 31.8 $ 31.0 As of December 31, 2022 and 2023, the Company’s and its Affiliates’ weighted average operating lease term was eight years and seven years, respectively, and the weighted average operating lease discount rate was 3%. As of December 31, 2023, the maturities of lease liabilities were as follows: Year Operating Leases 2024 $ 39.1 2025 35.0 2026 25.9 2027 21.9 2028 21.8 Thereafter 68.3 Total undiscounted lease liabilities (1) $ 212.0 ___________________________ (1) |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets (net) consisted of the following: December 31, 2022 2023 Buildings and leasehold improvements $ 111.9 $ 108.6 Software 51.7 45.7 Equipment 25.6 20.7 Furniture and fixtures 19.9 17.5 Land, improvements and other 20.8 20.8 Fixed assets, at cost 229.9 213.3 Accumulated depreciation and amortization (161.4) (146.0) Fixed assets (net) $ 68.5 $ 67.3 |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | Payables and Accrued Liabilities Payables and accrued liabilities consisted of the following: December 31, 2022 2023 Accrued compensation $ 378.7 $ 309.3 Accrued income taxes 224.4 62.3 Other 175.2 256.9 Payables and accrued liabilities $ 778.3 $ 628.5 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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 included in Other liabilities and were $21.0 million and $18.5 million as of December 31, 2022 and 2023, respectively. The Company may invest from time to time in funds or products advised by its Affiliates. The Company’s executive officers and directors may invest from time to time in funds advised or products offered by its Affiliates, or receive other investment services provided by its Affiliates, on substantially the same terms as other participating investors. In addition, 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. 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. Also, from time to time, the Company may enter into ordinary course engagements for capital markets, banking, brokerage, and other services with beneficial owners of 5% or more of the Company’s voting securities. The Company has related party transactions in association with its deferred and contingent payment obligations, and Affiliate equity transactions, as more fully described in Notes 7, 9, 16, and 17. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
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’s Board of Directors authorized share repurchase programs in January 2022, October 2022, and October 2023 to repurchase up to 2.0 million, 3.0 million, and 3.3 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 trading plans, as well as pursuant to accelerated share repurchase programs or other share repurchase strategies that may include derivative financial instruments. As of December 31, 2023, the Company had repurchased all of the shares in the repurchase program authorized in January 2022, and there were a total of 4.2 million shares available for repurchase under the Company’s share repurchase programs. In December 2022, the Company entered into an accelerated share repurchase agreement to repurchase shares of its common stock in exchange for an upfront payment of $225.0 million. The Company received an initial share delivery of 1.1 million shares in December 2022, which represented 80% of the upfront payment based on the closing price of the Company’s common stock on the agreement date. In the second quarter of 2023, the Company received a final share delivery of 0.4 million shares. Under this agreement, the Company repurchased a total of 1.5 million shares at an average price of $147.29 per share. The following is a summary of the Company’s share repurchase activity: Year Shares Average 2021 3.5 $ 146.54 2022 4.5 144.45 2023 3.0 132.99 Equity Distribution Program In the second quarter of 2022, 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”). This equity distribution program superseded and replaced the Company’s prior equity distribution program. As of December 31, 2023, 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, 2023 | |
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. Share-Based Compensation The following table presents share-based compensation expense: Year Share-Based Tax Benefit 2021 $ 63.4 $ 8.0 2022 62.4 7.6 2023 59.4 7.4 The excess tax (deficiency) benefit recognized from share-based incentive plans was $(0.2) million, $1.8 million, and $4.4 million, for the years ended December 31, 2021, 2022, and 2023, respectively. As of December 31, 2022, the Company had unrecognized share-based compensation expense of $64.7 million. As of December 31, 2023, the Company had unrecognized share-based compensation of $54.4 million, which will be recognized over a weighted average period of approximately two years (assuming no forfeitures). Restricted Stock The following table summarizes transactions in the Company’s restricted stock units: Restricted Weighted Unvested units–December 31, 2022 1.1 $ 106.88 Units granted 0.3 159.51 Units vested (0.5) 85.07 Units forfeited (0.0 ) 132.81 Performance condition changes 0.0 129.15 Unvested units–December 31, 2023 0.9 $ 138.51 The Company granted restricted stock units with fair values of $32.3 million, $47.1 million, and $49.3 million for the years ended December 31, 2021, 2022, and 2023, 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 vest. 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 awards with performance conditions, the number of restricted stock units expected to vest may change over time depending upon the performance level achieved. The total fair value of shares vested was $51.7 million, $54.6 million, and $86.2 million for the years ended December 31, 2021, 2022, and 2023, respectively. As of December 31, 2023, the Company had 2.4 million shares available for grant under its plans. Stock Options The following table summarizes transactions in the Company’s stock options: Stock Weighted Weighted Unexercised options outstanding–December 31, 2022 3.2 $ 76.81 Options granted — — Options exercised (0.0 ) 127.77 Options forfeited — — Options expired — — Performance condition changes — — Unexercised options outstanding–December 31, 2023 3.2 $ 76.74 2.7 Exercisable at December 31, 2023 0.0 $ 119.54 2.8 The Company granted stock options with fair values of $2.0 million and $1.8 million for the years ended December 31, 2021 and 2022, respectively. The Company did not grant any stock options for the year ended December 31, 2023. 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 awards with performance conditions, the number of stock options expected to vest may change over time depending upon the performance level achieved. The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of stock options exercised for the years ended December 31, 2021, 2022, and 2023 was $13.4 million, $1.2 million, and $0.2 million, respectively. The cash received for stock options exercised was $3.6 million, $2.6 million, and zero for the years ended December 31, 2021, 2022, and 2023, respectively. As of December 31, 2023, the intrinsic value of exercisable stock options outstanding was $1.9 million, and 1.1 million options were available for grant under the Company’s option plans. The weighted average fair value of stock options granted was $54.19 and $47.84 per option for the years ended December 31, 2021 and 2022, 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, 2021 2022 Dividend yield 0.0 % 0.0 % Expected volatility (1) 37.1 % 36.8 % Risk-free interest rate (2) 1.0 % 1.7 % Expected life of stock options (in years) (3) 5.7 5.7 Forfeiture rate 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, 2023 | |
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 by the Affiliate equity holder or on an annual basis following an Affiliate equity holder’s departure). Prior to becoming redeemable, the Company’s Affiliate equity is included in Non-controlling interests. Upon becoming redeemable, these interests are reclassified to Redeemable non-controlling interests at their current redemption values. Changes in the current redemption value are recorded to Additional paid-in capital. When the Company has an unconditional obligation to purchase Affiliate equity interests, the interests are reclassified from Redeemable non-controlling interest to Other liabilities at current fair value. Changes in fair value are recorded to Other expenses (net). The following table presents the changes in Redeemable non-controlling interests: Redeemable Non-controlling Interests 2022 2023 Balance, beginning of period $ 673.9 $ 465.4 Veritable Transaction — (16.8) Decrease attributable to consolidated Affiliate sponsored investment products (4.9) (8.3) Transfers to Other liabilities (59.6) (93.5) Transfers from (to) Non-controlling interests 1.8 (8.9) Changes in redemption value (145.8) 55.5 Balance, end of period (1) $ 465.4 $ 393.4 __________________________ (1) |
Affiliate Equity
Affiliate Equity | 12 Months Ended |
Dec. 31, 2023 | |
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 non-controlling interest Affiliate equity holders were $334.3 million, $341.9 million, and $271.3 million for the years ended December 31, 2021, 2022, and 2023, respectively. Affiliate equity interests provide the Company a conditional right to call (following an Affiliate equity holder’s departure) and Affiliate equity holders have a conditional right to put their interests at certain intervals (including on an annual basis following an Affiliate equity holder’s departure). The Company has the right to settle a portion of these purchases in shares of its common stock. For Affiliates accounted for under the equity method, the Company does not typically have such put and call arrangements. 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. 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 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 purchases Affiliate equity from and issues Affiliate equity to the Company’s consolidated Affiliate partners and other parties. The amount of cash paid for purchases was $150.5 million, $61.5 million, and $67.4 million for the years ended December 31, 2021, 2022, and 2023, respectively. The total amount of cash received for issuances was $117.7 million (including $99.6 million from a co-investor), $15.2 million, and $13.4 million for the years ended December 31, 2021, 2022, and 2023, respectively. Sales and purchases of Affiliate equity generally occur at fair value; however, the Company also grants Affiliate equity to its consolidated Affiliate partners and other parties as a form of compensation. If the equity is issued for consideration below the fair value of the equity, or purchased 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, 2021 2022 2023 Controlling interest $ 17.4 $ 5.0 $ 13.6 Non-controlling interests 45.9 46.4 39.1 Total $ 63.3 $ 51.4 $ 52.7 The following table presents unrecognized Affiliate equity compensation expense: Year Controlling Interest Remaining Life Non-controlling Interests Remaining Life 2021 $ 41.9 6 years $ 294.1 7 years 2022 31.4 5 years 284.6 7 years 2023 30.6 5 years 235.7 6 years The Company records amounts receivable from, and payable to, Affiliate equity holders in connection with the transfer of Affiliate equity interests that have not settled at the end of the period. The total receivable was $11.6 million and $5.9 million as of December 31, 2022 and 2023, respectively, and was included in Other assets. The total payable was $24.5 million and $53.9 million as of December 31, 2022 and 2023, 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 occurred during the applicable periods: For the Years Ended December 31, 2021 2022 2023 Net income (controlling interest) $ 565.7 $ 1,145.9 $ 672.9 Decrease in controlling interest paid-in capital from Affiliate equity issuances (17.5) (0.2) (13.5) Decrease in controlling interest paid-in capital from Affiliate equity purchases (63.2) (38.2) (50.4) Net income (controlling interest) including the net impact of Affiliate equity transactions $ 485.0 $ 1,107.5 $ 609.0 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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 the non-controlling interests. The following table presents the consolidated provision for income taxes: For the Years Ended December 31, 2021 2022 2023 Controlling interest: Current taxes $ 144.4 $ 315.4 $ 146.9 Intangible-related deferred taxes 52.5 32.0 29.8 Other deferred taxes 32.7 0.0 1.6 Total controlling interest 229.6 347.4 178.3 Non-controlling interests: Current taxes $ 15.4 $ 10.9 $ 7.0 Deferred taxes 6.0 — — Total non-controlling interests 21.4 10.9 7.0 Income tax expense $ 251.0 $ 358.3 $ 185.3 Income before income taxes (controlling interest) $ 795.3 $ 1,493.3 $ 851.2 Effective tax rate (controlling interest) (1) 28.9 % 23.3 % 20.9 % ___________________________ (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, 2021 2022 2023 Current: Federal $ 73.1 $ 222.9 $ 105.2 State 19.6 30.6 10.8 Foreign 67.1 72.8 37.9 Total current 159.8 326.3 153.9 Deferred: Federal $ 55.9 $ 30.4 $ 27.3 State 13.0 9.0 7.0 Foreign 22.3 (7.4) (2.9) Total deferred 91.2 32.0 31.4 Income tax expense $ 251.0 $ 358.3 $ 185.3 For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2021 2022 2023 Domestic $ 698.2 $ 639.0 $ 782.3 International 442.8 1,107.4 309.1 Total $ 1,141.0 $ 1,746.4 $ 1,091.4 The following table reconciles the U.S. federal statutory tax rate to the Company’s effective tax rate: For the Years Ended December 31, 2021 2022 2023 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 3.5 3.5 3.5 Foreign operations (1.7) (1.7) (4.1) Compensation plans 2.0 0.8 1.1 Changes in tax laws 2.4 — — Change in valuation allowances 1.1 0.3 (0.1) Unrecognized tax benefits 0.1 0.4 0.6 BPEA Transaction (1) — (1.0) — Changes in U.S. tax provision to return 0.4 0.0 (0.7) Other 0.1 0.0 (0.4) Effective tax rate (controlling interest) 28.9 % 23.3 % 20.9 % Effect of income from non-controlling interests (6.9) (2.8) (3.9) Effective tax rate 22.0 % 20.5 % 17.0 % ___________________________ (1) The year ended December 31, 2022 is reflective of the BPEA Transaction gain of $641.9 million and realized and unrealized gains on EQT ordinary shares of $43.8 million and $57.9 million, respectively. The Company’s effective tax rate (controlling interest) in 2021 is higher than the marginal tax rate, primarily due to non-deductible compensation expense and an increase in deferred tax expense resulting from the revaluation of certain deferred tax liabilities due to an increase in the UK tax rate enacted during 2021. The effective tax rate (controlling interest) in 2022 is lower than the marginal rate primarily due to the tax benefits of foreign operations and a state tax benefit related to the BPEA Transaction. The effective tax rate (controlling interest) in 2023 is lower than the marginal rate primarily due to discrete benefits from foreign operations. 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, 2022 2023 Deferred Tax Assets Deferred compensation $ 14.6 $ 15.9 State loss carryforwards 16.4 14.7 Foreign loss carryforwards 20.0 19.8 Tax benefit of uncertain tax positions 12.6 10.0 Lease liabilities 6.6 4.8 Foreign tax credits 15.4 16.0 Other 0.3 0.3 Total deferred tax assets 85.9 81.5 Valuation allowance (48.1) (47.6) Deferred tax assets, net of valuation allowance $ 37.8 $ 33.9 Deferred Tax Liabilities Intangible asset amortization $ (280.9) $ (295.8) Non-deductible intangible amortization (109.8) (97.0) Junior convertible securities interest (72.4) (83.1) Right-of-use assets (5.1) (3.7) Accrued expenses (3.0) (2.0) Deferred income (23.4) (10.4) Other (4.4) (2.9) Total deferred tax liabilities (499.0) (494.9) Deferred income tax liability (net) (1) $ (461.2) $ (461.0) ___________________________ (1) As of December 31, 2022 and 2023, foreign loss carryforwards of $20.0 million (net of a $16.5 million valuation allowance) and $19.8 million (net of a $17.0 million valuation allowance), respectively, are included in Other assets as they represent a net deferred tax asset in a foreign jurisdiction. As of December 31, 2023, the Company had available state net operating loss carryforwards of $228.2 million, a majority of which will expire over six years to 11 years. As of December 31, 2023, the Company had foreign loss carryforwards of $74.8 million, of which $57.5 million will expire over nine years to 16 years and $17.3 million will carry forward indefinitely. As of December 31, 2023, the Company had foreign tax credit carryforwards of $16.0 million, a majority of which will expire over five years to eight years. The Company believed it was more-likely-than-not that the benefit from certain state and foreign loss carryforwards and foreign tax credit carryforwards would not be fully realized, and, as of December 31, 2023, had valuation allowances of $14.6 million, $17.0 million, and $16.0 million on the state and foreign loss carryforwards and the foreign tax credit carryforwards, respectively. For the years ended December 31, 2022 and 2023, the Company increased its valuation allowance $4.2 million and $0.5 million, 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 provides for U.S. income taxes on all foreign earnings. The Company does not provide for U.S. income taxes on the portion of 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, 2023, the estimated amount of such difference was $347.7 million. A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2021 2022 2023 Balance, beginning of period $ 63.5 $ 52.4 $ 49.6 Additions based on current year tax positions 0.8 0.6 6.4 Additions based on prior years’ tax positions 4.6 4.4 1.0 Reduction for prior years’ tax positions (5.6) (1.0) (13.5) Lapse of the statute of limitations (5.7) (5.5) (4.8) Settlements (5.5) — (1.3) Foreign currency translation 0.3 (1.3) 0.4 Balance, end of period $ 52.4 $ 49.6 $ 37.8 Included in the balance of unrecognized tax benefits as of December 31, 2021, 2022, and 2023 were $52.4 million, $49.6 million, and $37.8 million, respectively, of tax benefits that, if recognized, would favorably affect the Company’s effective tax rate (controlling interest). As of December 31, 2023 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 $10.0 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, 2021, 2022, and 2023 interest and penalties related to unrecognized tax benefits were $(0.4) million, $2.6 million, and $0.8 million, respectively. As of December 31, 2022 and 2023, the Company accrued interest and penalties related to unrecognized tax benefits of $13.6 million and $14.4 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 2017. In August 2022, the Inflation Reduction Act was enacted into law and included provisions for a 15% corporate alternative minimum income tax and a 1% excise tax on repurchases of the Company’s common stock. These provisions, which were effective for the Company beginning January 1, 2023, did not have a material impact on the Company’s Consolidated Financial Statements for the year ended December 31, 2023. The Company records the excise tax as part of the cost basis of its common stock repurchased. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 2022 2023 Numerator Net income (controlling interest) $ 565.7 $ 1,145.9 $ 672.9 Income from hypothetical settlement of Redeemable non-controlling interests, net of tax — 82.9 49.0 Interest expense on junior convertible securities, net of taxes 18.5 14.0 13.4 Net income (controlling interest), as adjusted $ 584.2 $ 1,242.8 $ 735.3 Denominator Average shares outstanding (basic) 41.5 38.5 35.1 Effect of dilutive instruments: Stock options and restricted stock units 1.2 1.3 1.7 Hypothetical issuance of shares to settle Redeemable non-controlling interests — 7.4 3.7 Junior convertible securities 2.1 1.8 1.7 Average shares outstanding (diluted) 44.8 49.0 42.2 Average shares outstanding (diluted) in the table above excludes stock options and restricted stock units that have not met certain performance conditions and instruments that have an anti-dilutive effect on Earnings per share (diluted). The following is a summary of items excluded from the denominator in the table above: For the Years Ended December 31, 2021 2022 2023 Stock options and restricted stock units 0.2 0.2 0.2 Shares issuable to settle Redeemable non-controlling interests — 0.1 0.7 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 Pre-Tax Tax Expense Net of Tax Foreign currency translation gain $ 10.3 $ (3.5) $ 6.8 Change in net realized and unrealized gain (loss) on derivative financial instruments 0.9 (0.5) 0.4 Other comprehensive income $ 11.2 $ (4.0) $ 7.2 For the Year Ended December 31, 2022 Pre-Tax Tax Benefit Net of Tax Foreign currency translation loss $ (144.1) $ 2.8 $ (141.3) Change in net realized and unrealized gain (loss) on derivative financial instruments (0.5) 0.0 (0.5) Change in net unrealized gain (loss) on available-for-sale debt securities (1.3) 0.3 (1.0) Other comprehensive loss $ (145.9) $ 3.1 $ (142.8) For the Year Ended December 31, 2023 Pre-Tax Tax (Expense) Benefit Net of Tax Foreign currency translation gain $ 44.8 $ (3.7) $ 41.1 Change in net realized and unrealized gain (loss) on derivative financial instruments 0.3 0.0 0.3 Change in net unrealized gain (loss) on available-for-sale debt securities 0.5 0.0 0.5 Other comprehensive income $ 45.6 $ (3.7) $ 41.9 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 Available-for-Sale Debt Securities Total Balance, as of December 31, 2021 $ (155.1) $ 0.1 $ — $ (155.0) Other comprehensive income (loss) before reclassifications (141.3) 0.5 (1.0) (141.8) Amounts reclassified — (1.0) — (1.0) Net other comprehensive loss (141.3) (0.5) (1.0) (142.8) Balance, as of December 31, 2022 $ (296.4) $ (0.4) $ (1.0) $ (297.8) Other comprehensive income before reclassifications 41.1 1.9 0.5 43.5 Amounts reclassified — (1.6) — (1.6) Net other comprehensive income 41.1 0.3 0.5 41.9 Balance, as of December 31, 2023 $ (255.3) $ (0.1) $ (0.5) $ (255.9) |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table presents Consolidated revenue and Fixed assets (net) of the Company by geographic location. For Affiliates, this information is primarily based on the location of the Affiliates’ headquarters. For the Years Ended December 31, 2021 2022 2023 Consolidated revenue United States $ 1,838.7 $ 1,852.6 $ 1,519.3 United Kingdom 528.6 434.8 498.3 Other 45.1 42.2 40.2 Total $ 2,412.4 $ 2,329.6 $ 2,057.8 December 31, 2022 2023 Fixed assets (net) United States $ 57.5 $ 56.3 United Kingdom 10.6 10.7 Other 0.4 0.3 Total $ 68.5 $ 67.3 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in millions) Balance Additions Additions (Reductions) Deductions Balance Income Tax Valuation Allowance Year Ending December 31, 2021 $ 35.6 $ 8.3 $ — $ — $ 43.9 2022 43.9 8.3 (1.1) (3.0) 48.1 2023 48.1 0.6 0.4 (1.5) 47.6 Other Allowances (1) Year Ending December 31, 2021 $ 4.8 $ — $ — $ — $ 4.8 2022 4.8 — — (1.3) 3.5 2023 3.5 1.5 — (1.2) 3.8 ___________________________ (1) Other allowances primarily represents reserves on notes received in connection with transfers of the Company’s interests in certain Affiliates, as well as other receivable amounts, which the Company 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, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates |
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 VRE under the equity method. Investments with readily determinable fair values in which the Company does not have rights to exercise significant influence are recorded at fair value on the Consolidated Balance Sheets, with changes in fair value included in 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 5. 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 and any co-investor’s equity ownership is included in Net income (non-controlling interests) in the Consolidated Statements of Income. Undistributed earnings attributable to Affiliate management’s and any co-investor’s equity ownership, along with their share of any tangible or intangible net assets, are included in 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 or Other liabilities on the Consolidated Balance Sheets. The Company periodically issues, sells, and purchases 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 in 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 (net) in the Consolidated Statements of Income and the carrying value of the Affiliate is recorded in Equity method investments in Affiliates (net) in the Consolidated Balance Sheets. The Company periodically performs assessments to determine if the fair value of an investment may have declined below its related carrying value for its Affiliates accounted for under the equity method for a period that the Company considers to be other-than-temporary. The Company performs these assessments if certain triggering events occur or annually during the fourth quarter. The Company first considers whether certain qualitative factors indicate an increased likelihood of a decline in the fair value of an Affiliate during the reporting period. If such a decline is identified, and it is likely that an investment’s fair value may have declined below its carrying value, the Company performs a quantitative assessment to determine if an impairment exists. Impairments are recorded as an expense in Equity method income (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 the Affiliate also acts 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 generally does not consolidate these products. However, for certain products, the Company’s consolidated Affiliates, as the investment manager, have the power to direct the activities of the investment product and have an exposure to the economics of the VIE that is more than insignificant, though generally only for a short period while the product is established and has yet to attract significant third-party investors. When 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 on the Consolidated Balance Sheets, with corresponding changes in the investments’ fair values included in Investment and other income. Purchases and sales of securities are included in purchases and sales by consolidated Affiliate sponsored investment products in the Consolidated Statements of Cash Flows, respectively, and the third-party investors’ interests are 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 certain 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 recorded in 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 Equity securities Realized and unrealized gains or losses on investments in equity securities are recorded in 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. Debt securities |
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, volatility, 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 its 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. |
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 two years to ten years and three years to ten years, respectively. Computer software developed or obtained for internal use is amortized over the estimated useful life of the software, generally two 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 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 Accounting Standard Update (“ASU”) 2016-02 Leases (and related ASUs), the Company and its Affiliates elect not to record short-term leases with an initial lease term less than 12 months on the Consolidated Balance Sheets. Right-of-use assets and lease liabilities are included in Other assets and Other liabilities, respectively. 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) in 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 recorded 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 recorded in Other expenses (net). If a right-of-use asset is impaired, the lease expense is subsequently recorded 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 recorded in Investment and other income. |
Debt | Debt The Company’s debt instruments are carried at amortized cost. Unamortized discounts and debt issuance costs associated with its debt instruments, with the exception of the Company’s senior unsecured multicurrency revolving credit facility (the “revolver”), are presented on the Consolidated Balance Sheets as an adjustment to the carrying value of the associated debt. The carrying value of the debt is accreted to the principal amount at maturity over the remaining life of the underlying debt. The accretion of the debt and the amortization of debt issuance costs, are recorded in Interest expense in the Consolidated Statements of Income, using the effective interest method. Unamortized issuance costs associated with the revolver are recorded in Other assets and amortized over the remaining term of the revolver to Interest expense. Gains and losses on repurchases or settlement of debt are recorded in Interest expense. |
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 on the Consolidated Balance Sheets at fair value. The Company assesses hedge effectiveness at derivative inception and 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 on a straight-line basis over the respective period of the contracts. For derivative financial instruments designated as cash flow hedges, the Company uses a qualitative method of assessing hedge effectiveness by comparing the notional amounts, timing of payments, currencies (for forward foreign currency contracts), and interest rates (for interest rate swaps). The effective portion of the unrealized gain or loss is recorded in Other comprehensive income (loss), net of tax as a separate component of stockholders’ equity and reclassified to earnings with the hedged item. If the qualitative assessment indicates ineffectiveness, then the Company performs a quantitative assessment which 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. Upon termination of these instruments or the repayment of the Company’s outstanding Secured Overnight Financing Rate (“SOFR”)-based borrowings, any gain or loss recorded in Accumulated other comprehensive loss will be reclassified into earnings. Changes in the fair values of cash flow hedges are recorded in Change in net realized and unrealized gain (loss) on derivative financial instruments in the Consolidated Statements of Comprehensive Income. For net investment hedges, hedge effectiveness is measured using the spot rate method. 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. Changes in the fair values of the effective net investment hedges are recorded in Foreign currency translation gain (loss) in the Consolidated Statements of Comprehensive Income. Upon the sale or liquidation of the underlying investment, any gain or loss remaining in Accumulated other comprehensive loss will be reclassified to earnings. If the Company’s or its Affiliates’ derivative financial instruments do not qualify as effective hedges, changes in the fair value of the derivatives are recorded as a gain or loss in Investment and other income. |
Revenue Recognition | Revenue Recognition Consolidated revenue primarily represents asset- and performance-based fees earned by the Company and its consolidated 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, or on committed capital. 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. The Company’s Affiliates may periodically either waive or reduce fees in order to attract or retain client assets or for other reasons. Fee waivers or reductions are presented as a reduction to Consolidated revenue in the Consolidated Statements of Income. Performance-based fees, including carried interests, are recognized 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 recorded in Consolidated revenue gross of any related expenses when the Company and its consolidated Affiliates are the principal in their role as primary obligor under their distribution-related services arrangements. Distribution-related expenses are recorded in 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 Obligations | Contingent Payment Obligations The Company periodically enters into contingent payment obligations in connection with its investments in Affiliates. In these obligations, 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 included in Other expenses (net) and the accretion of these obligations to their expected payment amounts are included in Interest expense. For Affiliates accounted for under the equity method, the Company records a liability in Other 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. Foreign currency transaction gains and losses are included 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, from time to time, exceed insurance limits (similar to 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 share-based compensation awards outstanding during the periods presented with vesting provisions subject to certain performance conditions. These awards are excluded from the calculation of Earnings per share (diluted) if the performance condition has not been met as of the end of the reporting period. The Company has agreements with Affiliate equity holders that provide the Company a conditional right to call and holders a conditional right to put their interests to the Company at certain intervals. These arrangements are presented at their current redemption value as Redeemable non-controlling interests. The Company may settle these interests in cash or, subject to the terms of the applicable agreement, shares of its common stock, or other forms of consideration, at its option. Prior to 2022, the Company excluded any potential dilutive effect from possible share settlements of Redeemable non-controlling interests as the Company currently intends to settle in cash. Upon adoption of ASU 2020-06, the Company must assume the settlement of all of its Redeemable non-controlling interests using the maximum number of shares permitted under its arrangements. Purchases are assumed to occur at the beginning of the reporting period. The Company acquires the rights to the underlying Affiliate equity when purchased, and therefore, the earnings that would be acquired (net of tax) are assumed to increase Net income (controlling interest) in the computation of Earnings per share (diluted). The issuance of shares and the related income acquired are excluded from the calculation if an assumed purchase of Redeemable non-controlling interests would be anti-dilutive to diluted earnings per share. 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 In June 2022, the Financial Accounting Standards Board (“FASB”) issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction and requires specific disclosures related to such an equity security. The standard is effective for interim and annual periods beginning after December 15, 2023 for the Company, and is effective for interim and annual periods beginning after December 15, 2024 for the Company’s Affiliates. The Company does not expect the adoption to have a material impact on its Consolidated Financial Statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The standard is effective for annual periods beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. The Company does not currently expect the adoption to have a material impact on its Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid. The standard is effective for annual periods beginning after December 15, 2024. The Company does not currently expect the adoption to have a material impact on its Consolidated Financial Statements. |
Investments in Marketable Sec_2
Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities [Abstract] | |
Schedule of Investments in Marketable Securities | The following table summarizes the cost, gross unrealized gains, gross unrealized losses, and fair value of investments in equity securities: December 31, 2022 2023 Cost $ 394.4 $ 35.3 Unrealized gains 59.9 2.6 Unrealized losses (6.4) (0.0 ) Fair value $ 447.9 $ 37.9 The following table summarizes the cost, unrealized gains, unrealized losses, and fair value of investments in U.S. Treasury securities classified as available-for-sale, all of which mature in 2024, and consolidated Affiliate sponsored investment products classified as trading: Available-for-Sale Trading December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 Cost $ 252.3 $ 405.4 $ 19.7 $ 17.9 Unrealized gains — 0.0 — — Unrealized losses (1.3) (0.1) (1.7) (0.1) Fair value $ 251.0 $ 405.3 $ 18.0 $ 17.8 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Summary of Fair Value of Investments and Unfunded Commitments | The following table summarizes the fair values of these investments and any related unfunded commitments: December 31, 2022 December 31, 2023 Fair Value Unfunded Fair Value Unfunded Private equity funds (1) $ 356.4 $ 158.3 $ 424.4 $ 187.2 Investments in other strategies (2) 14.8 — 6.1 — Total (3) $ 371.2 $ 158.3 $ 430.5 $ 187.2 ___________________________ (1) The Company accounts for the majority of its interests in private equity funds one quarter in arrears (adjusted for current period calls and distributions). 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 and credit. Investments are generally redeemable on a daily, monthly, or quarterly basis. (3) Fair value attributable to the controlling interest was $275.1 million and $324.9 million as of December 31, 2022 and 2023, respectively. |
Schedule of Investments without Readily Determinable Fair Value | The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values: December 31, 2022 2023 Cost $ 8.5 $ 8.5 Cumulative unrealized gains 41.9 41.9 Carrying amount $ 50.4 $ 50.4 The following table presents the changes in Other investments: For the Years Ended December 31, 2022 2023 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period $ 324.8 $ 50.4 $ 375.2 $ 371.2 $ 50.4 $ 421.6 Net realized and unrealized gains (1) 1.7 — 1.7 34.2 — 34.2 Additions and commitments 104.3 — 104.3 82.5 — 82.5 Sales and distributions (59.6) — (59.6) (57.4) — (57.4) Balance, end of period $ 371.2 $ 50.4 $ 421.6 $ 430.5 $ 50.4 $ 480.9 ___________________________ (1) Recorded in Investment and other income. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | The following tables summarize financial assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements December 31, 2022 Level 1 Level 2 Level 3 Financial Assets Investments in equity securities (1) $ 447.9 $ 305.6 $ 142.3 $ — Investments in debt securities (1) 269.0 — 269.0 — Financial Liabilities (3) Contingent payment obligations $ 21.0 $ — $ — $ 21.0 Affiliate equity purchase obligations 24.5 — — 24.5 Fair Value Measurements December 31, 2023 Level 1 Level 2 Level 3 Financial Assets Investments in equity securities (1) $ 37.9 $ 37.9 $ — $ — Investments in debt securities (1) 423.1 — 423.1 — Financial Liabilities (3) Contingent payment obligations $ 14.7 $ — $ — $ 14.7 Affiliate equity purchase obligations 53.9 — — 53.9 ___________________________ (1) Amounts are recorded in Investments in marketable securities. (2) Amounts are recorded in Other assets. (3) Amounts are recorded in Other liabilities. |
Schedule of Changes in Level 3 Financial Liabilities | The following table presents the changes in Level 3 liabilities: For the Years Ended December 31, 2022 2023 Contingent Payment Obligations Affiliate Contingent Payment Obligations Affiliate Balance, beginning of period $ 40.3 $ 12.6 $ 21.0 $ 24.5 Purchases and issuances (1) — 75.8 — 113.7 Settlements and reductions — (52.1) — (75.4) Net realized and unrealized gains (2) (19.3) (11.8) (6.3) (8.9) Balance, end of period $ 21.0 $ 24.5 $ 14.7 $ 53.9 Net change in unrealized (gains) losses relating to instruments still held at the reporting date (1) $ (19.3) $ (5.9) $ (6.3) $ (4.0) ___________________________ (1) Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests. (2) |
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, 2022 December 31, 2023 Valuation Unobservable Input Fair Value Range Weighted Average (1) Fair Value Range Weighted Average (1) Contingent payment obligations Monte Carlo simulation Volatility $ 21.0 18% - 25% 18 % $ 14.7 19% - 25% 21 % Discount rates 6% 6 % 6% 6 % Affiliate equity purchase obligations Discounted cash flow Growth rates (2) $ 24.5 (3)% - 6% 1 % $ 53.9 (6)% - 7% 1 % Discount rates 14% - 17% 14 % 14% - 17% 14 % ___________________________ (1) Calculated by comparing the relative fair value of an obligation to its respective total. (2) |
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, 2022 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 1,098.7 $ 1,024.6 $ 1,099.4 $ 1,049.8 Level 2 Junior subordinated notes 765.9 552.3 765.9 612.0 Level 2 Junior convertible securities 341.7 346.9 341.7 340.9 Level 2 |
Investments in Affiliates and_2
Investments in Affiliates and Affiliate Sponsored Investment Products (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities | |
Schedule of Unconsolidated Assets and Liabilities of Equity Method Investments and Company's Risk of Loss | 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, 2022 December 31, 2023 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliates accounted for under the equity method $ 1,273.5 $ 2,051.6 $ 1,492.4 $ 2,198.2 December 31, 2022 December 31, 2023 Unconsolidated Carrying Value and Unconsolidated Carrying Value and Affiliate sponsored investment products $ 4,878.6 $ 15.3 $ 5,788.3 $ 29.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Company’s Debt: December 31, 2022 2023 Senior bank debt $ 349.9 $ 349.9 Senior notes 1,095.2 1,096.9 Junior subordinated notes 751.6 751.8 Junior convertible securities 338.6 338.9 Debt $ 2,535.3 $ 2,537.5 |
Schedule of Principal Terms of Senior and Junior Subordinated Notes | As of December 31, 2023, the Company had senior notes outstanding, the respective principal terms and effective interest rates of which are presented below: 2024 2025 2030 Issue date February 2014 February 2015 June 2020 Maturity date February 2024 August 2025 June 2030 Par value (in millions) $ 400.0 $ 350.0 $ 350.0 Stated coupon 4.25 % 3.50 % 3.30 % Coupon frequency Semi-annually Semi-annually Semi-annually Potential call date Any time Any time Any time Call price As defined As defined As defined Effective interest rate 4.44 % 3.67 % 3.39 % As of December 31, 2023, the Company had junior subordinated notes outstanding, the respective principal terms and effective interest rates of which are presented below: 2059 2060 2061 Issue date March 2019 September 2020 July 2021 Maturity date March 2059 September 2060 September 2061 Par value (in millions) $ 300.0 $ 275.0 $ 200.0 Stated coupon 5.875 % 4.75 % 4.20 % Coupon frequency Quarterly Quarterly Quarterly Potential call date March 2024 September 2025 September 2026 Call price As defined As defined As defined Listing NYSE NYSE NYSE Effective interest rate 5.91 % 4.78 % 4.23 % |
Schedule of Convertible Securities | The following table presents interest expense recorded in connection with the junior convertible securities: For the Years Ended December 31, 2021 2022 2023 Contractual interest expense $ 22.2 $ 18.3 $ 17.6 Amortization of debt issuance costs 0.4 0.2 0.2 Amortization of debt discount 3.1 — — Total $ 25.7 $ 18.5 $ 17.8 Effective interest rate 5.99 % 5.21 % 5.21 % |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contingent Consideration | As of December 31, 2023, the Company was obligated to make deferred payments and was contingently liable to make payments in connection with certain of its consolidated Affiliates, which are included in Other liabilities, as follows: Earliest Payable Controlling Interest Co-Investor Total 2024 2025 Deferred payment obligations $ 43.3 $ — $ 43.3 $ 21.7 $ 21.6 Contingent payment obligations (1) 12.3 2.4 14.7 9.5 5.2 ___________________________ (1) Fair value as of December 31, 2023. The Company is contingently liable to make maximum contingent payments of up to $110.0 million ($24.9 million attributable to the co-investor), of which $100.0 million and $10.0 million may become payable in 2024 and 2025, respectively. |
Goodwill and Acquired Client _2
Goodwill and Acquired Client Relationships (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2022 2023 Balance, beginning of period $ 2,689.2 $ 2,648.7 Veritable Transaction (1) — (136.5) Foreign currency translation (40.5) 16.5 Other — (5.1) Balance, end of period $ 2,648.7 $ 2,523.6 ___________________________ (1) Represents Goodwill allocated to Veritable as of the closing date, including $3.5 million attributable to the non-controlling interests. |
Schedule of Changes in the Components of Acquired Client Relationships | As of September 30, 2023, the Company completed its annual impairment assessment on goodwill and no impairment was indicated. Acquired Client Relationships (Net) Definite-lived Indefinite-lived Total Gross Book Accumulated Net Book Net Book Net Book Balance, as of December 31, 2021 $ 1,364.2 $ (1,028.1) $ 336.1 $ 1,630.3 $ 1,966.4 Intangible amortization and impairments — (49.1) (49.1) (2.5) (51.6) Foreign currency translation (9.1) 7.5 (1.6) (37.2) (38.8) Balance, as of December 31, 2022 $ 1,355.1 $ (1,069.7) $ 285.4 $ 1,590.6 $ 1,876.0 Veritable Transaction (1) (85.1) 57.0 (28.1) — (28.1) Intangible amortization and impairments — (48.3) (48.3) — (48.3) Foreign currency translation 0.8 (0.5) 0.3 16.6 16.9 Transfers (2) (10.3) 10.3 — (4.1) (4.1) Balance, as of December 31, 2023 $ 1,260.5 $ (1,051.2) $ 209.3 $ 1,603.1 $ 1,812.4 ___________________________ (1) Represents acquired client relationships attributable to Veritable as of the closing date, including $6.7 million attributable to the non-controlling interests. (2) Transfers include 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, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments in Affiliates | Equity method investments in Affiliates (net) consisted of the following: December 31, 2022 2023 Goodwill $ 1,262.4 $ 1,323.3 Definite-lived acquired client relationships (net) 479.4 652.5 Indefinite-lived acquired client relationships (net) 119.0 122.6 Undistributed earnings and tangible capital 278.7 190.1 Equity method investments in Affiliates (net) $ 2,139.5 $ 2,288.5 The following table presents the change in Equity method investments in Affiliates (net): Equity Method Investments in Affiliates (Net) 2022 2023 Balance, beginning of period $ 2,134.4 $ 2,139.5 Investments in Affiliates 326.1 349.8 BPEA Transaction (1) (150.6) — Earnings 497.2 375.6 Intangible amortization and impairments (159.1) (95.6) Distributions of earnings (394.7) (492.1) Return of capital (0.8) (0.2) Foreign currency translation (68.5) 29.3 Other (44.5) (17.8) Balance, end of period $ 2,139.5 $ 2,288.5 ___________________________ (1) Represents the Company’s equity method investment in BPEA as of the closing date. The following table presents summarized financial information for Affiliates accounted for under the equity method: For the Years Ended December 31, 2021 2022 2023 Revenue (1) $ 3,228.1 $ 3,239.5 $ 3,115.6 Net income (1) 1,656.6 1,358.7 1,313.0 December 31, 2022 2023 Assets $ 2,816.7 $ 3,269.1 Liabilities and Non-controlling interests 1,221.4 1,467.3 ___________________________ (1) Revenue and net income include asset- and performance-based fees, the impact of consolidated sponsored investment products, and new Affiliate investments for the full-year, regardless of the date of the Company’s investment. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 Years Ended December 31, 2021 2022 2023 Operating lease costs $ 33.8 $ 38.5 $ 36.4 Short-term lease costs 0.8 1.0 1.1 Variable lease costs 0.0 0.0 0.0 Sublease income (7.9) (7.7) (6.5) Total lease costs (net) $ 26.7 $ 31.8 $ 31.0 |
Schedule of the Company's Maturity of Lease Liabilities | As of December 31, 2023, the maturities of lease liabilities were as follows: Year Operating Leases 2024 $ 39.1 2025 35.0 2026 25.9 2027 21.9 2028 21.8 Thereafter 68.3 Total undiscounted lease liabilities (1) $ 212.0 ___________________________ (1) |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets (net) consisted of the following: December 31, 2022 2023 Buildings and leasehold improvements $ 111.9 $ 108.6 Software 51.7 45.7 Equipment 25.6 20.7 Furniture and fixtures 19.9 17.5 Land, improvements and other 20.8 20.8 Fixed assets, at cost 229.9 213.3 Accumulated depreciation and amortization (161.4) (146.0) Fixed assets (net) $ 68.5 $ 67.3 |
Payables and Accrued Liabilit_2
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Payables and accrued liabilities consisted of the following: December 31, 2022 2023 Accrued compensation $ 378.7 $ 309.3 Accrued income taxes 224.4 62.3 Other 175.2 256.9 Payables and accrued liabilities $ 778.3 $ 628.5 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity | The following is a summary of the Company’s share repurchase activity: Year Shares Average 2021 3.5 $ 146.54 2022 4.5 144.45 2023 3.0 132.99 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | The following table presents share-based compensation expense: Year Share-Based Tax Benefit 2021 $ 63.4 $ 8.0 2022 62.4 7.6 2023 59.4 7.4 |
Schedule of Company Restricted Stock Units Transactions | The following table summarizes transactions in the Company’s restricted stock units: Restricted Weighted Unvested units–December 31, 2022 1.1 $ 106.88 Units granted 0.3 159.51 Units vested (0.5) 85.07 Units forfeited (0.0 ) 132.81 Performance condition changes 0.0 129.15 Unvested units–December 31, 2023 0.9 $ 138.51 |
Schedule of Company Stock Option Transactions | The following table summarizes transactions in the Company’s stock options: Stock Weighted Weighted Unexercised options outstanding–December 31, 2022 3.2 $ 76.81 Options granted — — Options exercised (0.0 ) 127.77 Options forfeited — — Options expired — — Performance condition changes — — Unexercised options outstanding–December 31, 2023 3.2 $ 76.74 2.7 Exercisable at December 31, 2023 0.0 $ 119.54 2.8 |
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, 2021 2022 Dividend yield 0.0 % 0.0 % Expected volatility (1) 37.1 % 36.8 % Risk-free interest rate (2) 1.0 % 1.7 % Expected life of stock options (in years) (3) 5.7 5.7 Forfeiture rate 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, 2023 | |
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 2022 2023 Balance, beginning of period $ 673.9 $ 465.4 Veritable Transaction — (16.8) Decrease attributable to consolidated Affiliate sponsored investment products (4.9) (8.3) Transfers to Other liabilities (59.6) (93.5) Transfers from (to) Non-controlling interests 1.8 (8.9) Changes in redemption value (145.8) 55.5 Balance, end of period (1) $ 465.4 $ 393.4 __________________________ (1) |
Affiliate Equity (Tables)
Affiliate Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Affiliate Equity | |
Schedule of Affiliate Equity Compensation | The following table presents Affiliate equity compensation expense: For the Years Ended December 31, 2021 2022 2023 Controlling interest $ 17.4 $ 5.0 $ 13.6 Non-controlling interests 45.9 46.4 39.1 Total $ 63.3 $ 51.4 $ 52.7 |
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 2021 $ 41.9 6 years $ 294.1 7 years 2022 31.4 5 years 284.6 7 years 2023 30.6 5 years 235.7 6 years |
Schedule of Changes in the Company's 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 occurred during the applicable periods: For the Years Ended December 31, 2021 2022 2023 Net income (controlling interest) $ 565.7 $ 1,145.9 $ 672.9 Decrease in controlling interest paid-in capital from Affiliate equity issuances (17.5) (0.2) (13.5) Decrease in controlling interest paid-in capital from Affiliate equity purchases (63.2) (38.2) (50.4) Net income (controlling interest) including the net impact of Affiliate equity transactions $ 485.0 $ 1,107.5 $ 609.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provisions by Controlling and Noncontrolling Interests | The following table presents the consolidated provision for income taxes: For the Years Ended December 31, 2021 2022 2023 Controlling interest: Current taxes $ 144.4 $ 315.4 $ 146.9 Intangible-related deferred taxes 52.5 32.0 29.8 Other deferred taxes 32.7 0.0 1.6 Total controlling interest 229.6 347.4 178.3 Non-controlling interests: Current taxes $ 15.4 $ 10.9 $ 7.0 Deferred taxes 6.0 — — Total non-controlling interests 21.4 10.9 7.0 Income tax expense $ 251.0 $ 358.3 $ 185.3 Income before income taxes (controlling interest) $ 795.3 $ 1,493.3 $ 851.2 Effective tax rate (controlling interest) (1) 28.9 % 23.3 % 20.9 % ___________________________ (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, 2021 2022 2023 Current: Federal $ 73.1 $ 222.9 $ 105.2 State 19.6 30.6 10.8 Foreign 67.1 72.8 37.9 Total current 159.8 326.3 153.9 Deferred: Federal $ 55.9 $ 30.4 $ 27.3 State 13.0 9.0 7.0 Foreign 22.3 (7.4) (2.9) Total deferred 91.2 32.0 31.4 Income tax expense $ 251.0 $ 358.3 $ 185.3 |
Schedule of Components of Income before Income Taxes | For financial reporting purposes, Income before income taxes consisted of the following: For the Years Ended December 31, 2021 2022 2023 Domestic $ 698.2 $ 639.0 $ 782.3 International 442.8 1,107.4 309.1 Total $ 1,141.0 $ 1,746.4 $ 1,091.4 |
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, 2021 2022 2023 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 3.5 3.5 3.5 Foreign operations (1.7) (1.7) (4.1) Compensation plans 2.0 0.8 1.1 Changes in tax laws 2.4 — — Change in valuation allowances 1.1 0.3 (0.1) Unrecognized tax benefits 0.1 0.4 0.6 BPEA Transaction (1) — (1.0) — Changes in U.S. tax provision to return 0.4 0.0 (0.7) Other 0.1 0.0 (0.4) Effective tax rate (controlling interest) 28.9 % 23.3 % 20.9 % Effect of income from non-controlling interests (6.9) (2.8) (3.9) Effective tax rate 22.0 % 20.5 % 17.0 % ___________________________ (1) |
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, 2022 2023 Deferred Tax Assets Deferred compensation $ 14.6 $ 15.9 State loss carryforwards 16.4 14.7 Foreign loss carryforwards 20.0 19.8 Tax benefit of uncertain tax positions 12.6 10.0 Lease liabilities 6.6 4.8 Foreign tax credits 15.4 16.0 Other 0.3 0.3 Total deferred tax assets 85.9 81.5 Valuation allowance (48.1) (47.6) Deferred tax assets, net of valuation allowance $ 37.8 $ 33.9 Deferred Tax Liabilities Intangible asset amortization $ (280.9) $ (295.8) Non-deductible intangible amortization (109.8) (97.0) Junior convertible securities interest (72.4) (83.1) Right-of-use assets (5.1) (3.7) Accrued expenses (3.0) (2.0) Deferred income (23.4) (10.4) Other (4.4) (2.9) Total deferred tax liabilities (499.0) (494.9) Deferred income tax liability (net) (1) $ (461.2) $ (461.0) ___________________________ (1) As of December 31, 2022 and 2023, foreign loss carryforwards of $20.0 million (net of a $16.5 million valuation allowance) and $19.8 million (net of a $17.0 million valuation allowance), respectively, are included in Other assets as they represent a net deferred tax asset in a foreign jurisdiction. |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the changes in unrecognized tax benefits is as follows: For the Years Ended December 31, 2021 2022 2023 Balance, beginning of period $ 63.5 $ 52.4 $ 49.6 Additions based on current year tax positions 0.8 0.6 6.4 Additions based on prior years’ tax positions 4.6 4.4 1.0 Reduction for prior years’ tax positions (5.6) (1.0) (13.5) Lapse of the statute of limitations (5.7) (5.5) (4.8) Settlements (5.5) — (1.3) Foreign currency translation 0.3 (1.3) 0.4 Balance, end of period $ 52.4 $ 49.6 $ 37.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings (Loss) 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, 2021 2022 2023 Numerator Net income (controlling interest) $ 565.7 $ 1,145.9 $ 672.9 Income from hypothetical settlement of Redeemable non-controlling interests, net of tax — 82.9 49.0 Interest expense on junior convertible securities, net of taxes 18.5 14.0 13.4 Net income (controlling interest), as adjusted $ 584.2 $ 1,242.8 $ 735.3 Denominator Average shares outstanding (basic) 41.5 38.5 35.1 Effect of dilutive instruments: Stock options and restricted stock units 1.2 1.3 1.7 Hypothetical issuance of shares to settle Redeemable non-controlling interests — 7.4 3.7 Junior convertible securities 2.1 1.8 1.7 Average shares outstanding (diluted) 44.8 49.0 42.2 |
Schedule of Shares Excluded from Calculation of Basic and Diluted Earnings (Loss) Per Share | The following is a summary of items excluded from the denominator in the table above: For the Years Ended December 31, 2021 2022 2023 Stock options and restricted stock units 0.2 0.2 0.2 Shares issuable to settle Redeemable non-controlling interests — 0.1 0.7 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2021 Pre-Tax Tax Expense Net of Tax Foreign currency translation gain $ 10.3 $ (3.5) $ 6.8 Change in net realized and unrealized gain (loss) on derivative financial instruments 0.9 (0.5) 0.4 Other comprehensive income $ 11.2 $ (4.0) $ 7.2 For the Year Ended December 31, 2022 Pre-Tax Tax Benefit Net of Tax Foreign currency translation loss $ (144.1) $ 2.8 $ (141.3) Change in net realized and unrealized gain (loss) on derivative financial instruments (0.5) 0.0 (0.5) Change in net unrealized gain (loss) on available-for-sale debt securities (1.3) 0.3 (1.0) Other comprehensive loss $ (145.9) $ 3.1 $ (142.8) For the Year Ended December 31, 2023 Pre-Tax Tax (Expense) Benefit Net of Tax Foreign currency translation gain $ 44.8 $ (3.7) $ 41.1 Change in net realized and unrealized gain (loss) on derivative financial instruments 0.3 0.0 0.3 Change in net unrealized gain (loss) on available-for-sale debt securities 0.5 0.0 0.5 Other comprehensive income $ 45.6 $ (3.7) $ 41.9 |
Schedule of Components of Accumulated Other Comprehensive Loss | 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 Available-for-Sale Debt Securities Total Balance, as of December 31, 2021 $ (155.1) $ 0.1 $ — $ (155.0) Other comprehensive income (loss) before reclassifications (141.3) 0.5 (1.0) (141.8) Amounts reclassified — (1.0) — (1.0) Net other comprehensive loss (141.3) (0.5) (1.0) (142.8) Balance, as of December 31, 2022 $ (296.4) $ (0.4) $ (1.0) $ (297.8) Other comprehensive income before reclassifications 41.1 1.9 0.5 43.5 Amounts reclassified — (1.6) — (1.6) Net other comprehensive income 41.1 0.3 0.5 41.9 Balance, as of December 31, 2023 $ (255.3) $ (0.1) $ (0.5) $ (255.9) |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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. For Affiliates, this information is primarily based on the location of the Affiliates’ headquarters. For the Years Ended December 31, 2021 2022 2023 Consolidated revenue United States $ 1,838.7 $ 1,852.6 $ 1,519.3 United Kingdom 528.6 434.8 498.3 Other 45.1 42.2 40.2 Total $ 2,412.4 $ 2,329.6 $ 2,057.8 December 31, 2022 2023 Fixed assets (net) United States $ 57.5 $ 56.3 United Kingdom 10.6 10.7 Other 0.4 0.3 Total $ 68.5 $ 67.3 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Property, Plant and Equipment [Line Items] | |
Number of operating segments | 1 |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Software | 2 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Software | 10 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Software | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Software | 10 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Software | 2 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Software | 5 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Software | 39 years |
Investments in Marketable Sec_3
Investments in Marketable Securities - Cost, Gross Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities [Abstract] | ||
Cost | $ 35.3 | $ 394.4 |
Unrealized gains | 2.6 | 59.9 |
Unrealized losses | 0 | (6.4) |
Fair value | $ 37.9 | $ 447.9 |
Investments in Marketable Sec_4
Investments in Marketable Securities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments in and Advances to Affiliates [Line Items] | ||
Equity securities, FV-NI | $ 37.9 | $ 447.9 |
Unrealized gains on equity securities | 2.9 | 35.5 |
Proceeds from maturity of AFS securities | 511.1 | 0 |
Debt securities net unrealized (loss) gain | 0.8 | (2.2) |
Variable Interest Entity, Primary Beneficiary | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity securities, FV-NI | $ 15.8 | 23.5 |
EQT AB (“EQT”) | ||
Investments in and Advances to Affiliates [Line Items] | ||
Equity securities, FV-NI | $ 405.1 |
Investments in Marketable Sec_5
Investments in Marketable Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-Sale | ||
Cost | $ 405.4 | $ 252.3 |
Unrealized gains | 0 | 0 |
Unrealized losses | (0.1) | (1.3) |
Fair value | 405.3 | 251 |
Trading | ||
Cost | 17.9 | 19.7 |
Unrealized gains | 0 | 0 |
Unrealized losses | (0.1) | (1.7) |
Fair value | $ 17.8 | $ 18 |
Other Investments - Investments
Other Investments - Investments Measured at NAV as a Practical Expedient (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
NAV of investments at fair value | ||
Unfunded Commitments | $ 187.2 | $ 158.3 |
Life of funds (generally up to) | 15 years | |
Private equity funds | ||
NAV of investments at fair value | ||
Unfunded Commitments | $ 187.2 | 158.3 |
investments in other strategies | ||
NAV of investments at fair value | ||
Unfunded Commitments | 0 | 0 |
Fair Value Measured at NAV | ||
NAV of investments at fair value | ||
Fair Value | 430.5 | 371.2 |
Fair Value Measured at NAV | Controlling Interest | ||
NAV of investments at fair value | ||
Fair Value | 324.9 | 275.1 |
Fair Value Measured at NAV | Private equity funds | ||
NAV of investments at fair value | ||
Fair Value | 424.4 | 356.4 |
Fair Value Measured at NAV | investments in other strategies | ||
NAV of investments at fair value | ||
Fair Value | $ 6.1 | $ 14.8 |
Other Investments - Investmen_2
Other Investments - Investments without Readily Determinable Fair Value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |||
Cost | $ 8,500,000 | $ 8,500,000 | |
Cumulative unrealized gains | 41,900,000 | 41,900,000 | |
Carrying amount | 50,400,000 | $ 50,400,000 | $ 50,400,000 |
Upward adjustments | $ 0 |
Other Investments - Schedule of
Other Investments - Schedule of Changes in Other Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Investments [Roll Forward] | ||
Balance, beginning of period | $ 421.6 | $ 375.2 |
Net realized and unrealized gains | 34.2 | 1.7 |
Additions and commitments | 82.5 | 104.3 |
Sales and distributions | (57.4) | (59.6) |
Balance, end of period | 480.9 | 421.6 |
Without Readily Determinable Fair Values | ||
Balance, beginning of period | 50.4 | 50.4 |
Net realized and unrealized gains | 0 | 0 |
Additions and commitments | 0 | 0 |
Sales and distributions | 0 | 0 |
Balance, end of period | 50.4 | 50.4 |
Fair Value Measured at NAV | ||
Other Investments [Roll Forward] | ||
Balance, beginning of period | 371.2 | 324.8 |
Net realized and unrealized gains | 34.2 | 1.7 |
Additions and commitments | 82.5 | 104.3 |
Sales and distributions | (57.4) | (59.6) |
Balance, end of period | $ 430.5 | $ 371.2 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Liabilities | ||
Contingent payment obligations | $ 14.7 | |
Fair Value Measured on a Recurring Basis | ||
Financial Assets | ||
Investments in equity securities | 37.9 | $ 447.9 |
Investments in debt securities | 423.1 | 269 |
Financial Liabilities | ||
Contingent payment obligations | 14.7 | 21 |
Affiliate equity purchase obligations | 53.9 | 24.5 |
Fair Value Measured on a Recurring Basis | Level 1 | ||
Financial Assets | ||
Investments in equity securities | 37.9 | 305.6 |
Investments in debt securities | 0 | 0 |
Financial Liabilities | ||
Contingent payment obligations | 0 | 0 |
Affiliate equity purchase obligations | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 2 | ||
Financial Assets | ||
Investments in equity securities | 0 | 142.3 |
Investments in debt securities | 423.1 | 269 |
Financial Liabilities | ||
Contingent payment obligations | 0 | 0 |
Affiliate equity purchase obligations | 0 | 0 |
Fair Value Measured on a Recurring Basis | Level 3 | ||
Financial Assets | ||
Investments in equity securities | 0 | 0 |
Investments in debt securities | 0 | 0 |
Financial Liabilities | ||
Contingent payment obligations | 14.7 | 21 |
Affiliate equity purchase obligations | $ 53.9 | $ 24.5 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Liabilities (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Contingent Payment Obligations | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 21 | $ 40.3 |
Purchases and issuances | 0 | 0 |
Settlements and reductions | 0 | 0 |
Net realized and unrealized gains | (6.3) | (19.3) |
Balance, end of period | 14.7 | 21 |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | (6.3) | (19.3) |
Affiliate Equity Purchase Obligations | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 24.5 | 12.6 |
Purchases and issuances | 113.7 | 75.8 |
Settlements and reductions | (75.4) | (52.1) |
Net realized and unrealized gains | (8.9) | (11.8) |
Balance, end of period | 53.9 | 24.5 |
Net change in unrealized (gains) losses relating to instruments still held at the reporting date | $ (4) | $ (5.9) |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information used in Valuing Level 3 Liabilities (Details) - Level 3 $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Contingent Payment Obligations | Monte Carlo simulation | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair Value | $ 14.7 | $ 21 |
Contingent Payment Obligations | Monte Carlo simulation | Volatility | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.19 | 0.18 |
Contingent Payment Obligations | Monte Carlo simulation | Volatility | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.25 | 0.25 |
Contingent Payment Obligations | Monte Carlo simulation | Volatility | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.21 | 0.18 |
Contingent Payment Obligations | Monte Carlo simulation | Discount rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.06 | 0.06 |
Contingent Payment Obligations | Monte Carlo simulation | Discount rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.06 | 0.06 |
Affiliate equity purchase obligations | Discounted cash flow | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Fair Value | $ 53.9 | $ 24.5 |
Affiliate equity purchase obligations | Discounted cash flow | Discount rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.14 | 0.14 |
Affiliate equity purchase obligations | Discounted cash flow | Discount rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.17 | 0.17 |
Affiliate equity purchase obligations | Discounted cash flow | Discount rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.14 | 0.14 |
Affiliate equity purchase obligations | Discounted cash flow | Growth rates | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | (0.06) | (0.03) |
Affiliate equity purchase obligations | Discounted cash flow | Growth rates | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.07 | 0.06 |
Affiliate equity purchase obligations | Discounted cash flow | Growth rates | Weighted Average | ||
Quantitative information for Level 3 Fair Value Measurements Liabilities | ||
Obligations to related parties, measurement input | 0.01 | 0.01 |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Liabilities Not Carried at Fair Value (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,099.4 | $ 1,098.7 |
Junior subordinated notes | 765.9 | 765.9 |
Junior convertible securities | 341.7 | 341.7 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior notes | 1,049.8 | 1,024.6 |
Junior subordinated notes | 612 | 552.3 |
Junior convertible securities | $ 340.9 | $ 346.9 |
Investments in Affiliates and_3
Investments in Affiliates and Affiliate Sponsored Investment Products - Affiliated Accounted For Under Equity Method (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Carrying value of equity method investment in affiliate | $ 2,288.5 | $ 2,139.5 |
Carrying amount and maximum exposure to loss equity method investments considered VREs | 90.3 | 87.9 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | 1,492.4 | 1,273.5 |
Carrying Value and Maximum Exposure to Loss | $ 2,198.2 | $ 2,051.6 |
Investments in Affiliates and_4
Investments in Affiliates and Affiliate Sponsored Investment Products - Affiliated Sponsored Investment Products (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Unconsolidated VIE Net Assets | $ 5,788.3 | $ 4,878.6 |
Carrying Value and Maximum Exposure to Loss | $ 29.8 | $ 15.3 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt | $ 2,537.5 | $ 2,535.3 |
Senior bank debt | ||
Debt Instrument [Line Items] | ||
Debt | 349.9 | 349.9 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Debt | 1,096.9 | 1,095.2 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Debt | 751.8 | 751.6 |
Junior convertible securities | ||
Debt Instrument [Line Items] | ||
Debt | $ 338.9 | $ 338.6 |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) d $ / shares | Dec. 31, 2022 USD ($) | Feb. 15, 2024 USD ($) | |
Debt Instrument [Line Items] | |||
Debt | $ 2,537,500,000 | $ 2,535,300,000 | |
Senior bank debt | |||
Debt Instrument [Line Items] | |||
Debt | 349,900,000 | 349,900,000 | |
Senior bank debt | Revolver | |||
Debt Instrument [Line Items] | |||
Available borrowing | 1,250,000,000 | ||
Additional borrowing amount | 500,000,000 | ||
Outstanding borrowings | 0 | 0 | |
Commitment fee amount | 1,300,000 | 1,300,000 | |
Senior bank debt | Term Loan | |||
Debt Instrument [Line Items] | |||
Available borrowing | 350,000,000 | ||
Additional borrowing amount | 75,000,000 | ||
Debt | $ 350,000,000 | $ 350,000,000 | |
Weighted average interest rate on amount outstanding | 6.31% | 5.27% | |
Senior bank debt | Term Loan | SOFR Adjustment | |||
Debt Instrument [Line Items] | |||
Basis spread over variable debt rate | 0.10% | ||
Senior bank debt | Term Loan | SOFR | |||
Debt Instrument [Line Items] | |||
Basis spread over variable debt rate | 0.85% | ||
Senior notes | |||
Debt Instrument [Line Items] | |||
Debt | $ 1,096,900,000 | $ 1,095,200,000 | |
Senior notes | 2024 Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Par value | $ 400,000,000 | ||
Stated interest rate | 4.25% | ||
Senior notes | 2024 Senior Notes | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Par value | $ 400,000,000 | ||
Stated interest rate | 4.25% | ||
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] | |||
Redemption price percentage | 100% | ||
Par value | $ 350,000,000 | ||
Stated interest rate | 3.50% | ||
Senior notes | 2025 Senior Notes | Treasury Rate | |||
Debt Instrument [Line Items] | |||
Applicable basis spread over redemption price percentage | 0.25% | ||
Senior notes | 2030 Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Par value | $ 350,000,000 | ||
Stated interest rate | 3.30% | ||
Senior notes | 2030 Senior Notes | Treasury Rate | |||
Debt Instrument [Line Items] | |||
Applicable basis spread over redemption price percentage | 0.40% | ||
Junior subordinated notes | |||
Debt Instrument [Line Items] | |||
Debt | $ 751,800,000 | 751,600,000 | |
Junior subordinated notes | 2059 Junior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Par value | $ 300,000,000 | ||
Stated interest rate | 5.875% | ||
Junior subordinated notes | 2059 Junior Subordinated Notes | On or after September 30, 2026 | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2059 Junior Subordinated Notes | If changes in tax laws and interpretations occur | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2059 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% | ||
Junior subordinated notes | 2060 Junior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Par value | $ 275,000,000 | ||
Stated interest rate | 4.75% | ||
Junior subordinated notes | 2060 Junior Subordinated Notes | On or after September 30, 2026 | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2060 Junior Subordinated Notes | If changes in tax laws and interpretations occur | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2060 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% | ||
Junior subordinated notes | 2061 Junior Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Par value | $ 200,000,000 | ||
Stated interest rate | 4.20% | ||
Junior subordinated notes | 2061 Junior Subordinated Notes | On or after September 30, 2026 | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2061 Junior Subordinated Notes | If changes in tax laws and interpretations occur | |||
Debt Instrument [Line Items] | |||
Redemption price percentage | 100% | ||
Junior subordinated notes | 2061 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% | ||
Junior convertible securities | |||
Debt Instrument [Line Items] | |||
Debt | $ 338,900,000 | 338,600,000 | |
Junior convertible securities | Junior Convertible Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Debt | $ 341,700,000 | ||
Stated interest rate | 5.15% | ||
Unamortized debt issuance expense | $ 2,900,000 | 3,100,000 | |
Conversion ratio (in shares) | 0.2558 | ||
Face amount of convertible security (in dollars per share) | $ / shares | $ 50 | ||
Conversion price (in dollars per share) | $ / shares | $ 195.47 | ||
Number of trading days closing price has exceeded threshold | d | 20 | ||
Number of consecutive trading days | d | 30 | ||
Debt instrument, convertible, threshold percentage | 1.30 | ||
Deferred tax liability | $ 9,000,000 | ||
Repayments of convertible debt | 60,900,000 | ||
Deferred tax liabilities, net, decrease resulting from repurchase of junior convertible securities | $ 11,400,000 |
Debt - Principal Terms of Senio
Debt - Principal Terms of Senior and Junior Subordinated Notes (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Senior notes | 2024 Senior Notes | |
Debt Instrument [Line Items] | |
Par value | $ 400 |
Stated coupon | 4.25% |
Effective interest rate | 4.44% |
Senior notes | 2025 Senior Notes | |
Debt Instrument [Line Items] | |
Par value | $ 350 |
Stated coupon | 3.50% |
Effective interest rate | 3.67% |
Senior notes | 2030 Senior Notes | |
Debt Instrument [Line Items] | |
Par value | $ 350 |
Stated coupon | 3.30% |
Effective interest rate | 3.39% |
Junior subordinated notes | 2059 Junior Subordinated Notes | |
Debt Instrument [Line Items] | |
Par value | $ 300 |
Stated coupon | 5.875% |
Effective interest rate | 5.91% |
Junior subordinated notes | 2060 Junior Subordinated Notes | |
Debt Instrument [Line Items] | |
Par value | $ 275 |
Stated coupon | 4.75% |
Effective interest rate | 4.78% |
Junior subordinated notes | 2061 Junior Subordinated Notes | |
Debt Instrument [Line Items] | |
Par value | $ 200 |
Stated coupon | 4.20% |
Effective interest rate | 4.23% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Securities (Details) - Junior Convertible Trust Preferred Securities - Junior convertible securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 17.6 | $ 18.3 | $ 22.2 |
Amortization of debt issuance costs | 0.2 | 0.2 | 0.4 |
Amortization of debt discount | 0 | 0 | 3.1 |
Total | $ 17.8 | $ 18.5 | $ 25.7 |
Effective interest rate | 5.21% | 5.21% | 5.99% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies | |
Co-investment commitments in partnership | $ 187.2 |
Equity Method Investee | Other Liabilities | |
Commitments and Contingencies | |
Total contingent payments | 59.8 |
Payments for Achievement of Financial Targets | |
Commitments and Contingencies | |
Total contingent payments | 237.1 |
Contingent payments in year one | 89.5 |
Contingent payments year two through six | 147.6 |
Payment contingent on not meeting financial targets (up to) | 12.5 |
Payment contingent on exercise of option to reduce ownership percentage | 25 |
Payments for Contingent Financing | |
Commitments and Contingencies | |
Total contingent payments | $ 50 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contingent Consideration (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Deferred payment obligations | |
Total | $ 43.3 |
2024 | 21.7 |
2025 | 21.6 |
Contingent payment obligations | |
Total | 14.7 |
2024 | 9.5 |
2025 | 5.2 |
Co-Investor | |
Deferred payment obligations | |
Total | 0 |
Contingent payment obligations | |
Total | 2.4 |
Co-Investor | Maximum | |
Contingent payment obligations | |
Total | 24.9 |
Controlling Interest | |
Deferred payment obligations | |
Total | 43.3 |
Contingent payment obligations | |
Total | 12.3 |
Controlling Interest | Maximum | |
Contingent payment obligations | |
Total | 110 |
2024 | 100 |
2025 | $ 10 |
Goodwill and Acquired Client _3
Goodwill and Acquired Client Relationships - Schedule of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 2,648.7 | $ 2,689.2 |
Veritable Transaction | (136.5) | 0 |
Foreign currency translation | 16.5 | (40.5) |
Other | (5.1) | 0 |
Balance, end of period | $ 2,523.6 | $ 2,648.7 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets | |||
Impairment Of Intangible Asset Indefinite Lived Excluding Goodwill, Statement Of Income Or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | Indefinite-lived | ||
Net Book Value | |||
Beginning balance, net book value | $ 1,876 | ||
Intangible amortization and impairments | (48.3) | $ (51.6) | $ (35.7) |
Ending balance, net book value | 1,812.4 | 1,876 | |
Non-controlling interests: | |||
Net Book Value | |||
Finite-lived intangible assets deconsolidated | 3.5 | ||
Acquired client relationships | |||
Indefinite-lived | |||
Beginning balance, net book value | 1,590.6 | 1,630.3 | |
Foreign currency translation | 16.6 | (37.2) | |
Transfers, net book value | (4.1) | ||
Ending balance, net book value | 1,603.1 | 1,590.6 | 1,630.3 |
Net Book Value | |||
Intangible amortization and impairments | (2.5) | ||
Acquired client relationships | |||
Definite-lived | |||
Beginning balance, gross book value | 1,355.1 | 1,364.2 | |
Beginning balance, accumulated amortization | (1,069.7) | (1,028.1) | |
Beginning balance, net book value | 285.4 | 336.1 | |
Intangible amortization and impairments | (48.3) | (49.1) | |
Foreign currency translation, gross book value | 0.8 | (9.1) | |
Foreign currency translation, accumulated depreciation | (0.5) | 7.5 | |
Foreign currency translation, net book value | 0.3 | (1.6) | |
Veritable Transaction, gross book value | (85.1) | ||
Veritable Transaction, accumulated amortization | 57 | ||
Veritable Transaction, net book value | (28.1) | ||
Transfers, gross book value | (10.3) | ||
Transfers, accumulated amortization | 10.3 | ||
Ending balance, gross book value | 1,260.5 | 1,355.1 | 1,364.2 |
Ending balance, accumulated amortization | (1,051.2) | (1,069.7) | (1,028.1) |
Ending balance, net book value | 209.3 | 285.4 | 336.1 |
Net Book Value | |||
Beginning balance, net book value | 1,876 | 1,966.4 | |
Veritable Transaction | (28.1) | ||
Intangible amortization and impairments | (48.3) | (51.6) | |
Foreign currency translation | 16.9 | (38.8) | |
Transfers, net book value | (4.1) | ||
Ending balance, net book value | 1,812.4 | $ 1,876 | $ 1,966.4 |
Acquired client relationships | Non-controlling interests: | |||
Net Book Value | |||
Finite-lived intangible assets deconsolidated | $ 6.7 |
Goodwill and Acquired Client _5
Goodwill and Acquired Client Relationships - Additional Information (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Intangible assets | |||||
Goodwill impairment | $ 0 | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | |||||
Cash received in Veritable Transaction | $ 287,400,000 | ||||
Affiliate Transaction gain | $ 133,100,000 | ||||
Third Party | |||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | |||||
Subsidiary, ownership percentage sold | 1 | 1 | |||
Acquired Client Relationships | |||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | |||||
Intangible impairments | $ 0 | ||||
Acquired Client Relationships | |||||
Intangible assets | |||||
Amortization and impairment expenses of intangible assets | 48,300,000 | $ 49,100,000 | |||
Estimated Future Amortization Expense of Finite-Lived Intangibles | |||||
Intangible future amortization expense in 2024 | 30,000,000 | ||||
Intangible future amortization expense in 2025 | 25,000,000 | ||||
Intangible future amortization expense in 2026 | 25,000,000 | ||||
Intangible future amortization expense in 2027 | 25,000,000 | ||||
Intangible future amortization expense in 2028 | 25,000,000 | ||||
Impairment of definite-lived intangible assets | 0 | ||||
Acquired Client Relationships | Intangible Amortization and Impairments | |||||
Intangible assets | |||||
Amortization and impairment expenses of intangible assets | $ 48,300,000 | $ 49,100,000 | $ 35,700,000 |
Equity Method Investments in _3
Equity Method Investments in Affiliates - Schedule of Equity Method Investments in Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Goodwill | $ 2,523.6 | $ 2,648.7 | $ 2,689.2 |
Equity method investments in Affiliates (net) | 2,288.5 | 2,139.5 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Goodwill | 1,323.3 | 1,262.4 | |
Definite-lived acquired client relationships (net) | 652.5 | 479.4 | |
Indefinite-lived acquired client relationships (net) | 122.6 | 119 | |
Undistributed earnings and tangible capital | 190.1 | 278.7 | |
Equity method investments in Affiliates (net) | $ 2,288.5 | $ 2,139.5 | $ 2,134.4 |
Equity Method Investments in _4
Equity Method Investments in Affiliates - Change in Equity Method Investments in Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Equity Method Investments in Affiliates [Roll Forward] | |||
Balance, beginning of period | $ 2,139.5 | ||
Distributions of earnings | (490.8) | $ (393.5) | $ (337.5) |
Return of capital | (0.2) | (0.8) | (4.4) |
Balance, end of period | 2,288.5 | 2,139.5 | |
Equity Method Investee | |||
Change in Equity Method Investments in Affiliates [Roll Forward] | |||
Balance, beginning of period | 2,139.5 | 2,134.4 | |
Investments in Affiliates | 349.8 | 326.1 | |
BPEA | 0 | (150.6) | |
Earnings | 375.6 | 497.2 | |
Intangible amortization and impairments | (95.6) | (159.1) | |
Distributions of earnings | (492.1) | (394.7) | |
Return of capital | (0.2) | (0.8) | |
Foreign currency translation | 29.3 | (68.5) | |
Other | (17.8) | (44.5) | |
Balance, end of period | $ 2,288.5 | $ 2,139.5 | $ 2,134.4 |
Equity Method Investments in _5
Equity Method Investments in Affiliates - Additional Information (Details) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) yr affiliate shares | Dec. 31, 2023 USD ($) affiliate | Dec. 31, 2022 USD ($) yr affiliate | Dec. 31, 2021 USD ($) | |
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Number of affiliates accounted for under the equity method | affiliate | 20 | 22 | 20 | |
BPEA Transaction gain | $ 641.9 | $ 133.1 | $ 641.9 | $ 0 |
Baring Private Equity Asia (“BPEA”) | EQT AB (“EQT”) | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Merger agreement, cash proceeds | $ 223.6 | |||
Merger agreement, equity interests issuable, number of shares (in shares) | shares | 28,680 | |||
Percentage of shares restricted | 0.25 | |||
Term of restricted shares | 6 months | |||
Acquired Client Relationships | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Intangible amortization expense | 48.3 | 49.1 | ||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Intangible future amortization expense in 2024 | 30 | |||
Intangible future amortization expense in 2025 | 25 | |||
Intangible future amortization expense in 2026 | 25 | |||
Intangible future amortization expense in 2027 | 25 | |||
Intangible future amortization expense in 2028 | 25 | |||
Equity Method Investee | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Impairment expense | 9.6 | $ 50 | ||
Equity Method Investee | Growth rate period | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | yr | 5 | 5 | ||
Equity Method Investee | Growth rate | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | 0.02 | 0.02 | ||
Equity Method Investee | Long-term growth rate | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | 0.05 | 0.05 | ||
Equity Method Investee | Discount rates, asset based fees | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | 0.11 | 0.11 | ||
Equity Method Investee | Discount rates, performance based fees | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | 0.20 | 0.20 | ||
Equity Method Investee | Market participant tax rates | ||||
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Measurement input | 0.25 | 0.25 | ||
Equity Method Investee | Acquired Client Relationships | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Intangible amortization expense | 86 | $ 109.1 | $ 123 | |
Estimated Future Amortization Expense of Finite-Lived Intangibles | ||||
Intangible future amortization expense in 2024 | 65 | |||
Intangible future amortization expense in 2025 | 62 | |||
Intangible future amortization expense in 2026 | 55 | |||
Intangible future amortization expense in 2027 | 55 | |||
Intangible future amortization expense in 2028 | $ 50 |
Equity Method Investments in _6
Equity Method Investments in Affiliates - Financial Information for Affiliates Accounted for Under the Equity Method (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Net income | $ 906.1 | $ 1,388.1 | $ 890.1 |
Assets | 9,059.6 | 8,881 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenues | 3,115.6 | 3,239.5 | 3,228.1 |
Net income | 1,313 | 1,358.7 | $ 1,656.6 |
Assets | 3,269.1 | 2,816.7 | |
Liabilities and Non-controlling interests | $ 1,467.3 | $ 1,221.4 |
Lease Commitments - Total Lease
Lease Commitments - Total Lease Costs (Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 36.4 | $ 38.5 | $ 33.8 |
Short-term lease costs | 1.1 | 1 | 0.8 |
Variable lease costs | 0 | 0 | 0 |
Sublease income | (6.5) | (7.7) | (7.9) |
Total lease costs (net) | $ 31 | $ 31.8 | $ 26.7 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term - operating leases | 7 years | 8 years |
Weighted average discount rate - operating leases | 3% | 3% |
Lease Commitments - Maturity of
Lease Commitments - Maturity of Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 39.1 |
2025 | 35 |
2026 | 25.9 |
2027 | 21.9 |
2028 | 21.8 |
Thereafter | 68.3 |
Total undiscounted lease liabilities | 212 |
Present value discounting of operating lease liabilities | $ 29.3 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 213.3 | $ 229.9 |
Accumulated depreciation and amortization | (146) | (161.4) |
Fixed assets (net) | 67.3 | 68.5 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 108.6 | 111.9 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 45.7 | 51.7 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 20.7 | 25.6 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 17.5 | 19.9 |
Land, improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 20.8 | $ 20.8 |
Payables and Accrued Liabilit_3
Payables and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 309.3 | $ 378.7 |
Accrued income taxes | 62.3 | 224.4 |
Other | 256.9 | 175.2 |
Payables and accrued liabilities | $ 628.5 | $ 778.3 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Related Party Transactions | ||
Other liabilities | $ 466.3 | $ 461.7 |
Common stock, voting rights, percent | 0.05 | |
Prior Owner | Private Equity Investment Partnerships of Affiliate | ||
Related Party Transactions | ||
Other liabilities | $ 18.5 | $ 21 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) shares | Jun. 30, 2023 shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | Jan. 31, 2023 shares | Oct. 31, 2022 shares | Jan. 31, 2022 shares | |
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 153 | 153 | 153 | |||||||
Stock repurchase plan, number of remaining shares to be repurchased (in shares) | 4.2 | |||||||||
Accelerated share repurchase, upfront payment | $ | $ 225,000,000 | |||||||||
Accelerated share repurchase, stock delivered (in shares) | 1.1 | 0.4 | ||||||||
Percentage of shares delivered | 0.80 | 0.80 | ||||||||
Shares repurchased (in shares) | 1.5 | |||||||||
Average price of stock repurchased (in dollars per share) | $ / shares | $ 147.29 | |||||||||
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 | |||||||||
Common Class B | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common stock, shares authorized (in shares) | 3 | |||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased (in shares) | 3 | 4.5 | 3.5 | |||||||
Average price of stock repurchased (in dollars per share) | $ / shares | $ 132.99 | $ 144.45 | $ 146.54 | |||||||
Common Stock | January 2022 Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, number of shares authorized (in shares) | 2 | |||||||||
Common Stock | October 2022 Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, number of shares authorized (in shares) | 3 | |||||||||
Common Stock | January 2023 Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, number of shares authorized (in shares) | 3.3 | |||||||||
Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized (in shares) | 5 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Activity (Details) - $ / shares shares in Millions | 7 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||
Shares Repurchased (in shares) | 1.5 | |||
Average Price (in dollars per share) | $ 147.29 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares Repurchased (in shares) | 3 | 4.5 | 3.5 | |
Average Price (in dollars per share) | $ 132.99 | $ 144.45 | $ 146.54 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-Based Compensation Expense | $ 59.4 | $ 62.4 | $ 63.4 |
Tax Benefit | 7.4 | 7.6 | 8 |
Excess tax benefit (deficiency) recognized from share-based incentive plans | 4.4 | 1.8 | $ (0.2) |
Compensation expense related to share-based compensation | $ 54.4 | $ 64.7 | |
Weighted average period over which compensation expense will be recognized | 2 years |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Units Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Grant Date Value | |||
Stocks granted, fair value | $ 86.2 | $ 54.6 | $ 51.7 |
Restricted Stock Units | |||
Restricted Stock Units | |||
Unvested units - beginning balance (in shares) | 1,100,000 | ||
Units granted (in shares) | 300,000 | ||
Units vested (in shares) | (500,000) | ||
Units forfeited (in shares) | 0 | ||
Performance condition changes (in shares) | 0 | ||
Unvested units - ending balance (in shares) | 900,000 | 1,100,000 | |
Weighted Average Grant Date Value | |||
Unvested units - beginning balance (in dollars per share) | $ 106.88 | ||
Units granted (in dollars per share) | 159.51 | ||
Units vested (in dollars per share) | 85.07 | ||
Units forfeited (in dollars per share) | 132.81 | ||
Performance condition changes (in dollars per share) | 129.15 | ||
Unvested units - ending balance (in dollars per share) | $ 138.51 | $ 106.88 | |
Stocks granted, fair value | $ 49.3 | $ 47.1 | $ 32.3 |
Shares available for future grant (in shares) | 2,400,000 | ||
Restricted Stock Units | Minimum | |||
Weighted Average Grant Date Value | |||
Stock vesting period | 3 years | ||
Restricted Stock Units | Maximum | |||
Weighted Average Grant Date Value | |||
Stock vesting period | 4 years |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of the Transactions of the Company's Stock Options (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Stock Options | |
Unexercised options outstanding - beginning balance (in shares) | shares | 3.2 |
Options granted (in shares) | shares | 0 |
Options exercised (in shares) | shares | 0 |
Options forfeited (in shares) | shares | 0 |
Options expired (in shares) | shares | 0 |
Performance condition changes (in shares) | shares | 0 |
Unexercised options outstanding - ending balance (in shares) | shares | 3.2 |
Stock Options, Exercisable at the end of the period (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Unexercised options outstanding - beginning balance (in dollars per share) | $ / shares | $ 76.81 |
Options granted (in dollars per share) | $ / shares | 0 |
Options exercised (in dollars per share) | $ / shares | 127.77 |
Options forfeited (in dollars per share) | $ / shares | 0 |
Options expired (in dollars per share) | $ / shares | 0 |
Performance condition changes (in dollars per share) | $ / shares | 0 |
Unexercised stock options outstanding - ending balance (in dollars per share) | $ / shares | 76.74 |
Weighted Average Exercise Price, Exercisable at the end of the period (in dollars per share) | $ / shares | $ 119.54 |
Weighted Average Remaining Contractual Life (Years) | |
Unexercised options outstanding at the end of the period | 2 years 8 months 12 days |
Exercisable at the end of the period | 2 years 9 months 18 days |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Options Granted and Assumptions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation | |||
Stock options granted, fair value | $ 0 | $ 1.8 | $ 2 |
Intrinsic value of options exercised | 0.2 | 1.2 | 13.4 |
Cash received for options exercised | 0 | $ 2.6 | $ 3.6 |
Intrinsic value of exercisable options outstanding | $ 1.9 | ||
Stock options granted, weighted average fair value (in dollars per share) | $ 47.84 | $ 54.19 | |
Stock Options | |||
Share-based Compensation | |||
Shares available for future grant (in shares) | 1.1 | ||
Assumptions used to determine fair value of options granted | |||
Dividend yield | 0% | 0% | |
Expected volatility | 36.80% | 37.10% | |
Risk-free interest rate | 1.70% | 1% | |
Expected life of options (in years) | 5 years 8 months 12 days | 5 years 8 months 12 days | |
Forfeiture rate | 0% | 0% | |
Stock Options | Minimum | |||
Share-based Compensation | |||
Stock vesting period | 3 years | ||
Stock options, expiration period | 7 years | ||
Stock Options | Maximum | |||
Share-based Compensation | |||
Stock vesting period | 5 years |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Non-controlling Interests | |||
Balance, beginning of period | $ 465.4 | $ 673.9 | |
Veritable Transaction | (16.8) | 0 | |
Decrease attributable to consolidated Affiliate sponsored investment products | (8.3) | (4.9) | |
Transfers to Other liabilities | (93.5) | (59.6) | |
Transfer (to) from Redeemable non-controlling interests | (8.9) | 1.8 | $ 3.9 |
Changes in redemption value | 55.5 | (145.8) | |
Balance, end of period | 393.4 | 465.4 | $ 673.9 |
Variable Interest Entity, Primary Beneficiary | |||
Redeemable Non-controlling Interests | |||
Balance, beginning of period | 20.1 | ||
Balance, end of period | $ 11.8 | $ 20.1 | |
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 |
Affiliate Equity - Additional I
Affiliate Equity - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Affiliate Equity [Line Items] | |||
Distributions paid to affiliate partners | $ 271.3 | $ 341.9 | $ 334.3 |
Affiliate equity purchases | 67.4 | 61.5 | 150.5 |
Affiliate equity issuances | 13.4 | 15.2 | 117.7 |
Other assets | 243.9 | 264.6 | |
Other liabilities | 466.3 | 461.7 | |
Co-Investor | |||
Affiliate Equity [Line Items] | |||
Affiliate equity issuances | $ 99.6 | ||
Related Party | |||
Affiliate Equity [Line Items] | |||
Other assets | 5.9 | 11.6 | |
Other liabilities | $ 53.9 | $ 24.5 |
Affiliate Equity - Summary of A
Affiliate Equity - Summary of Affiliate Recognized and Unrecognized Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Affiliate Equity [Line Items] | |||
Affiliate equity compensation expense | $ 52.7 | $ 51.4 | $ 63.3 |
Non-controlling Interests | |||
Affiliate Equity [Line Items] | |||
Non-controlling interests | $ 39.1 | $ 46.4 | $ 45.9 |
Unrecognized Affiliate Equity Expense [Abstract] | |||
Remaining Life | 6 years | 7 years | 7 years |
Non-controlling Interests | $ 235.7 | $ 284.6 | $ 294.1 |
Affiliated Entity | |||
Affiliate Equity [Line Items] | |||
Controlling interest | 13.6 | 5 | 17.4 |
Unrecognized Affiliate Equity Expense [Abstract] | |||
Controlling Interest | $ 30.6 | $ 31.4 | $ 41.9 |
Remaining Life | 5 years | 5 years | 6 years |
Affiliate Equity - Changes in t
Affiliate Equity - Changes in the Company's Interest in its Affiliates on the Controlling Interest's Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Affiliate Equity [Abstract] | |||
Net income (controlling interest) | $ 672.9 | $ 1,145.9 | $ 565.7 |
Decrease in controlling interest paid-in capital from Affiliate equity issuances | (13.5) | (0.2) | (17.5) |
Decrease in controlling interest paid-in capital from Affiliate equity purchases | (50.4) | (38.2) | (63.2) |
Net income (controlling interest) including the net impact of Affiliate equity transactions | $ 609 | $ 1,107.5 | $ 485 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to benefit plans | $ 24.8 | $ 20.9 | $ 19.1 |
Controlling Interest | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to benefit plans | $ 3.6 | $ 3.4 | $ 3 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provisions by Controlling and Noncontrolling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax provision | |||
Current taxes | $ 153.9 | $ 326.3 | $ 159.8 |
Deferred taxes | 31.4 | 32 | 91.2 |
Income tax expense | $ 185.3 | $ 358.3 | $ 251 |
Effective tax rate | 17% | 20.50% | 22% |
Non-controlling interests: | |||
Income tax provision | |||
Current taxes | $ 7 | $ 10.9 | $ 15.4 |
Deferred taxes | 0 | 0 | 6 |
Income tax expense | 7 | 10.9 | 21.4 |
Controlling Interest | |||
Income tax provision | |||
Current taxes | 146.9 | 315.4 | 144.4 |
Intangible-related deferred taxes | 29.8 | 32 | 52.5 |
Other deferred taxes | 1.6 | 0 | 32.7 |
Income tax expense | 178.3 | 347.4 | 229.6 |
Income before income taxes (controlling interest) | $ 851.2 | $ 1,493.3 | $ 795.3 |
Effective tax rate | 20.90% | 23.30% | 28.90% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Consolidated Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 105.2 | $ 222.9 | $ 73.1 |
State | 10.8 | 30.6 | 19.6 |
Foreign | 37.9 | 72.8 | 67.1 |
Total current | 153.9 | 326.3 | 159.8 |
Deferred: | |||
Federal | 27.3 | 30.4 | 55.9 |
State | 7 | 9 | 13 |
Foreign | (2.9) | (7.4) | 22.3 |
Total deferred | 31.4 | 32 | 91.2 |
Income tax expense | $ 185.3 | $ 358.3 | $ 251 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 782.3 | $ 639 | $ 698.2 |
International | 309.1 | 1,107.4 | 442.8 |
Total | $ 1,091.4 | $ 1,746.4 | $ 1,141 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax provision | ||||
Effective tax rate | 17% | 20.50% | 22% | |
BPEA Transaction gain | $ 641.9 | $ 133.1 | $ 641.9 | $ 0 |
Unrealized gains | $ 2.6 | 59.9 | ||
EQT AB (“EQT”) | ||||
Income tax provision | ||||
Equity securities, realized gain | 43.8 | |||
Unrealized gains | $ 57.9 | |||
Controlling Interest | ||||
Income tax provision | ||||
Statutory U.S. federal tax rate | 21% | 21% | 21% | |
State income taxes, net of federal benefit | 3.50% | 3.50% | 3.50% | |
Foreign operations | (4.10%) | (1.70%) | (1.70%) | |
Compensation plans | 1.10% | 0.80% | 2% | |
Changes in tax laws | 0% | 0% | 2.40% | |
Change in valuation allowances | (0.10%) | 0.30% | 1.10% | |
Unrecognized tax benefits | 0.60% | 0.40% | 0.10% | |
BPEA Transaction | 0% | (1.00%) | 0% | |
Changes in U.S. tax provision to return | (0.70%) | 0% | 0.40% | |
Other | (0.40%) | 0% | 0.10% | |
Effective tax rate | 20.90% | 23.30% | 28.90% | |
Non-controlling interests: | ||||
Income tax provision | ||||
Effect of income from non-controlling interests | (3.90%) | (2.80%) | (6.90%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Deferred compensation | $ 15.9 | $ 14.6 |
State loss carryforwards | 14.7 | 16.4 |
Foreign loss carryforwards | 19.8 | 20 |
Tax benefit of uncertain tax positions | 10 | 12.6 |
Lease liabilities | 4.8 | 6.6 |
Foreign tax credits | 16 | 15.4 |
Other | 0.3 | 0.3 |
Total deferred tax assets | 81.5 | 85.9 |
Valuation allowance | (47.6) | (48.1) |
Deferred tax assets, net of valuation allowance | 33.9 | 37.8 |
Deferred Tax Liabilities | ||
Intangible asset amortization | (295.8) | (280.9) |
Non-deductible intangible amortization | (97) | (109.8) |
Junior convertible securities interest | (83.1) | (72.4) |
Right-of-use assets | (3.7) | (5.1) |
Accrued expenses | (2) | (3) |
Deferred income | (10.4) | (23.4) |
Other | (2.9) | (4.4) |
Total deferred tax liabilities | (494.9) | (499) |
Deferred income tax liability (net) | (461) | (461.2) |
Other Assets | ||
Deferred Tax Assets | ||
Foreign loss carryforwards | 19.8 | 20 |
Deferred Tax Liabilities | ||
Carryforwards valuation allowance | $ 17 | $ 16.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign tax credits | $ 16 | $ 15.4 | |
Valuation allowance for deferred tax assets | 47.6 | 48.1 | |
Amount of temporary difference due to repatriation of earnings from sale or liquidation of subsidiary | 347.7 | ||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 37.8 | 49.6 | $ 52.4 |
Accrued deferred tax assets for indirect tax benefits associated with uncertain tax positions | 10 | 12.6 | |
Interest and penalties related to unrecognized tax benefits | 0.8 | 2.6 | $ (0.4) |
Accrued income tax interest and related charges | 14.4 | 13.6 | |
Income Tax Valuation Allowance | |||
Operating Loss Carryforwards [Line Items] | |||
Increase in valuation allowance | $ 0.5 | $ 4.2 | |
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforwards, expiration period | 6 years | ||
Foreign operating loss carryforwards, expiration period | 9 years | ||
Foreign tax credits, expiration period | 5 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforwards, expiration period | 11 years | ||
Foreign operating loss carryforwards, expiration period | 16 years | ||
Foreign tax credits, expiration period | 8 years | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 228.2 | ||
State | Operating Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | 14.6 | ||
Foreign | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 74.8 | ||
Foreign operating loss carryforward indefinitely | 17.3 | ||
Foreign | Operating Loss Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | 17 | ||
Foreign | Foreign Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for deferred tax assets | 16 | ||
Foreign | Expire over a 20-year period | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 57.5 |
Income Taxes - Changes in Unrec
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Balance, beginning of period | $ 49.6 | $ 52.4 | $ 63.5 |
Additions based on current year tax positions | 6.4 | 0.6 | 0.8 |
Additions based on prior years’ tax positions | 1 | 4.4 | 4.6 |
Reduction for prior years’ tax positions | (13.5) | (1) | (5.6) |
Lapse of the statute of limitations | (4.8) | (5.5) | (5.7) |
Settlements | (1.3) | 0 | (5.5) |
Foreign currency translation | 0.4 | (1.3) | 0.3 |
Balance, end of period | $ 37.8 | $ 49.6 | $ 52.4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | |||
Net income (controlling interest) | $ 672.9 | $ 1,145.9 | $ 565.7 |
Income from hypothetical settlement of Redeemable non-controlling interests, net of tax | 49 | 82.9 | 0 |
Interest expense on junior convertible securities, net of taxes | 13.4 | 14 | 18.5 |
Net income (controlling interest), as adjusted | $ 735.3 | $ 1,242.8 | $ 584.2 |
Denominator | |||
Average shares outstanding (basic) (in shares) | 35.1 | 38.5 | 41.5 |
Effect of dilutive instruments: | |||
Stock options and restricted stock units (in shares) | 1.7 | 1.3 | 1.2 |
Hypothetical issuance of shares to settle Redeemable non-controlling interests (in shares) | 3.7 | 7.4 | 0 |
Junior convertible securities (in shares) | 1.7 | 1.8 | 2.1 |
Average shares outstanding (diluted) (in shares) | 42.2 | 49 | 44.8 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Shares Excluded from Calculation of Basic and Diluted Earnings (Loss) Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock options and restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 0.2 | 0.2 |
Shares issuable to settle Redeemable non-controlling interests | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.7 | 0.1 | 0 |
Comprehensive Income - Summary
Comprehensive Income - Summary of the Tax Effects Allocated to Each Component of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | $ 45.6 | $ (145.9) | $ 11.2 |
Tax (Expense) Benefit | (3.7) | 3.1 | (4) |
Other comprehensive income (loss), net of tax | 41.9 | (142.8) | 7.2 |
Foreign currency translation gain | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | 44.8 | (144.1) | 10.3 |
Tax (Expense) Benefit | (3.7) | 2.8 | (3.5) |
Other comprehensive income (loss), net of tax | 41.1 | (141.3) | 6.8 |
Change in net realized and unrealized gain (loss) on derivative financial instruments | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | 0.3 | (0.5) | 0.9 |
Tax (Expense) Benefit | 0 | 0 | (0.5) |
Other comprehensive income (loss), net of tax | 0.3 | (0.5) | $ 0.4 |
Change in net unrealized gain (loss) on available-for-sale debt securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Pre-Tax | 0.5 | (1.3) | |
Tax (Expense) Benefit | 0 | 0.3 | |
Other comprehensive income (loss), net of tax | $ 0.5 | $ (1) |
Comprehensive Income - Componen
Comprehensive Income - Components of AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Accumulated other comprehensive income, net of taxes | |||
Beginning balance | $ 4,175.6 | $ 3,710.6 | $ 3,317.3 |
Other comprehensive income (loss) before reclassifications | 43.5 | (141.8) | |
Amounts reclassified | (1.6) | (1) | |
Other comprehensive income (loss), net of tax | 41.9 | (142.8) | 7.2 |
Ending balance | 4,570.1 | 4,175.6 | 3,710.6 |
Total | |||
Components of Accumulated other comprehensive income, net of taxes | |||
Beginning balance | (297.8) | (155) | |
Ending balance | (255.9) | (297.8) | (155) |
Foreign Currency Translation Adjustment | |||
Components of Accumulated other comprehensive income, net of taxes | |||
Beginning balance | (296.4) | (155.1) | |
Other comprehensive income (loss) before reclassifications | 41.1 | (141.3) | |
Amounts reclassified | 0 | 0 | |
Other comprehensive income (loss), net of tax | 41.1 | (141.3) | 6.8 |
Ending balance | (255.3) | (296.4) | (155.1) |
Realized and Unrealized Gains (Losses) on Derivative Financial Instruments | |||
Components of Accumulated other comprehensive income, net of taxes | |||
Beginning balance | (0.4) | 0.1 | |
Other comprehensive income (loss) before reclassifications | 1.9 | 0.5 | |
Amounts reclassified | (1.6) | (1) | |
Other comprehensive income (loss), net of tax | 0.3 | (0.5) | 0.4 |
Ending balance | (0.1) | (0.4) | 0.1 |
Unrealized Gains (Losses) on Available-for-Sale Debt Securities | |||
Components of Accumulated other comprehensive income, net of taxes | |||
Beginning balance | (1) | 0 | |
Other comprehensive income (loss) before reclassifications | 0.5 | (1) | |
Amounts reclassified | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0.5 | (1) | |
Ending balance | $ (0.5) | $ (1) | $ 0 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Consolidated revenue | $ 2,057.8 | $ 2,329.6 | $ 2,412.4 |
Fixed assets (net) | 67.3 | 68.5 | |
United States | |||
Segment Reporting Information | |||
Consolidated revenue | 1,519.3 | 1,852.6 | 1,838.7 |
Fixed assets (net) | 56.3 | 57.5 | |
United Kingdom | |||
Segment Reporting Information | |||
Consolidated revenue | 498.3 | 434.8 | 528.6 |
Fixed assets (net) | 10.7 | 10.6 | |
Other | |||
Segment Reporting Information | |||
Consolidated revenue | 40.2 | 42.2 | $ 45.1 |
Fixed assets (net) | $ 0.3 | $ 0.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Valuation Allowance | |||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | |||
Balance Beginning of Period | $ 48.1 | $ 43.9 | $ 35.6 |
Additions Charged to Costs and Expenses | 0.6 | 8.3 | 8.3 |
Additions (Reductions) Charged to Other Accounts | 0.4 | (1.1) | 0 |
Deductions | (1.5) | (3) | 0 |
Balance End of Period | 47.6 | 48.1 | 43.9 |
Other Allowances | |||
Reconciliation of beginning and ending balances of valuation and qualifying accounts | |||
Balance Beginning of Period | 3.5 | 4.8 | 4.8 |
Additions Charged to Costs and Expenses | 1.5 | 0 | 0 |
Additions (Reductions) Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (1.2) | (1.3) | 0 |
Balance End of Period | $ 3.8 | $ 3.5 | $ 4.8 |