Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | JANUS CAPITAL GROUP INC | ||
Entity Central Index Key | 1065865 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,351,890,907 | ||
Entity Common Stock, Shares Outstanding | 187,222,360 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $452.50 | $344.50 |
Investment securities | 344 | 485.5 |
Accounts receivable | 130.9 | 108.8 |
Other current assets | 59.8 | 52 |
Total current assets | 987.2 | 990.8 |
Other assets: | ||
Property and equipment, net | 31.1 | 29.9 |
Intangible assets, net | 1,257.40 | 1,230.10 |
Goodwill | 509.7 | 488.2 |
Other non-current assets | 7.8 | 8.3 |
Total assets | 2,793.20 | 2,747.30 |
Current liabilities: | ||
Accounts payable | 8.8 | 4.1 |
Accrued compensation and benefits | 142.8 | 122.7 |
Current portion of long-term debt | 96.9 | |
Other accrued liabilities | 78 | 78 |
Total current liabilities | 229.6 | 301.7 |
Other liabilities: | ||
Long-term debt | 450.5 | 447.7 |
Deferred income taxes, net | 478.4 | 447.7 |
Other current liabilities | 41.2 | 32.4 |
Total liabilities | 1,199.70 | 1,229.50 |
Commitments and contingencies (See Note 15) | ||
Redeemable noncontrolling interests | 5.4 | 7.3 |
Equity: | ||
Preferred stock ($1.00 par, 10,000,000 shares authorized, none issued) | ||
Common stock ($0.01 par, 1,000,000,000 shares authorized; 185,153,490 and 188,603,875 shares outstanding , respectively) | 1.9 | 1.9 |
Retained earnings | 1,540.30 | 1,496 |
Accumulated other comprehensive loss, net of tax | -1.4 | -1.1 |
Total JCG stockholders' equity | 1,540.80 | 1,496.80 |
Noncontrolling interests | 47.3 | 13.7 |
Total equity | 1,588.10 | 1,510.50 |
Total liabilities, redeemable noncontrolling interests and equity | $2,793.20 | $2,747.30 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONDENSED STATEMENTS OF CASH FLOWS | ||
Preferred stock, par (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 185,153,490 | 188,603,875 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Investment management fees | $849.10 | $813 | $782.30 |
Performance fees | -48 | -82.2 | -75.4 |
Shareowner servicing fees and other | 152.1 | 143.1 | 143.1 |
Total revenue | 953.2 | 873.9 | 850 |
Operating expenses: | |||
Employee compensation and benefits | 322.8 | 292.7 | 274.5 |
Long-term incentive compensation | 51.3 | 63.1 | 66.7 |
Marketing and advertising | 19.5 | 20.2 | 23.6 |
Distribution | 131 | 125.7 | 126.8 |
Depreciation and amortization | 25.6 | 28.7 | 38.5 |
General, administrative and occupancy | 113.3 | 104.4 | 105.4 |
Total operating expenses | 663.5 | 634.8 | 635.5 |
Operating Income | 289.7 | 239.1 | 214.5 |
Interest expense | -33.1 | -41.1 | -45 |
Investment gains (losses), net | -1.9 | 6.5 | 11.1 |
Other income, net | 3 | 4.5 | 3.2 |
Loss on early extinguishment of debt | -13.5 | -7.2 | |
Total | 257.7 | 195.5 | 176.6 |
Income tax provision | -102.3 | -73.3 | -64.7 |
Net income | 155.4 | 122.2 | 111.9 |
Noncontrolling interests | -1 | -7.5 | -9.6 |
Net income attributable to JCG | 154.4 | 114.7 | 102.3 |
Earnings per share attributable to JCG common shareholders: | |||
Basic (in dollars per share) | $0.82 | $0.62 | $0.56 |
Diluted (in dollars per share) | $0.81 | $0.62 | $0.55 |
Dividends paid per share | $0.31 | $0.21 | $0.29 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain on available-for-sale securities | 1.9 | 0.1 | 0.6 |
Foreign currency gain | 0.4 | ||
Reclassification for items included in net income | -2.2 | -1.8 | 0.1 |
Total other comprehensive income (loss), net of tax | -0.3 | -1.7 | 1.1 |
Comprehensive income | 155.1 | 120.5 | 113 |
Comprehensive income attributable to noncontrolling interests | -1 | -7.5 | -9.6 |
Comprehensive income attributable to JCG | $154.10 | $113 | $103.40 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $155.40 | $122.20 | $111.90 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 25.6 | 28.7 | 38.5 |
Deferred income taxes | 20.1 | 2.1 | 11.2 |
Amortization of stock-based compensation | 19.8 | 25 | 26.1 |
Investment (gains) losses, net | 1.9 | -6.5 | -11.1 |
Amortization of debt discounts, premiums and deferred issuance costs | 8.1 | 10.9 | 11.3 |
Loss on early extinguishment of debt | 13.5 | 7.2 | |
Payment of deferred commissions, net | -7.2 | -4.4 | -5.1 |
Other, net | 0.5 | -0.6 | 0.2 |
Changes in working capital items: | |||
Accounts receivable | -20.8 | -7.9 | -3.3 |
Other current assets | -13 | 21.5 | 13.4 |
Accounts payable and accrued compensation payable | 38.4 | 23.2 | 13.1 |
Other current and non-current liabilities | -10.4 | -3.6 | -4.5 |
Net operating activities | 218.4 | 224.1 | 208.9 |
Investing activities: | |||
Acquisition of Velocity Shares, net of cash acquired of $4.3 million | -28.4 | ||
Purchase of property and equipment | -11.4 | -7.6 | -7.2 |
Purchases and settlements of investment securities | -168.6 | -291.7 | -131 |
Proceeds from sales, settlements and maturities of investment securities | 336.8 | 157.6 | 100 |
Net investing activities | 128.4 | -141.7 | -38.2 |
Financing activities: | |||
Repayment of long-term debt | -98.9 | -8.9 | -65.8 |
Proceeds from the issuance of stock warrants | 10.5 | ||
Purchase of convertible note hedge | -16.1 | ||
Debt issuance costs | -4.8 | ||
Purchase of noncontrolling interests | -1.5 | -34.1 | -8.3 |
Distributions to noncontrolling interests | -1.6 | -5.9 | -9.1 |
Proceeds from stock option exercises and employee stock purchases | 8.4 | 8 | 6.1 |
Proceeds from stock option issuances | 4.9 | ||
Excess tax benefit from equity-based compensation | 2.1 | 2.3 | 1.4 |
Principal payments under capital lease obligations | -1.2 | -1.1 | -1 |
Repurchase of common stock | -87.2 | -33.4 | -17.5 |
Dividends paid to JCG shareholders | -58.4 | -39.8 | -54.4 |
Net financing activities | -238.3 | -123.3 | -143.7 |
Cash and cash equivalents: | |||
Effect of foreign exchange rate changes | -0.5 | -1.6 | |
Net change | 108 | -42.5 | 27 |
At beginning of year | 344.5 | 387 | 360 |
At end of year | 452.5 | 344.5 | 387 |
Supplemental cash flow information: | |||
Cash paid for interest | 27.2 | 31 | 33 |
Cash paid for income taxes, net of refunds | $89.70 | $51.50 | $37.70 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
CONDENSED STATEMENTS OF CASH FLOWS | |
Cash Acquired | $4.30 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total |
In Millions, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $1.90 | $1,311.80 | ($0.50) | $35.90 | $1,349.10 |
Balance (in shares) at Dec. 31, 2011 | 187 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 102.3 | 2.1 | 104.4 | ||
Other comprehensive income (loss) | 1.1 | 1.1 | |||
Amortization of stock-based compensation | 27.9 | 4.6 | 32.5 | ||
Issuance and forfeitures of restricted stock awards, net | -5 | -5 | |||
Issuance and forfeitures of restricted stock awards, net (in shares) | 1.6 | ||||
Stock option exercises and employee stock purchases | 6.1 | 6.1 | |||
Stock option exercises and employee stock purchases (in shares) | 1.1 | ||||
Stock options issuance | 4.9 | 4.9 | |||
Change in noncontrolling interests in consolidated investment products | -16.8 | -16.8 | |||
Distributions to noncontrolling interests | -1.8 | -1.8 | |||
Change in fair value of redeemable noncontrolling interests | 34.3 | 34.3 | |||
Vesting of nonredeemable noncontrolling interests | -1.2 | -1.2 | |||
Purchase of noncontrolling interests | -0.6 | -0.6 | |||
Repurchase of common stock | -17.5 | -17.5 | |||
Repurchase of common stock (in shares) | -2.2 | ||||
Dividends paid to JCG shareholders | -54.4 | -54.4 | |||
Balance at Dec. 31, 2012 | 1.9 | 1,415.40 | 0.6 | 17.2 | 1,435.10 |
Balance (in shares) at Dec. 31, 2012 | 187.5 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 114.7 | 1.1 | 115.8 | ||
Other comprehensive income (loss) | -1.7 | -1.7 | |||
Amortization of stock-based compensation | 22.2 | 2.1 | 24.3 | ||
Issuance and forfeitures of restricted stock awards, net (in shares) | 3.2 | ||||
Stock option exercises and employee stock purchases | 8 | 8 | |||
Stock option exercises and employee stock purchases (in shares) | 1.4 | ||||
Convertible senior notes issuance | 14.7 | 14.7 | |||
Extinguishment of convertible senior notes | -2 | -2 | |||
Convertible senior note hedge issuance | -16.1 | -16.1 | |||
Stock warrants issuance | 10.5 | 10.5 | |||
Change in noncontrolling interests in consolidated investment products | -3.6 | -3.6 | |||
Distributions to noncontrolling interests | -1.6 | -1.6 | |||
Change in fair value of redeemable noncontrolling interests | 1.8 | 1.8 | |||
Vesting of nonredeemable noncontrolling interests | -1.2 | -1.2 | |||
Purchase of noncontrolling interests | -0.3 | -0.3 | |||
Repurchase of common stock | -33.4 | -33.4 | |||
Repurchase of common stock (in shares) | -3.5 | ||||
Dividends paid to JCG shareholders | -39.8 | -39.8 | |||
Balance at Dec. 31, 2013 | 1.9 | 1,496 | -1.1 | 13.7 | 1,510.50 |
Balance (in shares) at Dec. 31, 2013 | 188.6 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 154.4 | 1.1 | 155.5 | ||
Other comprehensive income (loss) | -0.3 | -0.3 | |||
Amortization of stock-based compensation | 25.9 | 1.6 | 27.5 | ||
Issuance and forfeitures of restricted stock awards, net (in shares) | 2.7 | ||||
Stock option exercises and employee stock purchases | 8.4 | 8.4 | |||
Stock option exercises and employee stock purchases (in shares) | 0.9 | ||||
Change in noncontrolling interests in consolidated investment products | 32.2 | 32.2 | |||
Distributions to noncontrolling interests | -1 | -1 | |||
Change in fair value of redeemable noncontrolling interests | 1.2 | 1.2 | |||
Vesting of nonredeemable noncontrolling interests | 0.6 | 0.6 | |||
Purchase of noncontrolling interests | -0.9 | -0.9 | |||
Repurchase of common stock | -87.2 | -87.2 | |||
Repurchase of common stock (in shares) | -7 | ||||
Dividends paid to JCG shareholders | -58.4 | -58.4 | |||
Balance at Dec. 31, 2014 | $1.90 | $1,540.30 | ($1.40) | $47.30 | $1,588.10 |
Balance (in shares) at Dec. 31, 2014 | 185.2 |
DESCRIPTION_OF_THE_BUSINESS
DESCRIPTION OF THE BUSINESS | 12 Months Ended | |||
Dec. 31, 2014 | ||||
DESCRIPTION OF THE BUSINESS | ||||
DESCRIPTION OF THE BUSINESS | ||||
Note 1 — Description of the Business | ||||
Janus Capital Group Inc. and its subsidiaries (collectively, "JCG" or the "Company") derive revenue from providing investment management, administration, distribution and related services to financial advisors, individuals and institutional investors through mutual funds, other pooled investment vehicles, separate accounts and subadvised relationships (collectively referred to as "investment products") in both domestic and international markets. Revenues are generally based upon a percentage of the market value of assets under management and are calculated as a percentage of the daily average asset balance in accordance with contractual agreements. Certain investment products are also subject to performance fees, which vary based on a product's relative performance as compared to a benchmark index and the level of assets subject to such fees. Assets under management primarily consist of domestic and international equity and debt securities. Accordingly, fluctuations in domestic and international financial markets, relative investment performance, sales and redemptions of investment products, and changes in the composition of assets under management are all factors that have a direct effect on JCG's operating results. A significant portion of JCG's revenue is derived from contracts to manage mutual funds, which are subject to annual review and approval by each fund's Board of Trustees or its shareholders, or both. | ||||
JCG's significant subsidiaries at December 31, 2014, include: | ||||
• | Janus Capital Management LLC ("Janus") (wholly-owned subsidiary) — Janus offers growth and core equity, global and international equity as well as balanced and fixed income investment products. | |||
• | Perkins Investment Management LLC ("Perkins") (wholly-owned subsidiary) — Perkins offers value-disciplined investment products, including small, mid and large cap and global value investment products. On February 3, 2014, JCG exercised its right to purchase the remaining 0.4% noncontrolling interest in Perkins. See Note 10 — Noncontrolling Interests for further discussion. | |||
• | INTECH Investment Management LLC ("INTECH") (96.8% owned subsidiary) — INTECH offers risk-managed investment products that are based on a mathematical theorem that seeks to add value for clients by capitalizing on the volatility in stock price movements. INTECH's goal is to achieve long-term returns that outperform a specified benchmark index, while controlling risks and trading costs. INTECH manages and subadvises institutional and separate accounts and subadvises certain Janus mutual funds. | |||
• | VelocityShares, LLC ("VelocityShares") (wholly-owned subsidiary) — On December 1, 2014, the Company announced the closing of its acquisition of VS Holdings Inc., the parent company of VelocityShares. VelocityShares is a sponsor of exchange-traded products ("ETPs"), including rules-based exchange-traded funds ("ETFs"), that provide volatility management solutions to institutional clients. VelocityShares is currently developing a second business around ETFs for diversified investment portfolios, focusing on volatility hedged equities and equal-risk weighted solutions. | |||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Note 2 — Summary of Significant Accounting Policies | |||||||||||
Basis of Presentation | |||||||||||
The financial statements include all majority-owned subsidiaries, and all intercompany accounts and transactions have been eliminated in consolidation. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. | |||||||||||
Accounting Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material. JCG's significant estimates relate to investment securities, goodwill and intangible assets, equity compensation and income taxes. | |||||||||||
Segment Information | |||||||||||
The Company's management directs JCG's operations as one business, the investment management business, and thus operates in one business segment. | |||||||||||
Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents consist of cash held at banks in the United States and outside the United States, and short-term investments with an initial maturity of three months or less when purchased. JCG's cash equivalents consist primarily of debt securities and totaled $300.2 million and $199.0 million at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, approximately $24 million of cash held outside the United States was not available for general corporate purposes due to capital requirements associated with foreign subsidiaries of JCG. | |||||||||||
Property and Equipment | |||||||||||
Property and equipment is recorded at cost. Depreciation and amortization are recorded using the straight-line method over the estimated useful life of the related assets (or the lease term, if shorter). Depreciation and amortization expense totaled $10.4 million, $11.2 million and $13.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Property and equipment is summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
Depreciation and | |||||||||||
amortization | |||||||||||
period | 2014 | 2013 | |||||||||
Furniture, fixtures, computer equipment and software | 3-7 years | $ | 209.6 | $ | 199.3 | ||||||
Leasehold improvements | 3-24 years | 38.8 | 37.5 | ||||||||
| | | | | | | | | | ||
Property and equipment, gross | 248.4 | 236.8 | |||||||||
Accumulated depreciation and amortization | (217.3 | ) | (206.9 | ) | |||||||
| | | | | | | | | | ||
Property and equipment, net | $ | 31.1 | $ | 29.9 | |||||||
| | | | | | | | | | ||
| | | | | | | | | | ||
Computer equipment includes certain leased items that have been designated as capital leases and represented $6.8 million and $6.5 million of the gross property and equipment balance at December 31, 2014 and 2013, respectively. | |||||||||||
JCG evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation is based on an estimate of the future cash flows expected to result from the use of the asset and its eventual disposition. If expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized in an amount equal to the excess of the carrying amount of the asset over the fair value of the asset. There were no impairments of long-lived assets for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Purchased software is recorded at cost and amortized over its estimated useful life. Internal and external costs incurred in connection with developing or obtaining software for internal use are expensed as incurred during the preliminary project stage, as are training and maintenance costs. Internal and external costs incurred for internal use software during the application development stage are capitalized until such time that the software is substantially complete and ready for its intended use. Application development stage costs are amortized on a straight-line basis over the estimated useful life of the software. | |||||||||||
Capitalized software costs totaled $10.4 million and $8.3 million at December 31, 2014 and 2013, respectively, and are presented within property and equipment, net on the Consolidated Balance Sheets. | |||||||||||
Deferred Commissions | |||||||||||
Sales commissions paid to financial intermediaries on sales of certain mutual fund shares are deferred and amortized over various periods, not exceeding four years, based on the estimated recoverability of the asset through distribution fee payments and contingent deferred sales charges. Contingent deferred sales charges received from early redemptions reduce the unamortized deferred commissions balance. Amortization expense for the years ended December 31, 2014, 2013 and 2012, totaled $5.6 million, $5.3 million and $5.6 million, respectively. | |||||||||||
Deferred commissions, which are recorded as components of other current assets and other non-current assets on the Consolidated Balance Sheets, are summarized as follows as of December 31, 2014 and 2013 (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred commissions — current | $ | 3.9 | $ | 2.2 | |||||||
Deferred commissions — non-current | 0.2 | 0.3 | |||||||||
| | | | | | | | ||||
Total | $ | 4.1 | $ | 2.5 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Investment Securities | |||||||||||
JCG classifies investment securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried on JCG's Consolidated Balance Sheets at fair value and consist primarily of investments related to seeded investment products, investments in advised funds previously utilized for the economic hedging of mutual fund share awards and investments related to the economic hedging of deferred compensation. | |||||||||||
Seeded Investment Products | |||||||||||
JCG periodically adds new investment strategies to its investment product offerings by providing the initial cash investment or "seeding." The primary purpose of seeded investment products is to generate an investment performance track record in a product to attract third-party investors. JCG's initial investment in a new product represents 100% ownership in that product. Seeded investment products are initially consolidated and the individual securities within the portfolio are accounted for as trading securities. JCG consolidates such investment products as long as it holds a controlling interest in the investment product, defined as greater than 50% ownership. | |||||||||||
Upon deconsolidation, JCG continues to account for its investments in seeded products as trading securities if its ownership is between 20% and 50%. JCG may redeem invested seed capital for a variety of reasons, including when third-party investments in the relevant product are sufficient to sustain the given investment strategy. The length of time JCG holds a majority interest in a product varies based on a number of factors including, but not limited to, market demand, market conditions and investment performance. Changes in fair value of securities classified as trading are recognized in investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
The Company has determined that its seeded investment products do not represent variable interest entities. Seed investments are made largely in mutual funds, but may also be made in commingled pools and separate accounts. JCG has determined mutual funds to be voting interest entities rather than variable interest entities. Commingled pools are established as limited liability companies or partnerships, and as such, the Company applies partnership accounting rules. These rules dictate that a managing member or general partner would not consolidate an entity if the members or limited partners carry substantive kick-out rights. All of the Company's commingled pools carry substantive kick-out rights. Seed investments in separate accounts are 100% owned by JCG and are accounted for as trading securities. | |||||||||||
Investments in Advised Funds and Investments Related to the Economic Hedging of Deferred Compensation | |||||||||||
JCG grants mutual fund share awards to employees that are indexed to certain funds managed by JCG. Upon vesting, participants receive the value of the mutual fund share awards adjusted for gains or losses attributable to the mutual funds to which the award was indexed, subject to tax withholding. Historically, JCG made corresponding investments in JCG-managed funds for purposes of economically hedging the mutual fund share awards. Effective January 2013, such corresponding investments are no longer made. The value of the investments in the JCG-managed funds is a component of investment securities on JCG's Consolidated Balance Sheets. | |||||||||||
The Company maintains deferred compensation plans for certain highly compensated employees and members of its Board of Directors. Eligible participants may defer a portion of their compensation and have the ability to earn a return by indexing their deferrals to mutual funds managed by the Company and its subsidiaries. The Company makes no contributions to the plan. To protect against market variability of the liability, the Company creates an economic hedge by investing in mutual funds that are consistent with the deferred amounts and mutual fund elections of the participants. Such investments remain assets of JCG. Changes in market value of the liability to participants are recognized as long-term incentive compensation in JCG's Consolidated Statements of Comprehensive Income and changes in the market value of the mutual fund securities are recognized in investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
Available-for-Sale Securities | |||||||||||
Investment securities classified as available-for-sale consist of seeded investment products in which JCG holds a less than 20% interest and are carried on JCG's Consolidated Balance Sheets at fair value. Changes in fair value are reflected as a component of other comprehensive income (loss), net of tax on JCG's Consolidated Statements of Comprehensive Income until realized. Realized gains, losses and declines in fair value that are judged to be other-than-temporary are reflected as a component of investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. Accumulated gains and losses are reclassified to earnings when the securities are sold on a first-in, first-out cost basis. | |||||||||||
Impairment Evaluation | |||||||||||
JCG periodically evaluates the carrying value of investment securities classified as available-for-sale or held-to-maturity for potential impairment. In determining if an impairment exists, JCG considers the duration, extent and circumstances of any decline in fair value. | |||||||||||
For debt securities, an other-than-temporary impairment ("OTTI") is evident if JCG intends to sell the debt security or will more likely than not be required to sell the debt security before full recovery of the entire amortized cost basis is realized. However, even if JCG does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, JCG must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income and the noncredit component is recognized through other comprehensive income (loss), net of tax on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
For equity securities, JCG evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as JCG's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the carrying value of the security and its fair value is recognized within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. There were no impairments of investment securities for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Derivative Instruments | |||||||||||
The Company maintains an economic hedge program that uses derivative instruments to hedge against market volatility of certain of its seed investments. Fluctuations in equity markets, interest rate markets and foreign currency markets are hedged by using index swaps, futures contracts and forward contracts. These derivative instruments are not classified as hedges for accounting purposes. The Company records all derivatives as either assets or liabilities on JCG's Consolidated Balance Sheets and measures those investments at fair value. Changes in the value of the index swaps and futures contracts are recognized as a component of investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. Changes in the value of the foreign currency forward contracts are recognized as a component of other income, net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
Fair Value Measurements | |||||||||||
Fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, JCG utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that JCG is valuing and the selected benchmark. Depending on the type of securities owned by JCG, other valuation methodologies may be required. | |||||||||||
Measurements of fair value are classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||
The valuation hierarchy contains three levels: | |||||||||||
• | Level 1 — Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. | ||||||||||
• | Level 2 — Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. | ||||||||||
• | Level 3 — Valuation inputs are unobservable and significant to the fair value measurement. | ||||||||||
JCG's Level 1 fair value measurements consist of seeded investment products, investments in advised funds and investments related to deferred compensation plans with quoted market prices in active markets. The fair value level of seeded investment products classified as trading securities is determined by the underlying securities of the product. The fair value level of equity-method and unconsolidated seeded investment products are valued using the respective net asset value ("NAV") of each product. All seeded investment products that use the NAV to determine their fair value are classified as Level 1 and primarily represent seeded mutual funds where JCG's ownership level is under 50%. | |||||||||||
JCG's Level 2 fair value measurements consist mostly of debt securities within cash equivalents, seeded investment products and JCG's long-term debt. The fair value of consolidated seeded investment products where JCG's ownership level is above 50% is determined by the underlying securities of the product. The fair value of JCG's long-term debt is determined using broker quotes and recent trading activity, which are considered Level 2 inputs. | |||||||||||
The underlying securities of mutual funds and separate accounts may be denominated in a foreign currency. In some cases, the closing price of such securities may be adjusted to capture the effects of any post-closing activity affecting the markets in which they trade. Security prices are adjusted based upon historical impacts for similar post-close activity. These adjustments result in the securities being classified as Level 2 and may also result in movements of securities between Level 1 and Level 2. | |||||||||||
JCG's Level 3 recurring fair value measurements represent INTECH redeemable noncontrolling interests and contingent cash consideration related to the acquisition of VelocityShares. | |||||||||||
Redeemable noncontrolling interests in INTECH are measured at fair value on a quarterly basis or more frequently if events or circumstances indicate that a material change in the fair value of INTECH has occurred. The fair value of INTECH is determined using a relative value methodology that incorporates observable metrics from publicly traded peer companies as valuation comparables, and adjustments related to investment performance and changes in assets under management. The relative value analysis is prepared internally within JCG's finance organization by personnel with appropriate valuation experience and credentials. In preparing the analysis, JCG benchmarks valuation metrics such as multiples of earnings before interest expense, taxes, depreciation and amortization ("EBITDA") against current market observables and recent market transactions of a similar size and nature to ensure that the estimates are reasonable. The analysis is reviewed by senior JCG finance personnel and JCG's Chief Financial Officer. The analysis is also reviewed by the holders of the noncontrolling interests in INTECH. If the valuation is agreed to by both JCG and the holders of noncontrolling interests, JCG uses the analysis to value the redeemable noncontrolling interests. The Company previously employed a discounted cash flow methodology for valuing the redeemable noncontrolling interests in INTECH, but adopted the current relative value methodology for the year ended December 31, 2014, as the relative value methodology represents a more objective approach to measuring the fair value of the noncontrolling interests. The change in methodology did not significantly impact JCG's financial position or results of operations. | |||||||||||
Significant inputs related to the relative value analysis include INTECH's trailing 12-month operating results, performance fees, investment performance and trends in assets under management. In addition, market trading comparables from a relevant publicly traded peer set are included to complete the relative valuation process. Publicly available comparables used for the fourth quarter 2014 valuation analysis ranged from approximately 8.0x to 13.0x EBITDA. Significant increases or decreases in historical INTECH operating results would result in a significantly higher or lower fair value measurement, respectively. Additionally, a significant increase or decrease in market trading comparables would result in a significantly higher or lower fair value measurement, respectively. Generally, any period-over-period change in INTECH performance or level of assets under management in isolation is accompanied by a directionally similar change in the fair value measurement. | |||||||||||
Contingent cash consideration was a component of the purchase price of the VelocityShares acquisition. The contingent consideration is payable on the first, second, third and fourth anniversaries of the acquisition, in amounts up to $10 million each for the first and second anniversaries, and $8 million each for the third and fourth anniversaries. The payments are contingent on certain VelocityShares' ETPs reaching defined net revenue targets. The fair value of the contingent cash consideration is calculated on a quarterly basis by forecasting net ETP revenue, as defined by the purchase agreement, over the contingency period, and determining whether targets are met given forecasted VelocityShares operating results. Earned contingent payments are then discounted back to the valuation date. Significant unobservable inputs used in the valuation are limited to forecasted gross revenues and certain expense items which are deducted from these revenues. Increases in forecasted net revenue would increase the fair value of the consideration, subject to payment limitations, while decreases in net revenues would decrease the fair value. Refer to Note 5 — Goodwill, Intangible Assets and Acquisitions for further discussion of the VelocityShares acquisition. | |||||||||||
Nonrecurring Level 3 fair value measurements include goodwill and intangible assets. JCG measures the fair value of goodwill and intangible assets using a discounted cash flow analysis that requires assumptions regarding projected future earnings and discount rates. Because of the significance of the unobservable inputs in the fair value measurements of these assets and liabilities, such measurements have been classified as Level 3. | |||||||||||
Income Taxes | |||||||||||
Deferred income tax assets and liabilities are recorded for the temporary differences between the financial statement and income tax bases of assets and liabilities as measured by the enacted income tax rates that may be in effect when these differences reverse. The effect of changes in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Significant management judgment is required in developing JCG's provision for income taxes, including the valuation allowances that might be required against deferred tax assets and the evaluation of various income tax contingencies. | |||||||||||
The accounting guidance for uncertainty in income taxes sets forth a specific method for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. The tax contingencies liability relates primarily to general state tax items and has been recorded in other non-current liabilities and other accrued liabilities on JCG's Consolidated Balance Sheets, as appropriate. | |||||||||||
Taxing authorities generally charge interest and may assess penalties in the event that a tax position taken is subsequently reversed upon examination. JCG has accrued interest on its uncertain tax provisions based on the rates specified by the applicable taxing authorities and has recorded the interest as a component of the tax provision. At December 31, 2014, 2013 and 2012, $0.8 million, $1.3 million and $2.2 million, respectively, of accrued interest is included in the liability for tax contingencies. Any potential penalties associated with a tax contingency will also be included as a component of the tax provision in the period in which the assessment of a penalty becomes likely. JCG does not believe that it is subject to any penalties related to its tax contingencies and, therefore, has not accrued a liability for tax penalties. | |||||||||||
In the event of an overpayment of income taxes, taxing authorities generally pay interest from the date of the overpayment. JCG records interest income from taxing authorities as a component of the income tax provision. | |||||||||||
Goodwill and Intangible Assets, Net | |||||||||||
Goodwill represents the excess of cost over the fair value of the identifiable net assets of acquired companies. JCG's identifiable intangible assets generally represent the cost of client relationships and mutual fund advisory contracts acquired as well as brand name and trademark. ETPs associated with the acquisition of VelocityShares are also part of JCG's identifiable intangible assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of October 1 or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimates and judgment, including the valuation and expected life determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. | |||||||||||
Noncontrolling Interests and Redeemable Noncontrolling Interests | |||||||||||
Noncontrolling interests that are not subject to redemption rights are classified in permanent equity. Redeemable noncontrolling interests are classified outside of permanent equity on the Consolidated Balance Sheets and are measured at estimated fair value as of the balance sheet dates. Changes in fair value of redeemable noncontrolling interests are recognized as increases or decreases to redeemable noncontrolling interests with an offsetting charge to retained earnings. Certain of the INTECH ownership interests granted to employees become subject to redemption rights upon vesting at which time such interests are reclassified to redeemable noncontrolling interests. Earnings attributable to noncontrolling interests that are and are not subject to redemption rights are combined in JCG's Consolidated Statements of Comprehensive Income. Acquisitions of entities in which JCG holds an existing controlling interest are treated as a reduction of noncontrolling interests or redeemable noncontrolling interests in an amount equal to the purchase price. See Note 10 — Noncontrolling Interests for further discussion of noncontrolling interests. | |||||||||||
Revenue Recognition | |||||||||||
Investment management and shareowner servicing fees are recognized as services are provided. These revenues are generally determined in accordance with contracts based upon a percentage of average assets under management. | |||||||||||
Performance fee revenue is derived from certain mutual funds and separate accounts. Mutual fund performance fees represent an adjustment to the investment management fee of certain mutual funds and are based on the relative investment performance of each fund compared to a specific benchmark index. The adjustment is up to a positive or negative 15 basis points and is calculated using each fund's daily net average assets based on a trailing 36-month measurement period. Separate account performance fees are specified in client contracts and are based on investment performance as compared to an established benchmark index over a specified period of time. Separate account performance fees are recognized at the end of the contractual period if the stated performance criteria are achieved. | |||||||||||
Marketing | |||||||||||
Marketing and promotional costs are generally expensed as incurred. | |||||||||||
Stock-Based Compensation | |||||||||||
Stock-based compensation cost is based on the grant date fair value of awards expected to vest at the end of the stated service period and consists of the total value of the awards less an estimate for forfeitures. The grant date fair value of stock options is determined using the Black-Scholes option pricing model, and the grant date fair value of restricted stock is determined from the market price on the date of grant. The Black-Scholes model requires management to estimate certain variables, including the lives of options from grant date to exercise date, the volatility of the underlying shares and future dividend rates. | |||||||||||
JCG estimates, at the time of grant, the amount of awards that are not expected to vest based on historical forfeiture rates and subsequently records adjustments, as appropriate. | |||||||||||
Other Income, Net | |||||||||||
The components of other income, net for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Dividend income | $ | 5.6 | $ | 3.8 | $ | 2.3 | |||||
Interest income | 0.6 | 0.5 | 0.6 | ||||||||
Foreign currency gains (losses), net | (3.2 | ) | 0.2 | (1.6 | ) | ||||||
Other, net | — | — | 1.9 | ||||||||
| | | | | | | | | | | |
Total other income, net | $ | 3 | $ | 4.5 | $ | 3.2 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Earnings Per Share | |||||||||||
JCG calculates basic and diluted earnings per share using the two-class method, as common shares and participating restricted stock awards are paid nonforfeitable dividends. Under the two-class method, net income attributable to JCG is adjusted for the allocation of earnings to participating restricted stock awards. In addition, the weighted-average diluted common shares outstanding are calculated using the two-class method. | |||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Note 3 — Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued a new revenue recognition standard. The standard's core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. The standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting standard. | |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
INVESTMENT SECURITIES | ||||||||||||||||||||
INVESTMENT SECURITIES | ||||||||||||||||||||
Note 4 — Investment Securities | ||||||||||||||||||||
JCG's investment securities as of December 31, 2014 and 2013, are summarized as follows (in millions): | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Trading securities: | ||||||||||||||||||||
Seeded investment products | $ | 258.3 | $ | 312.9 | ||||||||||||||||
Investments in advised mutual funds | 4.4 | 45.5 | ||||||||||||||||||
Investments related to deferred compensation plans | 13.0 | 14.9 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total trading securities | 275.7 | 373.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | 68.3 | 10.7 | ||||||||||||||||||
Debt securities | — | 101.5 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total available-for-sale securities | 68.3 | 112.2 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total investment securities | $ | 344.0 | $ | 485.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Trading Securities | ||||||||||||||||||||
Seeded investment products classified as trading securities consisted of the following as of December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair value | Number of | Fair value | Number of | |||||||||||||||||
(in millions) | products | (in millions) | products | |||||||||||||||||
Mutual funds advised by the Company | $ | 191.8 | 17 | $ | 230.0 | 12 | ||||||||||||||
Separately managed accounts | 66.5 | 31 | 82.9 | 28 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total seeded investment products classified as trading securities | $ | 258.3 | $ | 312.9 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
The Company recognized $4.3 million, $23.6 million and $16.8 million of net investment gains related to trading securities still held as of December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||
Seeded investment products classified as available-for-sale securities consisted of the following as of December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair value | Number of | Fair value | Number of | |||||||||||||||||
(in millions) | products | (in millions) | products | |||||||||||||||||
Mutual funds advised by the Company | $ | 68.3 | 40 | $ | 10.7 | 34 | ||||||||||||||
During the year ended December 31, 2014, nine debt securities with an aggregate principal value of $100.0 million matured. | ||||||||||||||||||||
The following is a summary of available-for-sale securities at December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
investment | Foreign | Estimated | Carrying | |||||||||||||||||
currency | fair value | value | ||||||||||||||||||
Cost | Gains | Losses | translation | |||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | $ | 68.6 | $ | 0.4 | $ | (0.6 | ) | $ | (0.1 | ) | $ | 68.3 | $ | 68.3 | ||||||
December 31, 2013 | ||||||||||||||||||||
Gross | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
investment | Foreign | Estimated | Carrying | |||||||||||||||||
currency | fair value | value | ||||||||||||||||||
Cost | Gains | Losses | translation | |||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | $ | 9.9 | $ | 0.9 | $ | — | $ | (0.1 | ) | $ | 10.7 | $ | 10.7 | |||||||
Debt securities | 101.6 | — | (0.1 | ) | — | 101.5 | 101.5 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total available-for-sale securities | $ | 111.5 | $ | 0.9 | $ | (0.1 | ) | $ | (0.1 | ) | $ | 112.2 | $ | 112.2 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The Company reviewed the gross unrealized losses on available-for-sale securities and determined that the losses were not other-than-temporary. No OTTI charges were recognized for the years ended December 31, 2014 or 2013. | ||||||||||||||||||||
Realized gains and losses related to the disposition of seeded investment products classified as available-for-sale securities were recognized within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. The following is a summary of realized gains and losses upon disposition of seeded investment products classified as available-for-sale securities for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Realized gains | $ | 2.8 | $ | 2.6 | $ | 0.6 | ||||||||||||||
Realized losses | (0.1 | ) | (2.1 | ) | (0.7 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Net realized gains (losses) | $ | 2.7 | $ | 0.5 | $ | (0.1 | ) | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Derivative Instruments | ||||||||||||||||||||
The Company maintains an economic hedge program that uses derivative instruments to hedge against market volatility of certain seed investments. Fluctuations in equity markets, debt markets and foreign currency markets are hedged by using index swaps, index futures and foreign currency forward contracts. | ||||||||||||||||||||
JCG was party to the following derivative instruments as of December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Number of | Notional value | Number of | Notional value | |||||||||||||||||
contracts | (in millions) | contracts | (in millions) | |||||||||||||||||
Index swaps | 4 | $ | 56.8 | 6 | $ | 184.3 | ||||||||||||||
Index futures | 6 | $ | 74.9 | 6 | $ | 66.6 | ||||||||||||||
Foreign currency forward contracts | 7 | $ | 3.6 | 6 | $ | 93.6 | ||||||||||||||
The derivative instruments are not designated as hedges for accounting purposes. Changes in fair value of the index swaps and index futures are recognized in investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income while changes in the fair value of the foreign currency forward contracts are recognized in other income, net on JCG's Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||
Index swaps are subject to a master netting arrangement. The values of the individual index swap contracts, including any associated cash collateral, are combined and are included on a net basis in other current assets or other accrued liabilities on JCG's Consolidated Balance Sheets. Index futures are also subject to a master netting arrangement and are presented in the same manner as the index swaps. Foreign currency forward contracts are not subject to a master netting arrangement, and as such, fair values of individual contracts are not netted and are included separately within either other current assets or other accrued liabilities on JCG's Consolidated Balance Sheets. | ||||||||||||||||||||
The Company posted $1.7 million and $4.8 million in cash collateral with the counterparty of the index futures as of December 31, 2014 and 2013, respectively. The cash collateral is included in other current assets on JCG's Consolidated Balance Sheets. | ||||||||||||||||||||
The following tables illustrate the effect of offsetting derivative instruments on JCG's Consolidated Balance Sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross amounts | Gross amounts | Gross amounts | Net amounts | |||||||||||||||||
offset by | offset by | |||||||||||||||||||
derivative | cash collateral | |||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Index swaps | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Index futures | $ | 1.2 | $ | — | $ | (1.2 | ) | $ | — | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts | Gross amounts | Gross amounts | Net amounts | |||||||||||||||||
offset by | offset by | |||||||||||||||||||
derivative | cash collateral | |||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Index swaps | $ | 0.1 | $ | (0.1 | ) | $ | — | $ | — | |||||||||||
Index futures | 0.9 | (0.4 | ) | — | 0.5 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | 1 | $ | (0.5 | ) | $ | — | $ | 0.5 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Liabilities: | ||||||||||||||||||||
Index swaps | $ | 1.5 | $ | (1.5 | ) | $ | — | $ | — | |||||||||||
Index futures | 0.4 | (0.4 | ) | — | — | |||||||||||||||
Foreign currency forward contracts | 1.5 | — | — | 1.5 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | 3.4 | $ | (1.9 | ) | $ | — | $ | 1.5 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
JCG recognized the following net gains on hedged seed investments and net losses on associated index futures and index swaps for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Hedged seed investments classified as trading securities (1) | $ | 7.3 | $ | 31.8 | $ | 11.5 | ||||||||||||||
Hedged seed investments classified as available-for-sale securities (1) | 2.9 | 1.6 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total hedged seed investments | 10.2 | 33.4 | 11.5 | |||||||||||||||||
Index futures | (8.2 | ) | (20.7 | ) | (12.5 | ) | ||||||||||||||
Index swaps | (3.0 | ) | (16.7 | ) | — | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | (1.0 | ) | $ | (4.0 | ) | $ | (1.0 | ) | |||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | Includes entire net gain associated with hedged equity and fixed income seed investment products. Hedging activity is limited to the systematic market risk associated with equity products and the interest rate risk associated with fixed income products. | |||||||||||||||||||
JCG recognized the following net gains (losses) on hedged seed investments denominated in a foreign currency and net gains (losses) on associated foreign currency forward contracts for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Net gains (losses) in net income related to: | ||||||||||||||||||||
Foreign currency translation | $ | (1.9 | ) | $ | 4.3 | $ | 0.1 | |||||||||||||
Foreign currency forward contracts | 1.3 | (4.3 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | (0.6 | ) | $ | — | $ | 0.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Derivative Instruments in Consolidated Seeded Investment Products | ||||||||||||||||||||
Certain of the Company's consolidated seeded investment products utilize derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within investment securities on JCG's Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. | ||||||||||||||||||||
JCG's consolidated seeded investment products were party to the following derivative instruments as of December 31, 2014 and 2013: | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Number of | Notional value | Number of | Notional value | |||||||||||||||||
contracts | (in millions) | contracts | (in millions) | |||||||||||||||||
Swaps | 117 | $ | 65.8 | 32 | $ | 17.8 | ||||||||||||||
Futures | 32 | $ | 41.5 | 23 | $ | 10.4 | ||||||||||||||
Foreign currency forward contracts | 37 | $ | 2.4 | 32 | $ | 7.4 | ||||||||||||||
Options | 29 | $ | 0.5 | 5 | $ | — | ||||||||||||||
The following tables illustrate the effect of offsetting derivative instruments within consolidated seeded investment products on JCG's Consolidated Balance Sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross | Gross amounts | Net amounts | ||||||||||||||||||
amounts | offset by | |||||||||||||||||||
derivative | ||||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Swaps | $ | 1.4 | $ | (0.4 | ) | $ | 1 | |||||||||||||
Futures | 0.6 | (0.4 | ) | 0.2 | ||||||||||||||||
Options | 0.2 | — | 0.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 2.2 | $ | (0.8 | ) | $ | 1.4 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Liabilities: | ||||||||||||||||||||
Swaps | $ | 0.4 | $ | (0.4 | ) | $ | — | |||||||||||||
Futures | 0.4 | (0.4 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 0.8 | $ | (0.8 | ) | $ | — | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross amounts | Net amounts | ||||||||||||||||||
amounts | offset by | |||||||||||||||||||
derivative | ||||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Swaps | $ | 1.2 | $ | (1.2 | ) | $ | — | |||||||||||||
Futures | 0.1 | (0.1 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 1.3 | $ | (1.3 | ) | $ | — | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Liabilities: | ||||||||||||||||||||
Swaps | $ | 1.3 | $ | (1.2 | ) | $ | 0.1 | |||||||||||||
Futures | 0.1 | (0.1 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 1.4 | $ | (1.3 | ) | $ | 0.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Investment Gains (Losses), Net | ||||||||||||||||||||
Investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income included the following for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Seeded investment products | $ | 8.6 | $ | 28.9 | $ | 17.8 | ||||||||||||||
Noncontrolling interests in seeded investment products | (0.6 | ) | 3.4 | 2 | ||||||||||||||||
Investments in advised mutual funds | (0.1 | ) | 8.5 | 8.6 | ||||||||||||||||
Index swaps and index futures | (11.2 | ) | (37.4 | ) | (12.5 | ) | ||||||||||||||
Economic hedge for deferred compensation plans | 1.3 | 3 | 1.3 | |||||||||||||||||
Put spread option contracts | — | — | (6.1 | ) | ||||||||||||||||
Other | 0.1 | 0.1 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Investment gains (losses), net | $ | (1.9 | ) | $ | 6.5 | $ | 11.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Purchases, Sales, Settlements and Maturities | ||||||||||||||||||||
Cash flows related to investment securities for the years ended December 31, 2014, 2013 and 2012, are summarized as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Purchases | Sales, | Purchases | Sales, | Purchases | Sales, | |||||||||||||||
and | settlements | and | settlements | and | settlements | |||||||||||||||
settlements | and | settlements | and | settlements | and | |||||||||||||||
maturities | maturities | maturities | ||||||||||||||||||
Trading securities | $ | (143.5 | ) | $ | 148 | $ | (118.0 | ) | $ | 79.1 | $ | (108.9 | ) | $ | 80.7 | |||||
Available-for-sale securities | (0.7 | ) | 174.9 | (103.5 | ) | 47 | (1.1 | ) | 8 | |||||||||||
Derivative instruments: | ||||||||||||||||||||
Seed capital economic hedge | (24.4 | ) | 13.9 | (70.2 | ) | 31.5 | (21.0 | ) | 11.3 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total cash flows | $ | (168.6 | ) | $ | 336.8 | $ | (291.7 | ) | $ | 157.6 | $ | (131.0 | ) | $ | 100 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Seeding of investment products in 2014 included a $100.0 million investment in the Global Unconstrained Bond strategy. The investment included $48.0 million and $52.0 million allocated to JCG's domestic and international trusts, respectively. | ||||||||||||||||||||
GOODWILL_INTANGIBLE_ASSETS_AND
GOODWILL, INTANGIBLE ASSETS AND ACQUISITIONS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
GOODWILL, INTANGIBLE ASSETS AND AQUISITIONS | ||||||||||||||
GOODWILL, INTANGIBLE ASSETS AND AQUISITIONS | ||||||||||||||
Note 5 — Goodwill, Intangible Assets and Acquisitions | ||||||||||||||
JCG's goodwill and intangible assets are summarized below (in millions): | ||||||||||||||
December 31, | Acquisition | Amortization | December 31, | |||||||||||
2013 | 2014 | |||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||
Advisory contracts | $ | 918.6 | $ | 3.3 | $ | — | $ | 921.9 | ||||||
Brand name and trademark | 270.6 | — | — | 270.6 | ||||||||||
Definite-lived intangible assets: | ||||||||||||||
Client relationships | 150.2 | 33.6 | — | 183.8 | ||||||||||
Accumulated amortization | (109.3 | ) | — | (9.6 | ) | (118.9 | ) | |||||||
| | | | | | | | | | | | | | |
Net intangible assets | $ | 1,230.10 | $ | 36.9 | $ | (9.6 | ) | $ | 1,257.40 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill | $ | 488.2 | $ | 21.5 | $ | — | $ | 509.7 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The majority of goodwill and intangible assets were generated from the purchase of the noncontrolling interest of Janus and acquisitions of interests in INTECH, Perkins and VelocityShares. Intangible assets acquired as a result of these transactions include brand name and trademark, advisory contracts and client relationships. | ||||||||||||||
Indefinite-lived intangible assets represent brand name, trademark and advisory contracts. | ||||||||||||||
Definite-lived intangible assets represent client relationships, which are amortized over their estimated lives of 12 years (17 years for VelocityShares intangible assets) using the straight-line method. JCG recognizes an impairment charge equal to the unamortized value of the associated subadvised relationship when notification of termination is received. There were no intangible asset impairment charges recognized during the years ended December 31, 2014 and 2013. During the year ended December 31, 2012, the Company recognized $7.7 million of intangible asset impairment charges in amortization expense from the loss of JCG subadvised relationships. | ||||||||||||||
Amortization expense was $9.6 million, $12.2 million and $19.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expected future amortization expense is summarized below (in millions): | ||||||||||||||
Year ended December 31, | Amount | |||||||||||||
2015 | $ | 9.9 | ||||||||||||
2016 | 9.6 | |||||||||||||
2017 | 9.6 | |||||||||||||
2018 | 6.9 | |||||||||||||
2019 | 4.7 | |||||||||||||
Thereafter | 24.2 | |||||||||||||
| | | | | ||||||||||
Total | $ | 64.9 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
Impairment Testing | ||||||||||||||
The October 2014 tests of goodwill and indefinite-lived intangible assets indicated that estimated fair values substantially exceeded their respective carrying values, and as such, no impairment charges were recognized. The October 2014 tests included certain underlying key assumptions regarding future overall market trends and Company operating performance. If actual future market results and Company operating performance vary significantly and unfavorably to those included in the Company's financial forecast, the Company may be subject to impairment charges related to its goodwill and indefinite-lived intangible assets. | ||||||||||||||
No impairment charges were recognized as a result of the October 2013 and 2012 tests of goodwill and indefinite-lived intangible assets. | ||||||||||||||
Acquisition of VelocityShares | ||||||||||||||
On October 13, 2014, the Company entered into an agreement to acquire 100% of the outstanding equity of VS Holdings Inc., the parent company of VelocityShares. VelocityShares is a sponsor of ETPs, including rules-based ETFs, that provide volatility management solutions to institutional clients. As of December 31, 2014, VelocityShares-branded products had approximately $2.4 billion in assets. The majority of these assets represent tactical trading products serving short-term investors and traders in the form of exchange-traded notes. The acquisition of VelocityShares is expected to facilitate JCG's entrance into the ETP business. | ||||||||||||||
On December 1, 2014, JCG announced the closing of the VelocityShares acquisition. The transaction included initial upfront cash consideration of $32.7 million with up to an additional $36.0 million in contingent cash consideration if certain revenue targets are achieved over a four-year period. At acquisition, JCG estimated that contingent consideration with a current fair value of $17.9 million will be paid over a four year period. The total purchase price, including the upfront payment and the present value of the expected contingent payments, was allocated as follows: | ||||||||||||||
Intangible assets | $ | 36.9 | ||||||||||||
Goodwill | 21.5 | |||||||||||||
Cash acquired | 4.3 | |||||||||||||
Deferred tax liability | (11.0 | ) | ||||||||||||
Other liabilities, net | (1.1 | ) | ||||||||||||
| | | | | ||||||||||
Total allocation | $ | 50.6 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
Note 6 — Fair Value Measurements | ||||||||||||||
The following table presents assets, liabilities and redeemable noncontrolling interests measured or disclosed at fair value on a recurring basis as of December 31, 2014 (in millions): | ||||||||||||||
Fair value measurements using: | ||||||||||||||
Quoted prices in | Significant other | Significant | Total | |||||||||||
active markets for | observable inputs | unobservable inputs | ||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 7.7 | $ | 292.5 | $ | — | $ | 300.2 | ||||||
Index swaps | — | 0.3 | — | 0.3 | ||||||||||
Trading securities: | ||||||||||||||
Seeded investment products | 136.6 | 121.7 | — | 258.3 | ||||||||||
Investments in advised mutual funds | 4.4 | — | — | 4.4 | ||||||||||
Investments related to deferred compensation plans | 13.0 | — | — | 13.0 | ||||||||||
Available-for-sale securities: | ||||||||||||||
Seeded investment products | 68.3 | — | — | 68.3 | ||||||||||
| | | | | | | | | | | | | | |
Total investment securities | 222.3 | 121.7 | — | 344.0 | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 230.0 | $ | 414.5 | $ | — | $ | 644.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Long-term debt | $ | — | $ | 558.0 | $ | — | $ | 558.0 | ||||||
VelocityShares contingent consideration | — | — | 17.9 | 17.9 | ||||||||||
Index futures | 1.2 | — | — | 1.2 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities | $ | 1.2 | $ | 558.0 | $ | 17.9 | $ | 577.1 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Redeemable noncontrolling interests | $ | — | $ | — | $ | 5.4 | $ | 5.4 | ||||||
The following table presents assets, liabilities and redeemable noncontrolling interests measured or disclosed at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||
Fair value measurements using: | ||||||||||||||
Quoted prices in | Significant other | Significant | Total | |||||||||||
active markets for | observable inputs | unobservable inputs | ||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | — | $ | 199.0 | $ | — | $ | 199.0 | ||||||
Index swaps | — | 0.1 | — | 0.1 | ||||||||||
Index futures | — | 0.9 | — | 0.9 | ||||||||||
Trading securities: | ||||||||||||||
Seeded investment products | 265.9 | 47.0 | — | 312.9 | ||||||||||
Investments in advised mutual funds | 45.5 | — | — | 45.5 | ||||||||||
Investments related to deferred compensation plans | 14.9 | — | — | 14.9 | ||||||||||
Available-for-sale securities: | ||||||||||||||
Seeded investment products | 10.7 | — | — | 10.7 | ||||||||||
Debt securities | — | 101.5 | — | 101.5 | ||||||||||
| | | | | | | | | | | | | | |
Total investment securities | 337.0 | 148.5 | — | 485.5 | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 337.0 | $ | 348.5 | $ | — | $ | 685.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Current portion of long-term debt | $ | — | $ | 101.3 | $ | — | $ | 101.3 | ||||||
Long-term debt | — | 532.5 | — | 532.5 | ||||||||||
Index swaps | — | 1.5 | — | 1.5 | ||||||||||
Index futures | — | 0.4 | — | 0.4 | ||||||||||
Foreign currency forward contracts | — | 1.5 | — | 1.5 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities | $ | — | $ | 637.2 | $ | — | $ | 637.2 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Redeemable noncontrolling interests | $ | — | $ | — | $ | 7.3 | $ | 7.3 | ||||||
Transfers are recognized at the end of each reporting period. Transfers from Level 1 and Level 2 classifications for the years ended December 31, 2014 and 2013, are summarized as follows (in millions): | ||||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Transfers from Level 1 to Level 2 | $ | 4.9 | $ | — | ||||||||||
Transfers from Level 2 to Level 1 | $ | 1.2 | $ | 12.7 | ||||||||||
JCG's Level 3 recurring fair value measurements as of December 31, 2014, represent INTECH redeemable noncontrolling interests and contingent cash consideration related to the acquisition of VelocityShares. The changes in fair value of JCG's Level 3 items, for the years ended December 31, 2014 and 2013, are as follows (in millions): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Redeemable | VelocityShares | Redeemable | ||||||||||||
noncontrolling | contingent | noncontrolling | ||||||||||||
interests | consideration | interests | ||||||||||||
Beginning of year fair value | $ | 7.3 | $ | — | $ | 42.9 | ||||||||
Distributions | (0.6 | ) | — | (4.2 | ) | |||||||||
Current earnings | 0.5 | — | 3 | |||||||||||
Purchase of redeemable noncontrolling interests | (0.6 | ) | — | (33.8 | ) | |||||||||
Vesting of noncontrolling interests | — | — | 1.2 | |||||||||||
Issuance | — | 17.9 | — | |||||||||||
Change in fair value | (1.2 | ) | — | (1.8 | ) | |||||||||
| | | | | | | | | | | ||||
End of year fair value | $ | 5.4 | $ | 17.9 | $ | 7.3 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
DEBT
DEBT | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
DEBT | ||||||||||||||
DEBT | ||||||||||||||
Note 7 — Debt | ||||||||||||||
Debt at December 31, 2014 and 2013, consisted of the following (in millions): | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
value | value | value | value | |||||||||||
6.700% Senior Notes due 2017 | $ | 344.5 | $ | 380.8 | $ | 344.4 | $ | 383.7 | ||||||
0.750% Convertible Senior Notes due 2018 | 106 | 177.2 | 103.3 | 148.8 | ||||||||||
3.250% Convertible Senior Notes due 2014 | — | — | 58 | 61.8 | ||||||||||
6.119% Senior Notes due 2014 | — | — | 38.9 | 39.5 | ||||||||||
| | | | | | | | | | | | | | |
Total debt | 450.5 | 558 | 544.6 | 633.8 | ||||||||||
| | | | | | | | | | | | | | |
Less: Current maturities | — | — | (96.9 | ) | (101.3 | ) | ||||||||
| | | | | | | | | | | | | | |
Total long-term debt | $ | 450.5 | $ | 558 | $ | 447.7 | $ | 532.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fair Value of Debt | ||||||||||||||
The fair value of debt was determined using broker quotes and any recent trading activity for each of the notes listed above, which are considered Level 2 inputs. | ||||||||||||||
6.700% Senior Notes due 2017 | ||||||||||||||
The 6.700% Senior Notes due 2017 ("2017 Senior Notes") include an unamortized discount at December 31, 2014, of $0.2 million, which will be amortized over the remaining term of the notes. Interest expense related to the 2017 Senior Notes includes interest on the outstanding principal balance as well as amortization of capitalized issuance costs and totaled $23.5 million for the year ended December 31, 2014. Interest on the 2017 Senior Notes is paid semiannually in June and December. The 2017 Senior Notes mature on June 15, 2017. | ||||||||||||||
0.750% Convertible Senior Notes due 2018 | ||||||||||||||
The 0.750% Convertible Senior Notes due 2018 ("2018 Convertible Notes") include an unamortized discount at December 31, 2014, of $10.6 million, which will be amortized over the remaining term of the notes. Interest expense related to the 2018 Convertible Notes includes interest on the outstanding principal balance as well as amortization of capitalized issuance costs and totaled $4.2 million for the year ended December 31, 2014. Interest on the 2018 Convertible Notes is paid semiannually in January and July. The 2018 Convertible Notes mature on July 15, 2018. | ||||||||||||||
The initial conversion rate of the 2018 Convertible Notes was 92.06 shares of JCG common stock per $1,000 principal amount of the 2018 Convertible Notes, which was equivalent to an initial conversion price of approximately $10.86 per share of common stock. The initial conversion rate was most recently adjusted during the fourth quarter 2014 when JCG paid a quarterly cash dividend of $0.08 per share, which was greater than the quarterly dividend of $0.07 per share at the time of issuance. As a result of the quarterly cash dividend paid on November 21, 2014, the conversion rate changed to 92.28 shares of JCG common stock per $1,000 principal amount of 2018 Convertible Notes, equivalent to a conversion price of approximately $10.84 per share of common stock. | ||||||||||||||
Holders of the 2018 Convertible Notes may convert the notes early if the last reported sale price of JCG's common stock is greater than or equal to $14.09 per share of common stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding quarter. As of January 1, 2015, the 2018 Convertible Notes meet the criteria for early conversion. | ||||||||||||||
Convertible Note Hedge and Warrants | ||||||||||||||
In connection with the 2018 Convertible Notes issuance in June 2013, JCG entered into convertible note hedge and warrant transactions which, in combination, are intended to reduce the potential for future dilution to existing shareholders by effectively increasing the initial conversion price of the 2018 Convertible Notes to JCG from $10.86 to $12.60 per share of common stock. | ||||||||||||||
The initial $10.86 and $12.60 per share of common stock exercise prices of the call options and warrants, respectively, were adjusted during the fourth quarter 2014 when JCG paid a quarterly cash dividend of $0.08 per share. As a result of the quarterly cash dividend paid on November 21, 2014, which was greater than the quarterly dividend of $0.07 per share at the time of issuance, the exercise price of the call options changed to $10.84 per share of common stock, and the exercise price of the warrants changed to $12.57 per share of common stock. | ||||||||||||||
3.250% Convertible Senior Notes due 2014 | ||||||||||||||
On July 15, 2014, the 3.250% Convertible Senior Notes due 2014 ("2014 Convertible Notes") matured and JCG paid the principal balance of $60.0 million with cash on hand. | ||||||||||||||
6.119% Senior Notes due 2014 | ||||||||||||||
On April 15, 2014, the 6.119% Senior Notes due 2014 ("2014 Senior Notes") matured and JCG paid the principal balance of $38.9 million with cash on hand. | ||||||||||||||
Loss on Early Extinguishment of Debt | ||||||||||||||
During the third quarter 2013, JCG repurchased on the open market $8.0 million aggregate principal amount of the Company's outstanding 2017 Senior Notes for $8.9 million in cash. JCG recognized a loss of $0.9 million on the repurchase. | ||||||||||||||
During the second quarter 2013, JCG recognized a $12.6 million loss on early extinguishment of debt related to the exchange of $110.0 million aggregate principal amount of JCG's outstanding 2014 Convertible Notes. | ||||||||||||||
During the first quarter 2012, JCG completed a debt tender in which $59.4 million aggregate principal amount of the Company's outstanding 2014 Senior Notes and 2017 Senior Notes was repurchased with cash on hand. JCG recognized a $7.2 million loss on early extinguishment of debt related to the repurchase of these notes. | ||||||||||||||
Change of Control and Rating Downgrade Covenant | ||||||||||||||
If the Company experiences a change of control, and in connection therewith, the 2017 Senior Notes become rated below investment grade by Standard & Poor's ("S&P") Rating Service and Moody's Investors Service, Inc. ("Moody's"), JCG must offer to repurchase the 2017 Senior Notes at a price equal to 101% of the principal amount plus accrued and unpaid interest to the repurchase date. | ||||||||||||||
Interest Rate Adjustment Covenant | ||||||||||||||
The 2017 Senior Notes are subject to an interest rate adjustment covenant that provides that the interest rate payable will increase by 25 basis points for each level that the Company's debt rating is decreased by Moody's from Baa3 or by S&P from BBB–, up to a maximum increase of 200 basis points. If the interest rate has been adjusted upward as a result of either Moody's or S&P decreasing its rating, then for each level of a subsequent rating increase, the interest payable will be decreased by 25 basis points, but in no event to a rate less than the interest rate payable on the date of issuance of the respective notes. The interest rate adjustment covenant will permanently terminate if the Company's debt ratings increase to Baa2 (or higher) by Moody's and BBB (or higher) by S&P, with a stable or positive outlook regardless of any subsequent decrease in the ratings by either or both rating agencies. On March 18, 2014, S&P reaffirmed JCG's credit rating of BBB– with a negative outlook. On August 27, 2014, Moody's reaffirmed JCG's credit rating of Baa3 with a stable outlook. | ||||||||||||||
Credit Facility | ||||||||||||||
At December 31, 2014, JCG had a $200 million, unsecured, revolving credit facility ("the Credit Facility") with JPMorgan Chase Bank, N.A., as administrative agent and swingline lender. The Credit Facility can be used by JCG and its subsidiaries for working capital needs and general corporate purposes. The Credit Facility bears interest on borrowings outstanding at the London Interbank Offered Rate plus a spread, which is based on JCG's credit rating. JCG is required to pay a quarterly commitment fee on any unused portion of the Credit Facility, which is also based on JCG's credit rating. Under the Credit Facility, the financing leverage ratio cannot exceed 3.00x, and the interest coverage ratio must equal or exceed 4.00x. At December 31, 2014, JCG's financing leverage ratio was 1.44x and the interest coverage ratio was 11.13x. JCG was in compliance with all covenants, and there were no borrowings under the Credit Facility at December 31, 2014, or during the year ended December 31, 2014. The Credit Facility has a maturity date of November 23, 2018. | ||||||||||||||
For the year ended December 31, 2013, JCG incurred $1.9 million of issuance costs related to the Credit Facility, which are being amortized to interest expense over the remaining term of the Credit Facility. | ||||||||||||||
Aggregate Maturities of Indebtedness | ||||||||||||||
The aggregate amounts of debt maturing or callable in the next five years are as follows (in millions): | ||||||||||||||
Year ended December 31, | Amount | |||||||||||||
2015 | $ | — | ||||||||||||
2016 | — | |||||||||||||
2017 | 344.7 | |||||||||||||
2018 | 116.6 | |||||||||||||
2019 | — | |||||||||||||
Thereafter | — | |||||||||||||
| | | | | ||||||||||
Total | $ | 461.3 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | |||||||||||
Note 8 — Income Taxes | |||||||||||
JCG's components of income before taxes for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 245.3 | $ | 180.8 | $ | 163.7 | |||||
International | 12.4 | 14.7 | 12.9 | ||||||||
| | | | | | | | | | | |
Total | $ | 257.7 | $ | 195.5 | $ | 176.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
JCG's provision for income taxes for the years ended December 31, 2014, 2013 and 2012, is summarized as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 72.7 | $ | 61.1 | $ | 46.9 | |||||
State and local | 7 | 6.4 | 3.8 | ||||||||
International | 2.5 | 3.7 | 2.8 | ||||||||
| | | | | | | | | | | |
Total current | 82.2 | 71.2 | 53.5 | ||||||||
| | | | | | | | | | | |
Deferred: | |||||||||||
Federal | 18.4 | 2.1 | 10.4 | ||||||||
State and local | 1.9 | — | 0.8 | ||||||||
International | (0.2 | ) | — | — | |||||||
| | | | | | | | | | | |
Total deferred | 20.1 | 2.1 | 11.2 | ||||||||
| | | | | | | | | | | |
Total income tax provision | $ | 102.3 | $ | 73.3 | $ | 64.7 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
JCG's deferred income tax assets (liabilities) as of December 31, 2014 and 2013, are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred income tax assets: | |||||||||||
Compensation and benefits | $ | 50 | $ | 60.8 | |||||||
Accrued liabilities | 2.7 | 3.1 | |||||||||
Investments | 2.6 | 1.2 | |||||||||
Tax attributes | 8.2 | 4 | |||||||||
Other | 5.3 | 5.5 | |||||||||
| | | | | | | | ||||
Total deferred income tax assets | 68.8 | 74.6 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Intangible assets | (502.9 | ) | (476.7 | ) | |||||||
Debt discounts and issuance costs | — | (0.7 | ) | ||||||||
Prepaid expenses | (6.4 | ) | (5.2 | ) | |||||||
Other | (5.0 | ) | (6.5 | ) | |||||||
| | | | | | | | ||||
Total deferred income tax liabilities | (514.3 | ) | (489.1 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax liabilities | $ | (445.5 | ) | $ | (414.5 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
The current deferred income tax amounts at December 31, 2014 and 2013, are included within other current assets on JCG's Consolidated Balance Sheets. Deferred tax assets and liabilities are reflected on JCG's Consolidated Balance Sheets as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Current deferred income tax asset | $ | 32.9 | $ | 33.2 | |||||||
Non-current deferred income tax liability | (478.4 | ) | (447.7 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax liabilities | $ | (445.5 | ) | $ | (414.5 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
JCG's effective income tax rate differs from the statutory federal income tax rate for the years ended December 31, 2014, 2013 and 2012, as follows: | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
State and local tax rate, net of federal benefit | 2.3 | 2.3 | 2.3 | ||||||||
Noncontrolling interests | (0.1 | ) | (1.4 | ) | (2.0 | ) | |||||
Tax adjustments | (0.5 | ) | (0.8 | ) | (1.0 | ) | |||||
Equity-based compensation | 3 | 2.5 | 2.4 | ||||||||
Other | — | (0.1 | ) | (0.1 | ) | ||||||
| | | | | | | | | | | |
Total effective income tax rate | 39.7 | % | 37.5 | % | 36.6 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The accounting guidance for uncertainty in income taxes sets forth a specific method for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. The tax contingencies liability relates primarily to general state tax items and has been recorded in non-current liabilities and other accrued liabilities on JCG's Consolidated Balance Sheets, as appropriate. | |||||||||||
A reconciliation of the beginning and ending liability for the years ended December 31, 2014, 2013 and 2012, is as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning of year | $ | 5.6 | $ | 5.9 | $ | 7.4 | |||||
Additions for tax positions of current year | 0.8 | 1 | 0.9 | ||||||||
Additions for tax positions of prior years | — | — | 0.4 | ||||||||
Reduction due to statute expirations | (1.0 | ) | (0.9 | ) | (1.5 | ) | |||||
Reduction due to settlement of audits | — | (0.4 | ) | (1.3 | ) | ||||||
| | | | | | | | | | | |
End of year | $ | 5.4 | $ | 5.6 | $ | 5.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A deferred tax asset of $1.9 million is associated with the tax contingencies liability at December 31, 2014. If the tax contingencies liability and related deferred tax asset are reversed in future periods, the income tax provision would be favorably affected by $3.5 million. As of December 31, 2014, JCG had $5.4 million of accrued reserves for income tax contingencies. JCG decreased its income tax contingency reserves in 2014 by $1.0 million as a result of the expiration of statutes of limitations and audit settlements, creating a net tax benefit of $0.6 million. JCG anticipates that its income tax contingency reserves will decrease by approximately $1.3 million in the next 12 months primarily from the expiration of statutes of limitations and the resolution of audits. Accrued reserves for income tax contingencies are presented in other accrued liabilities on JCG's Consolidated Balance Sheets. | |||||||||||
Tax returns filed in previous years are subject to audit by various federal, state and international taxing authorities, and as a result of such audits, additional tax assessments may be proposed. As of December 31, 2014, tax years from 2009 and forward remain subject to audit. | |||||||||||
Taxing authorities generally charge interest and may assess penalties in the event that a tax position taken is subsequently reversed upon examination. JCG has accrued interest on its uncertain tax provisions based on the rates specified by the applicable taxing authorities and has recorded the interest as a component of the tax provision. At December 31, 2014, 2013 and 2012, $0.8 million, $1.3 million and $2.2 million, respectively, of accrued interest is included in the liability for tax contingencies. Any potential penalties associated with a tax contingency will also be included as a component of the tax provision in the period in which the assessment of a penalty becomes likely. JCG does not believe that it is subject to any penalties related to its tax contingencies and, therefore, has not accrued a liability for tax penalties. | |||||||||||
In the event of an overpayment of income taxes, taxing authorities generally pay interest from the date of the overpayment. JCG records interest income from taxing authorities as a component of the income tax provision. | |||||||||||
OTHER_BALANCE_SHEET_CAPTIONS
OTHER BALANCE SHEET CAPTIONS | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
OTHER BALANCE SHEET CAPTIONS | ||||||||
OTHER BALANCE SHEET CAPTIONS | ||||||||
Note 9 — Other Balance Sheet Captions | ||||||||
Other current assets at December 31, 2014 and 2013, are composed of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred commissions | $ | 3.9 | $ | 2.2 | ||||
Prepaid insurance | 3.0 | 3.0 | ||||||
Prepaid information technology maintenance | 3.3 | 3.2 | ||||||
Deferred income taxes | 32.9 | 33.2 | ||||||
Stock repurchase program funding | 5.5 | 5.6 | ||||||
Other current assets | 11.2 | 4.8 | ||||||
| | | | | | | | |
Total other current assets | $ | 59.8 | $ | 52.0 | ||||
| | | | | | | | |
| | | | | | | | |
Other accrued liabilities at December 31, 2014 and 2013, are composed of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued marketing and distribution | $ | 15.2 | $ | 14.6 | ||||
Income tax contingencies | 1.6 | 2.5 | ||||||
Deferred compensation liability | 27.5 | 31.6 | ||||||
Interest payable | 1.4 | 2.9 | ||||||
Income tax payable | 10.1 | 16.7 | ||||||
VelocityShares contingent consideration | 8.6 | — | ||||||
Other accrued liabilities | 13.6 | 9.7 | ||||||
| | | | | | | | |
Total other accrued liabilities | $ | 78.0 | $ | 78.0 | ||||
| | | | | | | | |
| | | | | | | | |
NONCONTROLLING_INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
NONCONTROLLING INTERESTS | |||||||||||
NONCONTROLLING INTERESTS | |||||||||||
Note 10 — Noncontrolling Interests | |||||||||||
Noncontrolling interests in net income for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Nonredeemable noncontrolling interests in subsidiaries | $ | 1.1 | $ | 1.1 | $ | 2.1 | |||||
Nonredeemable noncontrolling interests in consolidated seeded investment products | (0.6 | ) | 3.4 | 2 | |||||||
Redeemable noncontrolling interests in subsidiaries | 0.5 | 3 | 5.5 | ||||||||
| | | | | | | | | | | |
Total noncontrolling interests in net income | $ | 1 | $ | 7.5 | $ | 9.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Nonredeemable Noncontrolling Interests | |||||||||||
At December 31, 2014, noncontrolling interests that are not subject to redemption rights included employee ownership interests in INTECH and third-party investors' ownership in consolidated seeded investment products. | |||||||||||
Nonredeemable noncontrolling interests as of December 31, 2014 and 2013, are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Nonredeemable noncontrolling interests in consolidated seeded investment products | $ | 41.1 | $ | 8.8 | |||||||
Nonredeemable noncontrolling interests in INTECH | 6.2 | 4.9 | |||||||||
| | | | | | | | ||||
Total nonredeemable noncontrolling interests | $ | 47.3 | $ | 13.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Changes in noncontrolling interests in consolidated seeded investment products were driven by changes in the market value and changes in ownership of the underlying seeded investment products. Noncontrolling interests in seeded products increased in 2014 due to third-party investment in a number of the Company's mutual funds during 2014. | |||||||||||
The following table presents a rollforward of noncontrolling interests in consolidated seeded investment products for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning of year balance | $ | 8.8 | $ | 12.4 | $ | 29.2 | |||||
Changes in market value | (0.6 | ) | 3.4 | 2 | |||||||
Changes in ownership | 32.9 | (7.0 | ) | (18.8 | ) | ||||||
| | | | | | | | | | | |
End of year balance | $ | 41.1 | $ | 8.8 | $ | 12.4 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Redeemable Noncontrolling Interests | |||||||||||
As of December 31, 2014 and 2013, redeemable noncontrolling interests are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Redeemable noncontrolling interests in subsidiaries | $ | 5.9 | $ | 5.9 | |||||||
Undistributed earnings | (0.5 | ) | 1.4 | ||||||||
| | | | | | | | ||||
Total redeemable noncontrolling interests | $ | 5.4 | $ | 7.3 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
INTECH | |||||||||||
INTECH ownership interests held by a founding member had an estimated fair value of $5.9 million and $5.3 million as of December 31, 2014 and 2013, respectively, representing approximately 1.0% aggregate ownership of INTECH for both periods. This founding member is entitled to retain his remaining INTECH interests until his death and has the option to require JCG to purchase from him his ownership interests of INTECH at fair value. | |||||||||||
Perkins | |||||||||||
On February 1, 2013, the noncontrolling owners of Perkins (who then owned 22.2% of the equity units of Perkins) exercised their right to put 98% of their equity units to JCG. Under the terms of the put, the noncontrolling ownership units were redeemed at fair value of $33.8 million as determined on August 31, 2013, six full months following the month of the put exercise. Following the redemption, JCG owned 99.6% of Perkins. | |||||||||||
On February 3, 2014, JCG exercised its right to purchase the remaining noncontrolling ownership units in Perkins of 0.4%. Under the terms of the call, the remaining noncontrolling ownership units were redeemed for $0.6 million on March 14, 2014, based on the fair value as of the call exercise date. The fair value of the ownership units was based on a contractual formula driven by revenue and investment performance of products managed by Perkins. | |||||||||||
The noncontrolling interests were primarily held by founding members who are not involved in the management of Perkins. Perkins management continues to hold the majority of their interests in Perkins through senior profits interests awards and long-term incentive compensation plans. The Perkins senior profits interests awards and long-term incentive compensation plans provide active members of Perkins management an ongoing stake in the success of Perkins. | |||||||||||
LONGTERM_INCENTIVE_COMPENSATIO
LONG-TERM INCENTIVE COMPENSATION | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
LONG-TERM INCENTIVE COMPENSATION | ||||||||||||||||||||
LONG-TERM INCENTIVE COMPENSATION | ||||||||||||||||||||
Note 11 — Long-Term Incentive Compensation | ||||||||||||||||||||
The components of JCG's long-term incentive compensation expense for the years ended December 31, 2014, 2013 and 2012, are summarized as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Stock options | $ | 0.4 | $ | 3.1 | $ | 6.6 | ||||||||||||||
Restricted stock awards | 26.2 | 20.5 | 19.6 | |||||||||||||||||
Price-vesting units | 0.6 | 0.4 | 0.6 | |||||||||||||||||
Mutual fund share awards | 32.4 | 38.3 | 41.3 | |||||||||||||||||
Perkins senior profits interests | (11.9 | ) | 0.7 | (1.6 | ) | |||||||||||||||
INTECH profits interests | 3.4 | — | — | |||||||||||||||||
Employee stock purchase plan | 0.2 | 0.1 | 0.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term incentive compensation | $ | 51.3 | $ | 63.1 | $ | 66.7 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Compensation cost associated with restricted stock includes $1.7 million, $2.4 million and $(1.4) million of amortization of INTECH interests granted to certain key employees of INTECH for the years ended December 31, 2014, 2013 and 2012, respectively. During the year ended December 31, 2012, compensation cost associated with restricted stock included $3.6 million of amortization of INTECH interests and a $5.0 million benefit related to a restricted stock forfeiture as a result of the departure of a former INTECH executive. Compensation cost classified within restricted stock also included $1.2 million of amortization of Perkins ownership interests granted to a Perkins employee for the year ended December 31, 2012. There was no amortization of Perkins ownership interests during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||
Historical long-term incentive awards have been granted with ratable vesting schedules between three and 10 years. The awards granted in 2014, 2013 and 2012 were generally granted with a four-year ratable vesting schedule and are generally not subject to accelerated vesting. INTECH also granted $3.1 million of ownership interests to its employees in 2012, which generally vest and will be recognized over a four-year period. | ||||||||||||||||||||
At December 31, 2014, unrecognized and unearned compensation, net of estimated forfeitures and excluding mark-to-market adjustments on mutual fund share awards, and the weighted-average number of years over which the compensation cost will be recognized are summarized as follows (in millions): | ||||||||||||||||||||
Unrecognized | Weighted- | |||||||||||||||||||
compensation | average years | |||||||||||||||||||
Stock options | $ | 0.3 | 1.5 | |||||||||||||||||
Restricted stock awards | 69.5 | 3.6 | ||||||||||||||||||
Profit interests | 76.4 | 9.1 | ||||||||||||||||||
Mutual fund share awards | 45.9 | 2.6 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 192.1 | 5.5 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Unrecognized INTECH interests included in restricted stock awards in the table above totaled $2.7 million and will be recognized over a weighted-average period of 3.4 years. | ||||||||||||||||||||
JCG generally grants annual long-term incentive awards in January of each year. The 2015 annual grant, not included in the table above, totaled $75.2 million and will generally be recognized ratably over a four-year period. The 2015 annual grant is not subject to performance-based accelerated vesting. | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||
Stock options were granted to employees in 2013 and 2012. There were no stock options granted to employees in 2014 or in the 2015 annual grant. | ||||||||||||||||||||
The fair value of stock options granted to JCG employees in 2013 and 2012 was estimated on the date of each grant using the Black-Scholes option pricing model with the following assumptions: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Weighted-average fair value of options granted | $ 4.40 | $ 3.96 | ||||||||||||||||||
Assumptions: | ||||||||||||||||||||
Dividend yield | 2.47 | % | 2.33 | % | ||||||||||||||||
Expected volatility | 64 | % | 66 | % | ||||||||||||||||
Risk-free interest rate | 0.84 | % | 0.71 | % | ||||||||||||||||
Expected life | 5 years | 5 years | ||||||||||||||||||
Expected volatility was determined using an average of JCG's historical volatility and industry and market averages, as appropriate. Expected life was determined using employee termination rates and vesting periods of each grant. The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of each grant. Stock options granted prior to February 2006 have a maximum contractual term of 10 years, and options granted thereafter have a maximum contractual term of seven years. | ||||||||||||||||||||
The table below summarizes JCG's outstanding options, exercisable options and options vested or expected to vest for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||
average | average | average | ||||||||||||||||||
exercise | exercise | exercise | ||||||||||||||||||
price | price | price | ||||||||||||||||||
Outstanding at January 1 | 8,985,562 | $ | 14.91 | 12,773,178 | $ | 14.56 | 15,000,904 | $ | 14.44 | |||||||||||
Granted | — | — | 45,455 | 9.77 | 151,515 | 8.57 | ||||||||||||||
Exercised | (808,583 | ) | 9.18 | (1,341,502 | ) | 5.32 | (953,590 | ) | 5.35 | |||||||||||
Forfeited | (7,179 | ) | 10.6 | (57,218 | ) | 11.78 | (158,003 | ) | 7.15 | |||||||||||
Expired | (3,528,237 | ) | 17.65 | (2,434,351 | ) | 18.33 | (1,267,648 | ) | 20.26 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Outstanding at December 31 | 4,641,563 | $ | 13.84 | 8,985,562 | $ | 14.91 | 12,773,178 | $ | 14.56 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Exercisable (1) | 3,295,557 | $ | 8.89 | 3,215,356 | $ | 7.8 | 2,139,710 | $ | 5.32 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Vested or expected to vest | 4,641,563 | $ | 13.84 | 8,984,974 | $ | 14.91 | 12,754,883 | $ | 14.56 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | The number of exercisable options represents instruments for which all vesting criteria have been satisfied and whose exercise price was below the closing price of the Company's common stock as of the end of the period. Options outstanding for which all vesting criteria have been satisified but whose exercise price was above the closing price of the Company's common stock were 1.2 million, 5.2 million, and 8.4 million as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
The following table summarizes the intrinsic value of exercised, outstanding and exercisable options at December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Exercised | $ | 3.3 | $ | 5.1 | $ | 3.3 | ||||||||||||||
Outstanding | $ | 20.1 | $ | 15.5 | $ | 10.6 | ||||||||||||||
Exercisable | $ | 23.9 | $ | 14.7 | $ | 6.8 | ||||||||||||||
The following table summarizes the information about stock options that were outstanding at December 31, 2014: | ||||||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||||
Range of | Number of | Weighted- | Weighted- | Number | Weighted- | Weighted- | ||||||||||||||
exercise prices | options | average | average | of options | average | average | ||||||||||||||
outstanding | remaining | exercise | outstanding | remaining | exercise | |||||||||||||||
contractual | price | contractual | price | |||||||||||||||||
life (years) | life (years) | |||||||||||||||||||
$5 to $10 | 1,755,519 | 1.45 | $ | 5.72 | 1,645,669 | 1.25 | $ | 5.50 | ||||||||||||
$10 to $20 | 1,659,569 | 1.78 | 12.30 | 1,649,888 | 1.78 | 12.27 | ||||||||||||||
$20 to $28 | 1,226,475 | 0.09 | 27.54 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$5 to $28 | 4,641,563 | 1.21 | 13.84 | 3,295,557 | 1.52 | 8.89 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Restricted Stock Awards | ||||||||||||||||||||
The table below summarizes unvested restricted stock awards for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||
average | average | average | ||||||||||||||||||
grant date | grant date | grant date | ||||||||||||||||||
fair value | fair value | fair value | ||||||||||||||||||
Unvested at January 1 | 5,838,290 | $ | 9.71 | 4,656,396 | $ | 9.55 | 4,700,134 | $ | 9.9 | |||||||||||
Granted | 4,361,560 | 12.45 | 3,614,397 | 9.61 | 1,853,405 | 8.45 | ||||||||||||||
Vested | (1,884,731 | ) | 10.08 | (2,100,456 | ) | 9.07 | (1,672,966 | ) | 9.33 | |||||||||||
Forfeited | (514,465 | ) | 10.2 | (332,047 | ) | 10.51 | (224,177 | ) | 10.46 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Unvested at December 31 | 7,800,654 | $ | 11.11 | 5,838,290 | $ | 9.71 | 4,656,396 | $ | 9.55 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The total fair value of restricted stock that vested during the years ended December 31, 2014, 2013 and 2012, was $21.6 million, $20.0 million and $13.2 million, respectively. | ||||||||||||||||||||
Price-Vesting Units | ||||||||||||||||||||
JCG granted 249,100 price-vesting units to its Chief Executive Officer on December 30, 2011, totaling $1.2 million. These price-vesting units comprise two tranches of $0.6 million each. The first tranche is subject to a stock price hurdle representing a 27% premium over the $6.31 closing price of the Company's common stock on the date of grant, and the second tranche is subject to a stock price hurdle representing a 58% premium over the same closing price. Both tranches vest ratably over a four-year service period. To achieve each price hurdle, the Company's common stock must close at or above the prescribed price for 20 consecutive trading days at any time during the service period of the award. The units only vest if both the price hurdle and the service conditions are met. The stock price hurdle associated with the first tranche was achieved in 2012 and 29,400 units vested in 2012, 2013 and 2014. The stock price hurdle associated with the second tranche was achieved in December 2013 and 65,750 units vested in 2013 and 32,875 units vested in 2014. The price-vesting units award is required to be amortized using the graded-vesting method due to the underlying market conditions as represented by the stock price hurdles. In addition, the expense will be recognized irrespective of achieving the price hurdles provided service conditions are satisfied. | ||||||||||||||||||||
JCG granted 89,933 price-vesting units to its Chief Executive Officer on December 31, 2013, totaling $1.2 million. These price-vesting units may or may not vest, in whole or in part, three years after the date of grant, depending on JCG's three-year operating profit margin performance during the vesting period. If JCG's three-year operating margin performance is less than or equal to 27%, none of the shares will vest. Alternatively, if JCG's three-year operating margin performance equals 31%, 100% of the shares will vest. If JCG's three-year operating margin performance is greater than or equal to 35%, 200% of the shares will vest. All intermediate amounts between 27%, 31% and 35% will be interpolated on a straight-line basis. | ||||||||||||||||||||
JCG granted 76,682 price-vesting units to its Chief Executive Officer on December 31, 2014, totaling $2.2 million. These price-vesting units may or may not vest, in whole or in part, three years after the date of grant, depending on JCG's three-year operating profit margin performance during the vesting period. If JCG's three-year operating margin performance is less than or equal to 24%, none of the shares will vest. Alternatively, if JCG's three-year operating margin performance equals 28%, 100% of the shares will vest. If JCG's three-year operating margin performance is greater than or equal to 32%, 200% of the shares will vest. All intermediate amounts between 24%, 28% and 32% will be interpolated on a straight-line basis. | ||||||||||||||||||||
Mutual Fund Share Awards | ||||||||||||||||||||
During 2014, 2013 and 2012, JCG granted employees $22.7 million, $38.1 million and $39.8 million, respectively, in awards that are indexed to certain mutual funds managed by the Company. The 2013 grant includes $16.0 million of performance-based mutual fund share awards. The performance-based mutual fund share awards vest five years after the grant date if certain performance fee criteria are achieved. Upon vesting, participants receive the value of the award adjusted for gains or losses attributable to the mutual funds to which the award was indexed, subject to tax withholding. | ||||||||||||||||||||
At December 31, 2014, the cost basis of unvested awards totaled $71.0 million. | ||||||||||||||||||||
Perkins Senior Profits Interests Awards | ||||||||||||||||||||
On December 31, 2008, Perkins granted senior profits interests awards designed to retain and incentivize key employees to grow the business. These awards vested on the fifth anniversary of grant and were entitled to a total of 5% of Perkins' annual taxable income. These awards had a formula-driven terminal value based on revenue and relative investment performance of products managed by Perkins. Participants carried a put right that would require JCG to terminate the awards in exchange for the then-applicable formula price on December 31, 2014, the sixth anniversary of grant. The value of the put right at December 31, 2014 was $5.9 million. On January 27, 2015, participants exercised their right to put the senior profits interests awards to JCG. The Company settled the awards with a $5.9 million cash payment to participants on February 13, 2015. | ||||||||||||||||||||
On November 18, 2013, Perkins granted additional senior profits interests awards which fully vest on December 31, 2018 and are entitled to a total of 10% of Perkins' annual taxable income. The entitlement to a percentage of Perkins' annual taxable income over the vesting period is tiered and starts at 2% in 2015 and increases 2% each year thereafter until reaching 10% after fully vesting on December 31, 2018. In addition, these awards have a formula-driven terminal value based on Perkins' revenue. JCG can call and terminate any or all of the awards on December 31, 2018, and each year thereafter. Holders of such interests can require JCG to purchase the interests in exchange for the then-applicable formula price on December 31, 2018. The senior profits interests are also subject to termination at premiums or discounts to the formula at the option of JCG or certain employees, as applicable, upon certain corporate or employment-related events affecting Perkins or certain employees. As of December 31, 2014, the formula driven value was zero and there was no liability on JCG's Consolidated Balance Sheets associated with the Perkins senior profits interests awards granted in 2013. | ||||||||||||||||||||
INTECH Long-Term Incentive Awards | ||||||||||||||||||||
In October 2014, INTECH granted new long-term incentive awards to retain and incentivize employees. The new awards consist of appreciation rights, profits interests and phantom interests and are designed to give recipients an equity-like stake in INTECH. Combined, the new awards represent an approximate 12% economic stake in INTECH's pre-incentive profits and replace a portion of the prior discretionary bonus pool. | ||||||||||||||||||||
The appreciation rights have a grant date fair value of $23.2 million, which will be amortized on a straight-line basis over the 10-year vesting schedule, and are exercisable upon termination of employment from INTECH and to the extent vested. Upon exercise, the appreciation rights are settled in INTECH equity. The fair value of the appreciation rights was estimated using the Black-Scholes option pricing model with the following assumptions: | ||||||||||||||||||||
Assumptions: | ||||||||||||||||||||
Dividend yield | 1.98 | % | ||||||||||||||||||
Expected volatility | 34 | % | ||||||||||||||||||
Risk-free interest rate | 2.53 | % | ||||||||||||||||||
Expected life | 12 years | |||||||||||||||||||
The dividend yield and expected volatility were determined using historical data from publicly traded peers. The risk-free interest rate is based on the 10-year U.S. Treasury note at the time of the grant. The expected life of the appreciation rights was estimated based upon the assumption that recipients terminate upon vesting and exercise 20% of their rights each year over the following five years. | ||||||||||||||||||||
INTECH profits interests and phantom interests entitle holders to periodic distributions of a portion of INTECH operating income. Distributions are made during employment and, for profits interests, post-employment for up to 10 years. Phantom interests are entitled to a one-time distribution at termination of employment. Compensation expense for post-employment distributions is based upon the present value of expected future distributions and will be recognized pro rata over the 10-year vesting schedule for profits interests and five years for phantom interests. The present value of these payments was determined using a 2% discount rate, which represents the interest rate on a 20-year U.S. Treasury note. As of December 31, 2014, the total undiscounted estimated post-employment payments for profits interests and phantom interests is $38.0 million (the majority will not be paid until 10 to 20 years after the grant date). The estimated post-employment payments will be evaluated and adjusted quarterly, as necessary, with changes recorded in results of operations. | ||||||||||||||||||||
Long-Term Incentive Stock Plans | ||||||||||||||||||||
On May 10, 2005, JCG shareholders approved the 2005 Long-Term Incentive Stock Plan ("2005 Plan"), which allowed the Board of Directors to grant up to 15.0 million shares of equity-based awards, including stock options and restricted stock. Subsequent to the 2015 annual grant in January, 3.3 million shares of stock options and less than 0.1 million shares of restricted stock are available to be granted under the 2005 Plan. On April 29, 2010, JCG shareholders approved the 2010 Long-Term Incentive Stock Plan ("2010 Plan"), which allows JCG to grant up to 4.4 million shares of equity-based awards, including stock options and restricted stock. On April 26, 2012, JCG shareholders approved an amendment to the 2010 Plan to increase the number of shares available to grant by 9.0 million shares for a total of 13.4 million shares of equity-based awards available to grant under the 2010 Plan. Subsequent to the 2015 annual grant in January, approximately 0.2 million shares of equity-based awards are available to be granted under the 2010 Plan. | ||||||||||||||||||||
JCG also has a 2012 Employment Inducement Award Plan ("EIA Plan") with 0.8 million shares of equity-based awards available to be granted as of December 31, 2014. The EIA Plan is not a shareholder-approved plan. | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | |
Note 12 — Employee Benefit Plans | |
Substantially all full-time employees of JCG are eligible to participate in a company-sponsored 401(k), Employee Stock Ownership Plan ("ESOP") and profit-sharing plan (collectively, the "401(k) Plan"). During the year ended December 31, 2014, JCG matched a maximum of 4% of employee eligible compensation in the 401(k) Plan. During the years ended December 31, 2013 and 2012, JCG matched a maximum of 3% of employee eligible compensation in the 401(k) Plan. Eligible employees with Janus before January 1, 2014 vest immediately in company-matched 401(k) contributions while employees who started employment after January 1, 2014 vest ratably over five years. Contributions to the ESOP and the profit-sharing components of the 401(k) Plan are made at the discretion of the Board of Directors' Compensation Committee. There were no contributions made to the ESOP and profit-sharing plans for 2014, 2013 or 2012. Participants vest ratably in the ESOP and profit-sharing contributions over a five-year period. Expenses related to the 401(k) Plan, and equivalent plans internationally, were $6.3 million, $4.7 million and $4.1 million in 2014, 2013 and 2012, respectively. | |
The Company also maintains deferred compensation plans for certain highly compensated employees and members of its Board of Directors. At December 31, 2014 and 2013, the fair value of investments related to deferred compensation plans totaled $13.0 million and $14.9 million, respectively. See Note 2 — Summary of Significant Accounting Policies for a further discussion of the Company's deferred compensation plans. | |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||
Note 13 — Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2014 and 2013, are as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Available-for-sale | Foreign | Total | Available-for-sale | Foreign | Total | |||||||||||||||
securities | currency | securities | currency | |||||||||||||||||
Beginning balance | $ | 1.2 | $ | (2.3 | ) | $ | (1.1 | ) | $ | 1.4 | $ | (0.8 | ) | $ | 0.6 | |||||
Other comprehensive income before reclassifications | 1.9 | — | 1.9 | 0.1 | — | 0.1 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||||||||||||||||||
Investment gains (losses), net | (2.2 | ) | — | (2.2 | ) | (0.3 | ) | — | (0.3 | ) | ||||||||||
Other income, net | — | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | (0.3 | ) | — | (0.3 | ) | (0.2 | ) | (1.5 | ) | (1.7 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 0.9 | $ | (2.3 | ) | $ | (1.4 | ) | $ | 1.2 | $ | (2.3 | ) | $ | (1.1 | ) | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The components of other comprehensive income (loss), net of tax for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | ||||||||||||||||||||
Year ended December 31, 2014 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 3 | $ | (1.1 | ) | $ | 1.9 | |||||||||||||
Reclassification for items included in net income | (3.5 | ) | 1.3 | (2.2 | ) | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive loss | $ | (0.5 | ) | $ | 0.2 | $ | (0.3 | ) | ||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Year ended December 31, 2013 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 0.2 | $ | (0.1 | ) | $ | 0.1 | |||||||||||||
Reclassification for items included in net income | (2.9 | ) | 1.1 | (1.8 | ) | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive loss | $ | (2.7 | ) | $ | 1 | $ | (1.7 | ) | ||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Year ended December 31, 2012 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 1 | $ | (0.4 | ) | $ | 0.6 | |||||||||||||
Reclassification for items included in net income | 0.1 | — | 0.1 | |||||||||||||||||
Foreign currency gain | 0.7 | (0.3 | ) | 0.4 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive income | $ | 1.8 | $ | (0.7 | ) | $ | 1.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
EARNINGS PER SHARE | |||||||||||
EARNINGS PER SHARE | |||||||||||
Note 14 — Earnings Per Share | |||||||||||
The following is a summary of the earnings per share calculation for the years ended December 31, 2014, 2013 and 2012 (in millions, except per share data): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income attributable to JCG | $ | 154.4 | $ | 114.7 | $ | 102.3 | |||||
Less: Allocation of earnings to participating restricted stock awards | 5.1 | — | — | ||||||||
| | | | | | | | | | | |
Net income attributable to JCG common shareholders | $ | 149.3 | $ | 114.7 | $ | 102.3 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share attributable to JCG common shareholders: | |||||||||||
Weighted-average common shares outstanding | 182.2 | 184.6 | 183.7 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share | $ | 0.82 | $ | 0.62 | $ | 0.56 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share attributable to JCG common shareholders: | |||||||||||
Weighted-average common shares outstanding | 182.2 | 184.6 | 183.7 | ||||||||
Incremental common shares | 2.7 | 1.3 | 1.4 | ||||||||
| | | | | | | | | | | |
Weighted-average diluted common shares outstanding | 184.9 | 185.9 | 185.1 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share | $ | 0.81 | $ | 0.62 | $ | 0.55 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Incremental common shares include the dilutive effect of stock options, unvested nonparticipating restricted stock awards, the 2018 Convertible Notes, warrants and price-vesting units using the two-class method of calculating earnings per share. | |||||||||||
The following stock options, unvested nonparticipating restricted stock and price-vesting units are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Employee stock options | 1.5 | 7.0 | 9.5 | ||||||||
Other stock options | — | — | 14.0 | ||||||||
Unvested nonparticipating restricted stock and price-vesting units | 0.4 | 1.2 | 1.6 | ||||||||
All shares held in the JCG ESOP are treated as outstanding for purposes of computing basic earnings per share. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Note 15 — Commitments and Contingencies | |||||
Operating and Capital Leases | |||||
JCG rents office space and equipment under the terms of various operating lease agreements. As of December 31, 2014, future minimum rental commitments under non-cancelable operating and capital leases are as follows (in millions): | |||||
Year ended December 31, | Amount | ||||
2015 | $ | 16.9 | |||
2016 | 15.2 | ||||
2017 | 14.3 | ||||
2018 | 13.2 | ||||
2019 | 11.2 | ||||
Thereafter | 52.6 | ||||
| | | | | |
Total | $ | 123.4 | |||
| | | | | |
| | | | | |
Rent expense was $17.0 million, $16.5 million and $15.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
JCG's capital lease obligations represent leased computer equipment. The carrying value of the obligations at December 31, 2014 and 2013, totaled $0.8 million and $1.9 million, respectively, and is included in other accrued liabilities and other non-current liabilities on JCG's Consolidated Balance Sheets. The related lease terms extend through 2017. | |||||
Litigation and Other Regulatory Matters | |||||
JCG is periodically involved in various legal proceedings and other regulatory matters. At December 31, 2014, JCG had a $0.4 million litigation accrual for all pending litigation matters. Possible losses in addition to this amount cannot be currently estimated, and as such, no additional accruals have been made. Although there can be no assurances, based on information currently available, management believes that it is probable that the ultimate outcome of matters that are pending or threatened will not have a material effect on JCG's consolidated financial condition. | |||||
Investment Management Contracts | |||||
Most of JCG's revenues are derived pursuant to investment advisory agreements with its investment advisory clients. Investment advisory agreements with mutual funds may be terminated by either party with notice, or terminated in the event of an "assignment" (as defined in the Investment Company Act of 1940 as amended (the "1940 Act")), and must be approved and renewed annually by the disinterested members of each fund's trustees, or its shareowners, as required by law. Generally, any change in control of JCG would constitute an assignment under the 1940 Act. In addition, a mutual fund's trustees or directors may terminate these investment advisory agreements upon written notice for any reason. | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Note 16 — Related Party Transactions | |||||||||||
JCG earns fees from the various registered investment companies for which it acts as investment adviser. Accounts receivable include amounts due from these investment companies. The table below presents this related party activity for the years ended and as of December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Investment management, performance and shareowner servicing fees | $ | 762.1 | $ | 696.9 | $ | 670.7 | |||||
12b-1 plan fees earned (1) | $ | 5.0 | $ | 6.3 | $ | 6.5 | |||||
As of December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Accounts receivable from registered investment companies | $ | 76.9 | $ | 59.3 | $ | 54.3 | |||||
-1 | The annual marketing or distribution fee on a mutual fund. | ||||||||||
The Dai-ichi Life Insurance Company ("Dai-ichi Life") is a significant shareholder of the Company. Investment management fees earned from Dai-ichi Life and its affiliates for the years ended December 31, 2014, 2013 and 2012, were $14.7 million, $8.9 million and $3.7 million, respectively. | |||||||||||
SHAREHOLDER_RIGHTS_PLAN
SHAREHOLDER RIGHTS PLAN | 12 Months Ended |
Dec. 31, 2014 | |
SHAREHOLDER RIGHTS PLAN | |
SHAREHOLDER RIGHTS PLAN | |
Note 17 — Shareholder Rights Plan | |
JCG does not currently have a Shareholder Rights Plan ("Rights Plan") in place as JCG's Board of Directors let the previous Rights Plan expire by its terms in June 2010. The Board of Directors reserves the right to implement a new Rights Plan at any time. | |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||
Note 18 — Segment and Geographic Information | |||||||||||
Although we manage and distribute a wide range of investment products and services, the Company's management directs JCG's operations as one business, the investment management business, and thus operates in one business segment. | |||||||||||
The following summary provides information concerning JCG's principal geographic areas for the years ended and as of December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
Revenues | 2014 | 2013 | 2012 | ||||||||
United States | $ | 827.7 | $ | 768.6 | $ | 751.7 | |||||
International | 125.5 | 105.3 | 98.3 | ||||||||
| | | | | | | | | | | |
Total | $ | 953.2 | $ | 873.9 | $ | 850.0 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
As of December 31, | |||||||||||
Long-lived assets | 2014 | 2013 | 2012 | ||||||||
United States | $ | 1,736.5 | $ | 1,710.8 | $ | 1,725.7 | |||||
International | 4.6 | 4.8 | 4.8 | ||||||||
| | | | | | | | | | | |
Total | $ | 1,741.1 | $ | 1,715.6 | $ | 1,730.5 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
International revenues and assets are attributed to countries based on the location in which revenues are earned, primarily the United Kingdom. | |||||||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||||||||
Note 19 — Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
2014 | |||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Full | ||||||||||||
quarter | quarter | quarter | quarter | year | |||||||||||||
Total revenue | $ | 230.2 | $ | 231.2 | $ | 237 | $ | 254.8 | $ | 953.2 | |||||||
Operating income | 66.9 | 70.7 | 71.6 | 80.5 | 289.7 | ||||||||||||
Net income | 31.1 | 36.9 | 40.6 | 46.8 | 155.4 | ||||||||||||
Noncontrolling interests | (0.6 | ) | (0.6 | ) | 0.3 | (0.1 | ) | (1.0 | ) | ||||||||
Net income attributable to JCG | 30.5 | 36.3 | 40.9 | 46.7 | 154.4 | ||||||||||||
Basic earnings per share attributable to JCG common shareholders | $ | 0.16 | $ | 0.19 | $ | 0.22 | $ | 0.25 | $ | 0.82 | |||||||
Diluted earnings per share attributable to JCG common shareholders | $ | 0.16 | $ | 0.19 | $ | 0.22 | $ | 0.24 | $ | 0.81 | |||||||
2013 | |||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Full | ||||||||||||
quarter | quarter | quarter | quarter | year | |||||||||||||
Total revenue | $ | 214.2 | $ | 215.8 | $ | 217.7 | $ | 226.2 | $ | 873.9 | |||||||
Operating income | 54.7 | 58.4 | 59 | 67 | 239.1 | ||||||||||||
Net income | 29.7 | 16.8 | 35.6 | 40.1 | 122.2 | ||||||||||||
Noncontrolling interests | (1.7 | ) | (1.0 | ) | (3.0 | ) | (1.8 | ) | (7.5 | ) | |||||||
Net income attributable to JCG | 28 | 15.8 | 32.6 | 38.3 | 114.7 | ||||||||||||
Basic earnings per share attributable to JCG common shareholders | $ | 0.15 | $ | 0.09 | $ | 0.18 | $ | 0.21 | $ | 0.62 | |||||||
Diluted earnings per share attributable to JCG common shareholders | $ | 0.15 | $ | 0.08 | $ | 0.17 | $ | 0.21 | $ | 0.62 | |||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Basis of Presentation | |||||||||||
Basis of Presentation | |||||||||||
The financial statements include all majority-owned subsidiaries, and all intercompany accounts and transactions have been eliminated in consolidation. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. | |||||||||||
Accounting Estimates | |||||||||||
Accounting Estimates | |||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material. JCG's significant estimates relate to investment securities, goodwill and intangible assets, equity compensation and income taxes. | |||||||||||
Segment Information | |||||||||||
Segment Information | |||||||||||
The Company's management directs JCG's operations as one business, the investment management business, and thus operates in one business segment. | |||||||||||
Cash and Cash Equivalents | |||||||||||
Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents consist of cash held at banks in the United States and outside the United States, and short-term investments with an initial maturity of three months or less when purchased. JCG's cash equivalents consist primarily of debt securities and totaled $300.2 million and $199.0 million at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, approximately $24 million of cash held outside the United States was not available for general corporate purposes due to capital requirements associated with foreign subsidiaries of JCG. | |||||||||||
Property and Equipment | |||||||||||
Property and Equipment | |||||||||||
Property and equipment is recorded at cost. Depreciation and amortization are recorded using the straight-line method over the estimated useful life of the related assets (or the lease term, if shorter). Depreciation and amortization expense totaled $10.4 million, $11.2 million and $13.4 million for the years ended December 31, 2014, 2013 and 2012, respectively. Property and equipment is summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
Depreciation and | |||||||||||
amortization | |||||||||||
period | 2014 | 2013 | |||||||||
Furniture, fixtures, computer equipment and software | 3-7 years | $ | 209.6 | $ | 199.3 | ||||||
Leasehold improvements | 3-24 years | 38.8 | 37.5 | ||||||||
| | | | | | | | | | ||
Property and equipment, gross | 248.4 | 236.8 | |||||||||
Accumulated depreciation and amortization | (217.3 | ) | (206.9 | ) | |||||||
| | | | | | | | | | ||
Property and equipment, net | $ | 31.1 | $ | 29.9 | |||||||
| | | | | | | | | | ||
| | | | | | | | | | ||
Computer equipment includes certain leased items that have been designated as capital leases and represented $6.8 million and $6.5 million of the gross property and equipment balance at December 31, 2014 and 2013, respectively. | |||||||||||
JCG evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The evaluation is based on an estimate of the future cash flows expected to result from the use of the asset and its eventual disposition. If expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized in an amount equal to the excess of the carrying amount of the asset over the fair value of the asset. There were no impairments of long-lived assets for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Purchased software is recorded at cost and amortized over its estimated useful life. Internal and external costs incurred in connection with developing or obtaining software for internal use are expensed as incurred during the preliminary project stage, as are training and maintenance costs. Internal and external costs incurred for internal use software during the application development stage are capitalized until such time that the software is substantially complete and ready for its intended use. Application development stage costs are amortized on a straight-line basis over the estimated useful life of the software. | |||||||||||
Capitalized software costs totaled $10.4 million and $8.3 million at December 31, 2014 and 2013, respectively, and are presented within property and equipment, net on the Consolidated Balance Sheets. | |||||||||||
Deferred Commissions | |||||||||||
Deferred Commissions | |||||||||||
Sales commissions paid to financial intermediaries on sales of certain mutual fund shares are deferred and amortized over various periods, not exceeding four years, based on the estimated recoverability of the asset through distribution fee payments and contingent deferred sales charges. Contingent deferred sales charges received from early redemptions reduce the unamortized deferred commissions balance. Amortization expense for the years ended December 31, 2014, 2013 and 2012, totaled $5.6 million, $5.3 million and $5.6 million, respectively. | |||||||||||
Deferred commissions, which are recorded as components of other current assets and other non-current assets on the Consolidated Balance Sheets, are summarized as follows as of December 31, 2014 and 2013 (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred commissions — current | $ | 3.9 | $ | 2.2 | |||||||
Deferred commissions — non-current | 0.2 | 0.3 | |||||||||
| | | | | | | | ||||
Total | $ | 4.1 | $ | 2.5 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Investment Securities | |||||||||||
Investment Securities | |||||||||||
JCG classifies investment securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried on JCG's Consolidated Balance Sheets at fair value and consist primarily of investments related to seeded investment products, investments in advised funds previously utilized for the economic hedging of mutual fund share awards and investments related to the economic hedging of deferred compensation. | |||||||||||
Seeded Investment Products | |||||||||||
JCG periodically adds new investment strategies to its investment product offerings by providing the initial cash investment or "seeding." The primary purpose of seeded investment products is to generate an investment performance track record in a product to attract third-party investors. JCG's initial investment in a new product represents 100% ownership in that product. Seeded investment products are initially consolidated and the individual securities within the portfolio are accounted for as trading securities. JCG consolidates such investment products as long as it holds a controlling interest in the investment product, defined as greater than 50% ownership. | |||||||||||
Upon deconsolidation, JCG continues to account for its investments in seeded products as trading securities if its ownership is between 20% and 50%. JCG may redeem invested seed capital for a variety of reasons, including when third-party investments in the relevant product are sufficient to sustain the given investment strategy. The length of time JCG holds a majority interest in a product varies based on a number of factors including, but not limited to, market demand, market conditions and investment performance. Changes in fair value of securities classified as trading are recognized in investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
The Company has determined that its seeded investment products do not represent variable interest entities. Seed investments are made largely in mutual funds, but may also be made in commingled pools and separate accounts. JCG has determined mutual funds to be voting interest entities rather than variable interest entities. Commingled pools are established as limited liability companies or partnerships, and as such, the Company applies partnership accounting rules. These rules dictate that a managing member or general partner would not consolidate an entity if the members or limited partners carry substantive kick-out rights. All of the Company's commingled pools carry substantive kick-out rights. Seed investments in separate accounts are 100% owned by JCG and are accounted for as trading securities. | |||||||||||
Investments in Advised Funds and Investments Related to the Economic Hedging of Deferred Compensation | |||||||||||
JCG grants mutual fund share awards to employees that are indexed to certain funds managed by JCG. Upon vesting, participants receive the value of the mutual fund share awards adjusted for gains or losses attributable to the mutual funds to which the award was indexed, subject to tax withholding. Historically, JCG made corresponding investments in JCG-managed funds for purposes of economically hedging the mutual fund share awards. Effective January 2013, such corresponding investments are no longer made. The value of the investments in the JCG-managed funds is a component of investment securities on JCG's Consolidated Balance Sheets. | |||||||||||
The Company maintains deferred compensation plans for certain highly compensated employees and members of its Board of Directors. Eligible participants may defer a portion of their compensation and have the ability to earn a return by indexing their deferrals to mutual funds managed by the Company and its subsidiaries. The Company makes no contributions to the plan. To protect against market variability of the liability, the Company creates an economic hedge by investing in mutual funds that are consistent with the deferred amounts and mutual fund elections of the participants. Such investments remain assets of JCG. Changes in market value of the liability to participants are recognized as long-term incentive compensation in JCG's Consolidated Statements of Comprehensive Income and changes in the market value of the mutual fund securities are recognized in investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
Available-for-Sale Securities | |||||||||||
Investment securities classified as available-for-sale consist of seeded investment products in which JCG holds a less than 20% interest and are carried on JCG's Consolidated Balance Sheets at fair value. Changes in fair value are reflected as a component of other comprehensive income (loss), net of tax on JCG's Consolidated Statements of Comprehensive Income until realized. Realized gains, losses and declines in fair value that are judged to be other-than-temporary are reflected as a component of investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. Accumulated gains and losses are reclassified to earnings when the securities are sold on a first-in, first-out cost basis. | |||||||||||
Impairment Evaluation | |||||||||||
JCG periodically evaluates the carrying value of investment securities classified as available-for-sale or held-to-maturity for potential impairment. In determining if an impairment exists, JCG considers the duration, extent and circumstances of any decline in fair value. | |||||||||||
For debt securities, an other-than-temporary impairment ("OTTI") is evident if JCG intends to sell the debt security or will more likely than not be required to sell the debt security before full recovery of the entire amortized cost basis is realized. However, even if JCG does not intend to sell the debt security and will not likely be required to sell the debt security before recovery of its entire amortized cost basis, JCG must evaluate expected cash flows to be received and determine if a credit loss has occurred. In the event of a credit loss, the credit component of the impairment is recognized within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income and the noncredit component is recognized through other comprehensive income (loss), net of tax on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
For equity securities, JCG evaluates the securities in an unrealized loss position in the available-for-sale portfolio for OTTI on the basis of the duration of the decline in value of the security and severity of that decline as well as JCG's intent and ability to hold these securities for a period of time sufficient to allow for any anticipated recovery in the market value. If it is determined that the impairment on an equity security is other-than-temporary, an impairment loss equal to the difference between the carrying value of the security and its fair value is recognized within investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. There were no impairments of investment securities for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Derivative Instruments | |||||||||||
Derivative Instruments | |||||||||||
The Company maintains an economic hedge program that uses derivative instruments to hedge against market volatility of certain of its seed investments. Fluctuations in equity markets, interest rate markets and foreign currency markets are hedged by using index swaps, futures contracts and forward contracts. These derivative instruments are not classified as hedges for accounting purposes. The Company records all derivatives as either assets or liabilities on JCG's Consolidated Balance Sheets and measures those investments at fair value. Changes in the value of the index swaps and futures contracts are recognized as a component of investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income. Changes in the value of the foreign currency forward contracts are recognized as a component of other income, net on JCG's Consolidated Statements of Comprehensive Income. | |||||||||||
Fair Value Measurements | |||||||||||
Fair Value Measurements | |||||||||||
Fair value of assets and liabilities is determined using observable market data based on recent trading activity. Where observable market data is unavailable due to a lack of trading activity, JCG utilizes internally developed models to estimate fair value and independent third parties to validate assumptions, when appropriate. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that JCG is valuing and the selected benchmark. Depending on the type of securities owned by JCG, other valuation methodologies may be required. | |||||||||||
Measurements of fair value are classified within a hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||
The valuation hierarchy contains three levels: | |||||||||||
• | Level 1 — Valuation inputs are unadjusted quoted market prices for identical assets or liabilities in active markets. | ||||||||||
• | Level 2 — Valuation inputs are quoted market prices for identical assets or liabilities in markets that are not active, quoted market prices for similar assets and liabilities in active markets, and other observable inputs directly or indirectly related to the asset or liability being measured. | ||||||||||
• | Level 3 — Valuation inputs are unobservable and significant to the fair value measurement. | ||||||||||
JCG's Level 1 fair value measurements consist of seeded investment products, investments in advised funds and investments related to deferred compensation plans with quoted market prices in active markets. The fair value level of seeded investment products classified as trading securities is determined by the underlying securities of the product. The fair value level of equity-method and unconsolidated seeded investment products are valued using the respective net asset value ("NAV") of each product. All seeded investment products that use the NAV to determine their fair value are classified as Level 1 and primarily represent seeded mutual funds where JCG's ownership level is under 50%. | |||||||||||
JCG's Level 2 fair value measurements consist mostly of debt securities within cash equivalents, seeded investment products and JCG's long-term debt. The fair value of consolidated seeded investment products where JCG's ownership level is above 50% is determined by the underlying securities of the product. The fair value of JCG's long-term debt is determined using broker quotes and recent trading activity, which are considered Level 2 inputs. | |||||||||||
The underlying securities of mutual funds and separate accounts may be denominated in a foreign currency. In some cases, the closing price of such securities may be adjusted to capture the effects of any post-closing activity affecting the markets in which they trade. Security prices are adjusted based upon historical impacts for similar post-close activity. These adjustments result in the securities being classified as Level 2 and may also result in movements of securities between Level 1 and Level 2. | |||||||||||
JCG's Level 3 recurring fair value measurements represent INTECH redeemable noncontrolling interests and contingent cash consideration related to the acquisition of VelocityShares. | |||||||||||
Redeemable noncontrolling interests in INTECH are measured at fair value on a quarterly basis or more frequently if events or circumstances indicate that a material change in the fair value of INTECH has occurred. The fair value of INTECH is determined using a relative value methodology that incorporates observable metrics from publicly traded peer companies as valuation comparables, and adjustments related to investment performance and changes in assets under management. The relative value analysis is prepared internally within JCG's finance organization by personnel with appropriate valuation experience and credentials. In preparing the analysis, JCG benchmarks valuation metrics such as multiples of earnings before interest expense, taxes, depreciation and amortization ("EBITDA") against current market observables and recent market transactions of a similar size and nature to ensure that the estimates are reasonable. The analysis is reviewed by senior JCG finance personnel and JCG's Chief Financial Officer. The analysis is also reviewed by the holders of the noncontrolling interests in INTECH. If the valuation is agreed to by both JCG and the holders of noncontrolling interests, JCG uses the analysis to value the redeemable noncontrolling interests. The Company previously employed a discounted cash flow methodology for valuing the redeemable noncontrolling interests in INTECH, but adopted the current relative value methodology for the year ended December 31, 2014, as the relative value methodology represents a more objective approach to measuring the fair value of the noncontrolling interests. The change in methodology did not significantly impact JCG's financial position or results of operations. | |||||||||||
Significant inputs related to the relative value analysis include INTECH's trailing 12-month operating results, performance fees, investment performance and trends in assets under management. In addition, market trading comparables from a relevant publicly traded peer set are included to complete the relative valuation process. Publicly available comparables used for the fourth quarter 2014 valuation analysis ranged from approximately 8.0x to 13.0x EBITDA. Significant increases or decreases in historical INTECH operating results would result in a significantly higher or lower fair value measurement, respectively. Additionally, a significant increase or decrease in market trading comparables would result in a significantly higher or lower fair value measurement, respectively. Generally, any period-over-period change in INTECH performance or level of assets under management in isolation is accompanied by a directionally similar change in the fair value measurement. | |||||||||||
Contingent cash consideration was a component of the purchase price of the VelocityShares acquisition. The contingent consideration is payable on the first, second, third and fourth anniversaries of the acquisition, in amounts up to $10 million each for the first and second anniversaries, and $8 million each for the third and fourth anniversaries. The payments are contingent on certain VelocityShares' ETPs reaching defined net revenue targets. The fair value of the contingent cash consideration is calculated on a quarterly basis by forecasting net ETP revenue, as defined by the purchase agreement, over the contingency period, and determining whether targets are met given forecasted VelocityShares operating results. Earned contingent payments are then discounted back to the valuation date. Significant unobservable inputs used in the valuation are limited to forecasted gross revenues and certain expense items which are deducted from these revenues. Increases in forecasted net revenue would increase the fair value of the consideration, subject to payment limitations, while decreases in net revenues would decrease the fair value. Refer to Note 5 — Goodwill, Intangible Assets and Acquisitions for further discussion of the VelocityShares acquisition. | |||||||||||
Nonrecurring Level 3 fair value measurements include goodwill and intangible assets. JCG measures the fair value of goodwill and intangible assets using a discounted cash flow analysis that requires assumptions regarding projected future earnings and discount rates. Because of the significance of the unobservable inputs in the fair value measurements of these assets and liabilities, such measurements have been classified as Level 3. | |||||||||||
Income Taxes | |||||||||||
Income Taxes | |||||||||||
Deferred income tax assets and liabilities are recorded for the temporary differences between the financial statement and income tax bases of assets and liabilities as measured by the enacted income tax rates that may be in effect when these differences reverse. The effect of changes in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. Significant management judgment is required in developing JCG's provision for income taxes, including the valuation allowances that might be required against deferred tax assets and the evaluation of various income tax contingencies. | |||||||||||
The accounting guidance for uncertainty in income taxes sets forth a specific method for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. The tax contingencies liability relates primarily to general state tax items and has been recorded in other non-current liabilities and other accrued liabilities on JCG's Consolidated Balance Sheets, as appropriate. | |||||||||||
Taxing authorities generally charge interest and may assess penalties in the event that a tax position taken is subsequently reversed upon examination. JCG has accrued interest on its uncertain tax provisions based on the rates specified by the applicable taxing authorities and has recorded the interest as a component of the tax provision. At December 31, 2014, 2013 and 2012, $0.8 million, $1.3 million and $2.2 million, respectively, of accrued interest is included in the liability for tax contingencies. Any potential penalties associated with a tax contingency will also be included as a component of the tax provision in the period in which the assessment of a penalty becomes likely. JCG does not believe that it is subject to any penalties related to its tax contingencies and, therefore, has not accrued a liability for tax penalties. | |||||||||||
In the event of an overpayment of income taxes, taxing authorities generally pay interest from the date of the overpayment. JCG records interest income from taxing authorities as a component of the income tax provision. | |||||||||||
Goodwill and Intangible Assets, Net | |||||||||||
Goodwill and Intangible Assets, Net | |||||||||||
Goodwill represents the excess of cost over the fair value of the identifiable net assets of acquired companies. JCG's identifiable intangible assets generally represent the cost of client relationships and mutual fund advisory contracts acquired as well as brand name and trademark. ETPs associated with the acquisition of VelocityShares are also part of JCG's identifiable intangible assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually as of October 1 or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Goodwill and intangible assets require significant management estimates and judgment, including the valuation and expected life determination in connection with the initial purchase price allocation and the ongoing evaluation for impairment. | |||||||||||
Noncontrolling Interests and Redeemable Noncontrolling Interests | |||||||||||
Noncontrolling Interests and Redeemable Noncontrolling Interests | |||||||||||
Noncontrolling interests that are not subject to redemption rights are classified in permanent equity. Redeemable noncontrolling interests are classified outside of permanent equity on the Consolidated Balance Sheets and are measured at estimated fair value as of the balance sheet dates. Changes in fair value of redeemable noncontrolling interests are recognized as increases or decreases to redeemable noncontrolling interests with an offsetting charge to retained earnings. Certain of the INTECH ownership interests granted to employees become subject to redemption rights upon vesting at which time such interests are reclassified to redeemable noncontrolling interests. Earnings attributable to noncontrolling interests that are and are not subject to redemption rights are combined in JCG's Consolidated Statements of Comprehensive Income. Acquisitions of entities in which JCG holds an existing controlling interest are treated as a reduction of noncontrolling interests or redeemable noncontrolling interests in an amount equal to the purchase price. See Note 10 — Noncontrolling Interests for further discussion of noncontrolling interests. | |||||||||||
Revenue Recognition | |||||||||||
Revenue Recognition | |||||||||||
Investment management and shareowner servicing fees are recognized as services are provided. These revenues are generally determined in accordance with contracts based upon a percentage of average assets under management. | |||||||||||
Performance fee revenue is derived from certain mutual funds and separate accounts. Mutual fund performance fees represent an adjustment to the investment management fee of certain mutual funds and are based on the relative investment performance of each fund compared to a specific benchmark index. The adjustment is up to a positive or negative 15 basis points and is calculated using each fund's daily net average assets based on a trailing 36-month measurement period. Separate account performance fees are specified in client contracts and are based on investment performance as compared to an established benchmark index over a specified period of time. Separate account performance fees are recognized at the end of the contractual period if the stated performance criteria are achieved. | |||||||||||
Marketing | |||||||||||
Marketing | |||||||||||
Marketing and promotional costs are generally expensed as incurred. | |||||||||||
Stock-Based Compensation | |||||||||||
Stock-Based Compensation | |||||||||||
Stock-based compensation cost is based on the grant date fair value of awards expected to vest at the end of the stated service period and consists of the total value of the awards less an estimate for forfeitures. The grant date fair value of stock options is determined using the Black-Scholes option pricing model, and the grant date fair value of restricted stock is determined from the market price on the date of grant. The Black-Scholes model requires management to estimate certain variables, including the lives of options from grant date to exercise date, the volatility of the underlying shares and future dividend rates. | |||||||||||
JCG estimates, at the time of grant, the amount of awards that are not expected to vest based on historical forfeiture rates and subsequently records adjustments, as appropriate. | |||||||||||
Other Income, Net | |||||||||||
Other Income, Net | |||||||||||
The components of other income, net for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Dividend income | $ | 5.6 | $ | 3.8 | $ | 2.3 | |||||
Interest income | 0.6 | 0.5 | 0.6 | ||||||||
Foreign currency gains (losses), net | (3.2 | ) | 0.2 | (1.6 | ) | ||||||
Other, net | — | — | 1.9 | ||||||||
| | | | | | | | | | | |
Total other income, net | $ | 3 | $ | 4.5 | $ | 3.2 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Earnings Per Share | |||||||||||
Earnings Per Share | |||||||||||
JCG calculates basic and diluted earnings per share using the two-class method, as common shares and participating restricted stock awards are paid nonforfeitable dividends. Under the two-class method, net income attributable to JCG is adjusted for the allocation of earnings to participating restricted stock awards. In addition, the weighted-average diluted common shares outstanding are calculated using the two-class method. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Schedule of property and equipment | |||||||||||
Property and equipment is summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
Depreciation and | |||||||||||
amortization | |||||||||||
period | 2014 | 2013 | |||||||||
Furniture, fixtures, computer equipment and software | 3-7 years | $ | 209.6 | $ | 199.3 | ||||||
Leasehold improvements | 3-24 years | 38.8 | 37.5 | ||||||||
| | | | | | | | | | ||
Property and equipment, gross | 248.4 | 236.8 | |||||||||
Accumulated depreciation and amortization | (217.3 | ) | (206.9 | ) | |||||||
| | | | | | | | | | ||
Property and equipment, net | $ | 31.1 | $ | 29.9 | |||||||
| | | | | | | | | | ||
| | | | | | | | | | ||
Components of deferred commissions | |||||||||||
Deferred commissions, which are recorded as components of other current assets and other non-current assets on the Consolidated Balance Sheets, are summarized as follows as of December 31, 2014 and 2013 (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred commissions — current | $ | 3.9 | $ | 2.2 | |||||||
Deferred commissions — non-current | 0.2 | 0.3 | |||||||||
| | | | | | | | ||||
Total | $ | 4.1 | $ | 2.5 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of components of other income, net | |||||||||||
The components of other income, net for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Dividend income | $ | 5.6 | $ | 3.8 | $ | 2.3 | |||||
Interest income | 0.6 | 0.5 | 0.6 | ||||||||
Foreign currency gains (losses), net | (3.2 | ) | 0.2 | (1.6 | ) | ||||||
Other, net | — | — | 1.9 | ||||||||
| | | | | | | | | | | |
Total other income, net | $ | 3 | $ | 4.5 | $ | 3.2 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Investment securities, carried at fair value | ||||||||||||||||||||
JCG's investment securities as of December 31, 2014 and 2013, are summarized as follows (in millions): | ||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Trading securities: | ||||||||||||||||||||
Seeded investment products | $ | 258.3 | $ | 312.9 | ||||||||||||||||
Investments in advised mutual funds | 4.4 | 45.5 | ||||||||||||||||||
Investments related to deferred compensation plans | 13.0 | 14.9 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total trading securities | 275.7 | 373.3 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | 68.3 | 10.7 | ||||||||||||||||||
Debt securities | — | 101.5 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total available-for-sale securities | 68.3 | 112.2 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total investment securities | $ | 344.0 | $ | 485.5 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Seeded investment products classified as trading securities | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair value | Number of | Fair value | Number of | |||||||||||||||||
(in millions) | products | (in millions) | products | |||||||||||||||||
Mutual funds advised by the Company | $ | 191.8 | 17 | $ | 230.0 | 12 | ||||||||||||||
Separately managed accounts | 66.5 | 31 | 82.9 | 28 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total seeded investment products classified as trading securities | $ | 258.3 | $ | 312.9 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Seeded investment products classified as available-for-sale securities | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Fair value | Number of | Fair value | Number of | |||||||||||||||||
(in millions) | products | (in millions) | products | |||||||||||||||||
Mutual funds advised by the Company | $ | 68.3 | 40 | $ | 10.7 | 34 | ||||||||||||||
Summary of the amortized cost, gross unrealized gains and losses, and estimated fair value and carrying value classified as available-for-sale securities | ||||||||||||||||||||
The following is a summary of available-for-sale securities at December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
investment | Foreign | Estimated | Carrying | |||||||||||||||||
currency | fair value | value | ||||||||||||||||||
Cost | Gains | Losses | translation | |||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | $ | 68.6 | $ | 0.4 | $ | (0.6 | ) | $ | (0.1 | ) | $ | 68.3 | $ | 68.3 | ||||||
December 31, 2013 | ||||||||||||||||||||
Gross | ||||||||||||||||||||
unrealized | ||||||||||||||||||||
investment | Foreign | Estimated | Carrying | |||||||||||||||||
currency | fair value | value | ||||||||||||||||||
Cost | Gains | Losses | translation | |||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||
Seeded investment products | $ | 9.9 | $ | 0.9 | $ | — | $ | (0.1 | ) | $ | 10.7 | $ | 10.7 | |||||||
Debt securities | 101.6 | — | (0.1 | ) | — | 101.5 | 101.5 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total available-for-sale securities | $ | 111.5 | $ | 0.9 | $ | (0.1 | ) | $ | (0.1 | ) | $ | 112.2 | $ | 112.2 | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Summary of realized gains and losses upon disposition of investment products classified as available-for-sale securities | ||||||||||||||||||||
The following is a summary of realized gains and losses upon disposition of seeded investment products classified as available-for-sale securities for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Realized gains | $ | 2.8 | $ | 2.6 | $ | 0.6 | ||||||||||||||
Realized losses | (0.1 | ) | (2.1 | ) | (0.7 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Net realized gains (losses) | $ | 2.7 | $ | 0.5 | $ | (0.1 | ) | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of gross and offsetting amounts for derivative instruments | ||||||||||||||||||||
The following tables illustrate the effect of offsetting derivative instruments on JCG's Consolidated Balance Sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross amounts | Gross amounts | Gross amounts | Net amounts | |||||||||||||||||
offset by | offset by | |||||||||||||||||||
derivative | cash collateral | |||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Index swaps | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Index futures | $ | 1.2 | $ | — | $ | (1.2 | ) | $ | — | |||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross amounts | Gross amounts | Gross amounts | Net amounts | |||||||||||||||||
offset by | offset by | |||||||||||||||||||
derivative | cash collateral | |||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Index swaps | $ | 0.1 | $ | (0.1 | ) | $ | — | $ | — | |||||||||||
Index futures | 0.9 | (0.4 | ) | — | 0.5 | |||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | 1 | $ | (0.5 | ) | $ | — | $ | 0.5 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Liabilities: | ||||||||||||||||||||
Index swaps | $ | 1.5 | $ | (1.5 | ) | $ | — | $ | — | |||||||||||
Index futures | 0.4 | (0.4 | ) | — | — | |||||||||||||||
Foreign currency forward contracts | 1.5 | — | — | 1.5 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | 3.4 | $ | (1.9 | ) | $ | — | $ | 1.5 | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of net gains (losses) in earnings on hedged seed investments and associated index futures and index swaps | ||||||||||||||||||||
JCG recognized the following net gains on hedged seed investments and net losses on associated index futures and index swaps for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Hedged seed investments classified as trading securities (1) | $ | 7.3 | $ | 31.8 | $ | 11.5 | ||||||||||||||
Hedged seed investments classified as available-for-sale securities (1) | 2.9 | 1.6 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total hedged seed investments | 10.2 | 33.4 | 11.5 | |||||||||||||||||
Index futures | (8.2 | ) | (20.7 | ) | (12.5 | ) | ||||||||||||||
Index swaps | (3.0 | ) | (16.7 | ) | — | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | (1.0 | ) | $ | (4.0 | ) | $ | (1.0 | ) | |||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of net (losses) gains in earnings on hedged seed investments denominated in a foreign currency and associated foreign currency forward contracts | ||||||||||||||||||||
JCG recognized the following net gains (losses) on hedged seed investments denominated in a foreign currency and net gains (losses) on associated foreign currency forward contracts for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Net gains (losses) in net income related to: | ||||||||||||||||||||
Foreign currency translation | $ | (1.9 | ) | $ | 4.3 | $ | 0.1 | |||||||||||||
Foreign currency forward contracts | 1.3 | (4.3 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | (0.6 | ) | $ | — | $ | 0.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of offsetting derivative instruments within consolidated seeded investment products | ||||||||||||||||||||
The following tables illustrate the effect of offsetting derivative instruments within consolidated seeded investment products on JCG's Consolidated Balance Sheets as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Gross | Gross amounts | Net amounts | ||||||||||||||||||
amounts | offset by | |||||||||||||||||||
derivative | ||||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Swaps | $ | 1.4 | $ | (0.4 | ) | $ | 1 | |||||||||||||
Futures | 0.6 | (0.4 | ) | 0.2 | ||||||||||||||||
Options | 0.2 | — | 0.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 2.2 | $ | (0.8 | ) | $ | 1.4 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Liabilities: | ||||||||||||||||||||
Swaps | $ | 0.4 | $ | (0.4 | ) | $ | — | |||||||||||||
Futures | 0.4 | (0.4 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 0.8 | $ | (0.8 | ) | $ | — | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross amounts | Net amounts | ||||||||||||||||||
amounts | offset by | |||||||||||||||||||
derivative | ||||||||||||||||||||
instruments | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Swaps | $ | 1.2 | $ | (1.2 | ) | $ | — | |||||||||||||
Futures | 0.1 | (0.1 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 1.3 | $ | (1.3 | ) | $ | — | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Liabilities: | ||||||||||||||||||||
Swaps | $ | 1.3 | $ | (1.2 | ) | $ | 0.1 | |||||||||||||
Futures | 0.1 | (0.1 | ) | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total | $ | 1.4 | $ | (1.3 | ) | $ | 0.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of investment gains, net on the Consolidated Statements of Comprehensive Income | ||||||||||||||||||||
Investment gains (losses), net on JCG's Consolidated Statements of Comprehensive Income included the following for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Seeded investment products | $ | 8.6 | $ | 28.9 | $ | 17.8 | ||||||||||||||
Noncontrolling interests in seeded investment products | (0.6 | ) | 3.4 | 2 | ||||||||||||||||
Investments in advised mutual funds | (0.1 | ) | 8.5 | 8.6 | ||||||||||||||||
Index swaps and index futures | (11.2 | ) | (37.4 | ) | (12.5 | ) | ||||||||||||||
Economic hedge for deferred compensation plans | 1.3 | 3 | 1.3 | |||||||||||||||||
Put spread option contracts | — | — | (6.1 | ) | ||||||||||||||||
Other | 0.1 | 0.1 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Investment gains (losses), net | $ | (1.9 | ) | $ | 6.5 | $ | 11.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Cash flows related to investment securities | ||||||||||||||||||||
Cash flows related to investment securities for the years ended December 31, 2014, 2013 and 2012, are summarized as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Purchases | Sales, | Purchases | Sales, | Purchases | Sales, | |||||||||||||||
and | settlements | and | settlements | and | settlements | |||||||||||||||
settlements | and | settlements | and | settlements | and | |||||||||||||||
maturities | maturities | maturities | ||||||||||||||||||
Trading securities | $ | (143.5 | ) | $ | 148 | $ | (118.0 | ) | $ | 79.1 | $ | (108.9 | ) | $ | 80.7 | |||||
Available-for-sale securities | (0.7 | ) | 174.9 | (103.5 | ) | 47 | (1.1 | ) | 8 | |||||||||||
Derivative instruments: | ||||||||||||||||||||
Seed capital economic hedge | (24.4 | ) | 13.9 | (70.2 | ) | 31.5 | (21.0 | ) | 11.3 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total cash flows | $ | (168.6 | ) | $ | 336.8 | $ | (291.7 | ) | $ | 157.6 | $ | (131.0 | ) | $ | 100 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Not Designated as Hedging Instrument | ||||||||||||||||||||
Schedule of derivative instruments | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Number of | Notional value | Number of | Notional value | |||||||||||||||||
contracts | (in millions) | contracts | (in millions) | |||||||||||||||||
Index swaps | 4 | $ | 56.8 | 6 | $ | 184.3 | ||||||||||||||
Index futures | 6 | $ | 74.9 | 6 | $ | 66.6 | ||||||||||||||
Foreign currency forward contracts | 7 | $ | 3.6 | 6 | $ | 93.6 | ||||||||||||||
Seeded Investment Products | ||||||||||||||||||||
Schedule of derivative instruments | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Number of | Notional value | Number of | Notional value | |||||||||||||||||
contracts | (in millions) | contracts | (in millions) | |||||||||||||||||
Swaps | 117 | $ | 65.8 | 32 | $ | 17.8 | ||||||||||||||
Futures | 32 | $ | 41.5 | 23 | $ | 10.4 | ||||||||||||||
Foreign currency forward contracts | 37 | $ | 2.4 | 32 | $ | 7.4 | ||||||||||||||
Options | 29 | $ | 0.5 | 5 | $ | — | ||||||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
GOODWILL, INTANGIBLE ASSETS AND AQUISITIONS | ||||||||||||||
Summary of goodwill and intangible assets | ||||||||||||||
JCG's goodwill and intangible assets are summarized below (in millions): | ||||||||||||||
December 31, | Acquisition | Amortization | December 31, | |||||||||||
2013 | 2014 | |||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||
Advisory contracts | $ | 918.6 | $ | 3.3 | $ | — | $ | 921.9 | ||||||
Brand name and trademark | 270.6 | — | — | 270.6 | ||||||||||
Definite-lived intangible assets: | ||||||||||||||
Client relationships | 150.2 | 33.6 | — | 183.8 | ||||||||||
Accumulated amortization | (109.3 | ) | — | (9.6 | ) | (118.9 | ) | |||||||
| | | | | | | | | | | | | | |
Net intangible assets | $ | 1,230.10 | $ | 36.9 | $ | (9.6 | ) | $ | 1,257.40 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Goodwill | $ | 488.2 | $ | 21.5 | $ | — | $ | 509.7 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Expected future amortization | ||||||||||||||
Expected future amortization expense is summarized below (in millions): | ||||||||||||||
Year ended December 31, | Amount | |||||||||||||
2015 | $ | 9.9 | ||||||||||||
2016 | 9.6 | |||||||||||||
2017 | 9.6 | |||||||||||||
2018 | 6.9 | |||||||||||||
2019 | 4.7 | |||||||||||||
Thereafter | 24.2 | |||||||||||||
| | | | | ||||||||||
Total | $ | 64.9 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
Purchase price of acquisition of Velocity Shares | ||||||||||||||
Intangible assets | $ | 36.9 | ||||||||||||
Goodwill | 21.5 | |||||||||||||
Cash acquired | 4.3 | |||||||||||||
Deferred tax liability | (11.0 | ) | ||||||||||||
Other liabilities, net | (1.1 | ) | ||||||||||||
| | | | | ||||||||||
Total allocation | $ | 50.6 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||
Schedule of assets, liabilities and redeemable noncontrolling interests measured or disclosed at fair value on a recurring basis | ||||||||||||||
The following table presents assets, liabilities and redeemable noncontrolling interests measured or disclosed at fair value on a recurring basis as of December 31, 2014 (in millions): | ||||||||||||||
Fair value measurements using: | ||||||||||||||
Quoted prices in | Significant other | Significant | Total | |||||||||||
active markets for | observable inputs | unobservable inputs | ||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | 7.7 | $ | 292.5 | $ | — | $ | 300.2 | ||||||
Index swaps | — | 0.3 | — | 0.3 | ||||||||||
Trading securities: | ||||||||||||||
Seeded investment products | 136.6 | 121.7 | — | 258.3 | ||||||||||
Investments in advised mutual funds | 4.4 | — | — | 4.4 | ||||||||||
Investments related to deferred compensation plans | 13.0 | — | — | 13.0 | ||||||||||
Available-for-sale securities: | ||||||||||||||
Seeded investment products | 68.3 | — | — | 68.3 | ||||||||||
| | | | | | | | | | | | | | |
Total investment securities | 222.3 | 121.7 | — | 344.0 | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 230.0 | $ | 414.5 | $ | — | $ | 644.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Long-term debt | $ | — | $ | 558.0 | $ | — | $ | 558.0 | ||||||
VelocityShares contingent consideration | — | — | 17.9 | 17.9 | ||||||||||
Index futures | 1.2 | — | — | 1.2 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities | $ | 1.2 | $ | 558.0 | $ | 17.9 | $ | 577.1 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Redeemable noncontrolling interests | $ | — | $ | — | $ | 5.4 | $ | 5.4 | ||||||
The following table presents assets, liabilities and redeemable noncontrolling interests measured or disclosed at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||
Fair value measurements using: | ||||||||||||||
Quoted prices in | Significant other | Significant | Total | |||||||||||
active markets for | observable inputs | unobservable inputs | ||||||||||||
identical assets | (Level 2) | (Level 3) | ||||||||||||
(Level 1) | ||||||||||||||
Assets: | ||||||||||||||
Cash equivalents | $ | — | $ | 199.0 | $ | — | $ | 199.0 | ||||||
Index swaps | — | 0.1 | — | 0.1 | ||||||||||
Index futures | — | 0.9 | — | 0.9 | ||||||||||
Trading securities: | ||||||||||||||
Seeded investment products | 265.9 | 47.0 | — | 312.9 | ||||||||||
Investments in advised mutual funds | 45.5 | — | — | 45.5 | ||||||||||
Investments related to deferred compensation plans | 14.9 | — | — | 14.9 | ||||||||||
Available-for-sale securities: | ||||||||||||||
Seeded investment products | 10.7 | — | — | 10.7 | ||||||||||
Debt securities | — | 101.5 | — | 101.5 | ||||||||||
| | | | | | | | | | | | | | |
Total investment securities | 337.0 | 148.5 | — | 485.5 | ||||||||||
| | | | | | | | | | | | | | |
Total assets | $ | 337.0 | $ | 348.5 | $ | — | $ | 685.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Liabilities: | ||||||||||||||
Current portion of long-term debt | $ | — | $ | 101.3 | $ | — | $ | 101.3 | ||||||
Long-term debt | — | 532.5 | — | 532.5 | ||||||||||
Index swaps | — | 1.5 | — | 1.5 | ||||||||||
Index futures | — | 0.4 | — | 0.4 | ||||||||||
Foreign currency forward contracts | — | 1.5 | — | 1.5 | ||||||||||
| | | | | | | | | | | | | | |
Total liabilities | $ | — | $ | 637.2 | $ | — | $ | 637.2 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Redeemable noncontrolling interests | $ | — | $ | — | $ | 7.3 | $ | 7.3 | ||||||
Schedule of from Level 1 and Level 2 classifications | Transfers are recognized at the end of each reporting period. Transfers from Level 1 and Level 2 classifications for the years ended December 31, 2014 and 2013, are summarized as follows (in millions): | |||||||||||||
Year ended | ||||||||||||||
December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Transfers from Level 1 to Level 2 | $ | 4.9 | $ | — | ||||||||||
Transfers from Level 2 to Level 1 | $ | 1.2 | $ | 12.7 | ||||||||||
Schedule of changes in fair value of the recurring Level 3 fair value measurement | ||||||||||||||
The changes in fair value of JCG's Level 3 items, for the years ended December 31, 2014 and 2013, are as follows (in millions): | ||||||||||||||
Year ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
Redeemable | VelocityShares | Redeemable | ||||||||||||
noncontrolling | contingent | noncontrolling | ||||||||||||
interests | consideration | interests | ||||||||||||
Beginning of year fair value | $ | 7.3 | $ | — | $ | 42.9 | ||||||||
Distributions | (0.6 | ) | — | (4.2 | ) | |||||||||
Current earnings | 0.5 | — | 3 | |||||||||||
Purchase of redeemable noncontrolling interests | (0.6 | ) | — | (33.8 | ) | |||||||||
Vesting of noncontrolling interests | — | — | 1.2 | |||||||||||
Issuance | — | 17.9 | — | |||||||||||
Change in fair value | (1.2 | ) | — | (1.8 | ) | |||||||||
| | | | | | | | | | | ||||
End of year fair value | $ | 5.4 | $ | 17.9 | $ | 7.3 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
DEBT | ||||||||||||||
Components of debt | ||||||||||||||
Debt at December 31, 2014 and 2013, consisted of the following (in millions): | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
value | value | value | value | |||||||||||
6.700% Senior Notes due 2017 | $ | 344.5 | $ | 380.8 | $ | 344.4 | $ | 383.7 | ||||||
0.750% Convertible Senior Notes due 2018 | 106 | 177.2 | 103.3 | 148.8 | ||||||||||
3.250% Convertible Senior Notes due 2014 | — | — | 58 | 61.8 | ||||||||||
6.119% Senior Notes due 2014 | — | — | 38.9 | 39.5 | ||||||||||
| | | | | | | | | | | | | | |
Total debt | 450.5 | 558 | 544.6 | 633.8 | ||||||||||
| | | | | | | | | | | | | | |
Less: Current maturities | — | — | (96.9 | ) | (101.3 | ) | ||||||||
| | | | | | | | | | | | | | |
Total long-term debt | $ | 450.5 | $ | 558 | $ | 447.7 | $ | 532.5 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of aggregate maturities of indebtedness | ||||||||||||||
The aggregate amounts of debt maturing or callable in the next five years are as follows (in millions): | ||||||||||||||
Year ended December 31, | Amount | |||||||||||||
2015 | $ | — | ||||||||||||
2016 | — | |||||||||||||
2017 | 344.7 | |||||||||||||
2018 | 116.6 | |||||||||||||
2019 | — | |||||||||||||
Thereafter | — | |||||||||||||
| | | | | ||||||||||
Total | $ | 461.3 | ||||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
INCOME TAXES | |||||||||||
Schedule of components of income before taxes and equity earnings | |||||||||||
JCG's components of income before taxes for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Domestic | $ | 245.3 | $ | 180.8 | $ | 163.7 | |||||
International | 12.4 | 14.7 | 12.9 | ||||||||
| | | | | | | | | | | |
Total | $ | 257.7 | $ | 195.5 | $ | 176.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of provision for income taxes | |||||||||||
JCG's provision for income taxes for the years ended December 31, 2014, 2013 and 2012, is summarized as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 72.7 | $ | 61.1 | $ | 46.9 | |||||
State and local | 7 | 6.4 | 3.8 | ||||||||
International | 2.5 | 3.7 | 2.8 | ||||||||
| | | | | | | | | | | |
Total current | 82.2 | 71.2 | 53.5 | ||||||||
| | | | | | | | | | | |
Deferred: | |||||||||||
Federal | 18.4 | 2.1 | 10.4 | ||||||||
State and local | 1.9 | — | 0.8 | ||||||||
International | (0.2 | ) | — | — | |||||||
| | | | | | | | | | | |
Total deferred | 20.1 | 2.1 | 11.2 | ||||||||
| | | | | | | | | | | |
Total income tax provision | $ | 102.3 | $ | 73.3 | $ | 64.7 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of deferred tax assets (liabilities) | |||||||||||
JCG's deferred income tax assets (liabilities) as of December 31, 2014 and 2013, are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred income tax assets: | |||||||||||
Compensation and benefits | $ | 50 | $ | 60.8 | |||||||
Accrued liabilities | 2.7 | 3.1 | |||||||||
Investments | 2.6 | 1.2 | |||||||||
Tax attributes | 8.2 | 4 | |||||||||
Other | 5.3 | 5.5 | |||||||||
| | | | | | | | ||||
Total deferred income tax assets | 68.8 | 74.6 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Intangible assets | (502.9 | ) | (476.7 | ) | |||||||
Debt discounts and issuance costs | — | (0.7 | ) | ||||||||
Prepaid expenses | (6.4 | ) | (5.2 | ) | |||||||
Other | (5.0 | ) | (6.5 | ) | |||||||
| | | | | | | | ||||
Total deferred income tax liabilities | (514.3 | ) | (489.1 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax liabilities | $ | (445.5 | ) | $ | (414.5 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of balance sheet classification of deferred income tax assets and liabilities | |||||||||||
The current deferred income tax amounts at December 31, 2014 and 2013, are included within other current assets on JCG's Consolidated Balance Sheets. Deferred tax assets and liabilities are reflected on JCG's Consolidated Balance Sheets as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Current deferred income tax asset | $ | 32.9 | $ | 33.2 | |||||||
Non-current deferred income tax liability | (478.4 | ) | (447.7 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax liabilities | $ | (445.5 | ) | $ | (414.5 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of differences between effective income tax rate and statutory federal income tax rate | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
State and local tax rate, net of federal benefit | 2.3 | 2.3 | 2.3 | ||||||||
Noncontrolling interests | (0.1 | ) | (1.4 | ) | (2.0 | ) | |||||
Tax adjustments | (0.5 | ) | (0.8 | ) | (1.0 | ) | |||||
Equity-based compensation | 3 | 2.5 | 2.4 | ||||||||
Other | — | (0.1 | ) | (0.1 | ) | ||||||
| | | | | | | | | | | |
Total effective income tax rate | 39.7 | % | 37.5 | % | 36.6 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Reconciliation of beginning and ending tax contingencies liability | |||||||||||
A reconciliation of the beginning and ending liability for the years ended December 31, 2014, 2013 and 2012, is as follows (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning of year | $ | 5.6 | $ | 5.9 | $ | 7.4 | |||||
Additions for tax positions of current year | 0.8 | 1 | 0.9 | ||||||||
Additions for tax positions of prior years | — | — | 0.4 | ||||||||
Reduction due to statute expirations | (1.0 | ) | (0.9 | ) | (1.5 | ) | |||||
Reduction due to settlement of audits | — | (0.4 | ) | (1.3 | ) | ||||||
| | | | | | | | | | | |
End of year | $ | 5.4 | $ | 5.6 | $ | 5.9 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
OTHER_BALANCE_SHEET_CAPTIONS_T
OTHER BALANCE SHEET CAPTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
OTHER BALANCE SHEET CAPTIONS | ||||||||
Other current assets | ||||||||
Other current assets at December 31, 2014 and 2013, are composed of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Deferred commissions | $ | 3.9 | $ | 2.2 | ||||
Prepaid insurance | 3.0 | 3.0 | ||||||
Prepaid information technology maintenance | 3.3 | 3.2 | ||||||
Deferred income taxes | 32.9 | 33.2 | ||||||
Stock repurchase program funding | 5.5 | 5.6 | ||||||
Other current assets | 11.2 | 4.8 | ||||||
| | | | | | | | |
Total other current assets | $ | 59.8 | $ | 52.0 | ||||
| | | | | | | | |
| | | | | | | | |
Other accrued liabilities | ||||||||
Other accrued liabilities at December 31, 2014 and 2013, are composed of the following (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accrued marketing and distribution | $ | 15.2 | $ | 14.6 | ||||
Income tax contingencies | 1.6 | 2.5 | ||||||
Deferred compensation liability | 27.5 | 31.6 | ||||||
Interest payable | 1.4 | 2.9 | ||||||
Income tax payable | 10.1 | 16.7 | ||||||
VelocityShares contingent consideration | 8.6 | — | ||||||
Other accrued liabilities | 13.6 | 9.7 | ||||||
| | | | | | | | |
Total other accrued liabilities | $ | 78.0 | $ | 78.0 | ||||
| | | | | | | | |
| | | | | | | | |
NONCONTROLLING_INTERESTS_Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
NONCONTROLLING INTERESTS | |||||||||||
Schedule of noncontrolling interests in net income | |||||||||||
Noncontrolling interests in net income for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Nonredeemable noncontrolling interests in subsidiaries | $ | 1.1 | $ | 1.1 | $ | 2.1 | |||||
Nonredeemable noncontrolling interests in consolidated seeded investment products | (0.6 | ) | 3.4 | 2 | |||||||
Redeemable noncontrolling interests in subsidiaries | 0.5 | 3 | 5.5 | ||||||||
| | | | | | | | | | | |
Total noncontrolling interests in net income | $ | 1 | $ | 7.5 | $ | 9.6 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary of nonredeemable noncontrolling interests | |||||||||||
Nonredeemable noncontrolling interests as of December 31, 2014 and 2013, are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Nonredeemable noncontrolling interests in consolidated seeded investment products | $ | 41.1 | $ | 8.8 | |||||||
Nonredeemable noncontrolling interests in INTECH | 6.2 | 4.9 | |||||||||
| | | | | | | | ||||
Total nonredeemable noncontrolling interests | $ | 47.3 | $ | 13.7 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of rollforward of noncontrolling interests in consolidated seed investment products | |||||||||||
The following table presents a rollforward of noncontrolling interests in consolidated seeded investment products for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Beginning of year balance | $ | 8.8 | $ | 12.4 | $ | 29.2 | |||||
Changes in market value | (0.6 | ) | 3.4 | 2 | |||||||
Changes in ownership | 32.9 | (7.0 | ) | (18.8 | ) | ||||||
| | | | | | | | | | | |
End of year balance | $ | 41.1 | $ | 8.8 | $ | 12.4 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary of redeemable noncontrolling interests | |||||||||||
As of December 31, 2014 and 2013, redeemable noncontrolling interests are summarized as follows (in millions): | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Redeemable noncontrolling interests in subsidiaries | $ | 5.9 | $ | 5.9 | |||||||
Undistributed earnings | (0.5 | ) | 1.4 | ||||||||
| | | | | | | | ||||
Total redeemable noncontrolling interests | $ | 5.4 | $ | 7.3 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
LONGTERM_INCENTIVE_COMPENSATIO1
LONG-TERM INCENTIVE COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
LONG-TERM INCENTIVE COMPENSATION | ||||||||||||||||||||
Components of long-term incentive compensation expense | ||||||||||||||||||||
The components of JCG's long-term incentive compensation expense for the years ended December 31, 2014, 2013 and 2012, are summarized as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Stock options | $ | 0.4 | $ | 3.1 | $ | 6.6 | ||||||||||||||
Restricted stock awards | 26.2 | 20.5 | 19.6 | |||||||||||||||||
Price-vesting units | 0.6 | 0.4 | 0.6 | |||||||||||||||||
Mutual fund share awards | 32.4 | 38.3 | 41.3 | |||||||||||||||||
Perkins senior profits interests | (11.9 | ) | 0.7 | (1.6 | ) | |||||||||||||||
INTECH profits interests | 3.4 | — | — | |||||||||||||||||
Employee stock purchase plan | 0.2 | 0.1 | 0.2 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Total long-term incentive compensation | $ | 51.3 | $ | 63.1 | $ | 66.7 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Summary of unrecognized compensation, net of estimated forfeitures, and the weighted-average number of years over which the compensation cost will be recognized | ||||||||||||||||||||
At December 31, 2014, unrecognized and unearned compensation, net of estimated forfeitures and excluding mark-to-market adjustments on mutual fund share awards, and the weighted-average number of years over which the compensation cost will be recognized are summarized as follows (in millions): | ||||||||||||||||||||
Unrecognized | Weighted- | |||||||||||||||||||
compensation | average years | |||||||||||||||||||
Stock options | $ | 0.3 | 1.5 | |||||||||||||||||
Restricted stock awards | 69.5 | 3.6 | ||||||||||||||||||
Profit interests | 76.4 | 9.1 | ||||||||||||||||||
Mutual fund share awards | 45.9 | 2.6 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 192.1 | 5.5 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of assumptions used for fair value of stock options granted | ||||||||||||||||||||
The fair value of stock options granted to JCG employees in 2013 and 2012 was estimated on the date of each grant using the Black-Scholes option pricing model with the following assumptions: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Weighted-average fair value of options granted | $ 4.40 | $ 3.96 | ||||||||||||||||||
Assumptions: | ||||||||||||||||||||
Dividend yield | 2.47 | % | 2.33 | % | ||||||||||||||||
Expected volatility | 64 | % | 66 | % | ||||||||||||||||
Risk-free interest rate | 0.84 | % | 0.71 | % | ||||||||||||||||
Expected life | 5 years | 5 years | ||||||||||||||||||
Summary of outstanding options | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||
average | average | average | ||||||||||||||||||
exercise | exercise | exercise | ||||||||||||||||||
price | price | price | ||||||||||||||||||
Outstanding at January 1 | 8,985,562 | $ | 14.91 | 12,773,178 | $ | 14.56 | 15,000,904 | $ | 14.44 | |||||||||||
Granted | — | — | 45,455 | 9.77 | 151,515 | 8.57 | ||||||||||||||
Exercised | (808,583 | ) | 9.18 | (1,341,502 | ) | 5.32 | (953,590 | ) | 5.35 | |||||||||||
Forfeited | (7,179 | ) | 10.6 | (57,218 | ) | 11.78 | (158,003 | ) | 7.15 | |||||||||||
Expired | (3,528,237 | ) | 17.65 | (2,434,351 | ) | 18.33 | (1,267,648 | ) | 20.26 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Outstanding at December 31 | 4,641,563 | $ | 13.84 | 8,985,562 | $ | 14.91 | 12,773,178 | $ | 14.56 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Exercisable (1) | 3,295,557 | $ | 8.89 | 3,215,356 | $ | 7.8 | 2,139,710 | $ | 5.32 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Vested or expected to vest | 4,641,563 | $ | 13.84 | 8,984,974 | $ | 14.91 | 12,754,883 | $ | 14.56 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | The number of exercisable options represents instruments for which all vesting criteria have been satisfied and whose exercise price was below the closing price of the Company's common stock as of the end of the period. Options outstanding for which all vesting criteria have been satisified but whose exercise price was above the closing price of the Company's common stock were 1.2 million, 5.2 million, and 8.4 million as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Summary of intrinsic value of exercised, outstanding and exercisable options | The following table summarizes the intrinsic value of exercised, outstanding and exercisable options at December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||||||
December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Exercised | $ | 3.3 | $ | 5.1 | $ | 3.3 | ||||||||||||||
Outstanding | $ | 20.1 | $ | 15.5 | $ | 10.6 | ||||||||||||||
Exercisable | $ | 23.9 | $ | 14.7 | $ | 6.8 | ||||||||||||||
Summary of stock options by range of exercise prices | ||||||||||||||||||||
The following table summarizes the information about stock options that were outstanding at December 31, 2014: | ||||||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||||
Range of | Number of | Weighted- | Weighted- | Number | Weighted- | Weighted- | ||||||||||||||
exercise prices | options | average | average | of options | average | average | ||||||||||||||
outstanding | remaining | exercise | outstanding | remaining | exercise | |||||||||||||||
contractual | price | contractual | price | |||||||||||||||||
life (years) | life (years) | |||||||||||||||||||
$5 to $10 | 1,755,519 | 1.45 | $ | 5.72 | 1,645,669 | 1.25 | $ | 5.50 | ||||||||||||
$10 to $20 | 1,659,569 | 1.78 | 12.30 | 1,649,888 | 1.78 | 12.27 | ||||||||||||||
$20 to $28 | 1,226,475 | 0.09 | 27.54 | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
$5 to $28 | 4,641,563 | 1.21 | 13.84 | 3,295,557 | 1.52 | 8.89 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Summary of unvested restricted stock awards | ||||||||||||||||||||
The table below summarizes unvested restricted stock awards for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||||
average | average | average | ||||||||||||||||||
grant date | grant date | grant date | ||||||||||||||||||
fair value | fair value | fair value | ||||||||||||||||||
Unvested at January 1 | 5,838,290 | $ | 9.71 | 4,656,396 | $ | 9.55 | 4,700,134 | $ | 9.9 | |||||||||||
Granted | 4,361,560 | 12.45 | 3,614,397 | 9.61 | 1,853,405 | 8.45 | ||||||||||||||
Vested | (1,884,731 | ) | 10.08 | (2,100,456 | ) | 9.07 | (1,672,966 | ) | 9.33 | |||||||||||
Forfeited | (514,465 | ) | 10.2 | (332,047 | ) | 10.51 | (224,177 | ) | 10.46 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Unvested at December 31 | 7,800,654 | $ | 11.11 | 5,838,290 | $ | 9.71 | 4,656,396 | $ | 9.55 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Summary of assumptions used for fair value of appreciation rights of INTECH long-term incentive awards | ||||||||||||||||||||
The fair value of the appreciation rights was estimated using the Black-Scholes option pricing model with the following assumptions: | ||||||||||||||||||||
Assumptions: | ||||||||||||||||||||
Dividend yield | 1.98 | % | ||||||||||||||||||
Expected volatility | 34 | % | ||||||||||||||||||
Risk-free interest rate | 2.53 | % | ||||||||||||||||||
Expected life | 12 years | |||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||
Schedule of the changes in accumulated other comprehensive income (loss), net of tax | ||||||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2014 and 2013, are as follows (in millions): | ||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Available-for-sale | Foreign | Total | Available-for-sale | Foreign | Total | |||||||||||||||
securities | currency | securities | currency | |||||||||||||||||
Beginning balance | $ | 1.2 | $ | (2.3 | ) | $ | (1.1 | ) | $ | 1.4 | $ | (0.8 | ) | $ | 0.6 | |||||
Other comprehensive income before reclassifications | 1.9 | — | 1.9 | 0.1 | — | 0.1 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||||||||||||||||||
Investment gains (losses), net | (2.2 | ) | — | (2.2 | ) | (0.3 | ) | — | (0.3 | ) | ||||||||||
Other income, net | — | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total other comprehensive income (loss), net of tax | (0.3 | ) | — | (0.3 | ) | (0.2 | ) | (1.5 | ) | (1.7 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Ending balance | $ | 0.9 | $ | (2.3 | ) | $ | (1.4 | ) | $ | 1.2 | $ | (2.3 | ) | $ | (1.1 | ) | ||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Components of other comprehensive (loss) income, net of tax | ||||||||||||||||||||
The components of other comprehensive income (loss), net of tax for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | ||||||||||||||||||||
Year ended December 31, 2014 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 3 | $ | (1.1 | ) | $ | 1.9 | |||||||||||||
Reclassification for items included in net income | (3.5 | ) | 1.3 | (2.2 | ) | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive loss | $ | (0.5 | ) | $ | 0.2 | $ | (0.3 | ) | ||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Year ended December 31, 2013 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 0.2 | $ | (0.1 | ) | $ | 0.1 | |||||||||||||
Reclassification for items included in net income | (2.9 | ) | 1.1 | (1.8 | ) | |||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive loss | $ | (2.7 | ) | $ | 1 | $ | (1.7 | ) | ||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Year ended December 31, 2012 | Pre-tax | Tax | Net amount | |||||||||||||||||
amount | (expense) | |||||||||||||||||||
benefit | ||||||||||||||||||||
Net unrealized gain on available-for-sale securities | $ | 1 | $ | (0.4 | ) | $ | 0.6 | |||||||||||||
Reclassification for items included in net income | 0.1 | — | 0.1 | |||||||||||||||||
Foreign currency gain | 0.7 | (0.3 | ) | 0.4 | ||||||||||||||||
| | | | | | | | | | | ||||||||||
Total other comprehensive income | $ | 1.8 | $ | (0.7 | ) | $ | 1.1 | |||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
EARNINGS PER SHARE | |||||||||||
Summary of earnings per share calculation | |||||||||||
The following is a summary of the earnings per share calculation for the years ended December 31, 2014, 2013 and 2012 (in millions, except per share data): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Net income attributable to JCG | $ | 154.4 | $ | 114.7 | $ | 102.3 | |||||
Less: Allocation of earnings to participating restricted stock awards | 5.1 | — | — | ||||||||
| | | | | | | | | | | |
Net income attributable to JCG common shareholders | $ | 149.3 | $ | 114.7 | $ | 102.3 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share attributable to JCG common shareholders: | |||||||||||
Weighted-average common shares outstanding | 182.2 | 184.6 | 183.7 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic earnings per share | $ | 0.82 | $ | 0.62 | $ | 0.56 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share attributable to JCG common shareholders: | |||||||||||
Weighted-average common shares outstanding | 182.2 | 184.6 | 183.7 | ||||||||
Incremental common shares | 2.7 | 1.3 | 1.4 | ||||||||
| | | | | | | | | | | |
Weighted-average diluted common shares outstanding | 184.9 | 185.9 | 185.1 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted earnings per share | $ | 0.81 | $ | 0.62 | $ | 0.55 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | |||||||||||
The following stock options, unvested nonparticipating restricted stock and price-vesting units are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): | |||||||||||
Year ended | |||||||||||
December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Employee stock options | 1.5 | 7.0 | 9.5 | ||||||||
Other stock options | — | — | 14.0 | ||||||||
Unvested nonparticipating restricted stock and price-vesting units | 0.4 | 1.2 | 1.6 | ||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Future minimum rental commitments | |||||
As of December 31, 2014, future minimum rental commitments under non-cancelable operating and capital leases are as follows (in millions): | |||||
Year ended December 31, | Amount | ||||
2015 | $ | 16.9 | |||
2016 | 15.2 | ||||
2017 | 14.3 | ||||
2018 | 13.2 | ||||
2019 | 11.2 | ||||
Thereafter | 52.6 | ||||
| | | | | |
Total | $ | 123.4 | |||
| | | | | |
| | | | | |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Schedule of related party activity | |||||||||||
The table below presents this related party activity for the years ended and as of December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Investment management, performance and shareowner servicing fees | $ | 762.1 | $ | 696.9 | $ | 670.7 | |||||
12b-1 plan fees earned (1) | $ | 5.0 | $ | 6.3 | $ | 6.5 | |||||
As of December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Accounts receivable from registered investment companies | $ | 76.9 | $ | 59.3 | $ | 54.3 | |||||
-1 | The annual marketing or distribution fee on a mutual fund. | ||||||||||
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||
Summary information of entity's geographic areas | |||||||||||
The following summary provides information concerning JCG's principal geographic areas for the years ended and as of December 31, 2014, 2013 and 2012 (in millions): | |||||||||||
Year ended December 31, | |||||||||||
Revenues | 2014 | 2013 | 2012 | ||||||||
United States | $ | 827.7 | $ | 768.6 | $ | 751.7 | |||||
International | 125.5 | 105.3 | 98.3 | ||||||||
| | | | | | | | | | | |
Total | $ | 953.2 | $ | 873.9 | $ | 850.0 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
As of December 31, | |||||||||||
Long-lived assets | 2014 | 2013 | 2012 | ||||||||
United States | $ | 1,736.5 | $ | 1,710.8 | $ | 1,725.7 | |||||
International | 4.6 | 4.8 | 4.8 | ||||||||
| | | | | | | | | | | |
Total | $ | 1,741.1 | $ | 1,715.6 | $ | 1,730.5 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||||||||
2014 | |||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Full | ||||||||||||
quarter | quarter | quarter | quarter | year | |||||||||||||
Total revenue | $ | 230.2 | $ | 231.2 | $ | 237 | $ | 254.8 | $ | 953.2 | |||||||
Operating income | 66.9 | 70.7 | 71.6 | 80.5 | 289.7 | ||||||||||||
Net income | 31.1 | 36.9 | 40.6 | 46.8 | 155.4 | ||||||||||||
Noncontrolling interests | (0.6 | ) | (0.6 | ) | 0.3 | (0.1 | ) | (1.0 | ) | ||||||||
Net income attributable to JCG | 30.5 | 36.3 | 40.9 | 46.7 | 154.4 | ||||||||||||
Basic earnings per share attributable to JCG common shareholders | $ | 0.16 | $ | 0.19 | $ | 0.22 | $ | 0.25 | $ | 0.82 | |||||||
Diluted earnings per share attributable to JCG common shareholders | $ | 0.16 | $ | 0.19 | $ | 0.22 | $ | 0.24 | $ | 0.81 | |||||||
2013 | |||||||||||||||||
(in millions, except per share amounts) | First | Second | Third | Fourth | Full | ||||||||||||
quarter | quarter | quarter | quarter | year | |||||||||||||
Total revenue | $ | 214.2 | $ | 215.8 | $ | 217.7 | $ | 226.2 | $ | 873.9 | |||||||
Operating income | 54.7 | 58.4 | 59 | 67 | 239.1 | ||||||||||||
Net income | 29.7 | 16.8 | 35.6 | 40.1 | 122.2 | ||||||||||||
Noncontrolling interests | (1.7 | ) | (1.0 | ) | (3.0 | ) | (1.8 | ) | (7.5 | ) | |||||||
Net income attributable to JCG | 28 | 15.8 | 32.6 | 38.3 | 114.7 | ||||||||||||
Basic earnings per share attributable to JCG common shareholders | $ | 0.15 | $ | 0.09 | $ | 0.18 | $ | 0.21 | $ | 0.62 | |||||||
Diluted earnings per share attributable to JCG common shareholders | $ | 0.15 | $ | 0.08 | $ | 0.17 | $ | 0.21 | $ | 0.62 | |||||||
DESCRIPTION_OF_THE_BUSINESS_De
DESCRIPTION OF THE BUSINESS (Details) | Feb. 03, 2014 | Dec. 31, 2014 |
Perkins Investment Management LLC | ||
Investment in subsidiaries | ||
Ownership interest acquired (as a percent) | 0.40% | |
Intech Investment Management LLc | ||
Investment in subsidiaries | ||
Percentage of ownership interest in subsidiary | 96.80% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Number of business segments | 1 | ||
Property and Equipment | |||
Depreciation and amortization expense | $10.40 | $11.20 | $13.40 |
Property and Equipment | |||
Property and equipment, gross | 248.4 | 236.8 | |
Accumulated depreciation and amortization | -217.3 | -206.9 | |
Property and equipment, net | 31.1 | 29.9 | |
Impairments of long-lived assets | 0 | 0 | 0 |
Cash and Cash Equivalents | |||
Debt securities | 300.2 | 199 | |
Software | |||
Capitalized software costs | 10.4 | 8.3 | |
Deferred Commissions | |||
Amortization period of sales commission, maximum | 4 years | ||
Amortization expense | 5.6 | 5.3 | 5.6 |
Deferred commissions - current | 3.9 | 2.2 | |
Deferred commissions - non-current | 0.2 | 0.3 | |
Total | 4.1 | 2.5 | |
International | |||
Cash and Cash Equivalents | |||
Cash | 24 | 24 | |
Furniture, fixtures, computer equipment and software | |||
Property and Equipment | |||
Property and equipment, gross | 209.6 | 199.3 | |
Furniture, fixtures, computer equipment and software | Minimum | |||
Property and Equipment | |||
Depreciation and amortization period | 3 years | ||
Furniture, fixtures, computer equipment and software | Maximum | |||
Property and Equipment | |||
Depreciation and amortization period | 7 years | ||
Leasehold improvements | |||
Property and Equipment | |||
Property and equipment, gross | 38.8 | 37.5 | |
Leasehold improvements | Minimum | |||
Property and Equipment | |||
Depreciation and amortization period | 3 years | ||
Leasehold improvements | Maximum | |||
Property and Equipment | |||
Depreciation and amortization period | 24 years | ||
Computer equipment | |||
Property and Equipment | |||
Capital leased assets | $6.80 | $6.50 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2014 |
Investment securities | ||||
Percentage of ownership in new product | 100.00% | |||
Held-to-maturity securities | $0 | |||
Impairment of investments | 0 | 0 | 0 | |
Minimum ownership percentage to classify security as level 2 | 50.00% | |||
Income Taxes | ||||
Accrued interest included in liability for income tax contingencies | 0.8 | 1.3 | 2.2 | |
Revenue Recognition | ||||
Positive or negative adjustment to the investment management fee as a percentage of fund's daily net average assets, maximum | 0.15% | |||
Period of measurement used for calculation of fund's daily net average assets | 36 months | |||
Other Income, Net | ||||
Dividend income | 5.6 | 3.8 | 2.3 | |
Interest income | 0.6 | 0.5 | 0.6 | |
Foreign currency (losses) gains, net | -3.2 | 0.2 | -1.6 | |
Other, net | 1.9 | |||
Total other income, net | 3 | 4.5 | 3.2 | |
Seeded Investment Products | ||||
Investment securities | ||||
Ownership interest accounted as investments in individual securities (as a percent) | 100.00% | |||
VelocityShares | ||||
Fair Value Measurements | ||||
Contingent cash consideration if certain revenue targets are achieved | 36 | |||
VelocityShares | First Anniversary | ||||
Fair Value Measurements | ||||
Contingent cash consideration if certain revenue targets are achieved | 10 | |||
VelocityShares | Second Anniversary | ||||
Fair Value Measurements | ||||
Contingent cash consideration if certain revenue targets are achieved | 10 | |||
VelocityShares | Third Anniversary | ||||
Fair Value Measurements | ||||
Contingent cash consideration if certain revenue targets are achieved | 8 | |||
VelocityShares | Fourth Anniversary | ||||
Fair Value Measurements | ||||
Contingent cash consideration if certain revenue targets are achieved | $8 | |||
Intech Investment Management LLc | Minimum | ||||
Fair Value Measurements | ||||
Valuation analysis multiple | 8 | |||
Intech Investment Management LLc | Maximum | ||||
Fair Value Measurements | ||||
Valuation analysis multiple | 13 | |||
Trading Securities | Seeded Investment Products | Minimum | ||||
Investment securities | ||||
Minimum controlling interest required for consolidation (as a percent) | 50.00% | |||
Trading securities required for consolidation (as a percent) | 20.00% | |||
Trading Securities | Seeded Investment Products | Maximum | ||||
Investment securities | ||||
Trading securities required for consolidation (as a percent) | 50.00% | |||
Ownership percentage to classify security as level 1 | 50.00% | |||
Available-for-sale Securities | Seeded Investment Products | Maximum | ||||
Investment securities | ||||
Available-for-sale securities required for consolidation (as a percent) | 20.00% |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term investments: | |||
Estimated Fair Value | $344 | $485.50 | |
Available-for-sale securities. | |||
Purchases and settlements | 1 | ||
Net gains (losses): | |||
Total | 1 | -4 | -1 |
Net gains (losses) in net income related to: | |||
Translation gains | -1.9 | 4.3 | 0.1 |
Foreign currency forward contracts | 1.3 | -4.3 | |
Total | -0.6 | 0.1 | |
Investment gains (losses), net | -1.9 | 6.5 | 11.1 |
Cash flows related to investment securities | |||
Purchases and settlements | -168.6 | -291.7 | -131 |
Sales, settlements and maturities | 336.8 | 157.6 | 100 |
Seeded Investment Products | |||
Available-for-sale securities. | |||
Purchases and settlements | 2.2 | 1.3 | |
Net gains (losses): | |||
Total hedged seed investments | 10.2 | 33.4 | 11.5 |
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | 8.6 | 28.9 | 17.8 |
Investments related to deferred compensation plans | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | 1.3 | 3 | 1.3 |
Other Investment Securities | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | 0.1 | 0.1 | |
Noncontrolling Interests in Seeded lnvestment Products | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | -0.6 | 3.4 | 2 |
Option | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | -6.1 | ||
Investments in advised funds | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | -0.1 | 8.5 | 8.6 |
Index Swap and Futures Contract | |||
Net gains (losses) in net income related to: | |||
Investment gains (losses), net | -11.2 | -37.4 | -12.5 |
Index Swap | |||
Net gains (losses): | |||
Gain (loss) on derivatives not designated as hedging | -3 | -16.7 | |
Futures Contract | |||
Net gains (losses): | |||
Gain (loss) on derivatives not designated as hedging | -8.2 | -20.7 | -12.5 |
Trading Securities | |||
Short-term investments: | |||
Estimated Fair Value | 275.7 | 373.3 | |
Cash flows related to investment securities | |||
Purchases and settlements | -143.5 | -118 | -108.9 |
Sales, settlements and maturities | 148 | 79.1 | 80.7 |
Trading Securities | Seeded Investment Products | |||
Short-term investments: | |||
Estimated Fair Value | 258.3 | 312.9 | |
Seeded investment products | 100 | ||
Recognized gains on trading securities that were still held as of the reporting date | 4.3 | 23.6 | 16.8 |
Net gains (losses): | |||
Total hedged seed investments | 7.3 | 31.8 | 11.5 |
Trading Securities | Mutual Fund Share Awards | |||
Short-term investments: | |||
Estimated Fair Value | 4.4 | 45.5 | |
Trading Securities | Investments related to deferred compensation plans | |||
Short-term investments: | |||
Estimated Fair Value | 13 | 14.9 | |
Trading Securities | Separately Managed Accounts | |||
Short-term investments: | |||
Estimated Fair Value | 66.5 | 82.9 | |
Number of separately managed accounts | 31 | 28 | |
Trading Securities | Investments in advised funds | |||
Short-term investments: | |||
Estimated Fair Value | 191.8 | 230 | |
Number of separately managed accounts | 17 | 12 | |
Available-for-sale Securities | |||
Short-term investments: | |||
Estimated Fair Value | 68.3 | 112.2 | |
Available-for-sale securities. | |||
Available-for-sale Securities, Amortized Cost Basis, Total | 111.5 | ||
Available-for-sale securities, Gross unrealized gains | 0.9 | ||
Available-for-sale securities, Gross unrealized losses | -0.1 | ||
Available-for-sale securities, Estimated fair value | 112.2 | ||
OTTI charges | 0 | 0 | |
Available-for-Sale Securities | |||
Realized gains | 2.8 | 2.6 | 0.6 |
Realized losses | -0.1 | -2.1 | -0.7 |
Net realized gains (losses) | 2.7 | 0.5 | -0.1 |
Cash flows related to investment securities | |||
Purchases and settlements | -0.7 | -103.5 | -1.1 |
Sales, settlements and maturities | 174.9 | 47 | 8 |
Available-for-sale Securities | Seeded Investment Products | |||
Short-term investments: | |||
Estimated Fair Value | 68.3 | 10.7 | |
Number of portfolios of funds | 40 | 34 | |
Available-for-sale securities. | |||
Available-for-sale Securities, Amortized Cost Basis, Total | 68.6 | 9.9 | |
Available-for-sale securities, Gross unrealized gains | 0.4 | 0.9 | |
Available-for-sale securities, Gross unrealized losses | -0.6 | ||
Available-for-sale securities, Estimated fair value | 68.3 | 10.7 | |
Net gains (losses): | |||
Total hedged seed investments | 2.9 | 1.6 | |
Available-for-sale Securities | Debt Securities | |||
Short-term investments: | |||
Estimated Fair Value | 101.5 | ||
Number of debt securities | 9 | ||
Available for Sale Securities Premium Amount | 100 | ||
Available-for-sale securities. | |||
Available-for-sale Securities, Amortized Cost Basis, Total | 101.6 | ||
Available-for-sale securities, Gross unrealized losses | -0.1 | ||
Available-for-sale securities, Estimated fair value | 101.5 | ||
Derivative Instruments | Seed capital economic hedge | |||
Cash flows related to investment securities | |||
Purchases and settlements | -24.4 | -70.2 | -21 |
Sales, settlements and maturities | 13.9 | 31.5 | 11.3 |
Derivative Instruments | Index Swap | Not Designated as Hedging Instrument | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 4 | 6 | |
Notional value of derivative | 56.8 | 184.3 | |
Derivative Instruments | Futures Contract | Not Designated as Hedging Instrument | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 6 | 6 | |
Notional value of derivative | 74.9 | 66.6 | |
Derivative Instruments | Foreign Exchange Forward | Not Designated as Hedging Instrument | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 7 | 6 | |
Notional value of derivative | 3.6 | 93.6 | |
Domestic trust | Trading Securities | Seeded Investment Products | |||
Short-term investments: | |||
Seeded investment products | 48 | ||
International trust | Trading Securities | Seeded Investment Products | |||
Short-term investments: | |||
Seeded investment products | 52 | ||
Cash Collateral | Index Futures | |||
Available-for-sale securities. | |||
Purchases and settlements | 1.7 | 4.8 | |
Index Swap | Derivative Instruments | Seeded Investment Products | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 117 | 32 | |
Notional value of derivative | 65.8 | 17.8 | |
Index Futures | Derivative Instruments | Seeded Investment Products | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 32 | 23 | |
Notional value of derivative | 41.5 | 10.4 | |
Foreign Exchange Forward | Available-for-sale Securities | |||
Available-for-sale securities. | |||
Purchases and settlements | -0.1 | ||
Foreign Exchange Forward | Available-for-sale Securities | Seeded Investment Products | |||
Available-for-sale securities. | |||
Purchases and settlements | -0.1 | -0.1 | |
Foreign Exchange Forward | Derivative Instruments | Seeded Investment Products | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 37 | 32 | |
Notional value of derivative | 2.4 | 7.4 | |
Option | Derivative Instruments | Seeded Investment Products | |||
Available-for-Sale Securities | |||
Number of positions of derivative | 29 | 5 | |
Notional value of derivative | $0.50 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Gross amounts | $1 | |
Gross amounts offset by derivative instruments | -0.5 | |
Net amount, Assets | 0.5 | |
Liabilities | ||
Gross amounts, Liabilities | 3.4 | |
Gross amounts offset, Liabilities | -1.9 | |
Net amount, Liabilities | 1.5 | |
Foreign Exchange Forward | ||
Liabilities | ||
Gross amounts, Liabilities | 1.5 | |
Net amount, Liabilities | 1.5 | |
Index Swaps | ||
Assets | ||
Gross amounts | 0.3 | 0.1 |
Gross amounts offset by derivative instruments | -0.1 | |
Net amount, Assets | 0.3 | |
Liabilities | ||
Gross amounts, Liabilities | 1.5 | |
Gross amounts offset, Liabilities | -1.5 | |
Index Futures | ||
Assets | ||
Gross amounts | 1.2 | 0.9 |
Gross amounts offset by derivative instruments | -0.4 | |
Gross amounts offset by cash collateral | -1.2 | |
Net amount, Assets | 0.5 | |
Liabilities | ||
Gross amounts, Liabilities | 0.4 | |
Gross amounts offset, Liabilities | -0.4 | |
Seeded Investment Products | ||
Assets | ||
Gross amounts | 2.2 | 1.3 |
Gross amounts offset by derivative instruments | -0.8 | -1.3 |
Net amount, Assets | 1.4 | |
Liabilities | ||
Gross amounts, Liabilities | 0.8 | 1.4 |
Gross amounts offset, Liabilities | -0.8 | -1.3 |
Net amount, Liabilities | 0.1 | |
Seeded Investment Products | Index Swaps | ||
Assets | ||
Gross amounts | 1.4 | 1.2 |
Gross amounts offset by derivative instruments | -0.4 | -1.2 |
Net amount, Assets | 1 | |
Liabilities | ||
Gross amounts, Liabilities | 0.4 | 1.3 |
Gross amounts offset, Liabilities | -0.4 | -1.2 |
Net amount, Liabilities | 0.1 | |
Seeded Investment Products | Index Futures | ||
Assets | ||
Gross amounts | 0.6 | 0.1 |
Gross amounts offset by derivative instruments | -0.4 | -0.1 |
Net amount, Assets | 0.2 | |
Liabilities | ||
Gross amounts, Liabilities | 0.4 | 0.1 |
Gross amounts offset, Liabilities | -0.4 | -0.1 |
Seeded Investment Products | Option | ||
Assets | ||
Gross amounts | 0.2 | |
Net amount, Assets | $0.20 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Definite-lived intangible assets: | |||
Accumulated amortization, balance at the beginning of the year | ($109.30) | ||
Amortization | -9.6 | -12.2 | -19.5 |
Accumulated amortization, balance at the end of the year | -118.9 | -109.3 | |
Estimated life | 12 years | ||
Net intangible assets | |||
Net intangible assets, balance at the beginning of the year | 1,230.10 | ||
Intangible assets acquired | 36.9 | ||
Amortization | -9.6 | -12.2 | -19.5 |
Net intangible assets, balance at the end of the year | 1,257.40 | 1,230.10 | |
Goodwill | |||
Goodwill, balance at the beginning of the year | 488.2 | ||
Goodwill acquired | 21.5 | ||
Goodwill, balance at the end of the year | 509.7 | 488.2 | |
Future Amortization expense: | |||
2015 | 9.9 | ||
2016 | 9.6 | ||
2017 | 9.6 | ||
2018 | 6.9 | ||
2019 | 4.7 | ||
Thereafter | 24.2 | ||
Finite-Lived Intangible Assets, Net, Total | 64.9 | ||
Impairment charges on indefinite-lived intangible assets | 0 | 0 | |
Impairment charges on goodwill | 0 | 0 | 0 |
Client relationships | |||
Definite-lived intangible assets: | |||
Balance at the beginning of the year | 150.2 | ||
Acquisition | 33.6 | ||
Balance at the end of the year | 183.8 | 150.2 | |
Intangible asset impairment charges | 0 | 0 | 7.7 |
Advisory contracts | |||
Indefinite-lived intangible assets: | |||
Balance at the beginning of the year | 918.6 | ||
Indefinite-lived assets acquired | 3.3 | ||
Balance at the end of the year | 921.9 | ||
Brand name and trademark | |||
Indefinite-lived intangible assets: | |||
Balance at the end of the year | 270.6 | 270.6 | |
VelocityShares | |||
Definite-lived intangible assets: | |||
Estimated life | 17 years | ||
Net intangible assets | |||
Net intangible assets, balance at the end of the year | 36.9 | ||
Goodwill | |||
Goodwill, balance at the end of the year | $21.50 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 01, 2014 | Dec. 31, 2013 | Oct. 13, 2014 |
Acquisition of VS Holdings Inc | ||||
Intangible Assets, Net (Excluding Goodwill) | $1,257.40 | $1,230.10 | ||
Goodwill | 509.7 | 488.2 | ||
Cash Acquired | 4.3 | |||
VelocityShares | ||||
Acquisition of VS Holdings Inc | ||||
Ownership interest acquired (as a percent) | 100.00% | |||
VelocityShares-branded products in assets | 2,400 | |||
Initial upfront cash consideration | 32.7 | |||
Contingent cash consideration if certain revenue targets are achieved | 36 | |||
Period of time for achievement of certain revenue targets | 4 years | |||
Fair value of contingent consideration | 17.9 | |||
Intangible Assets, Net (Excluding Goodwill) | 36.9 | |||
Goodwill | 21.5 | |||
Cash Acquired | 4.3 | |||
Deferred tax liability | -11 | |||
Other liabilities, net | -1.1 | |||
Total allocation | $50.60 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ||
Derivative assets | $0.50 | |
Total investment securities | 344 | 485.5 |
Liabilities | ||
Derivative liabilities | 1.5 | |
Redeemable noncontrolling interests | 5.4 | 7.3 |
Seeded Investment Products | ||
Assets | ||
Derivative assets | 1.4 | |
Liabilities | ||
Derivative liabilities | 0.1 | |
Fair Value, Measurements, Recurring | Fair Value | ||
Assets | ||
Cash equivalents | 300.2 | 199 |
Total investment securities | 344 | 485.5 |
Total assets | 644.5 | 685.5 |
Liabilities | ||
Current portion of long-term debt | 101.3 | |
Long-term debt | 558 | 532.5 |
VelocityShares contingent consideration | 17.9 | |
Foreign currency forward contracts | 1.5 | |
Total liabilities | 577.1 | 637.2 |
Redeemable noncontrolling interests | 5.4 | 7.3 |
Fair Value, Measurements, Recurring | Fair Value | Seeded Investment Products | ||
Assets | ||
Trading securities | 258.3 | 312.9 |
Available-for-sale securities, Estimated fair value | 68.3 | 10.7 |
Fair Value, Measurements, Recurring | Fair Value | Investments in advised funds | ||
Assets | ||
Trading securities | 4.4 | 45.5 |
Fair Value, Measurements, Recurring | Fair Value | Investments related to deferred compensation plans | ||
Assets | ||
Trading securities | 13 | 14.9 |
Fair Value, Measurements, Recurring | Fair Value | Index Swap | ||
Assets | ||
Derivative assets | 0.3 | 0.1 |
Fair Value, Measurements, Recurring | Fair Value | Index Futures | ||
Assets | ||
Derivative assets | 0.9 | |
Liabilities | ||
Derivative liabilities | 1.2 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents | 7.7 | |
Total investment securities | 222.3 | 337 |
Total assets | 230 | 337 |
Liabilities | ||
Total liabilities | 1.2 | |
Fair Value, Measurements, Recurring | Level 1 | Seeded Investment Products | ||
Assets | ||
Trading securities | 136.6 | 265.9 |
Available-for-sale securities, Estimated fair value | 68.3 | 10.7 |
Fair Value, Measurements, Recurring | Level 1 | Investments in advised funds | ||
Assets | ||
Trading securities | 4.4 | 45.5 |
Fair Value, Measurements, Recurring | Level 1 | Investments related to deferred compensation plans | ||
Assets | ||
Trading securities | 13 | 14.9 |
Fair Value, Measurements, Recurring | Level 1 | Index Swap | ||
Liabilities | ||
Derivative liabilities | 1.5 | |
Fair Value, Measurements, Recurring | Level 1 | Index Futures | ||
Liabilities | ||
Derivative liabilities | 1.2 | 0.4 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents | 292.5 | 199 |
Total investment securities | 121.7 | 148.5 |
Total assets | 414.5 | 348.5 |
Liabilities | ||
Current portion of long-term debt | 101.3 | |
Long-term debt | 558 | 532.5 |
Foreign currency forward contracts | 1.5 | |
Total liabilities | 558 | 637.2 |
Fair Value, Measurements, Recurring | Level 2 | Seeded Investment Products | ||
Assets | ||
Trading securities | 121.7 | 47 |
Fair Value, Measurements, Recurring | Level 2 | Debt Securities | ||
Assets | ||
Available-for-sale securities, Estimated fair value | 101.5 | |
Fair Value, Measurements, Recurring | Level 2 | Futures contracts | ||
Assets | ||
Derivative assets | 0.3 | |
Fair Value, Measurements, Recurring | Level 2 | Index Swap | ||
Assets | ||
Derivative assets | 0.1 | |
Fair Value, Measurements, Recurring | Level 2 | Index Futures | ||
Assets | ||
Derivative assets | 0.9 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Liabilities | ||
VelocityShares contingent consideration | 17.9 | |
Total liabilities | 17.9 | |
Redeemable noncontrolling interests | $5.40 | $7.30 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
FAIR VALUE MEASUREMENTS | ||
Transfers from Level 1 to Level 2 | $4.90 | |
Transfers from Level 2 to Level 1 | $1.20 | $12.70 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 01, 2014 |
Changes in fair value | ||||
Distributions | ($1) | ($1.60) | ($1.80) | |
Purchase of redeemable noncontrolling interests | -0.9 | -0.3 | -0.6 | |
Change in fair value | 1.2 | 1.8 | 34.3 | |
Level 3 | Fair Value, Measurements, Recurring | Redeemable noncontrolling interest | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 7.3 | 42.9 | ||
Distributions | -0.6 | -4.2 | ||
Current earnings | 0.5 | 3 | ||
Purchase of redeemable noncontrolling interests | -0.6 | -33.8 | ||
Vesting of noncontrolling interests | 1.2 | |||
Change in fair value | -1.2 | -1.8 | ||
Balance at the end of the year, Liability Value | 5.4 | 7.3 | ||
VelocityShares | ||||
Changes in fair value | ||||
Issuance | 17.9 | |||
VelocityShares | Level 3 | Fair Value, Measurements, Recurring | ||||
Changes in fair value | ||||
Issuance | 17.9 | |||
Balance at the end of the year, Liability Value | $17.90 |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Nov. 21, 2014 | Dec. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2012 | Apr. 15, 2014 | Jun. 14, 2013 |
Components of debt | |||||||||||
Less: Current maturities | ($96.90) | ||||||||||
Total long-term debt | 450.5 | 450.5 | 447.7 | ||||||||
Other Disclosures | |||||||||||
Credit facility covenant terms, financing leverage ratio, maximum | 3 | ||||||||||
Carrying value of obligations | 0.8 | 0.8 | 1.9 | ||||||||
Interest Expense | 33.1 | 41.1 | 45 | ||||||||
Dividends paid per share | $0.08 | $0.08 | $0.07 | $0.31 | $0.21 | $0.29 | |||||
Increased conversion price per share of common stock (in dollars per share) | $12.57 | ||||||||||
Repayments of Long-term Debt | 98.9 | 8.9 | 65.8 | ||||||||
Loss on early extinguishment of debt | 13.5 | 7.2 | |||||||||
Aggregate maturities of indebtedness | |||||||||||
2017 | 344.7 | 344.7 | |||||||||
2018 | 116.6 | 116.6 | |||||||||
Total | 461.3 | 461.3 | |||||||||
Carrying value | |||||||||||
Components of debt | |||||||||||
Total | 450.5 | 450.5 | 544.6 | ||||||||
Less: Current maturities | -96.9 | ||||||||||
Total long-term debt | 450.5 | 450.5 | 447.7 | ||||||||
Fair Value | |||||||||||
Components of debt | |||||||||||
Total | 558 | 558 | 633.8 | ||||||||
Less: Current maturities | -101.3 | ||||||||||
Total long-term debt | 558 | 558 | 532.5 | ||||||||
Senior Notes Excluding Convertible Senior Notes | |||||||||||
Other Disclosures | |||||||||||
Actual increase (decrease) in interest rate (as a percent) | 0.25% | ||||||||||
Maximum increase in interest rate (as a percent) | 2.00% | ||||||||||
Decrease in interest rate for each level of increase in debt rating (as a percent) | 0.25% | ||||||||||
6.700% Senior Notes due 2017 | |||||||||||
Components of debt | |||||||||||
Interest rate (as a percent) | 6.70% | 6.70% | 6.70% | ||||||||
Other Disclosures | |||||||||||
Interest Expense | 23.5 | ||||||||||
Aggregate principal outstanding | 0.2 | ||||||||||
Redemption price of notes as a percentage of principal amount (as a percent) | 101.00% | ||||||||||
Loss recognized on repurchase of notes | 0.9 | ||||||||||
Aggregate principal amount of notes repurchased | 8 | ||||||||||
Repayments of Long-term Debt | 8.9 | ||||||||||
6.700% Senior Notes due 2017 | Carrying value | |||||||||||
Components of debt | |||||||||||
Total | 344.5 | 344.5 | 344.4 | ||||||||
6.700% Senior Notes due 2017 | Fair Value | |||||||||||
Components of debt | |||||||||||
Total | 380.8 | 380.8 | 383.7 | ||||||||
0.750% Convertible Senior Notes due 2018 | |||||||||||
Components of debt | |||||||||||
Interest rate (as a percent) | 0.75% | 0.75% | 0.75% | ||||||||
Other Disclosures | |||||||||||
Interest Expense | 4.2 | ||||||||||
Unamortized discount | 10.6 | 10.6 | |||||||||
Conversion rate, shares per $1,000 principal amount | 92.28 | 92.06 | |||||||||
Adjusted conversion price per share of common stock (in dollars per share) | $10.84 | $10.86 | $10.86 | $10.86 | |||||||
Share price (in dollars per share) | $14.09 | $14.09 | |||||||||
Number of trading days within 30 consecutive trading days required per the conversion eligibility terms, minimum | 20 | ||||||||||
Increased conversion price per share of common stock (in dollars per share) | $12.60 | ||||||||||
0.750% Convertible Senior Notes due 2018 | Carrying value | |||||||||||
Components of debt | |||||||||||
Total | 106 | 106 | 103.3 | ||||||||
0.750% Convertible Senior Notes due 2018 | Fair Value | |||||||||||
Components of debt | |||||||||||
Total | 177.2 | 177.2 | 148.8 | ||||||||
3.250% Convertible Senior Notes due 2014 | |||||||||||
Components of debt | |||||||||||
Interest rate (as a percent) | 3.25% | 3.25% | 3.25% | ||||||||
Other Disclosures | |||||||||||
Amount of principal repurchased | 110 | ||||||||||
Aggregate principal outstanding | 60 | 60 | |||||||||
Number of trading days within 30 consecutive trading days required per the conversion eligibility terms, minimum | 30 | ||||||||||
Loss on early extinguishment of debt | 12.6 | ||||||||||
3.250% Convertible Senior Notes due 2014 | Carrying value | |||||||||||
Components of debt | |||||||||||
Total | 58 | ||||||||||
3.250% Convertible Senior Notes due 2014 | Fair Value | |||||||||||
Components of debt | |||||||||||
Total | 61.8 | ||||||||||
6.119% Senior Notes due 2014 | |||||||||||
Components of debt | |||||||||||
Interest rate (as a percent) | 6.12% | 6.12% | 6.12% | ||||||||
Other Disclosures | |||||||||||
Aggregate principal outstanding | 38.9 | 38.9 | |||||||||
6.119% Senior Notes due 2014 | Carrying value | |||||||||||
Components of debt | |||||||||||
Total | 38.9 | ||||||||||
6.119% Senior Notes due 2014 | Fair Value | |||||||||||
Components of debt | |||||||||||
Total | 39.5 | ||||||||||
Senior Notes Due 2014 and 2017 | |||||||||||
Other Disclosures | |||||||||||
Amount of principal repurchased | 59.4 | ||||||||||
Loss on early extinguishment of debt | 7.2 | ||||||||||
Credit Facility | |||||||||||
Other Disclosures | |||||||||||
Credit facility, maximum borrowing capacity | 200 | 200 | |||||||||
Credit facility covenant terms, financing leverage ratio, maximum | 4 | ||||||||||
Financing leverage ratio | 1.44% | ||||||||||
Interest coverage ratio | 11.13% | ||||||||||
Borrowings under the Credit Facility | 0 | 0 | |||||||||
Debt issuance cost | $1.90 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES | |||
Domestic | $245.30 | $180.80 | $163.70 |
International | 12.4 | 14.7 | 12.9 |
Total | 257.7 | 195.5 | 176.6 |
Current: | |||
Federal | 72.7 | 61.1 | 46.9 |
State and local | 7 | 6.4 | 3.8 |
International | 2.5 | 3.7 | 2.8 |
Total Current | 82.2 | 71.2 | 53.5 |
Deferred: | |||
Federal | 18.4 | 2.1 | 10.4 |
State and local | 1.9 | 0.8 | |
International | -0.2 | ||
Total deferred | 20.1 | 2.1 | 11.2 |
Total income tax provision | -102.3 | -73.3 | -64.7 |
Deferred income tax assets: | |||
Compensation and benefits | 50 | 60.8 | |
Accrued liabilities | 2.7 | 3.1 | |
Investments | 2.6 | 1.2 | |
Tax attributes | 8.2 | 4 | |
Other | 5.3 | 5.5 | |
Total deferred income tax assets | 68.8 | 74.6 | |
Deferred income tax liabilities: | |||
Intangible assets | -502.9 | -476.7 | |
Debt discounts and issuance costs | -0.7 | ||
Prepaid expenses | -6.4 | -5.2 | |
Other | -5 | -6.5 | |
Total deferred income tax liabilities | -514.3 | -489.1 | |
Net deferred income tax liabilities | 445.5 | 414.5 | |
Deferred tax assets and liabilities reflected on the balance sheet | |||
Current deferred income tax asset | 32.9 | 33.2 | |
Non-current deferred income tax liability | -478.4 | -447.7 | |
Net deferred income tax liabilities | ($445.50) | ($414.50) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
JCG's effective income tax rate differs from the statutory federal income tax rate | |||
Federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State and local tax rate, net of federal benefit (as a percent) | 2.30% | 2.30% | 2.30% |
Noncontrolling interests (as a percent) | -0.10% | -1.40% | -2.00% |
Tax adjustments (as a percent) | -0.50% | -0.80% | -1.00% |
Equity-based compensation (as a percent) | 3.00% | 2.50% | 2.40% |
Other (as a percent) | -0.10% | -0.10% | |
Total effective income tax rate (as a percent) | 39.70% | 37.50% | 36.60% |
Reconciliation of beginning and ending liability: | |||
Balance at the beginning of the year | $5.60 | $5.90 | $7.40 |
Additions for tax positions of current year | 0.8 | 1 | 0.9 |
Additions for tax positions of prior years | 0.4 | ||
Reduction due to statute expirations | -1 | -0.9 | -1.5 |
Reduction due to settlement of audits | -0.4 | -1.3 | |
Balance at the end of the year | 5.4 | 5.6 | 5.9 |
Deferred tax asset associated with the tax contingencies liability | 1.9 | ||
Favorable affect on income tax provision due to reversal of tax contingencies liability and related deferred tax asset | 3.5 | ||
Decrease in income tax contingency reserves due to the expiration of statutes of limitations and audit settlements | 1 | ||
Net tax benefit related to change in income tax contingency reserves | 0.6 | ||
Anticipated decrease in income tax contingency reserves in the next 12 months | 1.3 | ||
Accrued interest included in liability for income tax contingencies | $0.80 | $1.30 | $2.20 |
OTHER_BALANCE_SHEET_CAPTIONS_D
OTHER BALANCE SHEET CAPTIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other current assets | ||
Deferred commissions | $3.90 | $2.20 |
Prepaid insurance | 3 | 3 |
Prepaid information technology maintenance | 3.3 | 3.2 |
Deferred income taxes | 32.9 | 33.2 |
Stock repurchase program funding | 5.5 | 5.6 |
Other current assets | 11.2 | 4.8 |
Total other current assets | 59.8 | 52 |
Other current accrued liabilities | ||
Accrued marketing and distribution | 15.2 | 14.6 |
Income tax contingencies | 1.6 | 2.5 |
Deferred compensation liability | 27.5 | 31.6 |
Interest payable | 1.4 | 2.9 |
Income tax payable | 10.1 | 16.7 |
Velocity Shares contingent consideration | 8.6 | |
Other accrued liabilities | 13.6 | 9.7 |
Total other accrued liabilities | $78 | $78 |
NONCONTROLLING_INTERESTS_Detai
NONCONTROLLING INTERESTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Noncontrolling interests in net income | |||||||||||
Total noncontrolling interests in net income | $0.10 | ($0.30) | $0.60 | $0.60 | $1.80 | $3 | $1 | $1.70 | $1 | $7.50 | $9.60 |
Nonredeemable noncontrolling interests | |||||||||||
Total nonredeemable noncontrolling interests | 47.3 | 13.7 | 47.3 | 13.7 | |||||||
Rollforward of noncontrolling interests in consolidated seed investment products | |||||||||||
Balance at the beginning of the year | 13.7 | 13.7 | |||||||||
Total nonredeemable noncontrolling interests | 47.3 | 13.7 | 47.3 | 13.7 | |||||||
Seeded Investment Products | |||||||||||
Noncontrolling interests in net income | |||||||||||
Nonredeemable noncontrolling interests | -0.6 | 3.4 | 2 | ||||||||
Nonredeemable noncontrolling interests | |||||||||||
Total nonredeemable noncontrolling interests | 41.1 | 8.8 | 41.1 | 8.8 | 12.4 | ||||||
Rollforward of noncontrolling interests in consolidated seed investment products | |||||||||||
Balance at the beginning of the year | 8.8 | 12.4 | 8.8 | 12.4 | 29.2 | ||||||
Change in market value | -0.6 | 3.4 | 2 | ||||||||
Change in ownership | 32.9 | -7 | -18.8 | ||||||||
Total nonredeemable noncontrolling interests | 41.1 | 8.8 | 41.1 | 8.8 | 12.4 | ||||||
INTECH Founders | |||||||||||
Noncontrolling interests in net income | |||||||||||
Nonredeemable noncontrolling interests | 6.2 | 4.9 | |||||||||
Subsidiaries | |||||||||||
Noncontrolling interests in net income | |||||||||||
Nonredeemable noncontrolling interests | 1.1 | 1.1 | 2.1 | ||||||||
Redeemable noncontrolling interests | 0.5 | 3 | 5.5 | ||||||||
Nonredeemable noncontrolling interests | |||||||||||
Total nonredeemable noncontrolling interests | 5.4 | 7.3 | 5.4 | 7.3 | |||||||
Rollforward of noncontrolling interests in consolidated seed investment products | |||||||||||
Balance at the beginning of the year | 7.3 | 7.3 | |||||||||
Total nonredeemable noncontrolling interests | $5.40 | $7.30 | $5.40 | $7.30 |
NONCONTROLLING_INTERESTS_Detai1
NONCONTROLLING INTERESTS (Details 2) (USD $) | 0 Months Ended | |||||
In Millions, unless otherwise specified | Feb. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 14, 2014 | Feb. 03, 2014 | Aug. 31, 2013 |
Redeemable Noncontrolling Interests | ||||||
Undistributed earnings attributable to redeemable noncontrolling interests | ($0.50) | $1.40 | ||||
Redeemable noncontrolling interests | 5.4 | 7.3 | ||||
Perkins Senior Profits Interests | ||||||
Redeemable Noncontrolling Interests | ||||||
Noncontrolling ownership units redeemed at fair value | 0.6 | |||||
Subsidiaries | ||||||
Redeemable Noncontrolling Interests | ||||||
Redeemable noncontrolling interests | 5.9 | 5.9 | ||||
INTECH Founders | ||||||
Redeemable Noncontrolling Interests | ||||||
Redeemable noncontrolling interests | 5.9 | 5.3 | ||||
Remaining interest (as a percent) | 1.00% | 1.00% | ||||
Perkins Investment Management LLC | ||||||
Redeemable Noncontrolling Interests | ||||||
Remaining interest (as a percent) | 0.40% | |||||
Noncontrolling ownership units redeemed at fair value | $33.80 | |||||
Noncontrolling ownership interest subject to redemption rights (as a percent) | 22.20% | |||||
Percentage of interests that noncontrolling owners have right to put | 98.00% | |||||
Ownership percentage | 99.60% |
LONGTERM_INCENTIVE_COMPENSATIO2
LONG-TERM INCENTIVE COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term incentive compensation expense | |||
Total long-term incentive compensation | $51.30 | $63.10 | $66.70 |
Employee Stock Purchase Plan | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 0.2 | 0.1 | 0.2 |
Perkins Investment Management LLC | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 0 | 0 | |
Employee stock options | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 0.4 | 3.1 | 6.6 |
Restricted Stock Awards | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 26.2 | 20.5 | 19.6 |
Restricted Stock Awards | Perkins Investment Management LLC | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 1.2 | ||
Restricted Stock Awards | Intech Investment Management LLc | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 3.6 | ||
Restricted Stock Awards | Intech Investment Management LLc | Executive Officer | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 5 | ||
Restricted Stock Awards | Intech Investment Management LLc | Key employees | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 1.7 | 2.4 | -1.4 |
Price-Vesting Units | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 0.6 | 0.4 | 0.6 |
Mutual Fund Share Awards | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | 32.4 | 38.3 | 41.3 |
Perkins Senior Profits Interests | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | -11.9 | 0.7 | -1.6 |
INTECH Profits Interests | |||
Long-term incentive compensation expense | |||
Total long-term incentive compensation | $3.40 |
LONGTERM_INCENTIVE_COMPENSATIO3
LONG-TERM INCENTIVE COMPENSATION (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Minimum | |||
Long-Term Incentive Compensation | |||
Vesting period | 3 years | ||
Maximum | |||
Long-Term Incentive Compensation | |||
Vesting period | 10 years | ||
INTECH employees | |||
Long-Term Incentive Compensation | |||
Vesting period | 4 years | ||
Awards granted (in dollars) | $3.10 | ||
Long-term incentive awards granted in 2011 | |||
Long-Term Incentive Compensation | |||
Vesting period | 4 years | ||
Long-term incentive awards granted in 2012 | |||
Long-Term Incentive Compensation | |||
Vesting period | 4 years | ||
Long-term incentive awards granted in 2013 | |||
Long-Term Incentive Compensation | |||
Vesting period | 4 years |
LONGTERM_INCENTIVE_COMPENSATIO4
LONG-TERM INCENTIVE COMPENSATION (Details 3) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Long-Term Incentive Compensation | |
Unrecognized compensation | $192.10 |
Weighted-average years | 5 years 6 months |
Employee stock options | |
Long-Term Incentive Compensation | |
Unrecognized compensation | 0.3 |
Weighted-average years | 1 year 6 months |
Restricted Stock Awards | |
Long-Term Incentive Compensation | |
Unrecognized compensation | 69.5 |
Weighted-average years | 3 years 7 months 6 days |
Restricted Stock Awards | Intech Investment Management LLc | |
Long-Term Incentive Compensation | |
Unrecognized compensation | 2.7 |
Weighted-average years | 3 years 4 months 24 days |
Profit Interests | |
Long-Term Incentive Compensation | |
Unrecognized compensation | 76.4 |
Weighted-average years | 9 years 1 month 6 days |
Mutual Fund Share Awards | |
Long-Term Incentive Compensation | |
Unrecognized compensation | 45.9 |
Weighted-average years | 2 years 7 months 6 days |
Long-term incentive awards granted in 2013 | |
Long-Term Incentive Compensation | |
Unrecognized compensation | $75.20 |
Vesting period | 4 years |
LONGTERM_INCENTIVE_COMPENSATIO5
LONG-TERM INCENTIVE COMPENSATION (Details 4) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Intrinsic value of options: | |||
Exercised | $3.30 | $5.10 | $3.30 |
Outstanding | 20.1 | 15.5 | 10.6 |
Exercisable | 23.9 | 14.7 | 6.8 |
Employee stock options | |||
Long-Term Incentive Compensation | |||
Dividend yield (as a percent) | 2.47% | 2.33% | |
Expected volatility (as a percent) | 64.00% | 66.00% | |
Risk-free interest rate (as a percent) | 0.84% | 0.71% | |
Expected life | 5 years | 5 years | |
Shares | |||
Outstanding at January 1 | 8,985,562 | 12,773,178 | 15,000,904 |
Granted (in shares) | 45,455 | 151,515 | |
Exercised (in shares) | -808,583 | -1,341,502 | -953,590 |
Forfeited (in shares) | -7,179 | -57,218 | -158,003 |
Expired (in shares) | -3,528,237 | -2,434,351 | -1,267,648 |
Outstanding at December 31 | 4,641,563 | 8,985,562 | 12,773,178 |
Exercisable (in shares) | 3,295,557 | 3,215,356 | 2,139,710 |
Vested or expected to vest (in shares) | 4,641,563 | 8,984,974 | 12,754,883 |
Weighted average fair value of options granted during the year (in dollars per share) | $4.40 | $3.96 | |
Weighted average exercise price (in dollars per share) | |||
Outstanding at the beginning of the year (in dollars per share) | $14.91 | $14.56 | $14.44 |
Granted (in dollars per share) | $9.77 | $8.57 | |
Exercised (in dollars per share) | $9.18 | $5.32 | $5.35 |
Forfeited (in dollars per share) | $10.60 | $11.78 | $7.15 |
Expired (in dollars per share) | $17.65 | $18.33 | $20.26 |
Outstanding at the end of the year (in dollars per share) | $13.84 | $14.91 | $14.56 |
Exercisable (in dollars per share) | $8.89 | $7.80 | $5.32 |
Vested or expected to vest (in dollars per share) | $13.84 | $14.91 | $14.56 |
Intrinsic value of options: | |||
Number of exercisable stock options that is fully vested but the exercise price is above the closing price | $1.20 | $5.20 | $8.40 |
Stock options granted prior to February 2006 | |||
Long-Term Incentive Compensation | |||
Maximum contractual term | 10 years | ||
Stock options granted after February 2006 | |||
Long-Term Incentive Compensation | |||
Maximum contractual term | 7 years |
LONGTERM_INCENTIVE_COMPENSATIO6
LONG-TERM INCENTIVE COMPENSATION (Details 5) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 10, 2014 | Apr. 26, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Nov. 18, 2013 | Oct. 23, 2014 | Oct. 31, 2014 | Feb. 13, 2015 | 10-May-05 | Apr. 29, 2010 | Feb. 01, 2015 |
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | $51.30 | $63.10 | $66.70 | ||||||||||||
Minimum | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Maximum | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 10 years | ||||||||||||||
Perkins Investment Management LLC | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | 0 | 0 | |||||||||||||
Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Percentage of economic stake in pre-incentive profits | 12.00% | ||||||||||||||
Long-Term Incentive Stock Plan 2005 | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards authorized, including stock options and restricted stock (in shares) | 15,000,000 | ||||||||||||||
Long-Term Incentive Stock Plan 2010 | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards authorized, including stock options and restricted stock (in shares) | 4,400,000 | ||||||||||||||
Increase in the number of shares available for grant | 9,000,000 | ||||||||||||||
Equity-based awards available for grant under the plan (in shares) | 13,400,000 | ||||||||||||||
EIA Plan | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards available for grant under the plan (in shares) | 800,000 | 800,000 | |||||||||||||
Employee stock options | |||||||||||||||
Range of exercise prices | |||||||||||||||
Number outstanding (in shares) | 4,641,563 | 8,985,562 | 12,773,178 | 4,641,563 | 8,985,562 | 15,000,904 | |||||||||
Weighted-average exercise price, outstanding (in dollars per share) | $13.84 | $14.91 | $14.56 | $13.84 | $14.91 | $14.44 | |||||||||
Number exercisable (in shares) | 3,295,557 | 3,215,356 | 2,139,710 | 3,295,557 | 3,215,356 | ||||||||||
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $8.89 | $7.80 | $5.32 | $8.89 | $7.80 | ||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Dividend yield (as a percent) | 2.47% | 2.33% | |||||||||||||
Expected volatility (as a percent) | 64.00% | 66.00% | |||||||||||||
Risk-free interest rate (as a percent) | 0.84% | 0.71% | |||||||||||||
Expected life | 5 years | 5 years | |||||||||||||
Total long-term incentive compensation | 0.4 | 3.1 | 6.6 | ||||||||||||
Number of exercisable stock options that is fully vested but the exercise price is above the closing price | 1.2 | 5.2 | 8.4 | 1.2 | 5.2 | ||||||||||
Employee stock options | Perkins Investment Management LLC | Senior profits interests awards granted on January, 2014 | |||||||||||||||
Perkins Senior Profits Interests Awards | |||||||||||||||
Liability associated with senior profits interests awards | 0 | 0 | |||||||||||||
Restricted Stock Awards | |||||||||||||||
Summary of unvested restricted stock awards | |||||||||||||||
Unvested at January 1 | 5,838,290 | 4,656,396 | 4,700,134 | ||||||||||||
Granted (in shares) | 4,361,560 | 3,614,397 | 1,853,405 | ||||||||||||
Vested (in shares) | -1,884,731 | -2,100,456 | -1,672,966 | ||||||||||||
Forfeited (in shares) | -514,465 | -332,047 | -224,177 | ||||||||||||
Unvested at December 31 | 7,800,654 | 5,838,290 | 4,656,396 | 7,800,654 | 5,838,290 | ||||||||||
Weighted-average grant date fair value | |||||||||||||||
Balance at the beginning of the year (in dollars per share) | $9.71 | $9.55 | $9.90 | ||||||||||||
Granted (in dollars per share) | $12.45 | $9.61 | $8.45 | ||||||||||||
Vested (in dollars per share) | $10.08 | $9.07 | $9.33 | ||||||||||||
Forfeited (in dollars per share) | $10.20 | $10.51 | $10.46 | ||||||||||||
Balance at the end of the year (in dollars per share) | $11.11 | $9.71 | $9.55 | $11.11 | $9.71 | ||||||||||
Total fair value of restricted stock vested | 21.6 | 20 | 13.2 | ||||||||||||
Price-Vesting Units | |||||||||||||||
Number of price-vesting units granted | 4,361,560 | 3,614,397 | 1,853,405 | ||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Number of price-vesting units granted | 4,361,560 | 3,614,397 | 1,853,405 | ||||||||||||
Weighted average price per share (in dollars per share) | $12.45 | $9.61 | $8.45 | ||||||||||||
Total long-term incentive compensation | 26.2 | 20.5 | 19.6 | ||||||||||||
Restricted Stock Awards | Perkins Investment Management LLC | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | 1.2 | ||||||||||||||
Restricted Stock Awards | Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | 3.6 | ||||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Awards granted (in dollars) | 22.7 | 38.1 | 39.8 | ||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Long-term incentive awards granted | 22.7 | 38.1 | 39.8 | ||||||||||||
Cost basis of unvested awards under the plan | 71 | 71 | |||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | 32.4 | 38.3 | 41.3 | ||||||||||||
Performance-based mutual fund share awards | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Awards granted (in dollars) | 16 | ||||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Long-term incentive awards granted | 16 | ||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 5 years | ||||||||||||||
Price-Vesting Units | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Total long-term incentive compensation | 0.6 | 0.4 | 0.6 | ||||||||||||
Price-Vesting Units | Chief Executive Officer | |||||||||||||||
Summary of unvested restricted stock awards | |||||||||||||||
Granted (in shares) | 76,682 | 89,933 | 249,100 | ||||||||||||
Price-Vesting Units | |||||||||||||||
Number of price-vesting units granted | 76,682 | 89,933 | 249,100 | ||||||||||||
Awards granted (in dollars) | 2.2 | 1.2 | 1.2 | ||||||||||||
Number of consecutive trading days at which Company's common stock must close at or above the prescribed price | 20 days | ||||||||||||||
Operating profit margin performance period | 3 years | ||||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Long-term incentive awards granted | 2.2 | 1.2 | 1.2 | ||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 3 years | 4 years | |||||||||||||
Number of price-vesting units granted | 76,682 | 89,933 | 249,100 | ||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance less than or equal to 27% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Percentage of vested shares | 0.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance equal to 31% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 31.00% | ||||||||||||||
Percentage of vested shares | 100.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance greater than or equal to 35% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Percentage of vested shares | 200.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance less than or equal to 24% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Percentage of vested shares | 0.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance equal to 28% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 28.00% | ||||||||||||||
Percentage of vested shares | 100.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Operating margin performance greater than or equal to 32% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Percentage of vested shares | 200.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Minimum | Operating margin performance greater than or equal to 35% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 35.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Minimum | Operating margin performance greater than or equal to 32% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 32.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Maximum | Operating margin performance less than or equal to 27% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 27.00% | ||||||||||||||
Price-Vesting Units | Chief Executive Officer | Maximum | Operating margin performance less than or equal to 24% | |||||||||||||||
Price-Vesting Units | |||||||||||||||
Operating profit margin performance (as a percent) | 24.00% | ||||||||||||||
Tranche One | Chief Executive Officer | |||||||||||||||
Summary of unvested restricted stock awards | |||||||||||||||
Vested (in shares) | -29,400 | -29,400 | -29,400 | ||||||||||||
Price-Vesting Units | |||||||||||||||
Awards granted (in dollars) | 0.6 | ||||||||||||||
Percentage premium of price hurdle over the closing price of the Company's closing common stock price on the date of grant | 27.00% | ||||||||||||||
Closing price of the Company's common stock on date of grant (in dollars per share) | $6.31 | ||||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Long-term incentive awards granted | 0.6 | ||||||||||||||
Tranche Two | Chief Executive Officer | |||||||||||||||
Summary of unvested restricted stock awards | |||||||||||||||
Vested (in shares) | -32,875 | -65,750 | |||||||||||||
Price-Vesting Units | |||||||||||||||
Awards granted (in dollars) | 0.6 | ||||||||||||||
Percentage premium of price hurdle over the closing price of the Company's closing common stock price on the date of grant | 58.00% | ||||||||||||||
Mutual Fund Share Awards | |||||||||||||||
Long-term incentive awards granted | 0.6 | ||||||||||||||
Profit Interests | Perkins Investment Management LLC | Senior profits interests awards granted on December, 2008 | |||||||||||||||
Perkins Senior Profits Interests Awards | |||||||||||||||
Percentage of annual taxable income to which senior profit interest awards are entitled in 2015 (as a percent) | 5.00% | ||||||||||||||
Profit Interests | Perkins Investment Management LLC | Senior profits interests awards granted on November 18, 2013 | |||||||||||||||
Perkins Senior Profits Interests Awards | |||||||||||||||
Liability associated with senior profits interests awards | 0 | 0 | |||||||||||||
Percentage of Annual Taxable Income to which Senior Profit Interest Awards are Entitled | 10.00% | ||||||||||||||
Percentage of annual taxable income to which senior profit interest awards are entitled in 2015 (as a percent) | 2.00% | ||||||||||||||
Percentage of increase in annual taxable income to which senior profit interest awards are entitled thereafter until reaching the maximum of 10% (as a percent) | 2.00% | ||||||||||||||
Formula driven value | 0 | 0 | |||||||||||||
Appreciation Rights | Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Dividend yield (as a percent) | 1.98% | ||||||||||||||
Expected volatility (as a percent) | 34.00% | ||||||||||||||
Vesting period | 10 years | ||||||||||||||
Risk-free interest rate (as a percent) | 2.53% | ||||||||||||||
Expected life | 12 years | ||||||||||||||
Percent of rights exercised | 20.00% | ||||||||||||||
Number of years the rights are expected to be exercised | 5 years | ||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Long-term incentive awards granted | 23.2 | ||||||||||||||
Profits Interests | Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 10 years | ||||||||||||||
Maximum period for which distribution are made under profits interests post employment | 10 years | ||||||||||||||
Phantom Interests | Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Vesting period | 5 years | ||||||||||||||
Profits Interest and Phantom Interests | Intech Investment Management LLc | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Discount rate | 2.00% | ||||||||||||||
Undiscounted estimated post-employment payments | 38 | ||||||||||||||
Profits Interest and Phantom Interests | Intech Investment Management LLc | Minimum | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Expected life | 10 years | ||||||||||||||
Profits Interest and Phantom Interests | Intech Investment Management LLc | Maximum | |||||||||||||||
INTECH Long-Term Incentive Awards | |||||||||||||||
Expected life | 20 years | ||||||||||||||
$5 to $10 | Employee stock options | |||||||||||||||
Range of exercise prices | |||||||||||||||
Exercise price, low end of range (in dollars per share) | $5 | ||||||||||||||
Exercise price, high end of range (in dollars per share) | $10 | ||||||||||||||
Number outstanding (in shares) | 1,755,519 | 1,755,519 | |||||||||||||
Weighted-average remaining contractual life, outstanding | 1 year 5 months 12 days | ||||||||||||||
Weighted-average exercise price, outstanding (in dollars per share) | $5.72 | $5.72 | |||||||||||||
Number exercisable (in shares) | 1,645,669 | 1,645,669 | |||||||||||||
Weighted average remaining contractual life, exercisable | 1 year 3 months | ||||||||||||||
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $5.50 | $5.50 | |||||||||||||
$10 to $20 | Employee stock options | |||||||||||||||
Range of exercise prices | |||||||||||||||
Exercise price, low end of range (in dollars per share) | $10 | ||||||||||||||
Exercise price, high end of range (in dollars per share) | $20 | ||||||||||||||
Number outstanding (in shares) | 1,659,569 | 1,659,569 | |||||||||||||
Weighted-average remaining contractual life, outstanding | 1 year 9 months 11 days | ||||||||||||||
Weighted-average exercise price, outstanding (in dollars per share) | $12.30 | $12.30 | |||||||||||||
Number exercisable (in shares) | 1,649,888 | 1,649,888 | |||||||||||||
Weighted average remaining contractual life, exercisable | 1 year 9 months 11 days | ||||||||||||||
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $12.27 | $12.27 | |||||||||||||
$20 to $28 | Employee stock options | |||||||||||||||
Range of exercise prices | |||||||||||||||
Exercise price, low end of range (in dollars per share) | $20 | ||||||||||||||
Exercise price, high end of range (in dollars per share) | $28 | ||||||||||||||
Number outstanding (in shares) | 1,226,475 | 1,226,475 | |||||||||||||
Weighted-average remaining contractual life, outstanding | 1 month 2 days | ||||||||||||||
Weighted-average exercise price, outstanding (in dollars per share) | $27.54 | $27.54 | |||||||||||||
$5 to $28 | Employee stock options | |||||||||||||||
Range of exercise prices | |||||||||||||||
Exercise price, low end of range (in dollars per share) | $5 | ||||||||||||||
Exercise price, high end of range (in dollars per share) | $28 | ||||||||||||||
Number outstanding (in shares) | 4,641,563 | 4,641,563 | |||||||||||||
Weighted-average remaining contractual life, outstanding | 1 year 2 months 16 days | ||||||||||||||
Weighted-average exercise price, outstanding (in dollars per share) | $13.84 | $13.84 | |||||||||||||
Number exercisable (in shares) | 3,295,557 | 3,295,557 | |||||||||||||
Weighted average remaining contractual life, exercisable | 1 year 6 months 7 days | ||||||||||||||
Weighted-Average Exercise Price, Exercisable (in dollars per share) | $8.89 | $8.89 | |||||||||||||
Subsequent Event | Long-Term Incentive Stock Plan 2010 | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards available for grant under the plan (in shares) | 200,000 | ||||||||||||||
Subsequent Event | Employee stock options | Long-Term Incentive Stock Plan 2005 | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards available for grant under the plan (in shares) | 3,300,000 | ||||||||||||||
Subsequent Event | Restricted Stock Awards | Long-Term Incentive Stock Plan 2005 | |||||||||||||||
Long-Term Incentive Stock Plans | |||||||||||||||
Equity-based awards available for grant under the plan (in shares) | 100,000 | ||||||||||||||
Subsequent Event | Profit Interests | Perkins Investment Management LLC | Senior profits interests awards granted on December, 2008 | |||||||||||||||
Perkins Senior Profits Interests Awards | |||||||||||||||
Cash payment of senior profit incentive awards | $5.90 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
EMPLOYEE BENEFIT PLANS | |||
Contributions to ESOP and profit-sharing plans | $0 | $0 | $0 |
Profit sharing contributions, vesting period | 5 years | ||
Expenses related to 401(k) plan | 6.3 | 4.7 | 4.1 |
Deferred compensation arrangements | |||
Fair value of investments related to deferred compensation plans | $13 | $14.90 | |
Maximum | |||
Employee benefit plans | |||
Employer matching contribution per calendar year (as a percent of compensation) | 4.00% | 3.00% | 3.00% |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | ($1.10) | $0.60 | |
Other comprehensive income before reclassifications | 1.9 | 0.1 | |
Amounts reclassified from accumulated other comprehensive loss to: | |||
Investment gains (losses), net | -2.2 | -0.3 | |
Other income (expenses), net | -1.5 | ||
Total other comprehensive income (loss), net of tax | -0.3 | -1.7 | 1.1 |
Ending balance | -1.4 | -1.1 | 0.6 |
Unrealized gains (losses) on available-for-sale securities | |||
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | 1.2 | 1.4 | |
Other comprehensive income before reclassifications | 1.9 | 0.1 | |
Amounts reclassified from accumulated other comprehensive loss to: | |||
Investment gains (losses), net | -2.2 | -0.3 | |
Total other comprehensive income (loss), net of tax | -0.3 | -0.2 | |
Ending balance | 0.9 | 1.2 | |
Foreign currency | |||
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | -0.8 | ||
Amounts reclassified from accumulated other comprehensive loss to: | |||
Other income (expenses), net | -1.5 | ||
Total other comprehensive income (loss), net of tax | -1.5 | ||
Ending balance | ($2.30) | ($2.30) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pre-tax amount | |||
Net unrealized gain (loss) on available-for-sale securities | $3 | $0.20 | $1 |
Reclassification for items included in net income | -3.5 | -2.9 | 0.1 |
Foreign currency gain (loss) | 0.7 | ||
Total other comprehensive income | -0.5 | -2.7 | 1.8 |
Tax (expense) benefit | |||
Net unrealized gain on available-for-sale securities | -1.1 | -0.1 | -0.4 |
Reclassification for items included in net income | 1.3 | 1.1 | |
Foreign currency gain (loss) | -0.3 | ||
Total other comprehensive loss | 0.2 | 1 | -0.7 |
Net amount | |||
Net unrealized gain on available-for-sale securities | 1.9 | 0.1 | 0.6 |
Reclassification for items included in net income | -2.2 | -1.8 | 0.1 |
Foreign currency gain | 0.4 | ||
Total other comprehensive income (loss), net of tax | ($0.30) | ($1.70) | $1.10 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Nov. 21, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
EARNINGS PER SHARE | ||||||||||||
Net income attributable to JCG | $154.40 | $114.70 | $102.30 | |||||||||
Less: Allocation of earnings to participating restricted stock awards | 5.1 | |||||||||||
Net income attributable to JCG | 46.7 | 40.9 | 36.3 | 30.5 | 38.3 | 32.6 | 15.8 | 28 | 154.4 | 114.7 | ||
Net income available to common shareholders | $149.30 | $114.70 | $102.30 | |||||||||
Basic earnings per share attributable to JCG common shareholders | ||||||||||||
Weighted average common shares outstanding | 182.2 | 184.6 | 183.7 | |||||||||
Basic earnings per share (in dollars per share) | $0.25 | $0.22 | $0.19 | $0.16 | $0.21 | $0.18 | $0.09 | $0.15 | $0.82 | $0.62 | $0.56 | |
Diluted earnings per share attributable to JCG common shareholders | ||||||||||||
Weighted average common shares outstanding | 182.2 | 184.6 | 183.7 | |||||||||
Incremental common shares | 2.7 | 1.3 | 1.4 | |||||||||
Weighted average diluted common shares outstanding | 184.9 | 185.9 | 185.1 | |||||||||
Diluted earnings per share (in dollars per share) | $0.24 | $0.22 | $0.19 | $0.16 | $0.21 | $0.17 | $0.08 | $0.15 | $0.81 | $0.62 | $0.55 | |
Dividends paid per share | $0.08 | $0.08 | $0.07 | $0.31 | $0.21 | $0.29 | ||||||
Employee stock options | ||||||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | ||||||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 1.5 | 7 | 9.5 | |||||||||
Other stock options | ||||||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | ||||||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 14 | |||||||||||
Unvested nonparticipating restricted stock and price-vesting units. | ||||||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | ||||||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 0.4 | 1.2 | 1.6 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Future minimum rental commitments under non-cancelable operating and capital leases | |||
2015 | $16.90 | ||
2016 | 15.2 | ||
2017 | 14.3 | ||
2018 | 13.2 | ||
2019 | 11.2 | ||
Thereafter | 52.6 | ||
Total | 123.4 | ||
Rent expense | 17 | 16.5 | 15.6 |
Carrying value of obligations | 0.8 | 1.9 | |
Litigation accrual | $0.40 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Dai-ichi Life | |||
Related party transaction | |||
Investment management, performance and shareowner servicing fees | $14.70 | $8.90 | $3.70 |
Registered Investment Companies | |||
Related party transaction | |||
Investment management, performance and shareowner servicing fees | 762.1 | 696.9 | 670.7 |
12b-1 plan fees earned | 5 | 6.3 | 6.5 |
Accounts receivable from registered investment companies | $76.90 | $59.30 | $54.30 |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||
Number of business segments | 1 | ||||||||||
Revenues: | |||||||||||
Revenues | $254.80 | $237 | $231.20 | $230.20 | $226.20 | $217.70 | $215.80 | $214.20 | $953.20 | $873.90 | $850 |
Long-lived assets: | |||||||||||
Long-lived assets | 1,741.10 | 1,715.60 | 1,741.10 | 1,715.60 | 1,730.50 | ||||||
UNITED STATES | |||||||||||
Revenues: | |||||||||||
Revenues | 827.7 | 768.6 | 751.7 | ||||||||
Long-lived assets: | |||||||||||
Long-lived assets | 1,736.50 | 1,710.80 | 1,736.50 | 1,710.80 | 1,725.70 | ||||||
International | |||||||||||
Revenues: | |||||||||||
Revenues | 125.5 | 105.3 | 98.3 | ||||||||
Long-lived assets: | |||||||||||
Long-lived assets | $4.60 | $4.80 | $4.60 | $4.80 | $4.80 |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SELECTED QUARTERLY FINANCIAL DATA | |||||||||||
Total revenue | $254.80 | $237 | $231.20 | $230.20 | $226.20 | $217.70 | $215.80 | $214.20 | $953.20 | $873.90 | $850 |
Operating income | 80.5 | 71.6 | 70.7 | 66.9 | 67 | 59 | 58.4 | 54.7 | 289.7 | 239.1 | 214.5 |
Net income | 46.8 | 40.6 | 36.9 | 31.1 | 40.1 | 35.6 | 16.8 | 29.7 | 155.4 | 122.2 | 111.9 |
Noncontrolling interests | -0.1 | 0.3 | -0.6 | -0.6 | -1.8 | -3 | -1 | -1.7 | -1 | -7.5 | -9.6 |
Net income attributable to JCG | $46.70 | $40.90 | $36.30 | $30.50 | $38.30 | $32.60 | $15.80 | $28 | $154.40 | $114.70 | |
Basic earnings per share attributable to JCG common shareholders (in dollars per share) | $0.25 | $0.22 | $0.19 | $0.16 | $0.21 | $0.18 | $0.09 | $0.15 | $0.82 | $0.62 | $0.56 |
Diluted earnings per share attributable to JCG common shareholders (in dollars per share) | $0.24 | $0.22 | $0.19 | $0.16 | $0.21 | $0.17 | $0.08 | $0.15 | $0.81 | $0.62 | $0.55 |