Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 22, 2013 | Oct. 22, 2013 | |
Class A [Member] | Class B [Member] | ||
Entity Registrant Name | FEDERATED INVESTORS INC /PA/ | ||
Entity Central Index Key | 1056288 | ||
Trading Symbol | FII | ||
Document Type | 10-Q | ||
Document Period End Date | 30-Sep-13 | ||
Document Fiscal Period Focus | Q3 | ||
Document Fiscal Year Focus | 2013 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 9,000 | 104,585,621 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $78,262 | $67,585 |
Investmentsbaffiliates | 141,471 | 136,023 |
Investmentsbconsolidated investment companies | 126,291 | 51,073 |
Investmentsbother | 4,490 | 3,947 |
Receivables, net of reserve of $50 and $50, respectively | 27,019 | 24,120 |
Prepaid expenses | 12,146 | 12,986 |
Other current assets | 5,190 | 4,328 |
Total current assets | 394,869 | 300,062 |
Long-Term Assets | ||
Goodwill | 649,014 | 648,820 |
Renewable investment advisory rights | 68,595 | 68,455 |
Other intangible assets, net of accumulated amortization of $44,367 and $44,224, respectively | 8,593 | 10,582 |
Property and equipment, net of accumulated depreciation of $55,873 and $50,910, respectively | 41,000 | 38,912 |
Other long-term assets | 21,032 | 23,230 |
Total long-term assets | 788,234 | 789,999 |
Total assets | 1,183,103 | 1,090,061 |
Current Liabilities | ||
Short-term debt | 60,208 | 42,500 |
Accounts payable and accrued expenses | 40,744 | 45,255 |
Accrued compensation and benefits | 53,972 | 68,172 |
Other current liabilities | 21,308 | 25,207 |
Total current liabilities | 176,232 | 181,134 |
Long-Term Liabilities | ||
Long-term debt | 226,667 | 276,250 |
Long-term deferred tax liability, net | 117,062 | 99,399 |
Other long-term liabilities | 22,782 | 29,334 |
Total long-term liabilities | 366,511 | 404,983 |
Total liabilities | 542,743 | 586,117 |
Commitments and contingencies (Note (12)) | ||
TEMPORARY EQUITY | ||
Redeemable noncontrolling interest in subsidiaries | 90,408 | 7,268 |
PERMANENT EQUITY | ||
Additional paid-in capital from treasury stock transactions | 45 | 0 |
Retained earnings | 1,017,816 | 984,505 |
Treasury stock, at cost, 24,919,835 and 25,064,280 shares Class B common stock, respectively | -755,878 | -760,022 |
Accumulated other comprehensive loss, net of tax | -2,001 | -2,937 |
Total Federated Investors, Inc. shareholders' equity | 550,191 | 495,432 |
Nonredeemable noncontrolling interest in subsidiary | -239 | 1,244 |
Total permanent equity | 549,952 | 496,676 |
Total liabilities, temporary equity and permanent equity | 1,183,103 | 1,090,061 |
Class A [Member] | ||
PERMANENT EQUITY | ||
Common stock | 189 | 189 |
Class B [Member] | ||
PERMANENT EQUITY | ||
Common stock | $290,020 | $273,697 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Receivables, reserve | $50 | $50 |
Other intangible assets, accumulated amortization | 44,367 | 44,224 |
Property and equipment, accumulated depreciation | $55,873 | $50,910 |
Treasury stock, shares | 24,919,835 | 25,064,280 |
Class A [Member] | ||
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 20,000 | 20,000 |
Common stock, shares issued | 9,000 | 9,000 |
Common stock, shares outstanding | 9,000 | 9,000 |
Class B [Member] | ||
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 129,505,456 | 129,505,456 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue | ||||||||
Investment advisory fees, netbaffiliates | $112,067 | $142,188 | $371,092 | $413,340 | ||||
Investment advisory fees, netbother | 22,556 | 18,118 | 61,809 | 50,680 | ||||
Administrative service fees, netbaffiliates | 55,052 | 55,879 | 167,133 | 168,157 | ||||
Other service fees, netbaffiliates | 16,862 | 18,511 | 49,796 | 57,135 | ||||
Other service fees, netbother | 3,160 | 2,910 | 9,413 | 8,949 | ||||
Other, net | 2,169 | 862 | 4,400 | 2,620 | ||||
Total revenue | 211,866 | 238,468 | 663,643 | 700,881 | ||||
Operating Expenses | ||||||||
Compensation and related | 65,620 | 65,131 | 200,413 | 194,411 | ||||
Distribution | 51,051 | 64,146 | 163,099 | 188,168 | ||||
Professional service fees | 9,704 | -7,864 | 27,841 | 12,376 | ||||
Office and occupancy | 6,488 | 6,108 | 19,463 | 18,479 | ||||
Systems and communications | 6,464 | 6,532 | 19,173 | 19,615 | ||||
Advertising and promotional | 3,975 | 3,559 | 11,333 | 9,802 | ||||
Travel and related | 3,344 | 2,913 | 9,563 | 9,000 | ||||
Intangible asset related | 634 | 799 | 2,050 | 1,642 | ||||
Other | 6,828 | 7,111 | 18,723 | 17,988 | ||||
Total operating expenses | 154,108 | 148,435 | 471,658 | 471,481 | ||||
Operating income | 57,758 | 90,033 | 191,985 | 229,400 | ||||
Nonoperating Income (Expenses) | ||||||||
Investment income, net | 1,407 | 1,452 | 4,650 | 4,269 | ||||
Gain on securities, net | 5,592 | [1] | 2,254 | [1] | 10,836 | [1] | 5,056 | [1] |
Debt expense | -3,078 | -3,534 | -9,468 | -10,935 | ||||
Other, net | -3,133 | -29 | -3,203 | -195 | ||||
Total nonoperating income (expenses), net | 788 | 143 | 2,815 | -1,805 | ||||
Income before income taxes | 58,546 | 90,176 | 194,800 | 227,595 | ||||
Income tax provision | 20,917 | 31,983 | 70,621 | 81,922 | ||||
Net income including noncontrolling interests in subsidiaries | 37,629 | 58,193 | 124,179 | 145,673 | ||||
Less: Net (loss) income attributable to the noncontrolling interests in subsidiaries | -75 | 2,420 | 3,073 | 7,165 | ||||
Net income | $37,704 | $55,773 | $121,106 | $138,508 | ||||
Amounts attributable to Federated Investors, Inc. | ||||||||
Earnings per common sharebBasic and Diluted | $0.36 | [2] | $0.54 | [2] | $1.16 | [2] | $1.33 | [2] |
Cash dividends per share | $0.25 | $0.24 | $0.73 | $0.72 | ||||
[1] | Amounts related to consolidated investment companies totaled $1.0 million for both the three and nine months ended SeptemberB 30, 2013, and $1.1 million and $1.6 million for the three and nine months ended SeptemberB 30, 2012, respectively. | |||||||
[2] | Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income including noncontrolling interests in subsidiaries | $37,629 | $58,193 | $124,179 | $145,673 |
Permanent Equity | ||||
Unrealized loss on interest rate swap | -179 | -592 | -185 | -2,009 |
Reclassification adjustment related to interest rate swap | 1,044 | 1,129 | 3,153 | 3,489 |
Unrealized gain on securities available for sale | 2,088 | 2,557 | 3,692 | 5,609 |
Reclassification adjustment related to securities available for sale | -2,804 | -649 | -5,616 | -1,897 |
Foreign currency items | 193 | -51 | -108 | -402 |
Reclassification adjustment related to foreign currency items | 0 | 127 | 0 | 127 |
Temporary Equity | ||||
Other comprehensive income | 936 | 4,917 | ||
Comprehensive income including noncontrolling interests in subsidiaries | 37,971 | 60,741 | 125,079 | 150,338 |
Less: Comprehensive income (loss) attributable to redeemable noncontrolling interest in subsidiaries | 128 | 82 | 381 | -160 |
Less: Comprehensive (loss) income attributable to nonredeemable noncontrolling interest in subsidiary | -202 | 2,365 | 2,656 | 7,073 |
Comprehensive income attributable to Federated Investors, Inc. | 38,045 | 58,294 | 122,042 | 143,425 |
Other Comprehensive Income (Loss) [Member] | ||||
Temporary Equity | ||||
Other comprehensive income | 342 | 2,548 | 900 | 4,665 |
Redeemable Noncontrolling Interest in Subsidiaries/Temporary Equity [Member] | ||||
Temporary Equity | ||||
Foreign currency translation gain (loss) | $0 | $27 | ($36) | ($252) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital from Treasury Stock Transactions [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss, Net of Tax [Member] | Total Shareholders' Equity [Member] | Nonredeemable Noncontrolling Interest in Subsidiary [Member] | Redeemable Noncontrolling Interest in Subsidiaries/Temporary Equity [Member] |
In Thousands | |||||||||
Balance at Dec. 31, 2011 | $542,677 | $253,139 | $0 | $1,069,913 | ($772,481) | ($8,612) | $541,959 | $718 | $506 |
Net Income | 145,581 | 0 | 0 | 138,508 | 0 | 0 | 138,508 | 7,073 | 92 |
Other comprehensive income (loss), net of tax | 4,917 | 0 | 0 | 0 | 0 | 4,917 | 4,917 | 0 | -252 |
Subscriptionsbredeemable noncontrolling interest holders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13,730 |
Consolidation/(deconsolidation) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,008 |
Stock award activity | 14,613 | 14,605 | 7 | -7,654 | 7,655 | 0 | 14,613 | 0 | 0 |
Dividends declared/Distributions to noncontrolling interest in subsidiaries | -81,560 | 0 | 0 | -74,881 | 0 | 0 | -74,881 | -6,679 | -12,531 |
Purchase of treasury stock | -5,302 | 0 | 0 | 0 | -5,302 | 0 | -5,302 | 0 | 0 |
Balance at Sep. 30, 2012 | 620,926 | 267,744 | 7 | 1,125,886 | -770,128 | -3,695 | 619,814 | 1,112 | 2,553 |
Balance at Dec. 31, 2012 | 496,676 | 273,886 | 0 | 984,505 | -760,022 | -2,937 | 495,432 | 1,244 | 7,268 |
Net Income | 123,762 | 0 | 0 | 121,106 | 0 | 0 | 121,106 | 2,656 | 417 |
Other comprehensive income (loss), net of tax | 936 | 0 | 0 | 0 | 0 | 936 | 936 | 0 | -36 |
Subscriptionsbredeemable noncontrolling interest holders | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21,236 |
Consolidation/(deconsolidation) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 64,292 |
Stock award activity | 16,368 | 16,323 | 45 | -11,314 | 11,314 | 0 | 16,368 | 0 | 0 |
Dividends declared/Distributions to noncontrolling interest in subsidiaries | -80,491 | 0 | 0 | -76,352 | 0 | 0 | -76,352 | -4,139 | -2,769 |
Purchase of treasury stock | -7,170 | 0 | 0 | 0 | -7,170 | 0 | -7,170 | 0 | 0 |
Other | -129 | 0 | 0 | -129 | 0 | 0 | -129 | 0 | 0 |
Balance at Sep. 30, 2013 | $549,952 | $290,209 | $45 | $1,017,816 | ($755,878) | ($2,001) | $550,191 | ($239) | $90,408 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ||
Net income including noncontrolling interests in subsidiaries | $124,179 | $145,673 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||
Amortization of deferred sales commissions | 6,717 | 5,376 |
Depreciation and other amortization | 7,696 | 7,880 |
Share-based compensation expense | 15,622 | 14,959 |
Gain on disposal of assets | -10,399 | -3,368 |
Provision for deferred income taxes | 15,885 | 22,108 |
Fair-value adjustments for contingent liabilities | -47 | -1,000 |
Tax benefit (detriment) from share-based compensation | 716 | -342 |
Excess tax benefits from share-based compensation | -1,111 | -1,045 |
Impairment of assets | 3,100 | 0 |
Net (purchases) sales of trading securities | -13,967 | 76,230 |
Deferred sales commissions paid | -9,353 | -9,276 |
Contingent deferred sales charges received | 1,408 | 1,049 |
Other changes in assets and liabilities: | ||
Increase in receivables, net | -2,606 | -10,912 |
Decrease in prepaid expenses and other assets | 4,811 | 4,647 |
Decrease in accounts payable and accrued expenses | -21,436 | -5,507 |
Increase (decrease) in other liabilities | 992 | -6,579 |
Net cash provided by operating activities | 122,207 | 239,893 |
Investing Activities | ||
Purchases of securities available for sale | -87,615 | -50,650 |
Cash paid for business acquisitions | -3,365 | -7,617 |
Proceeds from redemptions of securities avaliable for sale | 88,369 | 75,948 |
Cash paid for property and equipment | -8,779 | -6,475 |
Net cash (used) provided by investing activities | -11,390 | 11,206 |
Financing Activities | ||
Dividends paid | -76,366 | -74,893 |
Purchases of treasury stock | -6,897 | -5,177 |
Distributions to noncontrolling interest in subsidiaries | -6,908 | -19,210 |
Contributions from noncontrolling interest in subsidiaries | 21,236 | 13,730 |
Proceeds from shareholders for share-based compensation | 45 | 9 |
Excess tax benefits from share-based compensation | 1,111 | 1,045 |
Payments on debt | -31,875 | -31,875 |
Other financing activities | -486 | -517 |
Net cash used by financing activities | -100,140 | -116,888 |
Net increase in cash and cash equivalents | 10,677 | 134,211 |
Cash and cash equivalents, beginning of period | 67,585 | 49,273 |
Cash and cash equivalents, end of period | $78,262 | $183,484 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Accounting [Abstract] | |
Basis of Accounting [Text Block] | Basis of Presentation |
The interim consolidated financial statements of Federated Investors, Inc. and its subsidiaries (collectively, Federated) included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). In the opinion of management, the financial statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods presented. | |
In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from such estimates and such differences may be material to the Consolidated Financial Statements. | |
These financial statements should be read in conjunction with Federated’s Annual Report on Form 10-K for the year ended December 31, 2012. Certain items previously reported have been reclassified to conform to the current period’s presentation. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies |
For a listing of Federated’s significant accounting policies, please refer to Federated’s Annual Report on Form 10-K for the year ended December 31, 2012. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Comprehensive Income | |
Effective January 1, 2013, Federated adopted a Financial Accounting Standards Board (FASB) accounting standards update relating to the presentation of comprehensive income. The update requires disclosure of the changes in accumulated other comprehensive income balances by component as well as additional disclosure related to amounts reclassified out of accumulated other comprehensive income. See Note (13) for this new disclosure. As the update affected disclosure only, the adoption of the update did not have a financial impact on Federated’s Consolidated Financial Statements. | |
Investment Companies | |
On June 7, 2013, the FASB issued a final accounting standards update amending the criteria for an entity to qualify as an investment company under GAAP. Any entity regulated under the Investment Company Act of 1940 is automatically an investment company under the new definition. The update also amends certain disclosure requirements and measurement criteria. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2013 and prohibits early adoption. Management is currently evaluating the impact of adoption on Federated's financial statement but does not expect the impact to be material. |
Concentration_Risk
Concentration Risk | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||
Concentration Risk | Concentration Risk | ||||||||||||||||
(a) Revenue Concentration by Asset Class | |||||||||||||||||
The following table summarizes the percentage of total revenue earned from Federated's asset classes for the periods presented: | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Money market assets | 40 | % | 47 | % | |||||||||||||
Equity assets | 36 | % | 31 | % | |||||||||||||
Fixed-income assets | 23 | % | 21 | % | |||||||||||||
The decline in the relative proportion of Federated's revenue attributable to money market assets for the first nine months of 2013 as compared to the same period in 2012 was primarily the result of increases in fee waivers for certain money market funds to maintain positive or zero net yields. A significant change in Federated’s money market business or a significant reduction in money market assets due to regulatory changes, changes in the financial markets including significant and rapid increases in interest rates over a short period of time causing certain investors to prefer direct investments in interest-bearing securities, significant deterioration in investor confidence, further persistent declines in or additional prolonged periods of historically low short-term interest rates and resulting fee waivers or other circumstances, could have a material adverse effect on Federated’s results of operations. | |||||||||||||||||
Current Regulatory Environment - Domestic | |||||||||||||||||
In January 2010, the Securities and Exchange Commission (SEC) adopted extensive amendments to Rule 2a-7 of the Investment Company Act of 1940 (Rule 2a-7) aimed at enhancing the resiliency of money market funds. These amendments included a series of enhancements including rules that require all money market funds to meet specific portfolio liquidity standards and rules that significantly enhance the public disclosure and regulatory reporting obligations of these funds. In Federated's view, the amendments of 2010 meaningfully and sufficiently strengthened money market funds. Recent experience demonstrated that the amendments of 2010 were effective in meeting heightened requests for redemptions occurring in connection with the U.S. debt ceiling debate and subsequent downgrade of the country's credit rating in 2011, the European debt crisis in 2011/2012 and its ongoing fallout as well as the U.S. debt ceiling debate in 2013. | |||||||||||||||||
Since then, the SEC undertook another project to develop a proposal for additional reforms related to money market funds. On June 5, 2013, the SEC issued such a rule proposal for public comment. The SEC's proposal was lengthy (approximately 700 pages) and included two principal alternative reforms that could be adopted alone or in combination. One alternative would require a floating net asset value (NAV) for institutional prime money market funds. The other alternative would allow a fund's board to use liquidity fees and redemption gates when the fund fails to maintain the prescribed liquidity threshold. In addition, in the case of either alternative, the proposal would eliminate the amortized cost method of valuation of securities maturing in more than 60 days while permitting the use of the penny rounding method to maintain a stable share price for money market funds not required to have a floating NAV. The proposal also included additional diversification and disclosure measures that would apply under either alternative. | |||||||||||||||||
Although Federated supports redemption gates and liquidity fees in certain contexts, Federated believes the floating NAV, if enacted, would significantly reduce the utility and attractiveness of money market funds for investors who, in Federated's view, value money market funds in their current form as an efficient and effective cash management investment product offering daily liquidity at par. The elimination of the amortized cost method of valuation of securities also could impact the usefulness of money market funds as a cash management product. If ultimately enacted, the floating NAV would be detrimental to Federated's money market fund business and could materially and adversely affect Federated's operations. The elimination of the amortized cost method of valuation of securities, if ultimately enacted, also could be detrimental to Federated's money market fund business and could materially and adversely affect Federated's operations. | |||||||||||||||||
Management reviewed the SEC proposal and actively participated in the public comment process both individually through the filing of nine comment letters and with industry groups. The public comment period formally closed on September 17, 2013. Comment letters are available on the SEC's website at http://www.sec.gov/comments/s7-03-13/s70313.shtml. Management does not expect final rules to be adopted prior to 2014 given, among other things, the number of industry comments and the complexity of the proposed rule amendments. Federated is unable to assess the degree of any potential impact the SEC proposed reforms may have on its business and operations until any rule amendments are finalized, as the final amendments could vary significantly from the form in which proposed. Moreover, the SEC's proposal also contemplates that, once the final amendments become effective, there would be staggered compliance dates: (1) if the fluctuating NAV alternative is adopted, an additional two years after the effective date for any reforms relating to that alternative; (2) if the liquidity fee and redemption gate alternative is adopted, an additional one year after the effective date for any reforms relating to that alternative; and (3) any reforms not specifically related to either the fluctuating NAV nor liquidity fee and redemption gate alternatives would have a compliance date of nine months after the final amendments become effective. | |||||||||||||||||
The Financial Stability Oversight Council (FSOC) may recommend new or heightened regulation for “nonbank financial companies” under Section 120 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). On April 3, 2013, the Board of Governors of the Federal Reserve System (the Governors) issued a final regulation, which became effective on May 6, 2013, that defines the term “predominantly engaged in financial activities” for purposes of identifying “nonbank financial companies” under the Dodd-Frank Act. In the adopting release for the regulation, the Governors stated that they believe “that it is clear that open-end investment companies, such as mutual funds including money market funds, . . . engage in financial activities.” Management respectfully disagrees with the Governors’ position. Management believes that (1) the final regulation is inconsistent with the clear language and intent of the Dodd-Frank Act, (2) the conclusion that mutual funds, including money market mutual funds, fall within the scope of “financial activities” is without a valid statutory basis, and (3) Congress intended the scope of “financial activities” for Dodd-Frank Act regulation to be strictly limited to specific lines of business previously defined under the Bank Holding Company Act, which historically have not been viewed as including mutual funds as a specific line of business. Federated is unable to assess whether, or the degree to which, any of Federated's sponsored investment companies, including money market funds, could ultimately be designated a nonbank financial company by FSOC. In management's view, the issuance of the final regulation is, and any reforms ultimately put into effect would be, detrimental to Federated's money market fund business and could materially and adversely affect Federated's operations. Federated is unable to assess the degree of any potential impact any reforms or other actions by the Governors, FSOC or other governmental entities may have on its business or operations at this time. | |||||||||||||||||
Current Regulatory Environment - Europe | |||||||||||||||||
European-based money market funds face regulatory reform pressure in Europe similar to that faced in the U.S. The European Commission released its money market fund reform proposal on September 4, 2013. The proposal would permit either floating NAV money market funds or constant net asset value money market funds subject to capital requirements. Under the proposal, a constant NAV money market fund generally must either build a capital buffer of 3% or convert to a floating NAV money market fund. The proposal is subject to the approval of the European Parliament and European Council and the final regulation could vary materially from that of the proposal. Management does not anticipate agreement on a final rule before 2015. | |||||||||||||||||
The financial transactions tax (FTT) proposal that is being developed by eleven European countries is not expected to be agreed upon in 2013. In September 2013, the European Council Legal Service issued a non-binding opinion that the FTT's extraterritorial reach is unlawful and would infringe on the tax rights of nonparticipating EU countries. The participating countries also continue to debate the FTT's scope, the allocation of taxes collected and certain other fundamental principles. Once agreed upon, final terms of the proposed FTT also will be subject to additional government approval prior to enactment. | |||||||||||||||||
European money market reform and the imposition of the FTT, particularly with its initially proposed broad application, would each be detrimental to Federated's fund business and could materially and adversely affect Federated's operations. Federated is unable to assess the degree of any potential impact that European money market reform proposals or the FTT may have on its business and operations until such proposals are finalized and approved or the FTT is enacted. | |||||||||||||||||
Historically Low Short-Term Interest Rates | |||||||||||||||||
For several years, the Governors have kept the near-zero federal funds rate unchanged and short-term interest rates continue at all-time low levels. In certain money market funds, the gross yield earned by the fund is not sufficient to cover all of the fund’s operating expenses due to these historically low short-term interest rates. Since the fourth quarter 2008, Federated has voluntarily waived fees in order for certain funds to maintain positive or zero net yields. These fee waivers have been partially offset by related reductions in distribution expense and net income attributable to noncontrolling interests as a result of Federated's mutual understanding and agreement with third-party intermediaries to share the impact of the waivers. | |||||||||||||||||
These voluntary fee waivers are calculated as a percent of assets under management (AUM or managed assets) in certain money market funds and thus will vary dependent upon the asset levels in such funds. In addition, the level of waivers are dependent on several other factors including, but not limited to, yields on instruments available for purchase by the money market funds, changes in expenses of the money market funds and changes in the mix of money market assets. In any given period, a combination of these factors drives the amount of fee waivers necessary in order for certain funds to maintain positive or zero net yields. As an isolated variable, an increase in yields on instruments held by the money market funds will cause the pre-tax impact of fee waivers to decrease. Conversely, as an isolated variable, an increase in expenses of the money market fund would cause the pre-tax impact of fee waivers to increase. | |||||||||||||||||
With regard to asset mix, changes in the relative amount of money market fund assets in prime and government money market funds as well as the distribution among certain share classes that vary in pricing structure will impact the level of fee waivers. Generally, prime money market funds waive less than government money market funds as a result of higher gross yields on the underlying investments. As such, as an isolated variable, an increase in the relative proportion of average managed assets invested in prime money market funds as compared to total average money market fund assets should result in lower waivers to maintain positive or zero net yields. Conversely, the opposite would also be true. | |||||||||||||||||
The impact of such fee waivers on various components of Federated's Consolidated Statements of Income was as follows for the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | (105.1 | ) | $ | (69.5 | ) | $ | (284.4 | ) | $ | (220.2 | ) | |||||
Less: Reduction in Distribution expense | 72.1 | 52.9 | 203.8 | 163.6 | |||||||||||||
Operating income | (33.0 | ) | (16.6 | ) | (80.6 | ) | (56.6 | ) | |||||||||
Less: Reduction in Noncontrolling interest | 2.7 | 0.3 | 4.8 | 0.9 | |||||||||||||
Pre-tax impact | $ | (30.3 | ) | $ | (16.3 | ) | $ | (75.8 | ) | $ | (55.7 | ) | |||||
The negative pre-tax impact of fee waivers to maintain positive or zero net yields on certain money market funds increased for both the three and nine months ended September 30, 2013 as compared to the same periods in 2012 primarily as a result of lower yields on instruments held by the money market funds. | |||||||||||||||||
Based on recent commentary from the Governors in its September 18, 2013 press release, “a highly accommodative stance of monetary policy will remain appropriate for a considerable time…,” Federated is unable to predict when the Governors will increase their target for the federal funds rate. As such, fee waivers to maintain positive or zero net yields on certain money market funds and the related reduction in distribution expense and net income attributable to noncontrolling interests could continue for the foreseeable future. Assuming asset levels and mix remain constant and based on recent market conditions, fee waivers for the fourth quarter 2013 may result in a negative pre-tax impact on income of approximately the same amount as the third quarter 2013. See Management's Discussion and Analysis for additional information on management’s expectations regarding fee waivers. While the level of fee waivers are impacted by various factors, increases in short-term interest rates that result in higher yields on securities purchased in money market fund portfolios would reduce the negative pre-tax impact of these waivers. The actual amount of future fee waivers and the resulting negative impact of these waivers are contingent on a number of variables including, but not limited to, changes in assets within the money market funds, available yields on instruments held by the money market funds, actions by the Governors, the U.S. Department of the Treasury, the SEC, FSOC and other governmental entities, changes in expenses of the money market funds, changes in the mix of money market customer assets, changes in the distribution fee arrangements with third parties, Federated’s willingness to continue the fee waivers and changes in the extent to which the impact of the waivers is shared by third parties. | |||||||||||||||||
(b) Revenue Concentration by Investment Fund | |||||||||||||||||
A significant portion of Federated's total revenue for both the three- and nine-month periods ended September 30, 2013 was derived from services provided to two sponsored funds, the Federated Kaufmann Fund (11% for both the three- and nine-month periods ended September 30, 2013) and the Federated Prime Obligations Fund (10% for both the three- and nine-month periods ended September 30, 2013). A significant and prolonged decline in the AUM in these funds could have a material adverse effect on Federated’s future revenues and, to a lesser extent, net income, due to a related reduction to distribution expenses associated with these funds. | |||||||||||||||||
A listing of Federated’s risk factors is included in Federated’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Variable Interest Entities [Abstract] | |||||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||||
Federated is involved with various entities in the normal course of business that may be deemed to be voting rights entities (VREs) or variable interest entities (VIEs). In accordance with Federated’s consolidation accounting policy, Federated first determines whether the entity being evaluated is a VRE or a VIE. Once this determination is made, Federated proceeds with its evaluation of whether or not to consolidate the entity. The disclosures below represent the results of such evaluations pertaining to September 30, 2013 and December 31, 2012. | |||||||||||
(a) Consolidated Variable Interest Entities | |||||||||||
From time to time, Federated invests in investment companies that meet the definition of a VIE for general corporate investment purposes or, in the case of newly launched products, in order to provide investable cash to establish a performance history. Most of Federated’s sponsored investment companies meet the definition of a VIE primarily due to their typical series fund structure in which the shareholders of each participating portfolio underlying the series fund generally lack the ability as an individual group to make decisions through voting rights regarding the board of directors/trustees of the fund. Federated’s investment in investment companies represents its maximum exposure to loss. Federated’s conclusion to consolidate an investment company may vary from period to period, most commonly as a result of changes in its percentage interest in the entity resulting from changes in the number of shares held by either Federated or third parties. Given that the entities follow investment company accounting, which prescribes fair-value accounting, a deconsolidation generally does not result in gains or losses for Federated. | |||||||||||
As of September 30, 2013 and December 31, 2012, Federated was deemed to be the primary beneficiary of and therefore consolidated several investment companies as a result of its majority ownership interest in the investment companies. In addition, during the first quarter 2013, Federated began consolidating a sponsored offshore money market fund for which it was deemed to be the primary beneficiary as a result of a vote by the fund board of directors to unwind the fund in the near term and the expectation that Federated will absorb the remaining net operating expenses of the fund. The remaining net operating expenses to be absorbed by Federated are estimated at $25 thousand. Federated consolidated $63.4 million in Investments—consolidated investment companies, $4.0 million in Cash and cash equivalents and $67.4 million in Redeemable noncontrolling interest in subsidiaries on the Consolidated Balance Sheets as of the date of consolidation. | |||||||||||
The following table presents the balances related to the consolidated investment companies that were included on the Consolidated Balance Sheets as well as Federated's net interest in the investment companies for each period presented: | |||||||||||
(in millions) | September 30, 2013 | December 31, 2012 | |||||||||
Cash and cash equivalents | $ | 1.1 | $ | 1 | |||||||
Investments—consolidated investment companies | 126.3 | 51.1 | |||||||||
Receivables | 0.9 | 0.7 | |||||||||
Less: Liabilities | 1.7 | 2 | |||||||||
Less: Redeemable noncontrolling interest in subsidiaries | 90.4 | 7.3 | |||||||||
Federated's net interest in consolidated investment companies | $ | 36.2 | $ | 43.5 | |||||||
Federated's net interest in the consolidated investment companies of $36.2 million and $43.5 million at September 30, 2013 and December 31, 2012, respectively, represents the value of Federated's economic ownership interest in these sponsored investment companies. The assets of the consolidated investment companies are restricted for use by the respective investment company. The liabilities of the consolidated investment companies primarily represent investments sold short for one fund, and otherwise represent operating liabilities of the entities. The liabilities are primarily classified as Other current liabilities on Federated’s Consolidated Balance Sheets. | |||||||||||
During the three- and nine-month periods ended September 30, 2012, Federated deconsolidated a non-U.S. dollar-denominated money market fund in which it was the sole investor as a result of redeeming its investment. Accordingly, Federated deconsolidated $78.3 million in Investments—consolidated investment companies. In addition, Federated realized a foreign currency gain of $1.2 million in Nonoperating Income (Expenses) - Other, net for the three- and nine-month periods ended September 30, 2012 on the Consolidated Statements of Income that had been recorded in Accumulated other comprehensive loss, net of tax. Federated's foreign currency risk in this investment was hedged by investments in foreign currency forward contracts which were settled in the three- and nine-month periods ended September 30, 2012. Accordingly, an offsetting pre-tax loss of $1.1 million was reclassified out of Accumulated other comprehensive loss, net of tax and realized in Nonoperating Income (Expenses) - Other, net for the three- and nine-month periods ended September 30, 2012 on the Consolidated Statements of Income. | |||||||||||
Neither creditors nor equity investors in the investment companies have any recourse to Federated’s general credit. In the ordinary course of business, from time to time, Federated may choose to waive certain fees or assume operating expenses of sponsored investment companies for competitive, regulatory or contractual reasons (see Note (1)(o) of Federated’s Annual Report on Form 10-K for the year ended December 31, 2012 for information regarding fee waivers). Federated has not provided financial support to any of these entities outside the ordinary course of business. | |||||||||||
(b) Non-Consolidated Variable Interest Entities | |||||||||||
At September 30, 2013 and December 31, 2012, Federated was involved with certain VIEs in which it held a variable interest but for which it was not the primary beneficiary. Federated’s investment and maximum risk of loss related to these unconsolidated VIEs were as follows: | |||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||
(in millions) | Total remaining carrying value of investment and maximum risk of loss | Total remaining carrying value of investment and maximum risk of loss | |||||||||
Investment companies1, 2 | $ | 210.3 | $ | 193.7 | |||||||
Equity investment3 | $ | 0.6 | $ | 3.8 | |||||||
1 | AUM for these unconsolidated investment companies totaled $278.3 billion and $295.4 billion at September 30, 2013 and December 31, 2012, respectively. | ||||||||||
2 | Accounts receivable from sponsored investment companies for advisory and other services totaled $11.6 million at both September 30, 2013 and December 31, 2012. | ||||||||||
3 | Total assets and liabilities of the equity investment were $1.9 million and $0.1 million, respectively, at September 30, 2013 and $2.8 million and $0.3 million, respectively, at December 31, 2012. | ||||||||||
Investment Companies – Federated's involvement with certain investment companies that are deemed to be VIEs includes serving as the investment manager, or at times, holding a minority interest or both. Federated’s variable interest is not deemed to absorb the majority of the variability of the entity’s net assets. Therefore, Federated is not the primary beneficiary of these VIEs and has not consolidated these entities. | |||||||||||
In the ordinary course of business, from time to time, Federated may choose to waive certain fees or assume operating expenses of these sponsored investment companies for competitive, regulatory or contractual reasons (see Note (1)(o) of Federated’s Annual Report on Form 10-K for the year ended December 31, 2012 for information regarding fee waivers). Federated has not provided financial support to any of these entities outside the ordinary course of business. | |||||||||||
Equity Investment – Federated holds a 12% non-voting, noncontrolling interest in a privately-held investment management firm that is registered as an investment adviser and a commodity trading adviser. This investment is accounted for using the equity method of accounting. As of September 30, 2013, the equity-method investee managed nearly $375 million in both absolute return and enhanced fixed-income mandates, including a hedge fund strategy and an enhanced cash strategy. Due primarily to the nature of the voting rights of the equity holders of the investee, the investee meets the definition of a VIE, however, with its non-voting 12% interest, Federated is not deemed to have power to direct the investee's activities and therefore is not the primary beneficiary. Federated has not provided financial support to the investee. Federated’s investment is included in Other long-term assets on the Consolidated Balance Sheets. In 2012, Federated recorded a $3.0 million impairment charge to write down the investment to a fair value of $3.8 million as of December 31, 2012. In the third quarter 2013, the equity investment experienced further impairment. Federated recorded a $3.1 million impairment charge to write down the investment to a fair value of $0.6 million as of September 30, 2013. See Note (7)(b) for additional information. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||||
Investments on the Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012 included available-for-sale and trading securities. At September 30, 2013 and December 31, 2012, Federated held investments totaling $141.5 million and $136.0 million, respectively, in fluctuating-value Federated-sponsored mutual funds that were classified as available-for-sale securities and were included in Investments—affiliates on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||
Available-for-sale securities were as follows: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross Unrealized | Estimated | Gross Unrealized | Estimated | ||||||||||||||||||||||||||||||
Fair | Fair | ||||||||||||||||||||||||||||||||
(in thousands) | Cost | Gains | (Losses) | Value | Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
Equity mutual funds | $ | 37,665 | $ | 3,098 | $ | 0 | $ | 40,763 | $ | 44,944 | $ | 4,814 | $ | (5 | ) | $ | 49,753 | ||||||||||||||||
Fixed-income mutual funds | 100,871 | 476 | (639 | ) | 100,708 | 84,855 | 1,436 | (21 | ) | 86,270 | |||||||||||||||||||||||
Total fluctuating-value mutual funds | $ | 138,536 | $ | 3,574 | $ | (639 | ) | $ | 141,471 | $ | 129,799 | $ | 6,250 | $ | (26 | ) | $ | 136,023 | |||||||||||||||
Federated’s trading securities totaled $130.8 million and $55.0 million at September 30, 2013 and December 31, 2012, respectively. Federated consolidates certain investment companies into its Consolidated Financial Statements as a result of Federated’s controlling financial interest in the companies (see Note (5)). All investments held by these investment companies, which primarily represented Federated-sponsored investment companies, were included in Investments—consolidated investment companies on Federated’s Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012. Investments—other on the Consolidated Balance Sheets represented other trading investments held in separate accounts for which Federated is the beneficiary. | |||||||||||||||||||||||||||||||||
Federated’s trading securities as of September 30, 2013 were primarily composed of foreign and domestic debt securities totaling $103.5 million (of which $66.4 million represented high-quality short-term debt securities held by a consolidated sponsored offshore money market fund), stocks of large U.S. and international companies ($15.4 million) and an offshore master fund invested in global project and trade finance transactions ($2.8 million). Federated's trading securities as of December 31, 2012 were primarily composed of domestic and foreign debt securities ($28.4 million), stocks of large U.S. and international companies ($13.9 million) and an offshore master fund invested in global project and trade finance transactions ($12.1 million). | |||||||||||||||||||||||||||||||||
The following table presents gains and losses recognized in Gain on securities, net on the Consolidated Statements of Income in connection with investments and economic derivatives held by certain consolidated investment companies: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gain (loss) | |||||||||||||||||||||||||||||||||
Trading securities | $ | 748 | $ | 738 | $ | 516 | $ | 1,432 | |||||||||||||||||||||||||
Derivatives1 | 29 | (64 | ) | (128 | ) | 123 | |||||||||||||||||||||||||||
Realized gains2 | |||||||||||||||||||||||||||||||||
Available-for-sale securities3 | 4,759 | 1,034 | 10,917 | 3,142 | |||||||||||||||||||||||||||||
Trading securities | 457 | 278 | 1,075 | 829 | |||||||||||||||||||||||||||||
Derivatives1 | 275 | 410 | 874 | 636 | |||||||||||||||||||||||||||||
Realized losses2 | |||||||||||||||||||||||||||||||||
Available-for-sale securities3 | (381 | ) | 0 | (1,320 | ) | 0 | |||||||||||||||||||||||||||
Trading securities | (267 | ) | (68 | ) | (754 | ) | (415 | ) | |||||||||||||||||||||||||
Derivatives1 | (28 | ) | (74 | ) | (344 | ) | (691 | ) | |||||||||||||||||||||||||
Gain on securities, net4 | $ | 5,592 | $ | 2,254 | $ | 10,836 | $ | 5,056 | |||||||||||||||||||||||||
1 | Amounts related to economic derivatives held by certain consolidated investment companies. | ||||||||||||||||||||||||||||||||
2 | Realized gains and losses are computed on a specific-identification basis. | ||||||||||||||||||||||||||||||||
3 | Amounts related to sales of available-for-sale securities resulting in proceeds of $32.6 million and $88.4 million for the three and nine months ended September 30, 2013, respectively, and $6.4 million and $75.9 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||||||||||
4 | Amounts related to consolidated investment companies totaled $1.0 million for both the three and nine months ended September 30, 2013, and $1.1 million and $1.6 million for the three and nine months ended September 30, 2012, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are: | |||||||||||||||||||||||||||||||||
Level 1 – Quoted prices for identical instruments in active markets. Level 1 assets may include equity and debt securities that are traded in an active exchange market, including shares of mutual funds. | |||||||||||||||||||||||||||||||||
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 in which all significant inputs and significant value drivers are observable in active markets. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. | |||||||||||||||||||||||||||||||||
Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. | |||||||||||||||||||||||||||||||||
(a) Fair Value Measurements on a Recurring Basis | |||||||||||||||||||||||||||||||||
The following table presents fair value measurements for classes of Federated’s financial assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 78,262 | $ | 0 | $ | 0 | $ | 78,262 | $ | 67,585 | $ | 0 | $ | 0 | $ | 67,585 | |||||||||||||||||
Available-for-sale equity securities | 94,390 | 47,081 | 0 | 141,471 | 102,493 | 33,530 | 0 | 136,023 | |||||||||||||||||||||||||
Trading securities—equity | 18,069 | 9,198 | 0 | 27,267 | 9,808 | 16,776 | 0 | 26,584 | |||||||||||||||||||||||||
Trading securities—debt | 0 | 103,514 | 0 | 103,514 | 0 | 28,436 | 0 | 28,436 | |||||||||||||||||||||||||
Foreign currency forward contracts | 0 | 123 | 0 | 123 | 0 | 158 | 0 | 158 | |||||||||||||||||||||||||
Total financial assets | $ | 190,721 | $ | 159,916 | $ | 0 | $ | 350,637 | $ | 179,886 | $ | 78,900 | $ | 0 | $ | 258,786 | |||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Interest rate swap | $ | 0 | $ | 6,519 | $ | 0 | $ | 6,519 | $ | 0 | $ | 11,178 | $ | 0 | $ | 11,178 | |||||||||||||||||
Acquisition-related future consideration liabilities | 0 | 0 | 12,042 | 12,042 | 0 | 0 | 11,759 | 11,759 | |||||||||||||||||||||||||
Other1 | 1,065 | 31 | 0 | 1,096 | 1,015 | 0 | 0 | 1,015 | |||||||||||||||||||||||||
Total financial liabilities | $ | 1,065 | $ | 6,550 | $ | 12,042 | $ | 19,657 | $ | 1,015 | $ | 11,178 | $ | 11,759 | $ | 23,952 | |||||||||||||||||
1 | Amounts include investments sold short within one of the consolidated investment companies and/or foreign currency forward contracts recorded within Other current liabilities on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies used for financial assets and liabilities measured at fair value on a recurring basis. Federated did not hold any nonfinancial assets or liabilities measured at fair value on a recurring basis at September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||
Cash and cash equivalents include investments in money market funds and deposits with banks. Investments in Federated money market funds totaled $70.0 million and $60.2 million at September 30, 2013 and December 31, 2012, respectively. Cash investments in money market funds are valued under the market approach through the use of quoted market prices in an active market, which is the NAV of the funds, and are classified within Level 1 of the valuation hierarchy. | |||||||||||||||||||||||||||||||||
Available-for-sale equity securities | |||||||||||||||||||||||||||||||||
Available-for-sale equity securities include investments in sponsored fluctuating-value mutual funds and are included in Investments—affiliates on the Consolidated Balance Sheets. For investments in mutual funds that are publicly available, the securities are valued under the market approach through the use of quoted market prices available in an active market, which is the NAV of the funds, and are classified within Level 1 of the valuation hierarchy. For one investment in a mutual fund that is not publicly available but for which the NAV is calculated daily and for which there are no redemption restrictions, the security is valued using NAV as a practical expedient and is classified as Level 2. There is no modeling or additional information needed to arrive at the fair values of any of these investments. | |||||||||||||||||||||||||||||||||
Trading securities—equity | |||||||||||||||||||||||||||||||||
These trading securities represented primarily the equity securities held by consolidated investment companies (included in Investments—consolidated investment companies on the Consolidated Balance Sheets) as well as certain equity investments held in separate accounts for which Federated is the beneficiary (included in Investments—other on the Consolidated Balance Sheets). For the publicly traded equity securities available in an active market, whether domestic or foreign, the fair value of these securities is often classified as Level 1 and is based on unadjusted quoted market prices. From time to time, however, the fair value of certain equity securities traded principally in foreign markets and held by consolidated investment companies may be determined by third-party pricing services when there has been a significant trend in the U.S. equity markets or in index futures trading between the time the foreign market closes and the pricing time of the consolidated investment company. The determination to use the third-party pricing service versus the unadjusted quoted market price is the cause for transfers between Level 1 and Level 2 for these securities. For the period between December 31, 2012 and September 30, 2013, there were no investments transferred between Level 1 and Level 2. For the period between December 31, 2011 and September 30, 2012, $0.6 million of investments transferred from Level 2 to Level 1 as a result of a determination by management at the end of 2011 to use adjusted quoted market prices because there had been a significant trend in the U.S. equity markets or in index futures trading after the foreign markets closed, as compared to, at the end of the third quarter 2012, using unadjusted quoted market prices to determine fair values of these equity securities. Transfers into and out of Levels 1 and 2 of the fair value hierarchy are reported at fair values as of the beginning of the period in which the transfers occur. | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, equity trading securities also included shares of certain non-publicly traded mutual funds that were valued using NAV as a practical expedient (Level 2). Most significantly, Federated held shares of an offshore master investment fund as a result of consolidating one of its feeder funds as of September 30, 2013 and December 31, 2012. The offshore master investment fund, which is not publicly available, makes investments in global project and trade finance transactions. The $2.8 million and $12.1 million fair value at September 30, 2013 and December 31, 2012, respectively, of the feeder fund's investment in the master fund was determined using the NAV of the master fund, as a practical expedient, and was classified as Level 2 in the valuation hierarchy at September 30, 2013 and December 31, 2012. At Federated's request, this investment is being redeemed primarily as portfolio investments mature. Federated expects that the investment will be fully redeemed in the fourth quarter of 2013. | |||||||||||||||||||||||||||||||||
Trading securities—debt | |||||||||||||||||||||||||||||||||
At September 30, 2013, debt trading securities primarily represented high-quality short-term debt securities held by a consolidated sponsored offshore money market fund ($66.4 million). The remaining debt trading securities held at September 30, 2013 and the balance at December 31, 2012 primarily represented U.S. and foreign bonds held by consolidated Federated-sponsored investment companies. The fair value of these securities may include observable market data such as valuations provided by independent pricing services after considering factors such as the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. The entire amount of these securities is included in Investments—consolidated investment companies or Investments—other on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||||||||||||||
The fair value of foreign currency forward contracts is primarily included in Receivables, net or Other current liabilities on the Consolidated Balance Sheets. These contracts represented contracts held by certain consolidated Federated-sponsored investment companies as part of their investment strategy. Pricing is determined by interpolating a value by utilizing the spot foreign exchange rate and forward points (based on the spot rate and currency interest rate differentials), which are all inputs that are observable in active markets (Level 2). | |||||||||||||||||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||||||||||||
The fair value of Federated's interest rate swap (the Swap) at September 30, 2013 is included in Other current liabilities ($5.4 million) and Other long-term liabilities ($1.1 million) on the Consolidated Balance Sheets. Pricing is determined based on a third-party, model-derived valuation in which all significant inputs are observable in active markets including the Eurodollar future rate and yields for three- and thirty-year Treasury securities. See Note (8) for more information regarding the Swap. | |||||||||||||||||||||||||||||||||
Acquisition-related future consideration liabilities | |||||||||||||||||||||||||||||||||
From time to time, pursuant to purchase and sale agreements entered into in connection with certain business combinations, Federated may be required to make future consideration payments if certain contingencies are met. See Note (12)(a) for additional information regarding the nature and timing of these payments. In connection with these arrangements entered into after January 1, 2009, Federated records a liability representing the estimated fair value of future consideration payments as of the acquisition date. The liability is subsequently remeasured at fair value on a recurring basis with changes in fair value recorded in earnings. As of September 30, 2013, acquisition-related future consideration liabilities were recorded in Other current liabilities ($4.4 million) and Other long-term liabilities ($7.6 million) on the Consolidated Balance Sheets. Management estimated the fair value of future consideration payments based primarily upon expected future cash flows using an income approach valuation methodology with unobservable data inputs (Level 3). As of September 30, 2013, significant inputs involving unobservable market data included (1) an estimated rate of change for underlying AUM ranging from 0% - 28% per year (weighted average of 5%); (2) an estimate ranging from 0.01% - 0.02% per year of the impact of fee waivers to maintain positive or zero net yields on the contractually-derived net revenue per managed asset assumptions (weighted average of 0.02%); and (3) an estimated discount rate ranging from 17% - 20% based on the current estimated market rate of return (weighted average of 17%). Assuming no other changes in model inputs, the fair value of the future consideration liability will increase, resulting in additional Intangible asset related expense in the period of change if: (1) the underlying AUM grow at a rate that is greater than the assumed rate, (2) the actual impact of fee waivers to maintain positive or zero net yields on the net revenue is less than the assumed amount or (3) the discount rate decreases. Conversely, the fair value of the future consideration liability will decrease if the inverse occurs for any of these inputs, assuming no other changes. | |||||||||||||||||||||||||||||||||
The following table presents a reconciliation of the beginning and ending balances for Federated’s liability for future consideration payments related to these acquisitions for each period presented: | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 11,712 | $ | 13,904 | $ | 11,759 | $ | 13,404 | |||||||||||||||||||||||||
New acquisition/adjustment1 | 330 | 1,861 | 330 | 3,361 | |||||||||||||||||||||||||||||
Changes in fair value2 | 0 | 0 | (47 | ) | (1,000 | ) | |||||||||||||||||||||||||||
Ending balance | $ | 12,042 | $ | 15,765 | $ | 12,042 | $ | 15,765 | |||||||||||||||||||||||||
1 | Amounts include the preliminary fair value estimate of the contingent payment liability recorded in connection with a new acquisition or the revision thereof upon finalization of the valuation process related to initial purchase accounting. | ||||||||||||||||||||||||||||||||
2 | For the nine months ended September 30, 2013, the amount was primarily included as Other expense on the Consolidated Statements of Income and primarily represented a foreign currency loss. For the nine months ended September 30, 2012, the amount was included as a decrease to Intangible asset related expense on the Consolidated Statements of Income. | ||||||||||||||||||||||||||||||||
Investments sold short | |||||||||||||||||||||||||||||||||
The fair value of investments sold short within a consolidated investment company is included in Other current liabilities on the Consolidated Balance Sheets. The investments primarily relate to domestic equity securities that are available in an active exchange market. The fair value of these investments is classified as Level 1 and is based on unadjusted quoted market prices. | |||||||||||||||||||||||||||||||||
(b) Fair Value Measurements on a Nonrecurring Basis | |||||||||||||||||||||||||||||||||
Federated holds a 12% non-voting, noncontrolling interest in a privately-held investment management firm that is registered as an investment adviser and a commodity trading adviser. This investment is accounted for using the equity method of accounting. The excess carrying value of Federated's equity-method investment as compared to its proportionate share of the investee's underlying net assets reflects goodwill. During 2012, due to declines in the investee's AUM, their performance relative to indices and the uncertainty regarding each in the future, Federated evaluated the carrying value of its investment for other-than-temporary impairment under the equity method of accounting. Management estimated the fair value of its investment at December 31, 2012 and determined that it was other-than-temporarily impaired. Accordingly, Federated recorded a $3.0 million impairment charge in Nonoperating Income (Expenses) – Other, net to write down the equity-method investment to a fair value of $3.8 million as of December 31, 2012. The estimate of fair value was based primarily upon the present value of expected future cash flows using an income approach valuation methodology with unobservable data inputs (Level 3). Significant unobservable model inputs included: (1) projected AUM across product lines with a 10-year compounded annual growth rate of 15% and a terminal growth rate of 3%; and (2) a 17% discount rate based upon the current estimated market rate of return. | |||||||||||||||||||||||||||||||||
During the third quarter 2013, upon consideration of continued investment underperformance and a decrease in forecasted growth of AUM, Federated evaluated the carrying value of its investment for other-than-temporary impairment under the equity method of accounting. Management estimated the fair value of its investment at September 30, 2013 and determined that it was other-than-temporarily impaired. Accordingly, Federated recorded a $3.1 million impairment charge in Nonoperating Income (Expenses) - Other, net to write down the equity-method investment to a fair value of $0.6 million as of September 30, 2013. The estimate of fair value was based primarily upon the present value of expected future cash flows using probability-weighted scenarios in an income approach valuation methodology with unobservable data inputs (Level 3). Significant unobservable model inputs included: (1) projected scenario AUM across product lines with a 10-year compounded annual growth rate ranging from 0% - 9%; (2) a terminal growth rate of 3%; and (3) a 17% discount rate based upon the current estimated market rate of return. Given uncertainties regarding the success of future sales efforts and possible prolonged periods of underperformance compared to indices and the significance of these factors to AUM, management cannot be certain of the outcome of future cash flow analyses for this investment. | |||||||||||||||||||||||||||||||||
(c) Fair Value Measurements of Other Financial Instruments | |||||||||||||||||||||||||||||||||
The fair value of Federated’s debt is estimated by management based upon expected future cash flows utilizing a discounted cash flow methodology under the income approach. The fair value of the liability is estimated using observable market data (Level 2) in estimating inputs including the discount rate. Based on this fair value estimate, the carrying value of debt appearing on the Consolidated Balance Sheets approximates fair value. |
Debt_and_Interest_Rate_Swap
Debt and Interest Rate Swap | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt And Interest Rate Swap [Abstract] | |||||||||||||
Debt and Interest Rate Swap | Debt and Interest Rate Swap | ||||||||||||
Debt consisted of the following: | |||||||||||||
(dollars in thousands) | Weighted-Average Interest Rate1 | September 30, 2013 | December 31, 2012 | ||||||||||
Term Loan | 3.65% | $ | 286,875 | $ | 318,750 | ||||||||
Less: Short-term debt | 60,208 | 42,500 | |||||||||||
Long-term debt | $ | 226,667 | $ | 276,250 | |||||||||
1 | See additional information below regarding the interest rate fixed at 3.646% in connection with the Swap. | ||||||||||||
In 2011, Federated entered into an Amended and Restated Credit Agreement with a syndicate of banks that included a $382.5 million term loan (Term Loan) and a $200 million revolving credit facility (collectively, Credit Agreement). The Credit Agreement expires on June 10, 2016. The Term Loan, a variable-rate note, requires principal payments of $10.6 million per quarter for the first three years and $28.3 million per quarter for the fourth and fifth years and a final payment of $28.3 million due upon its expiration. Certain subsidiaries entered into an Amended and Restated Continuing Agreement of Guaranty and Suretyship whereby these subsidiaries guarantee payment of all obligations incurred through the Credit Agreement. | |||||||||||||
The borrowings under the Term Loan bear interest at a spread over the London Interbank Offering Rate (LIBOR). Federated is a party to an interest rate swap (the Swap) with PNC Bank, National Association and certain other banks to hedge its interest rate risk on the Term Loan. Under the Swap, which expires on April 1, 2015, Federated receives payments based on LIBOR plus a spread and makes payments based on an annual fixed rate of 3.646%. The Swap requires monthly cash settlements of interest paid or received. The differential between the interest paid or interest received from the monthly settlements is recorded as adjustments to Debt expense on the Consolidated Statements of Income. The Swap is accounted for as a cash flow hedge and has been determined to be highly effective. Federated evaluates effectiveness using the long-haul method. Changes in the fair value of the Swap will likely be offset by an equal and opposite change in the fair value of the hedged item, therefore very little, if any, net impact on reported earnings is expected. The fair value of the Swap agreement at September 30, 2013 was a liability of $6.5 million which was recorded in Other current liabilities ($5.4 million) and Other long-term liabilities ($1.1 million) on the Consolidated Balance Sheets. The entire amount of this loss in fair value was recorded in Accumulated other comprehensive loss, net of tax on the Consolidated Balance Sheets at September 30, 2013. During the next twelve months management expects to charge $5.4 million of this loss to Debt expense on the Consolidated Statements of Income as a component of Federated’s fixed interest rate of 3.646%. This amount could differ from amounts actually recognized due to changes in interest rates subsequent to September 30, 2013 and will not affect the amount of interest expense recognized in total on the Term Loan for any period presented. During the three- and nine-month periods ended September 30, 2013, $1.6 million and $4.9 million, respectively, were charged to Debt expense on the Consolidated Statements of Income as a component of Federated’s fixed interest rate associated with the Swap. During the three- and nine-month periods ended September 30, 2012, $1.8 million and $5.5 million, respectively, were charged to Debt expense on the Consolidated Statements of Income as a component of Federated’s fixed interest rate associated with the Swap. | |||||||||||||
As of September 30, 2013, the entire $200 million revolving credit facility was available for borrowings. | |||||||||||||
The Credit Agreement includes representations, warranties and other covenants, including an interest coverage ratio covenant and a leverage ratio covenant. Federated was in compliance with all covenants at and during the nine months ended September 30, 2013. The Credit Agreement and the Swap also have certain stated events of default and cross default provisions which would permit the lenders/counterparties to accelerate the repayment of the debt or to terminate the Swap if not cured within the applicable grace periods. The events of default generally include breaches of contract, failure to make required loan payments, insolvency, cessation of business, deterioration in credit rating to below investment grade, notice of lien or assessment and other proceedings, whether voluntary or involuntary, that would require the repayment of amounts borrowed. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | Share-Based Compensation Plans |
(a) Restricted Stock | |
During the first nine months of 2013, Federated awarded 489,050 shares of restricted Federated Class B common stock, nearly all of which were awarded in connection with a bonus program in which certain key employees received a portion of their bonus in the form of restricted stock under Federated’s Stock Incentive Plan. This restricted stock, which was granted on the bonus payment date and issued out of treasury, will generally vest over a three-year period. | |
Federated awarded 1,015,273 shares of restricted Federated Class B common stock under its Stock Incentive Plan during 2012. Of this amount, 480,773 shares of restricted Federated Class B common stock were awarded in connection with the aforementioned bonus program in 2012. The remaining shares were awarded to certain key employees and generally vest over a ten-year period. | |
(b) Stock Options | |
During the nine months ended September 30, 2013 and the year ended December 31, 2012, there were no stock options issued or exercised. | |
(c) Non-management Director Stock Award | |
Federated awarded 5,100 and 4,500 shares of Federated Class B common stock to non-management directors during the second quarters of 2013 and 2012, respectively. There were no additional awards to non-management directors in 2013 or 2012. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | |
Equity | Equity |
During 2008, the board of directors authorized a share repurchase program that allows Federated to buy back up to 5 million shares of Class B common stock. The program has no stated expiration date and no other programs existed as of September 30, 2013. The program authorizes executive management to determine the timing and the amount of shares for each purchase. The repurchased stock are held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities. During the first nine months of 2013, Federated repurchased 0.3 million shares of common stock for $7.2 million ($0.3 million of which was accrued in Other current liabilities as of September 30, 2013), the majority of which were repurchased in the open market. The remaining shares were repurchased in connection with employee separations and are not counted against the board-approved share repurchase program. At September 30, 2013, approximately 1.6 million shares remained available to be purchased under the current buyback program. |
Earnings_Per_Share_Attributabl
Earnings Per Share Attributable to Federated Investors, Inc. Shareholders | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Earnings Per Share Attributable to Federated Investors, Inc. Shareholders | Earnings Per Share Attributable to Federated Investors, Inc. Shareholders | ||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for amounts attributable to Federated Investors, Inc. using the two-class method: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator – Basic and Diluted | |||||||||||||||||
Net income attributable to Federated Investors, Inc. | $ | 37,704 | $ | 55,773 | $ | 121,106 | $ | 138,508 | |||||||||
Less: Total income available to participating unvested restricted shareholders1 | (1,426 | ) | (1,951 | ) | (4,619 | ) | (4,978 | ) | |||||||||
Total net income attributable to Federated Common Stock2 | $ | 36,278 | $ | 53,822 | $ | 116,487 | $ | 133,530 | |||||||||
Denominator | |||||||||||||||||
Basic weighted-average common shares outstanding | 100,677 | 100,417 | 100,637 | 100,292 | |||||||||||||
Dilutive potential shares from stock options | 1 | 0 | 1 | 0 | |||||||||||||
Diluted weighted-average common shares outstanding | 100,678 | 100,417 | 100,638 | 100,292 | |||||||||||||
Earnings per Share | |||||||||||||||||
Net income attributable to Federated Common Stock – Basic and Diluted2 | $ | 0.36 | $ | 0.54 | $ | 1.16 | $ | 1.33 | |||||||||
1 | Income available to participating unvested restricted shareholders includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. | ||||||||||||||||
2 | Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share. | ||||||||||||||||
For both the three- and nine-month periods ended September 30, 2013, fewer than 50 thousand awarded stock options were not included in the computation of diluted earnings per share for each period. For both the three- and nine-month periods ended September 30, 2012, approximately 300 thousand awarded stock options were not included in the computation of diluted earnings per share for each period. In all cases, these options were antidilutive because the exercise price was greater than the average market price of Federated Class B common stock for each respective period. In the event the options become "in-the-money," these shares would be included in the calculation of diluted earnings per share and would result in additional dilution. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
(a) Contractual | |
In 2010, Federated acquired the money market management business of SunTrust Banks, Inc. (SunTrust Acquisition). As part of the SunTrust Acquisition, Federated is required to make annual contingent purchase price payments in the fourth quarters of each of the five years following the acquisition date. The contingent purchase price payments are calculated as a percentage of revenue less distribution expenses directly attributed to certain eligible assets. The first two contingent purchase price payments of $5.0 million and $4.2 million were paid in the fourth quarters of 2011 and 2012, respectively. At September 30, 2013, management estimated remaining contingent payments could total $10 million over the three years that remain; however, the actual amount of the contingent payments will vary based on asset levels and related net revenues and is not limited by any maximum amount. A wide range of outcomes for actual payments is possible due to the extent of reasonably possible flow-rate volatility for the respective AUM. As of September 30, 2013, a liability of $8.2 million representing the estimated fair value of future consideration payments was recorded in Other current liabilities ($3.5 million) and Other long-term liabilities ($4.7 million) (see Note (7)(a) for a discussion regarding the valuation methodology). This liability is remeasured at each reporting date with changes in the fair value recognized in Intangible asset related expense on the Consolidated Statements of Income. | |
In 2008, Federated completed the acquisition of certain assets of Clover Capital Management, Inc., an investment manager that specializes in value investing (Clover Capital Acquisition). As part of the Clover Capital Acquisition, Federated is required to make contingent purchase price payments based upon growth in revenues over the five-year period following the acquisition date. The contingent purchase price payments will be recorded as additional goodwill at the time the contingency is resolved. The applicable growth targets were not met for the first two anniversary years and as such, no related payments were made. In the first quarter 2013 and 2012, $3.4 million and $5.9 million were paid with regard to the fourth and third anniversary years, respectively. Assuming asset levels and projected revenue remain constant based on recent trends, the fifth anniversary year payment may approximate $9 million. As of September 30, 2013, the contingency was not yet resolved for the fifth anniversary year ending in December 2013 therefore no amounts were accrued. | |
Pursuant to other acquisition agreements, Federated may be required to make additional purchase price payments based on a percentage of revenue less certain direct expenses attributable to eligible AUM. The payments could occur annually through 2017. As of September 30, 2013, liabilities totaling $3.9 million and representing the estimated fair value of future consideration payments were recorded in Other current liabilities ($1.0 million) and Other long-term liabilities ($2.9 million) (see Note (7)(a) for a discussion regarding the valuation methodology). The liabilities are remeasured at each reporting date with changes in the fair value recognized in Intangible asset related expense and/or Other expense on the Consolidated Statements of Income. | |
Pursuant to various significant employment arrangements, Federated may be required to make certain incentive compensation-related payments. The employment contracts expire on various dates through the year 2014 with payments possible through 2018. As of September 30, 2013, the maximum bonus payable over the remaining terms of the contracts approximates $44 million, of which approximately $28 million could be payable in 2014. As of September 30, 2013, $6.4 million is recorded in Accrued compensation and benefits related to these payments, none of which would be payable in the remainder of 2013. In addition, certain employees have incentive compensation opportunities related to the Federated Kaufmann Large Cap Fund (the Fund Bonus). Assuming asset levels and other variable inputs at September 30, 2013 remain constant throughout the year, the Fund Bonus payment in 2014 is not expected to be material. Management is unable to reasonably estimate a range of possible bonus payments for the Fund Bonus for subsequent years due to the wide range of possible growth-rate scenarios. | |
(b) Guarantees and Indemnifications | |
On an intercompany basis, various wholly owned subsidiaries of Federated guarantee certain financial obligations of Federated Investors, Inc., and Federated Investors, Inc. guarantees certain financial and performance-related obligations of various wholly owned subsidiaries. In addition, in the normal course of business, Federated has entered into contracts that provide a variety of indemnifications. Typically, obligations to indemnify third parties arise in the context of contracts entered into by Federated, under which Federated agrees to hold the other party harmless against losses arising out of the contract, provided the other party's actions are not deemed to have breached an agreed upon standard of care. In each of these circumstances, payment by Federated is contingent on the other party making a claim for indemnity, subject to Federated's right to challenge the other party's claim. Further, Federated’s obligations under these agreements may be limited in terms of time and/or amount. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of Federated’s obligations and the unique facts and circumstances involved in each particular agreement. Management believes that if Federated were to incur a loss in any of these matters, such loss should not have a material effect on its business, financial position, results of operations or cash flows. | |
(c) Other Legal Proceedings | |
Federated has claims asserted and threatened against it in the ordinary course of business. As of September 30, 2013, Federated does not believe that a material loss related to these claims is reasonably possible. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss attributable to Federated Shareholders | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||
Accumulated Other Comprehensive Loss attributable to Federated Shareholders | Accumulated Other Comprehensive Loss attributable to Federated Shareholders | |||||||||||||||||||
The components of Accumulated other comprehensive loss, net of tax attributable to Federated shareholders are as follows: | ||||||||||||||||||||
(in thousands) | Unrealized Loss | Unrealized Gain on Securities | Unrealized Loss on Foreign Currency Hedge3 | Foreign Currency | Total | |||||||||||||||
on Interest Rate Swap1 | Available for Sale2 | Translation Gain (Loss)3 | ||||||||||||||||||
Balance at December 31, 2011 | $ | (9,634 | ) | $ | 325 | $ | 368 | $ | 329 | $ | (8,612 | ) | ||||||||
Other comprehensive (loss) income before reclassifications and tax | (3,192 | ) | 9,286 | (1,631 | ) | 1,381 | 5,844 | |||||||||||||
Tax impact | 1,183 | (3,677 | ) | 332 | (484 | ) | (2,646 | ) | ||||||||||||
Reclassification adjustments, before tax | 5,543 | (3,141 | ) | 1,169 | (1,237 | ) | 2,334 | |||||||||||||
Tax impact | (2,054 | ) | 1,244 | (238 | ) | 433 | (615 | ) | ||||||||||||
Net current-period other comprehensive income (loss) | 1,480 | 3,712 | (368 | ) | 93 | 4,917 | ||||||||||||||
Balance at September 30, 2012 | $ | (8,154 | ) | $ | 4,037 | $ | 0 | $ | 422 | $ | (3,695 | ) | ||||||||
Balance at December 31, 2012 | $ | (7,071 | ) | $ | 3,644 | $ | 0 | $ | 490 | $ | (2,937 | ) | ||||||||
Other comprehensive (loss) income before reclassifications and tax | (290 | ) | 6,308 | 0 | (165 | ) | 5,853 | |||||||||||||
Tax impact | 105 | (2,616 | ) | 0 | 57 | (2,454 | ) | |||||||||||||
Reclassification adjustments, before tax | 4,949 | (9,597 | ) | 0 | 0 | (4,648 | ) | |||||||||||||
Tax impact | (1,796 | ) | 3,981 | 0 | 0 | 2,185 | ||||||||||||||
Net current-period other comprehensive income (loss) | 2,968 | (1,924 | ) | 0 | (108 | ) | 936 | |||||||||||||
Balance at September 30, 2013 | $ | (4,103 | ) | $ | 1,720 | $ | 0 | $ | 382 | $ | (2,001 | ) | ||||||||
1 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Debt expense on the Consolidated Statements of Income. | |||||||||||||||||||
2 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Gain on securities, net on the Consolidated Statements of Income. | |||||||||||||||||||
3 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Nonoperating Income (Expenses) - Other, net on the Consolidated Statements of Income. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On October 24, 2013, the board of directors declared a $0.25 per share dividend to shareholders of record as of November 8, 2013 to be paid on November 15, 2013. |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Comprehensive Income | Comprehensive IncomeEffective January 1, 2013, Federated adopted a Financial Accounting Standards Board (FASB) accounting standards update relating to the presentation of comprehensive income. The update requires disclosure of the changes in accumulated other comprehensive income balances by component as well as additional disclosure related to amounts reclassified out of accumulated other comprehensive income. See Note (13) for this new disclosure. As the update affected disclosure only, the adoption of the update did not have a financial impact on Federatedbs Consolidated Financial Statements. |
New Accounting Pronouncements Not yet Adopted [Text Block] | Investment Companies |
On June 7, 2013, the FASB issued a final accounting standards update amending the criteria for an entity to qualify as an investment company under GAAP. Any entity regulated under the Investment Company Act of 1940 is automatically an investment company under the new definition. The update also amends certain disclosure requirements and measurement criteria. The update is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2013 and prohibits early adoption. Management is currently evaluating the impact of adoption on Federated's financial statement but does not expect the impact to be material. |
Concentration_Risk_Tables
Concentration Risk (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||
Schedule of Revenue Concentration [Table Text Block] | The following table summarizes the percentage of total revenue earned from Federated's asset classes for the periods presented: | ||||||||||||||||
Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Money market assets | 40 | % | 47 | % | |||||||||||||
Equity assets | 36 | % | 31 | % | |||||||||||||
Fixed-income assets | 23 | % | 21 | % | |||||||||||||
Voluntary Fee Waivers [Table Text Block] | The impact of such fee waivers on various components of Federated's Consolidated Statements of Income was as follows for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | (105.1 | ) | $ | (69.5 | ) | $ | (284.4 | ) | $ | (220.2 | ) | |||||
Less: Reduction in Distribution expense | 72.1 | 52.9 | 203.8 | 163.6 | |||||||||||||
Operating income | (33.0 | ) | (16.6 | ) | (80.6 | ) | (56.6 | ) | |||||||||
Less: Reduction in Noncontrolling interest | 2.7 | 0.3 | 4.8 | 0.9 | |||||||||||||
Pre-tax impact | $ | (30.3 | ) | $ | (16.3 | ) | $ | (75.8 | ) | $ | (55.7 | ) |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Variable Interest Entities [Abstract] | |||||||||||
Consolidated and Unconsolidated VIEs | The following table presents the balances related to the consolidated investment companies that were included on the Consolidated Balance Sheets as well as Federated's net interest in the investment companies for each period presented: | ||||||||||
(in millions) | September 30, 2013 | December 31, 2012 | |||||||||
Cash and cash equivalents | $ | 1.1 | $ | 1 | |||||||
Investments—consolidated investment companies | 126.3 | 51.1 | |||||||||
Receivables | 0.9 | 0.7 | |||||||||
Less: Liabilities | 1.7 | 2 | |||||||||
Less: Redeemable noncontrolling interest in subsidiaries | 90.4 | 7.3 | |||||||||
Federated's net interest in consolidated investment companies | $ | 36.2 | $ | 43.5 | |||||||
Federated’s investment and maximum risk of loss related to these unconsolidated VIEs were as follows: | |||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||
(in millions) | Total remaining carrying value of investment and maximum risk of loss | Total remaining carrying value of investment and maximum risk of loss | |||||||||
Investment companies1, 2 | $ | 210.3 | $ | 193.7 | |||||||
Equity investment3 | $ | 0.6 | $ | 3.8 | |||||||
1 | AUM for these unconsolidated investment companies totaled $278.3 billion and $295.4 billion at September 30, 2013 and December 31, 2012, respectively. | ||||||||||
2 | Accounts receivable from sponsored investment companies for advisory and other services totaled $11.6 million at both September 30, 2013 and December 31, 2012. | ||||||||||
3 | Total assets and liabilities of the equity investment were $1.9 million and $0.1 million, respectively, at September 30, 2013 and $2.8 million and $0.3 million, respectively, at December 31, 2012. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
Available-For-Sale Securities | Available-for-sale securities were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Gross Unrealized | Estimated | Gross Unrealized | Estimated | ||||||||||||||||||||||||||||||
Fair | Fair | ||||||||||||||||||||||||||||||||
(in thousands) | Cost | Gains | (Losses) | Value | Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
Equity mutual funds | $ | 37,665 | $ | 3,098 | $ | 0 | $ | 40,763 | $ | 44,944 | $ | 4,814 | $ | (5 | ) | $ | 49,753 | ||||||||||||||||
Fixed-income mutual funds | 100,871 | 476 | (639 | ) | 100,708 | 84,855 | 1,436 | (21 | ) | 86,270 | |||||||||||||||||||||||
Total fluctuating-value mutual funds | $ | 138,536 | $ | 3,574 | $ | (639 | ) | $ | 141,471 | $ | 129,799 | $ | 6,250 | $ | (26 | ) | $ | 136,023 | |||||||||||||||
Gains and losses on investments | The following table presents gains and losses recognized in Gain on securities, net on the Consolidated Statements of Income in connection with investments and economic derivatives held by certain consolidated investment companies: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Unrealized gain (loss) | |||||||||||||||||||||||||||||||||
Trading securities | $ | 748 | $ | 738 | $ | 516 | $ | 1,432 | |||||||||||||||||||||||||
Derivatives1 | 29 | (64 | ) | (128 | ) | 123 | |||||||||||||||||||||||||||
Realized gains2 | |||||||||||||||||||||||||||||||||
Available-for-sale securities3 | 4,759 | 1,034 | 10,917 | 3,142 | |||||||||||||||||||||||||||||
Trading securities | 457 | 278 | 1,075 | 829 | |||||||||||||||||||||||||||||
Derivatives1 | 275 | 410 | 874 | 636 | |||||||||||||||||||||||||||||
Realized losses2 | |||||||||||||||||||||||||||||||||
Available-for-sale securities3 | (381 | ) | 0 | (1,320 | ) | 0 | |||||||||||||||||||||||||||
Trading securities | (267 | ) | (68 | ) | (754 | ) | (415 | ) | |||||||||||||||||||||||||
Derivatives1 | (28 | ) | (74 | ) | (344 | ) | (691 | ) | |||||||||||||||||||||||||
Gain on securities, net4 | $ | 5,592 | $ | 2,254 | $ | 10,836 | $ | 5,056 | |||||||||||||||||||||||||
1 | Amounts related to economic derivatives held by certain consolidated investment companies. | ||||||||||||||||||||||||||||||||
2 | Realized gains and losses are computed on a specific-identification basis. | ||||||||||||||||||||||||||||||||
3 | Amounts related to sales of available-for-sale securities resulting in proceeds of $32.6 million and $88.4 million for the three and nine months ended September 30, 2013, respectively, and $6.4 million and $75.9 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||||||||||
4 | Amounts related to consolidated investment companies totaled $1.0 million for both the three and nine months ended September 30, 2013, and $1.1 million and $1.6 million for the three and nine months ended September 30, 2012, respectively. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||
Classes of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents fair value measurements for classes of Federated’s financial assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 78,262 | $ | 0 | $ | 0 | $ | 78,262 | $ | 67,585 | $ | 0 | $ | 0 | $ | 67,585 | |||||||||||||||||
Available-for-sale equity securities | 94,390 | 47,081 | 0 | 141,471 | 102,493 | 33,530 | 0 | 136,023 | |||||||||||||||||||||||||
Trading securities—equity | 18,069 | 9,198 | 0 | 27,267 | 9,808 | 16,776 | 0 | 26,584 | |||||||||||||||||||||||||
Trading securities—debt | 0 | 103,514 | 0 | 103,514 | 0 | 28,436 | 0 | 28,436 | |||||||||||||||||||||||||
Foreign currency forward contracts | 0 | 123 | 0 | 123 | 0 | 158 | 0 | 158 | |||||||||||||||||||||||||
Total financial assets | $ | 190,721 | $ | 159,916 | $ | 0 | $ | 350,637 | $ | 179,886 | $ | 78,900 | $ | 0 | $ | 258,786 | |||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Interest rate swap | $ | 0 | $ | 6,519 | $ | 0 | $ | 6,519 | $ | 0 | $ | 11,178 | $ | 0 | $ | 11,178 | |||||||||||||||||
Acquisition-related future consideration liabilities | 0 | 0 | 12,042 | 12,042 | 0 | 0 | 11,759 | 11,759 | |||||||||||||||||||||||||
Other1 | 1,065 | 31 | 0 | 1,096 | 1,015 | 0 | 0 | 1,015 | |||||||||||||||||||||||||
Total financial liabilities | $ | 1,065 | $ | 6,550 | $ | 12,042 | $ | 19,657 | $ | 1,015 | $ | 11,178 | $ | 11,759 | $ | 23,952 | |||||||||||||||||
1 | Amounts include investments sold short within one of the consolidated investment companies and/or foreign currency forward contracts recorded within Other current liabilities on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||
Reconciliation of the beginning and ending fair value measurements of a Level 3 financial liability | The following table presents a reconciliation of the beginning and ending balances for Federated’s liability for future consideration payments related to these acquisitions for each period presented: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
Beginning balance | $ | 11,712 | $ | 13,904 | $ | 11,759 | $ | 13,404 | |||||||||||||||||||||||||
New acquisition/adjustment1 | 330 | 1,861 | 330 | 3,361 | |||||||||||||||||||||||||||||
Changes in fair value2 | 0 | 0 | (47 | ) | (1,000 | ) | |||||||||||||||||||||||||||
Ending balance | $ | 12,042 | $ | 15,765 | $ | 12,042 | $ | 15,765 | |||||||||||||||||||||||||
1 | Amounts include the preliminary fair value estimate of the contingent payment liability recorded in connection with a new acquisition or the revision thereof upon finalization of the valuation process related to initial purchase accounting. | ||||||||||||||||||||||||||||||||
2 | For the nine months ended September 30, 2013, the amount was primarily included as Other expense on the Consolidated Statements of Income and primarily represented a foreign currency loss. For the nine months ended September 30, 2012, the amount was included as a decrease to Intangible asset related expense on the Consolidated Statements of Income. |
Debt_and_Interest_Rate_Swap_Ta
Debt and Interest Rate Swap (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt And Interest Rate Swap [Abstract] | |||||||||||||
Debt | Debt consisted of the following: | ||||||||||||
(dollars in thousands) | Weighted-Average Interest Rate1 | September 30, 2013 | December 31, 2012 | ||||||||||
Term Loan | 3.65% | $ | 286,875 | $ | 318,750 | ||||||||
Less: Short-term debt | 60,208 | 42,500 | |||||||||||
Long-term debt | $ | 226,667 | $ | 276,250 | |||||||||
1 | See additional information below regarding the interest rate fixed at 3.646% in connection with the Swap. |
Earnings_Per_Share_Attributabl1
Earnings Per Share Attributable to Federated Investors, Inc. Shareholders (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for amounts attributable to Federated Investors, Inc. using the two-class method: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator – Basic and Diluted | |||||||||||||||||
Net income attributable to Federated Investors, Inc. | $ | 37,704 | $ | 55,773 | $ | 121,106 | $ | 138,508 | |||||||||
Less: Total income available to participating unvested restricted shareholders1 | (1,426 | ) | (1,951 | ) | (4,619 | ) | (4,978 | ) | |||||||||
Total net income attributable to Federated Common Stock2 | $ | 36,278 | $ | 53,822 | $ | 116,487 | $ | 133,530 | |||||||||
Denominator | |||||||||||||||||
Basic weighted-average common shares outstanding | 100,677 | 100,417 | 100,637 | 100,292 | |||||||||||||
Dilutive potential shares from stock options | 1 | 0 | 1 | 0 | |||||||||||||
Diluted weighted-average common shares outstanding | 100,678 | 100,417 | 100,638 | 100,292 | |||||||||||||
Earnings per Share | |||||||||||||||||
Net income attributable to Federated Common Stock – Basic and Diluted2 | $ | 0.36 | $ | 0.54 | $ | 1.16 | $ | 1.33 | |||||||||
1 | Income available to participating unvested restricted shareholders includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. | ||||||||||||||||
2 | Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss attributable to Federated Shareholders (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of Accumulated other comprehensive loss, net of tax attributable to Federated shareholders are as follows: | |||||||||||||||||||
(in thousands) | Unrealized Loss | Unrealized Gain on Securities | Unrealized Loss on Foreign Currency Hedge3 | Foreign Currency | Total | |||||||||||||||
on Interest Rate Swap1 | Available for Sale2 | Translation Gain (Loss)3 | ||||||||||||||||||
Balance at December 31, 2011 | $ | (9,634 | ) | $ | 325 | $ | 368 | $ | 329 | $ | (8,612 | ) | ||||||||
Other comprehensive (loss) income before reclassifications and tax | (3,192 | ) | 9,286 | (1,631 | ) | 1,381 | 5,844 | |||||||||||||
Tax impact | 1,183 | (3,677 | ) | 332 | (484 | ) | (2,646 | ) | ||||||||||||
Reclassification adjustments, before tax | 5,543 | (3,141 | ) | 1,169 | (1,237 | ) | 2,334 | |||||||||||||
Tax impact | (2,054 | ) | 1,244 | (238 | ) | 433 | (615 | ) | ||||||||||||
Net current-period other comprehensive income (loss) | 1,480 | 3,712 | (368 | ) | 93 | 4,917 | ||||||||||||||
Balance at September 30, 2012 | $ | (8,154 | ) | $ | 4,037 | $ | 0 | $ | 422 | $ | (3,695 | ) | ||||||||
Balance at December 31, 2012 | $ | (7,071 | ) | $ | 3,644 | $ | 0 | $ | 490 | $ | (2,937 | ) | ||||||||
Other comprehensive (loss) income before reclassifications and tax | (290 | ) | 6,308 | 0 | (165 | ) | 5,853 | |||||||||||||
Tax impact | 105 | (2,616 | ) | 0 | 57 | (2,454 | ) | |||||||||||||
Reclassification adjustments, before tax | 4,949 | (9,597 | ) | 0 | 0 | (4,648 | ) | |||||||||||||
Tax impact | (1,796 | ) | 3,981 | 0 | 0 | 2,185 | ||||||||||||||
Net current-period other comprehensive income (loss) | 2,968 | (1,924 | ) | 0 | (108 | ) | 936 | |||||||||||||
Balance at September 30, 2013 | $ | (4,103 | ) | $ | 1,720 | $ | 0 | $ | 382 | $ | (2,001 | ) | ||||||||
1 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Debt expense on the Consolidated Statements of Income. | |||||||||||||||||||
2 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Gain on securities, net on the Consolidated Statements of Income. | |||||||||||||||||||
3 | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Nonoperating Income (Expenses) - Other, net on the Consolidated Statements of Income. |
Concentration_Risk_Narrative_D
Concentration Risk Narrative (Details) (Revenue Concentration By Investment Fund [Member]) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Federated Kaufmann Fund [Member] | ||
Concentration Risk, Percentage | 11.00% | 11.00% |
Federated Prime Obligations Fund [Member] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Concentration_Risk_Schedule_of
Concentration Risk Schedule of Revenue Concentration (Details) (Revenue Concentration by Asset Class [Member]) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Money market assets [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 40.00% | 47.00% |
Equity assets [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 36.00% | 31.00% |
Fixed-income assets [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 23.00% | 21.00% |
Concentration_Risk_Voluntary_F
Concentration Risk Voluntary Fee Waivers (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Concentration Risk [Line Items] | ||||
Revenue | ($105.10) | ($69.50) | ($284.40) | ($220.20) |
Less: Reduction in Distribution expense | 72.1 | 52.9 | 203.8 | 163.6 |
Operating income | -33 | -16.6 | -80.6 | -56.6 |
Less: Reduction in Noncontrolling interest | 2.7 | 0.3 | 4.8 | 0.9 |
Pre-tax impact | ($30.30) | ($16.30) | ($75.80) | ($55.70) |
Variable_Interest_Entities_Nar
Variable Interest Entities Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | |
Consolidated Entities [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Cash and Cash Equivalents [Member] | Deconsolidation [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||||||
Expected Net Operating Expenses of a Consolidated Investment Company | $25,000 | |||||||||
Variable Interest Entity Consolidated Carrying Amount Investments | 126,291,000 | 51,073,000 | 63,400,000 | 78,300,000 | ||||||
Consolidated assets | 1,100,000 | 4,000,000 | 1,000,000 | |||||||
Redeemable noncontrolling interest in subsidiaries | 90,408,000 | 7,268,000 | 67,400,000 | |||||||
Federated's net interest in consolidated investment companies | 36,200,000 | 43,500,000 | ||||||||
Translation Adjustment Functional to Reporting Currency, (Loss) Gain, Reclassified to Earnings | 1,200,000 | 1,200,000 | ||||||||
Derivatives used in Net Investment Hedge, (Loss) Gain, Reclassified to Earnings | -1,100,000 | -1,100,000 | ||||||||
Ownership interest in equity-method investment | 12.00% | |||||||||
Assets under management of equity investee | 375,000,000 | |||||||||
Equity Method Investment, Other than Temporary Impairment | 3,100,000 | 3,000,000 | ||||||||
Equity-Method Investment | $600,000 | $3,800,000 |
Variable_Interest_Entities_Con
Variable Interest Entities Consolidated Investment Companies (Details) (USD $) | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||
Investmentsbconsolidated investment companies | $126,291,000 | $51,073,000 | |
Less: Liabilities | 1,700,000 | 2,000,000 | |
Less: Redeemable noncontrolling interest in subsidiaries | 90,408,000 | 7,268,000 | |
Federated's net interest in consolidated investment companies | 36,200,000 | 43,500,000 | |
Cash and cash equivalents [Member] | |||
Variable Interest Entity [Line Items] | |||
Consolidated assets | 1,100,000 | 4,000,000 | 1,000,000 |
Receivables [Member] | |||
Variable Interest Entity [Line Items] | |||
Consolidated assets | $900,000 | $700,000 |
Variable_Interest_Entities_Ass
Variable Interest Entities Assets and Liabilities of Unconsolidated VIEs and Federated's Maximum Risk of Loss (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Variable Interest Entity [Line Items] | ||||
Accounts Receivable from sponsored investment companies | $11.60 | $11.60 | ||
Investment Companies [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total remaining carrying value of investment and maximum risk of loss | 210.3 | [1],[2] | 193.7 | [1],[2] |
Unconsolidated VIE assets | 278,300 | 295,400 | ||
Equity Investment [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Total remaining carrying value of investment and maximum risk of loss | 0.6 | [3] | 3.8 | [3] |
Unconsolidated VIE assets | 1.9 | 2.8 | ||
Unconsolidated VIE liabilities | $0.10 | $0.30 | ||
[1] | AUM for these unconsolidated investment companies totaled $278.3 billion and $295.4 billion at SeptemberB 30, 2013 and DecemberB 31, 2012, respectively. | |||
[2] | Accounts receivable from sponsored investment companies for advisory and other services totaled $11.6 million at both SeptemberB 30, 2013 and DecemberB 31, 2012. | |||
[3] | Total assets and liabilities of the equity investment were $1.9 million and $0.1 million, respectively, at SeptemberB 30, 2013 and $2.8 million and $0.3 million, respectively, at DecemberB 31, 2012. |
Investments_Narrative_Details
Investments Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Investments [Line Items] | ||
Available-for-sale equity securities | $141,471,000 | $136,023,000 |
Trading Securities | 130,800,000 | 55,000,000 |
Corporate Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Trading Securities | 103,500,000 | 28,400,000 |
Corporate Debt Securities [Member] | Money Market Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Trading Securities | 66,400,000 | |
Stocks of large U.S. and international companies [Member] | ||
Schedule of Investments [Line Items] | ||
Trading Securities | 15,400,000 | 13,900,000 |
Consolidated feeder fund investment in offshore master investment fund [Member] | ||
Schedule of Investments [Line Items] | ||
Trading Securities | $2,800,000 | $12,100,000 |
Investments_AvailableForSale_S
Investments Available-For-Sale Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | $138,536 | $129,799 |
Gross Unrealized Gains | 3,574 | 6,250 |
Gross Unrealized Losses | -639 | -26 |
Available-for-sale equity securities | 141,471 | 136,023 |
Equity Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 37,665 | 44,944 |
Gross Unrealized Gains | 3,098 | 4,814 |
Gross Unrealized Losses | 0 | -5 |
Available-for-sale equity securities | 40,763 | 49,753 |
Fixed-Income Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost | 100,871 | 84,855 |
Gross Unrealized Gains | 476 | 1,436 |
Gross Unrealized Losses | -639 | -21 |
Available-for-sale equity securities | $100,708 | $86,270 |
Investments_Gain_on_Securities
Investments Gain on Securities, Net of Investment Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
(Loss) Gain on Investments [Line Items] | ||||||||
Proceeds from redemptions of securities avaliable for sale | $32,600 | $6,400 | $88,369 | $75,948 | ||||
Gain on securities, net | 5,592 | [1] | 2,254 | [1] | 10,836 | [1] | 5,056 | [1] |
Consolidated Investment Companies [Member] | ||||||||
(Loss) Gain on Investments [Line Items] | ||||||||
Gain on securities, net | 1,000 | 1,100 | 1,000 | 1,600 | ||||
Trading Securities [Member] | ||||||||
(Loss) Gain on Investments [Line Items] | ||||||||
Unrealized gain on trading securities | 748 | 738 | 516 | 1,432 | ||||
Realized gains | 457 | [2] | 278 | [2] | 1,075 | [2] | 829 | [2] |
Realized losses | -267 | [2] | -68 | [2] | -754 | [2] | -415 | [2] |
Derivatives [Member] | ||||||||
(Loss) Gain on Investments [Line Items] | ||||||||
Unrealized (loss) gain on derivatives | 29 | [3] | -64 | [3] | -128 | [3] | 123 | [3] |
Realized gains | 275 | [2],[3] | 410 | [2],[3] | 874 | [2],[3] | 636 | [2],[3] |
Realized losses | -28 | [2],[3] | -74 | [2],[3] | -344 | [2],[3] | -691 | [2],[3] |
Available-for-sale Securities [Member] | ||||||||
(Loss) Gain on Investments [Line Items] | ||||||||
Realized gains | 4,759 | [2],[4] | 1,034 | [2],[4] | 10,917 | [2],[4] | 3,142 | [2],[4] |
Realized losses | ($381) | [2],[4] | $0 | [2],[4] | ($1,320) | [2],[4] | $0 | [2],[4] |
[1] | Amounts related to consolidated investment companies totaled $1.0 million for both the three and nine months ended SeptemberB 30, 2013, and $1.1 million and $1.6 million for the three and nine months ended SeptemberB 30, 2012, respectively. | |||||||
[2] | Realized gains and losses are computed on a specific-identification basis. | |||||||
[3] | Amounts related to economic derivatives held by certain consolidated investment companies. | |||||||
[4] | Amounts related to sales of available-for-sale securities resulting in proceeds of $32.6 million and $88.4 million for the three and nine months ended SeptemberB 30, 2013, respectively, and $6.4 million and $75.9 million for the three and nine months ended SeptemberB 30, 2012, respectively. |
Fair_Value_Measurements_Narrat
Fair Value Measurements Narrative (Details) (USD $) | 3 Months Ended | 3 Months Ended | 120 Months Ended | 132 Months Ended | 300 Months Ended | 120 Months Ended | 51 Months Ended | |||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2022 | Dec. 31, 2033 | Sep. 30, 2048 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Equity-Method Investee [Member] | Equity-Method Investee [Member] | Equity-Method Investee [Member] | Equity-Method Investee [Member] | Equity-Method Investee [Member] | Minimum [Member] | Maximum [Member] | Acquisition-related Future Consideration Liabilities [Member] | Acquisition-related Future Consideration Liabilities [Member] | Acquisition-related Future Consideration Liabilities [Member] | Other Current Liabilities [Member] | Other Noncurrent Liabilities [Member] | Consolidated feeder fund investment in offshore master investment fund [Member] | Consolidated feeder fund investment in offshore master investment fund [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Corporate Debt Securities [Member] | Money Market Funds [Member] | Money Market Funds [Member] | ||||
10-year compounded annual growth rate [Member] | Terminal Growth Rate [Member] | Terminal Growth Rate [Member] | Equity-Method Investee [Member] | Equity-Method Investee [Member] | Minimum [Member] | Maximum [Member] | Weighted Average [Member] | Money Market Funds [Member] | ||||||||||||||
10-year compounded annual growth rate [Member] | 10-year compounded annual growth rate [Member] | |||||||||||||||||||||
Cash and cash equivalents | $78,262,000 | $67,585,000 | $70,000,000 | $60,200,000 | ||||||||||||||||||
Investments transferred from Level 2 to Level 1 | 0 | 600,000 | ||||||||||||||||||||
Trading Securities | 130,800,000 | 55,000,000 | 2,800,000 | 12,100,000 | 103,500,000 | 28,400,000 | 66,400,000 | |||||||||||||||
Interest rate swap | 6,519,000 | 11,178,000 | 5,400,000 | 1,100,000 | ||||||||||||||||||
Acquisition-related future consideration liabilities | 12,042,000 | 11,759,000 | 4,400,000 | 7,600,000 | ||||||||||||||||||
Fair Value Inputs Estimated Rate of Change for Underlying Assets Under Management | 15.00% | 3.00% | 3.00% | 0.00% | 9.00% | 0.00% | 28.00% | 5.00% | ||||||||||||||
Fair Value Inputs Estimate of Impact of Fee Waiver | 0.01% | 0.02% | 0.02% | |||||||||||||||||||
Fair Value Inputs, Discount Rate | 17.00% | 17.00% | 17.00% | 20.00% | 17.00% | |||||||||||||||||
Ownership interest in equity-method investment | 12.00% | |||||||||||||||||||||
Equity Method Investment, Other than Temporary Impairment | 3,100,000 | 3,000,000 | ||||||||||||||||||||
Equity-Method Investment | $600,000 | $3,800,000 |
Fair_Value_Measurements_Classe
Fair Value Measurements Classes of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents | $78,262 | $67,585 | ||
Available-for-sale equity securities | 141,471 | 136,023 | ||
Trading securitiesbequity | 27,267 | 26,584 | ||
Trading securitiesbdebt | 103,514 | 28,436 | ||
Foreign currency forward contracts | 123 | 158 | ||
Total financial assets | 350,637 | 258,786 | ||
Interest rate swap | 6,519 | 11,178 | ||
Acquisition-related future consideration liabilities | 12,042 | 11,759 | ||
Other | 1,096 | [1] | 1,015 | [1] |
Total financial liabilities | 19,657 | 23,952 | ||
Level 1 [Member] | ||||
Cash and cash equivalents | 78,262 | 67,585 | ||
Available-for-sale equity securities | 94,390 | 102,493 | ||
Trading securitiesbequity | 18,069 | 9,808 | ||
Trading securitiesbdebt | 0 | 0 | ||
Foreign currency forward contracts | 0 | 0 | ||
Total financial assets | 190,721 | 179,886 | ||
Interest rate swap | 0 | 0 | ||
Acquisition-related future consideration liabilities | 0 | 0 | ||
Other | 1,065 | [1] | 1,015 | [1] |
Total financial liabilities | 1,065 | 1,015 | ||
Level 2 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale equity securities | 47,081 | 33,530 | ||
Trading securitiesbequity | 9,198 | 16,776 | ||
Trading securitiesbdebt | 103,514 | 28,436 | ||
Foreign currency forward contracts | 123 | 158 | ||
Total financial assets | 159,916 | 78,900 | ||
Interest rate swap | 6,519 | 11,178 | ||
Acquisition-related future consideration liabilities | 0 | 0 | ||
Other | 31 | [1] | 0 | [1] |
Total financial liabilities | 6,550 | 11,178 | ||
Level 3 [Member] | ||||
Cash and cash equivalents | 0 | 0 | ||
Available-for-sale equity securities | 0 | 0 | ||
Trading securitiesbequity | 0 | 0 | ||
Trading securitiesbdebt | 0 | 0 | ||
Foreign currency forward contracts | 0 | 0 | ||
Total financial assets | 0 | 0 | ||
Interest rate swap | 0 | 0 | ||
Acquisition-related future consideration liabilities | 12,042 | 11,759 | ||
Other | 0 | [1] | 0 | [1] |
Total financial liabilities | $12,042 | $11,759 | ||
[1] | Amounts include investments sold short within one of the consolidated investment companies and/or foreign currency forward contracts recorded within Other current liabilities on the Consolidated Balance Sheets. |
Fair_Value_Measurements_Reconc
Fair Value Measurements Reconciliation of Fair Value Measurements of Liability for Future Consideration Payments (Details) (Acquisition-related Future Consideration Liabilities [Member], Fair Value, Inputs, Level 3 [Member], USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Acquisition-related Future Consideration Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||
Beginning balance | $11,712 | $13,904 | $11,759 | $13,404 | ||||
New acquisition/adjustment | 330 | [1] | 1,861 | [1] | 330 | [1] | 3,361 | [1] |
Changes in fair value | 0 | [2] | 0 | [2] | -47 | [2] | -1,000 | [2] |
Ending balance | $12,042 | $15,765 | $12,042 | $15,765 | ||||
[1] | Amounts include the preliminary fair value estimate of the contingent payment liability recorded in connection with a new acquisition or the revision thereof upon finalization of the valuation process related to initial purchase accounting. | |||||||
[2] | For the nine months ended SeptemberB 30, 2013, the amount was primarily included as Other expense on the Consolidated Statements of Income and primarily represented a foreign currency loss. For the nine months ended SeptemberB 30, 2012, the amount was included as a decrease to Intangible asset related expense on the Consolidated Statements of Income. |
Debt_and_Interest_Rate_Swap_Na
Debt and Interest Rate Swap Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 6 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 10, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 10, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | |||
Other Current Liabilities [Member] | Other Noncurrent Liabilities [Member] | Borrowings Under Credit Agreement At Date Of Amendment [Member] | Term Loan Quarterly Payment First Three Years [Member] | Term Loan Quarterly Payment Years Four And Five [Member] | Debt Instrument Payment Due Upon Expiration [Member] | |||||||||
Borrowings Under Credit Agreement | $382,500,000 | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 200,000,000 | |||||||||||||
Required principal payments | 10,600,000 | 28,300,000 | 28,300,000 | |||||||||||
Term Loan, Weighted-Average Interest Rate | 3.65% | [1] | 3.65% | [1] | ||||||||||
Liability on swap agreement | 6,519,000 | 6,519,000 | 11,178,000 | 5,400,000 | 1,100,000 | |||||||||
Amount of swap liability to be reclassified during next twelve months | 5,400,000 | 5,400,000 | ||||||||||||
Amount of swap liability reclassified during the period | 1,600,000 | 1,800,000 | 4,900,000 | 5,500,000 | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $200,000,000 | $200,000,000 | ||||||||||||
[1] | See additional information below regarding the interest rate fixed at 3.646% in connection with the Swap. |
Debt_and_Interest_Rate_Swap_De
Debt and Interest Rate Swap Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Debt And Interest Rate Swap [Abstract] | |||
Term Loan, Weighted-Average Interest Rate | 3.65% | [1] | |
Term Loan | $286,875 | $318,750 | |
Less: Short-term debt | 60,208 | 42,500 | |
Long-term debt | $226,667 | $276,250 | |
[1] | See additional information below regarding the interest rate fixed at 3.646% in connection with the Swap. |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Restricted Stock Granted in Period | 489,050 | 1,015,273 | ||
Stock Options, Exercises in Period | 0 | 0 | ||
Stock Options, Issued in Period | 0 | 0 | ||
Non-management Director Stock Award, Granted and Vested in period | 5,100 | 4,500 | ||
Class B Common Stock Bonus [Member] | ||||
Restricted Stock Granted in Period | 474,050 | 480,773 | ||
Restricted stock requisite service period | 3 years | |||
Class B Common Stock Key Employees [Member] | ||||
Restricted stock requisite service period | 10 years |
Equity_Details
Equity (Details) (USD $) | 9 Months Ended | |||||
In Thousands, except Share data in Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2008 | Sep. 30, 2013 |
Class B [Member] | Class B [Member] | Treasury Stock [Member] | ||||
Number of shares authorized under share repurchase program | 5 | |||||
Repurchased shares, shares | 0.3 | |||||
Amount paid for repurchase of common stock | $7,170 | $5,302 | ||||
Other current liabilities | $21,308 | $25,207 | $300 | |||
Remaining number of shares authorized to be repurchased | 1.6 |
Earnings_Per_Share_Attributabl2
Earnings Per Share Attributable to Federated Investors, Inc. Shareholders Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share [Abstract] | ||||
Stock option awards excluded from calculation of diluted EPS | 50,000 | 300,000 | 50,000 | 300,000 |
Earnings_Per_Share_Attributabl3
Earnings Per Share Attributable to Federated Investors, Inc. Shareholders Computation of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income attributable to Federated Investors, Inc. | $37,704 | $55,773 | $121,106 | $138,508 | ||||
Less: Total income available to participating unvested restricted shareholders | -1,426 | [1] | -1,951 | [1] | -4,619 | [1] | -4,978 | [1] |
Total net income attributable to Federated Common Stock (Basic) | 36,278 | [2] | 53,822 | [2] | 116,487 | [2] | 133,530 | [2] |
Total net income attributable to Federated Common Stock (Diluted) | $36,278 | [2] | $53,822 | [2] | $116,487 | [2] | $133,530 | [2] |
Basic weighted-average common shares outstanding | 100,677 | 100,417 | 100,637 | 100,292 | ||||
Dilutive potential shares from stock options | 1 | 0 | 1 | 0 | ||||
Diluted weighted-average common shares outstanding | 100,678 | 100,417 | 100,638 | 100,292 | ||||
Net income attributable to Federated Common Stock - Basic and Diluted | $0.36 | [2] | $0.54 | [2] | $1.16 | [2] | $1.33 | [2] |
[1] | Income available to participating unvested restricted shareholders includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. | |||||||
[2] | Federated Common Stock excludes unvested restricted stock which are deemed participating securities in accordance with the two-class method of computing earnings per share. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2010 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2010 | Dec. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Employment Contracts [Member] | SunTrust Acquisition [Member] | SunTrust Acquisition [Member] | SunTrust Acquisition [Member] | SunTrust Acquisition [Member] | Clover Capital Acquisition [Member] | Clover Capital Acquisition [Member] | Clover Capital Acquisition [Member] | Clover Capital Acquisition [Member] | Clover Capital Acquisition [Member] | Clover Capital Acquisition [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] | Other Noncurrent Liabilities [Member] | |||
SunTrust Acquisition [Member] | Series of Individually Immaterial Business Acquisitions [Member] | SunTrust Acquisition [Member] | Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||||||||
Business Acquisition Contingent Consideration Payable Period | 5 years | 5 years | ||||||||||||||||||
Contingent purchase price payments | $4,200,000 | $5,000,000 | $3,400,000 | $5,900,000 | $0 | $0 | ||||||||||||||
Estimated remaining contingent payments | 10,000,000 | 9,000,000 | ||||||||||||||||||
Remaining Business Acquisition Contingent Consideration Payable Period | 3 years | |||||||||||||||||||
Fair value of future consideration payments liability | 12,042,000 | 11,759,000 | 8,200,000 | 3,900,000 | 4,400,000 | 3,500,000 | 1,000,000 | 7,600,000 | 4,700,000 | 2,900,000 | ||||||||||
Business Acquisition Contingent Consideration Accrued Liability | 0 | |||||||||||||||||||
Maximum bonus payable over remaining terms | 44,000,000 | |||||||||||||||||||
Employee Incentive Compensation Maximum Bonus Payable Succeeding Fiscal Year | 28,000,000 | |||||||||||||||||||
Accrual for employment-related contracts | 53,972,000 | 68,172,000 | 6,400,000 | |||||||||||||||||
Employee Incentive Compensation Maximum Bonus Payable Remaining in Current Fiscal Year | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss attributable to Federated Shareholders (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Balance | ($2,937) | ($8,612) | ||
Other comprehensive (loss) income, before reclassifications and tax | 5,853 | 5,844 | ||
Other comprehensive (loss) income before reclassifications, tax total | -2,454 | -2,646 | ||
Reclassification adjustments, before tax | -4,648 | 2,334 | ||
Reclassification adjustment, tax total | 2,185 | -615 | ||
Net current-period other comprehensive income (loss) | 936 | 4,917 | ||
Balance | -2,001 | -3,695 | ||
Unrealized Loss on Interest Rate Swap [Member] | ||||
Balance | -7,071 | [1] | -9,634 | [1] |
Other comprehensive (loss) income, before reclassifications and tax | -290 | [1] | -3,192 | [1] |
Other comprehensive (loss) income before reclassifications, tax total | 105 | [1] | 1,183 | [1] |
Reclassification adjustments, before tax | 4,949 | [1] | 5,543 | [1] |
Reclassification adjustment, tax total | -1,796 | [1] | -2,054 | [1] |
Net current-period other comprehensive income (loss) | 2,968 | [1] | 1,480 | [1] |
Balance | -4,103 | [1] | -8,154 | [1] |
Unrealized Gain on Securities Available for Sale [Member] | ||||
Balance | 3,644 | [2] | 325 | [2] |
Other comprehensive (loss) income, before reclassifications and tax | 6,308 | [2] | 9,286 | [2] |
Other comprehensive (loss) income before reclassifications, tax total | -2,616 | [2] | -3,677 | [2] |
Reclassification adjustments, before tax | -9,597 | [2] | -3,141 | [2] |
Reclassification adjustment, tax total | 3,981 | [2] | 1,244 | [2] |
Net current-period other comprehensive income (loss) | -1,924 | [2] | 3,712 | [2] |
Balance | 1,720 | [2] | 4,037 | [2] |
Unrealized Loss on Foreign Currency Hedge [Member] | ||||
Balance | 0 | [3] | 368 | [3] |
Other comprehensive (loss) income, before reclassifications and tax | 0 | [3] | -1,631 | [3] |
Other comprehensive (loss) income before reclassifications, tax total | 0 | [3] | 332 | [3] |
Reclassification adjustments, before tax | 0 | [3] | 1,169 | [3] |
Reclassification adjustment, tax total | 0 | [3] | -238 | [3] |
Net current-period other comprehensive income (loss) | 0 | [3] | -368 | [3] |
Balance | 0 | [3] | 0 | [3] |
Foreign Currency Translation Gain (Loss) [Member] | ||||
Balance | 490 | [3] | 329 | [3] |
Other comprehensive (loss) income, before reclassifications and tax | -165 | [3] | 1,381 | [3] |
Other comprehensive (loss) income before reclassifications, tax total | 57 | [3] | -484 | [3] |
Reclassification adjustments, before tax | 0 | [3] | -1,237 | [3] |
Reclassification adjustment, tax total | 0 | [3] | 433 | [3] |
Net current-period other comprehensive income (loss) | -108 | [3] | 93 | [3] |
Balance | $382 | [3] | $422 | [3] |
[1] | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Debt expense on the Consolidated Statements of Income. | |||
[2] | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Gain on securities, net on the Consolidated Statements of Income. | |||
[3] | Amounts reclassified from Accumulated other comprehensive loss, net of tax were recorded in Nonoperating Income (Expenses) - Other, net on the Consolidated Statements of Income. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Oct. 24, 2013 |
Dividend declared | $0.25 |