DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 03, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | PRICE T ROWE GROUP INC | ||
Entity Incorporation, State Country Name | Maryland | ||
Entity Tax Identification Number | 522264646 | ||
Entity Address, Address Line One | 100 East Pratt Street | ||
Entity Address, City or Town | Baltimore | ||
Entity Address, State or Province | Maryland | ||
Entity Address, Postal Zip Code | 21202 | ||
Entity Listing, Par Value Per Share (in dollars per share) | $0.20 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float (dollars) | $21.60 | ||
Entity Common Stock, Shares Outstanding (shares) | 260,726,853 | ||
Entity Central Index Key | 1113169 | ||
Amendment Flag | FALSE |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $1,506.10 | $1,398 |
Accounts receivable and accrued revenue | 442.8 | 398.8 |
Investments in sponsored funds | 1,884 | 1,611.90 |
Other investments | 408.3 | 313.6 |
Property and equipment, net | 586.4 | 572.9 |
Goodwill | 665.7 | 665.7 |
Other assets | 151.1 | 72.2 |
Total assets | 5,644.40 | 5,033.10 |
Liabilities | ||
Accounts payable and accrued expenses | 143.4 | 103.9 |
Accrued compensation and related costs | 82.2 | 72.4 |
Income taxes payable | 23.6 | 38.7 |
Total liabilities | 249.2 | 215 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Preferred stock, undesignated, $.20 par value - authorized and unissued 20,000,000 shares | ||
Common stock, $.20 par value - authorized 750,000,000; issued 262,073,000 shares in 2013 and 261,110,000 in 2014 | 52.2 | 52.4 |
Additional capital in excess of par value | 756.5 | 894.6 |
Retained earnings | 4,450.10 | 3,682.80 |
Accumulated other comprehensive income | 136.4 | 188.3 |
Total stockholders' equity | 5,395.20 | 4,818.10 |
Total liabilities and stockholders' equity | $5,644.40 | $5,033.10 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $0.20 | $0.20 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $0.20 | $0.20 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 261,110,000 | 262,073,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF 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 advisory fees | $3,464.50 | $3,022.60 | $2,592 |
Administrative fees | 374 | 343.7 | 332.6 |
Distribution and servicing fees | 143.6 | 117.2 | 96.1 |
Net revenue of savings bank subsidiary | 0 | 0.7 | 1.8 |
Net revenues | 3,982.10 | 3,484.20 | 3,022.50 |
Operating expenses | |||
Compensation and related costs | 1,329.60 | 1,156.90 | 1,047.60 |
Advertising and promotion | 76 | 87 | 88.5 |
Distribution and servicing costs | 143.6 | 117.2 | 96.1 |
Depreciation and amortization of property and equipment | 111.7 | 90.6 | 80.9 |
Occupancy and facility costs | 143.9 | 135.8 | 124.7 |
Other operating expenses | 286.4 | 259.3 | 220.4 |
Total operating expenses | 2,091.20 | 1,846.80 | 1,658.20 |
Net operating income | 1,890.90 | 1,637.40 | 1,364.30 |
Non-operating investment income | 112.2 | 63 | 70.8 |
Income before income taxes | 2,003.10 | 1,700.40 | 1,435.10 |
Provision for income taxes | 773.5 | 652.7 | 551.5 |
Net income | $1,229.60 | $1,047.70 | $883.60 |
Earnings per share on common stock | |||
Basic (in dollars per share) | $4.68 | $4.02 | $3.47 |
Diluted (in dollars per share) | $4.55 | $3.90 | $3.36 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $1,229.60 | $1,047.70 | $883.60 |
Other comprehensive income (loss) | |||
Net unrealized holding gains (losses) on available-for-sale investments | -1.9 | 148.1 | 100.2 |
Reclassification adjustments recognized in non-operating investment income | |||
Capital gain distributions | -31.1 | -15.3 | -4.7 |
Net gains realized on dispositions determined using average cost | -49.3 | -13.5 | -35.1 |
Net unrealized holding gains derecognized upon the sale of savings bank subsidiary | 0 | -1.6 | 0 |
Total reclassification adjustments | -80.4 | -30.4 | -39.8 |
Total net unrealized holding gains (losses) recognized in other comprehensive income | -82.3 | 117.7 | 60.4 |
Currency translation adjustments | -1.8 | -23.7 | -10.7 |
Other comprehensive income (loss) before income taxes | -84.1 | 94 | 49.7 |
Deferred tax benefits (income taxes) | 32.2 | -37.6 | -20.6 |
Total other comprehensive income (loss) | -51.9 | 56.4 | 29.1 |
Total comprehensive income | $1,177.70 | $1,104.10 | $912.70 |
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 |
Cash flows from operating activities | |||
Net income | $1,229.60 | $1,047.70 | $883.60 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization of property and equipment | 111.7 | 90.6 | 80.9 |
Stock-based compensation expense | 133.4 | 114.6 | 104.1 |
Realized gains on the dispositions of sponsored funds | -49.3 | -13.5 | -35.1 |
Net gains recognized on other investments | -7.2 | -13 | -11.4 |
Net change in trading securities held by consolidated sponsored investment portfolios | -90.1 | -25.6 | -89.3 |
Changes in accounts receivable and accrued revenue | -31.5 | -44.7 | -49.7 |
Changes in payables and accrued liabilities | 36.5 | -5.1 | 35.3 |
Other changes in assets and liabilities | -41.8 | 82.2 | -15.6 |
Net cash provided by operating activities | 1,291.30 | 1,233.20 | 902.8 |
Cash flows from investing activities | |||
Investments in sponsored funds | -471.9 | -377.7 | -498.5 |
Dispositions of sponsored funds | 166.6 | 37.2 | 218.1 |
Investments in debt securities held by savings bank subsidiary | 0 | -28.2 | -31.1 |
Proceeds from debt securities held by savings bank subsidiary | 0 | 48.5 | 91.5 |
Additions to property and equipment | -126.2 | -105.8 | -76.9 |
Other investing activity | -11.9 | -11.5 | -13.2 |
Net cash used in investing activities | -443.4 | -437.5 | -310.1 |
Cash flows from financing activities | |||
Repurchases of common stock | -415.5 | -14.1 | -135.2 |
Common share issuances under stock-based compensation plans | 85.2 | 118.2 | 86.6 |
Excess tax benefits from stock-based compensation plans | 52.6 | 45.5 | 59.3 |
Dividends | -462.1 | -396.7 | -603.4 |
Change in savings bank subsidiary deposits | 0 | -29.7 | -18.8 |
Net cash used in financing activities | -739.8 | -276.8 | -611.5 |
Cash and cash equivalents | |||
Net change during year | 108.1 | 518.9 | -18.8 |
At beginning of year | 1,398 | 879.1 | 897.9 |
At end of year | $1,506.10 | $1,398 | $879.10 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common stock [Member] | Additional capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] |
In Millions, except Share data in Thousands, unless otherwise specified | |||||
Balances at Dec. 31, 2011 | $3,420.70 | $50.70 | $502 | $2,765.20 | $102.80 |
Balances (shares) at Dec. 31, 2011 | 253,272 | ||||
Net income | 883.6 | 883.6 | |||
Other comprehensive income (loss), net of tax | 29.1 | 29.1 | |||
Dividends | -603.6 | -603.6 | |||
Common stock-based compensation plans activity | |||||
Shares issued upon option exercises (shares) | 5,239 | ||||
Shares issued upon option exercises | 92.6 | 1.1 | 91.5 | ||
Restricted shares issued, net of shares withheld for taxes (shares) | 734 | ||||
Restricted shares issued, net of shares withheld for taxes | -4 | 0.1 | -4.1 | ||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes (shares) | 101 | ||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | -2 | 0 | -2 | ||
Forfeiture of restricted awards (shares) | -26 | ||||
Forfeiture of restricted awards | 0 | 0 | 0 | ||
Net tax benefits | 60.8 | 60.8 | |||
Stock-based compensation expense | 104.1 | 104.1 | |||
Common shares repurchased (shares) | -2,302 | ||||
Common shares repurchased | -135.2 | -0.5 | -121.3 | -13.4 | |
Balances at Dec. 31, 2012 | 3,846.10 | 51.4 | 631 | 3,031.80 | 131.9 |
Balances (shares) at Dec. 31, 2012 | 257,018 | ||||
Net income | 1,047.70 | 1,047.70 | |||
Other comprehensive income (loss), net of tax | 56.4 | 56.4 | |||
Dividends | -396.6 | -396.6 | |||
Common stock-based compensation plans activity | |||||
Shares issued upon option exercises (shares) | 4,147 | ||||
Shares issued upon option exercises | 128.1 | 0.8 | 127.3 | ||
Restricted shares issued, net of shares withheld for taxes (shares) | 1,041 | ||||
Restricted shares issued, net of shares withheld for taxes | -6.7 | 0.2 | -6.9 | ||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes (shares) | 149 | ||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | -3.3 | 0 | -3.3 | ||
Forfeiture of restricted awards (shares) | -82 | ||||
Forfeiture of restricted awards | 0 | 0 | 0 | ||
Net tax benefits | 45.9 | 45.9 | |||
Stock-based compensation expense | 114.6 | 114.6 | |||
Restricted stock units issued as dividend equivalents | 0 | 0.1 | -0.1 | ||
Common shares repurchased (shares) | -200 | ||||
Common shares repurchased | -14.1 | 0 | -14.1 | 0 | |
Balances at Dec. 31, 2013 | 4,818.10 | 52.4 | 894.6 | 3,682.80 | 188.3 |
Balances (shares) at Dec. 31, 2013 | 262,073 | ||||
Net income | 1,229.60 | 1,229.60 | |||
Other comprehensive income (loss), net of tax | -51.9 | -51.9 | |||
Dividends | -462.1 | -462.1 | |||
Common stock-based compensation plans activity | |||||
Shares issued upon option exercises (shares) | 3,679 | ||||
Shares issued upon option exercises | 107.1 | 0.8 | 106.3 | ||
Restricted shares issued, net of shares withheld for taxes (shares) | 625 | ||||
Restricted shares issued, net of shares withheld for taxes | -12.2 | 0.1 | -12.3 | ||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes (shares) | 163 | ||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | -4.7 | 0 | -4.7 | ||
Forfeiture of restricted awards (shares) | -117 | ||||
Forfeiture of restricted awards | 0 | 0 | 0 | ||
Net tax benefits | 53.4 | 53.4 | |||
Stock-based compensation expense | 133.4 | 133.4 | |||
Restricted stock units issued as dividend equivalents | 0 | 0.2 | -0.2 | ||
Common shares repurchased (shares) | -5,313 | ||||
Common shares repurchased | -415.5 | -1.1 | -414.4 | 0 | |
Balances at Dec. 31, 2014 | $5,395.20 | $52.20 | $756.50 | $4,450.10 | $136.40 |
Balances (shares) at Dec. 31, 2014 | 261,110 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Summary of significant accounting policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
T. Rowe Price Group derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the sponsored T. Rowe Price U.S. mutual funds and other investment portfolios. We also provide our investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; and trust services. | ||||||||||||
Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations. | ||||||||||||
BASIS OF PREPARATION. | ||||||||||||
These consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the U.S. These principles require that we make certain estimates and assumptions. Actual results may vary from our estimates. Certain prior year amounts have been reclassified to conform to the 2014 presentation. | ||||||||||||
CONSOLIDATION. | ||||||||||||
Our financial statements include the accounts of all subsidiaries and sponsored portfolios in which we have a controlling financial interest. We are generally deemed to have a controlling financial interest when we own the majority of the voting interest of an entity or are considered to be the primary beneficiary of a variable interest entity. All material intercompany accounts and transactions are eliminated in consolidation. We have determined that the sponsored portfolios in which we have investments at December 31, 2013 and 2014, are voting interest entities and, as a result, have consolidated those sponsored portfolios in which we own a majority of the voting interest. | ||||||||||||
If we determine that we no longer have a controlling financial interest in a subsidiary or a sponsored portfolio, we deconsolidate the carrying value of their assets and liabilities, and record our remaining equity interest, if any, at its fair value. Any gain or loss realized upon deconsolidation is included in non-operating investment income in our consolidated statements of income. | ||||||||||||
CASH EQUIVALENTS. | ||||||||||||
Cash equivalents consist primarily of short-term, highly liquid investments in our sponsored money market mutual funds. The cost of these funds is equivalent to fair value. | ||||||||||||
INVESTMENTS IN SPONSORED FUNDS - AVAILABLE FOR SALE. | ||||||||||||
These are investments we have made for both general corporate investment purposes and to provide seed capital for newly formed funds. These sponsored funds were determined to be voting interest entities and are classified as available-for-sale. These investments are carried at fair value using the quoted closing net asset value, or NAV, per share of each fund as of the balance sheet date. Changes in net unrealized holding gains (losses) on these investments are recognized in other comprehensive income. | ||||||||||||
We review the carrying amount of each investment on a quarterly basis and recognize an impairment charge in non-operating investment income whenever an unrealized loss is considered other than temporary. In determining whether a fund holding is other-than-temporarily impaired, we consider various factors, including the duration of time it has existed, the severity of the impairment, any subsequent changes in value, and our intent and ability to hold the fund for a period of time sufficient for an anticipated recovery in fair value. Subject to the other considerations noted above, we believe a fund holding with an unrealized loss that has persisted daily throughout the six months between quarter-ends is generally presumed to have an other-than-temporary impairment. We may also recognize an other-than-temporary impairment if particular circumstances of the underlying investment do not warrant our belief that a near-term recovery is possible. | ||||||||||||
OTHER INVESTMENTS. | ||||||||||||
Cost method investments consist of investments in entities over which we do not exercise significant influence over the operating and financial policies of the investee. | ||||||||||||
Equity method investments consist of investments in entities, including sponsored portfolios, over which we have the ability to exercise significant influence over the operating and financial policies of the investee. The carrying values of these investments are adjusted to reflect our proportionate share of the investee's net income or loss, any unrealized gain or loss resulting from the translation of foreign denominated financial statements into U.S. dollars, and dividends received. Our proportionate share of income or loss is included in non-operating investment income in the consolidated statements of income. As permitted under existing accounting guidance, we adopted a policy by which we recognize our share of UTI Asset Management Company Limited’s (UTI) earnings on a quarter lag as current financial information is not available in a timely manner. The basis difference between our carrying value and our proportionate share of UTI’s book value is primarily related to consideration paid in excess of the stepped-up basis of assets and liabilities on the date of purchase. | ||||||||||||
We evaluate our equity and cost method investments for impairment when events or changes in circumstances indicate that the carrying value of the investment exceeds its fair value, and the decline in fair value is other than temporary. | ||||||||||||
Investments held as trading consist of the underlying securities of sponsored portfolios in which we have a controlling financial interest and sponsored portfolio investments we expect to hold for only a short period of time. These investments are generally the initial seed investments we make at the portfolio's formation. If we are deemed to have a controlling financial interest in the sponsored portfolio, we will consolidate the investment, and the portfolio's underlying securities are accounted for as trading securities. These investments are carried at fair value, with changes in fair value recognized in non-operating investment income. The valuation policies, methods, and sources for these investments are the same as those employed by the T. Rowe Price U.S. mutual funds to price similar investment holdings as further described under our revenue recognition policy below. | ||||||||||||
CONCENTRATIONS OF RISK. | ||||||||||||
Concentration of credit risk in accounts receivable is believed to be minimal in that our clients generally have substantial assets, including those in the investment portfolios that we manage for them. | ||||||||||||
Our investments in sponsored funds and investments held as trading expose us to market risk, that is, the potential future loss of value that would result from a decline in the fair value of each investment or its underlying net assets. Our underlying holdings of our assets under management are also subject to market risk, which may arise from changes in equity prices, credit ratings, foreign currency exchange rates, and interest rates. | ||||||||||||
PROPERTY AND EQUIPMENT. | ||||||||||||
Property and equipment is stated at cost net of accumulated depreciation and amortization computed using the straight-line method. Provisions for depreciation and amortization are based on the following weighted-average estimated useful lives: computer and communications software and equipment, 3 years; buildings and improvements, 33 years; leasehold improvements, 9 years; furniture and other equipment, 7 years; and leased land, 99 years. | ||||||||||||
GOODWILL. | ||||||||||||
We evaluate the carrying amount of goodwill in our consolidated balance sheets for possible impairment on an annual basis in the third quarter of each year using a fair value approach. Our evaluations have indicated that no impairment exists. | ||||||||||||
We internally conduct, manage, and report our operations as one investment advisory business. We do not have distinct operating segments or components that separately constitute a business. Accordingly, we attribute goodwill to a single reportable business segment and reporting unit—our investment advisory business. | ||||||||||||
REVENUE RECOGNITION. | ||||||||||||
Fees for investment advisory services, which are based on a percentage of assets under management, and related administrative services that we provide to investment advisory clients, including our sponsored funds and portfolios, are recognized in the period that our services are provided. | ||||||||||||
Our assets under management are valued in accordance with a valuation and pricing policy that defines the valuation and pricing processes for each major type of investment held in our sponsored U.S. mutual funds and other client investment portfolios. Fair values used in our processes are primarily determined from quoted market prices; prices furnished by dealers who make markets in such securities; or from data provided by an independent pricing service that considers yield or price of investments of comparable quality, coupon, maturity, and type. Investments for which market prices are not readily available are not a material portion of our total assets under management. | ||||||||||||
Distribution and servicing fees earned from 12b-1 plans of the Advisor Class, R Class, and variable annuity class shares of our sponsored U.S. mutual funds are recognized in the period that they are earned, which is the same period that the related mutual funds recognize their expense. These fees are offset entirely by the distribution and servicing costs paid to third-party financial intermediaries that source the assets of these share classes. | ||||||||||||
We provide all services to the sponsored U.S. mutual funds under contracts that are subject to periodic review and approval by each of the funds’ Boards. Regulations require that the funds’ shareholders also approve material changes to investment advisory contracts. | ||||||||||||
Taxes billed to our clients based on our fees for services rendered are not included in revenues. | ||||||||||||
ADVERTISING. | ||||||||||||
Costs of advertising are expensed the first time that the advertising takes place. | ||||||||||||
STOCK-BASED COMPENSATION. | ||||||||||||
We maintain three stockholder-approved employee long-term incentive plans (2012 Long-Term Incentive Plan, 2004 Stock Incentive Plan, and 2001 Stock Incentive Plan, collectively the LTI Plans) and two stockholder-approved non-employee director plans (2007 Non-Employee Director Equity Plan and 1998 Director Stock Option Plan). We believe that our stock-based compensation programs align the interests of our employees and directors with those of our common stockholders. As of December 31, 2014, a total of 14,101,640 shares were available for future grant under the 2012 Long-Term Incentive Plan and 2007 Non-Employee Director Equity Plan. | ||||||||||||
Under our LTI Plans, we have issued restricted shares and restricted stock units to employees that settle in shares of our common stock after vesting. Vesting of these awards is based on the individual continuing to render service over an average 5.5-year graded schedule. All restricted shareholders and restricted stock unit holders receive non-forfeitable cash dividends and cash dividend equivalents, respectively, on our dividend payable date. | ||||||||||||
We grant performance-based restricted shares and restricted stock units to certain executive officers in which the number of restricted shares or restricted stock units ultimately retained is determined based on achievement of certain performance thresholds. The number of restricted shares or restricted stock units retained is also subject to the same time-based vesting requirement as the other restricted shares or restricted stock units described above. Cash dividends and cash dividend equivalents are accrued and paid to the holders of performance-based restricted shares and restricted stock units only after the performance period has lapsed and the performance thresholds have been met. | ||||||||||||
Under our LTI plans, we have granted qualified incentive and nonqualified fixed stock options with a maximum term of 10 years to employees. Vesting of our employee option grants is based on the individual continuing to render service and generally occurs over an average 5.5-year graded schedule. The exercise price of each option granted is equivalent to the market price of the common stock at the date of grant. | ||||||||||||
We grant options, with a maximum term of 10 years, restricted shares and restricted stock units to non-employee directors under the stockholder approved 2007 Non-Employee Director Plan. These grants vest over 6 months to one year and, in the case of restricted stock units, are settled upon the non-employee directors’ departure from the Board. Non-employee directors holding restricted shares receive non-forfeitable dividends while restricted stock unit holders are issued non-forfeitable dividend equivalents in the form of vested stock units on our dividend payable date. | ||||||||||||
We recognize the grant-date fair value of these awards as compensation expense ratably over the awards' requisite service period. The expense recognized includes an estimate of awards that will be forfeited and considers, in the case of our performance-based restricted shares and units the probability of the performance thresholds being met. Both time-based and performance-based restricted shares and units are valued on the grant-date using the closing market price of our common stock. We use the Black-Scholes option-pricing model to estimate the fair value of each option grant as follows: | ||||||||||||
Weighted-average | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Grant-date fair value per option awarded | $ | 16.27 | $ | 19.56 | $ | 21.12 | ||||||
Assumptions used: | ||||||||||||
Expected life in years | 6.8 | 7 | 7 | |||||||||
Expected volatility | 32 | % | 31 | % | 30 | % | ||||||
Dividend yield | 2.1 | % | 2.1 | % | 2.2 | % | ||||||
Risk-free interest rate | 1.3 | % | 1.9 | % | 2.2 | % | ||||||
Our expected life assumptions are based on the vesting period for each option grant and our historical experience with respect to the average holding period from vesting to option exercise. The assumptions for expected volatility are based on historical experience for the same periods as our expected lives. Dividend yields are based on recent historical experience and future expectations. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as our expected lives. | ||||||||||||
EARNINGS PER SHARE. | ||||||||||||
We compute our basic and diluted earnings per share under the two-class method, which considers our outstanding restricted shares and stock units, on which we pay non-forfeitable dividends, as if they were a separate class of stock. | ||||||||||||
COMPREHENSIVE INCOME. | ||||||||||||
The components of comprehensive income are presented in a separate statement following our consolidated statements of income and include net income, the change in net unrealized security holding gains (losses), and the change in our currency translation adjustments. The currency translation adjustments result from translating our proportionate share of the financial statements of UTI, our equity method investment, and certain consolidated investment portfolios into U.S. dollars. Assets and liabilities are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using weighted-average exchange rates for the period. | ||||||||||||
The change in net unrealized security holding gains (losses) included those related to the debt securities held by our savings bank subsidiary up until December 2013 when we completed the sale of the bank. The investments held by the savings bank were in marketable debt securities, including mortgage- and other asset-backed securities and were classified as available-for-sale and reported at fair value. | ||||||||||||
The changes in accumulated balances of each component of other comprehensive income, the deferred tax impacts of each component, and information about significant items reclassified out of accumulated other comprehensive income are presented in the notes to the financial statements. The notes also indicate the line item of our consolidated income statements to which the significant reclassifications were recognized. |
CASH_EQUIVALENTS
CASH EQUIVALENTS. | 12 Months Ended | |
Dec. 31, 2014 | ||
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents | ||
NOTE 1 | – CASH EQUIVALENTS. | |
Cash equivalent investments in our sponsored money market mutual funds aggregate $1,288.1 million at December 31, 2013, and $1,345.8 million at December 31, 2014. Dividends earned on these investments in each of the last three years were immaterial. |
INFORMATION_ABOUT_RECEIVABLES_
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Information about Receivables, Revenues, and Services [Abstract] | ||||||||||||||||||||
Information about receivables, revenues, and services | ||||||||||||||||||||
NOTE 2 | – INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. | |||||||||||||||||||
Accounts receivable from our sponsored mutual funds for advisory fees and advisory-related administrative services aggregate $221.9 million at December 31, 2013, and $245.8 million at December 31, 2014. | ||||||||||||||||||||
Revenues (in millions) from advisory services provided under agreements with our sponsored mutual funds and other investment clients include: | ||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Sponsored U.S. mutual funds | ||||||||||||||||||||
Stock and blended asset | $ | 1,437.60 | $ | 1,759.70 | $ | 2,086.00 | ||||||||||||||
Bond and money market | 352.7 | 366.4 | 399.8 | |||||||||||||||||
1,790.30 | 2,126.10 | 2,485.80 | ||||||||||||||||||
Other investment portfolios | ||||||||||||||||||||
Stock and blended asset | 635.1 | 735.6 | 824.5 | |||||||||||||||||
Bond, money market, and stable value | 166.6 | 160.9 | 154.2 | |||||||||||||||||
801.7 | 896.5 | 978.7 | ||||||||||||||||||
Total | $ | 2,592.00 | $ | 3,022.60 | $ | 3,464.50 | ||||||||||||||
The following table summarizes the investment portfolios and assets under management (in billions) on which we earn advisory fees. | ||||||||||||||||||||
Average during | As of December 31, | |||||||||||||||||||
2012 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||
Sponsored U.S. mutual funds | ||||||||||||||||||||
Stock and blended asset | $ | 241.6 | $ | 299.1 | $ | 359.3 | $ | 341.7 | $ | 373 | ||||||||||
Bond and money market | 85 | 92.1 | 101.6 | 93.6 | 104.6 | |||||||||||||||
326.6 | 391.2 | 460.9 | 435.3 | 477.6 | ||||||||||||||||
Other investment portfolios | ||||||||||||||||||||
Stock and blended asset | 158 | 179.3 | 201.6 | 195.3 | 206.9 | |||||||||||||||
Bond, money market, and stable value | 64.8 | 63.3 | 62.2 | 61.8 | 62.3 | |||||||||||||||
222.8 | 242.6 | 263.8 | 257.1 | 269.2 | ||||||||||||||||
Total | $ | 549.4 | $ | 633.8 | $ | 724.7 | $ | 692.4 | $ | 746.8 | ||||||||||
Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 6.5% and 5.6% of our assets under management at December 31, 2013, and December 31, 2014, respectively. | ||||||||||||||||||||
The following table summarizes the other fees (in millions) earned from our sponsored U.S. mutual funds. | ||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Administrative fees | $ | 258.3 | $ | 264.8 | $ | 296.1 | ||||||||||||||
Distribution and servicing fees | $ | 96.1 | $ | 117.2 | $ | 143.6 | ||||||||||||||
INVESTMENTS_IN_SPONSORED_FUNDS
INVESTMENTS IN SPONSORED FUNDS - AVAILABLE-FOR-SALE. | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ||||||||||||||||
Investments in sponsored funds - available-for-sale | ||||||||||||||||
NOTE 3 | – INVESTMENTS IN SPONSORED FUNDS - AVAILABLE-FOR-SALE. | |||||||||||||||
Our investments (in millions) in sponsored funds accounted for as available-for-sale at December 31 include: | ||||||||||||||||
Aggregate cost | Unrealized holding | Aggregate | ||||||||||||||
Gains | Losses | fair value | ||||||||||||||
2013 | ||||||||||||||||
Stock and blended asset funds | $ | 354.7 | $ | 302.5 | $ | — | $ | 657.2 | ||||||||
Bond funds | 904 | 53.6 | (2.9 | ) | 954.7 | |||||||||||
Total | $ | 1,258.70 | $ | 356.1 | $ | (2.9 | ) | $ | 1,611.90 | |||||||
2014 | ||||||||||||||||
Stock and blended asset funds | $ | 505.4 | $ | 231.4 | $ | (4.2 | ) | $ | 732.6 | |||||||
Bond funds | 1,107.90 | 52 | (8.5 | ) | 1,151.40 | |||||||||||
Total | $ | 1,613.30 | $ | 283.4 | $ | (12.7 | ) | $ | 1,884.00 | |||||||
The unrealized holding losses are attributable to six fund holdings with an aggregate fair value of $155.9 million at December 31, 2013, and 12 fund holdings with an aggregate fair value of $788.5 million at December 31, 2014. These unrealized losses are considered temporary. | ||||||||||||||||
Dividends, excluding capital gain distributions, earned on sponsored mutual fund investments totaled $11.8 million in 2012, $10.6 million in 2013, and $14.7 million in 2014. |
OTHER_INVESTMENTS
OTHER INVESTMENTS. | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Investments, All Other Investments [Abstract] | ||||||||
Other investments | ||||||||
NOTE 4 | – OTHER INVESTMENTS. | |||||||
These investments (in millions) at December 31 include: | ||||||||
2013 | 2014 | |||||||
Cost method investments | ||||||||
10% interest in Daiwa SB Investments Ltd. (Japan) | $ | 6.6 | $ | 3 | ||||
Other investments | 53.5 | 60.7 | ||||||
Equity method investments | ||||||||
26% interest in UTI Asset Management Company Limited (India) | 122.6 | 132.4 | ||||||
Sponsored fund investments | 104.1 | 125.6 | ||||||
Other investments | 4.8 | 5.7 | ||||||
Investments held as trading | ||||||||
Sponsored fund investments | 8.5 | 10.3 | ||||||
Securities held by consolidated sponsored investment portfolios | 12.5 | 69.6 | ||||||
U.S. Treasury note | 1 | 1 | ||||||
Total | $ | 313.6 | $ | 408.3 | ||||
The securities held by consolidated sponsored investment portfolios, sponsored fund investments held as trading, and the sponsored fund investments treated as equity method investments relate to investment portfolios in which we provided initial seed capital at the time of its formation. We have determined at December 31, 2013, and December 31, 2014, that these investment portfolios are voting interest entities and, as a result, have consolidated those sponsored portfolios in which we own a majority of the voting interest. | ||||||||
During 2013 and 2014, we deconsolidated certain sponsored investment portfolios, in which we provided initial seed capital at the time of its formation, as we no longer had a controlling financial interest. Accordingly, we deconsolidated the carrying value of these investments which, at the deconsolidation dates, was $106.3 million in 2013 and $25.5 million in 2014. We are reporting our residual interest in these sponsored investment portfolios as an equity method investment. Since our consolidated investment portfolios were carried at fair value, we did not recognize any gain or loss in our consolidated statements of income upon deconsolidation. The impact of the deconsolidation on our consolidated balance sheet was immaterial. | ||||||||
At December 31, 2014, we had outstanding commitments to make additional contributions totaling $36.6 million to various investment partnerships. The vast majority of these additional contributions will be made to investment partnerships in which we have an existing investment. In addition to such amounts, a percentage of prior distributions may be called under certain circumstances. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS. | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair value measurements | ||||||||
NOTE 5 | – FAIR VALUE MEASUREMENTS. | |||||||
We determine the fair value of our investments using the following broad levels of inputs as defined by related accounting standards: | ||||||||
Level 1 – quoted prices in active markets for identical securities. | ||||||||
Level 2 – observable inputs other than Level 1 quoted prices, including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources. | ||||||||
Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. We do not value any of our investments using Level 3 inputs. | ||||||||
These levels are not necessarily an indication of the risk or liquidity associated with our investments. There have been no material transfers between the levels in 2013 or 2014. The following table summarizes our investments (in millions) that are recognized in our consolidated balance sheets at year-end using fair value measurements determined based on the differing levels of inputs. | ||||||||
Level 1 | Level 2 | |||||||
2013 | ||||||||
Cash equivalents | $ | 1,288.10 | $ | — | ||||
Investments in sponsored funds | 1,611.90 | — | ||||||
Investments held as trading | 21 | — | ||||||
Total | $ | 2,921.00 | $ | — | ||||
2014 | ||||||||
Cash equivalents | $ | 1,345.80 | $ | — | ||||
Investments in sponsored funds | 1,884.00 | — | ||||||
Investments held as trading | 27.7 | 52.2 | ||||||
Total | $ | 3,257.50 | $ | 52.2 | ||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT. | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and equipment | ||||||||
NOTE 6 | – PROPERTY AND EQUIPMENT. | |||||||
Property and equipment (in millions) at December 31 consists of: | ||||||||
2013 | 2014 | |||||||
Computer and communications software and equipment | $ | 430.4 | $ | 512 | ||||
Buildings and improvements | 386.6 | 397.1 | ||||||
Leasehold improvements | 93.2 | 93.7 | ||||||
Furniture and other equipment | 131.1 | 131.6 | ||||||
Land | 40.3 | 40.3 | ||||||
Leased land | 2.7 | 2.7 | ||||||
1,084.30 | 1,177.40 | |||||||
Less accumulated depreciation and amortization | 511.4 | 591 | ||||||
Total | $ | 572.9 | $ | 586.4 | ||||
Compensation and related costs attributable to the development of computer software for internal use totaling $14.9 million in 2012, $15.5 million in 2013, and $19.6 million in 2014 have been capitalized. | ||||||||
We occupy certain office facilities and lease computer and other equipment under noncancelable operating leases. Related rental expense was $28.3 million in 2012, $31.5 million in 2013, and $29.3 million in 2014. Future minimum payments under these leases aggregate $26.4 million in 2015, $25.1 million in 2016, $22.9 million in 2017, $23.8 million in 2018, $22.5 million in 2019, and $119.9 million in later years. |
INCOME_TAXES
INCOME TAXES. | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income taxes | ||||||||||||
NOTE 7 | – INCOME TAXES. | |||||||||||
The provision for income taxes (in millions) consists of: | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Current income taxes | ||||||||||||
U.S. federal | $ | 437.3 | $ | 523.3 | $ | 635.8 | ||||||
State and local | 73.8 | 92.9 | 126.8 | |||||||||
Foreign | 31.3 | 20.7 | 16.3 | |||||||||
Deferred income taxes (tax benefits) | 9.1 | 15.8 | (5.4 | ) | ||||||||
Total | $ | 551.5 | $ | 652.7 | $ | 773.5 | ||||||
Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. Deferred income taxes in 2012 include $14.2 million from the reversal of deferred tax assets related to other-than-temporary impairments previously recognized on sponsored fund investments that were sold in 2012 offset by deferred tax benefits of $5.2 million related to accrued compensation. Deferred income taxes in 2013 include $5.2 million from the reversal of the deferred tax assets related to accrued compensation that were established in 2012, $5.3 million related to property and equipment, and $4.3 million from the reversal of deferred tax assets related to other-than-temporary impairments previously recognized on sponsored fund investments that were sold in 2013. Deferred income tax benefits in 2014 included $11.2 million related to stock-based compensation offset in part by $4.7 million from the reversal of deferred tax assets related to other-than-temporary impairments previously recognized on sponsored fund investments that were sold in 2014, and $2.0 million related to property and equipment. | ||||||||||||
The following table reconciles the statutory federal income tax rate to the effective income tax rate. | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes for current year, net of federal income tax benefits | 3.5 | 3.7 | 4 | |||||||||
Other items | (.1 | ) | (.3 | ) | (.4 | ) | ||||||
Effective income tax rate | 38.4 | % | 38.4 | % | 38.6 | % | ||||||
The net deferred tax asset (liability) (in millions) recognized in our consolidated balance sheets in income taxes payable at December 31, 2013, and other assets at December 31, 2014, includes the following: | ||||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred tax liabilities | ||||||||||||
Related to property and equipment | $ | (36.3 | ) | $ | (38.3 | ) | ||||||
Recognized in other comprehensive income on net unrealized holding gains | (137.5 | ) | (106.0 | ) | ||||||||
Other | (19.4 | ) | (21.9 | ) | ||||||||
(193.2 | ) | (166.2 | ) | |||||||||
Deferred tax assets | ||||||||||||
Related to stock-based compensation | 136.7 | 147.9 | ||||||||||
Related to other-than-temporary impairments of investments in sponsored funds | 30.4 | 25.7 | ||||||||||
Related to accrued compensation | 2.9 | 3 | ||||||||||
Recognized in other comprehensive income on currency translation adjustment | 15 | 15.7 | ||||||||||
Other | 5.3 | 9.9 | ||||||||||
190.3 | 202.2 | |||||||||||
Net deferred tax asset (liability) | $ | (2.9 | ) | $ | 36 | |||||||
A deferred tax liability for unremitted earnings of our foreign subsidiaries has not been recognized, as it is our intention to indefinitely reinvest these earnings outside the U.S. The unremitted earnings of these subsidiaries are estimated to be $326.0 million at December 31, 2014. If these earnings were distributed to the U.S. in the form of dividends or otherwise, or if any of the entities were sold or otherwise transferred, we would be subject to U.S. income taxes, less any foreign tax credits. Determination of the amount of the unrecognized deferred tax liability related to these earnings is not practicable. | ||||||||||||
Other assets includes tax refund receivables of $1.2 million at December 31, 2013, and $61.7 million at December 31, 2014. | ||||||||||||
Cash outflows from operating activities include net income taxes paid of $514.9 million in 2012, $532.9 million in 2013, and $763.7 million in 2014. | ||||||||||||
Additional income tax benefits of $60.9 million in 2012, $45.9 million in 2013, and $53.4 million in 2014 arising from stock-based compensation plans activity reduced the amount of income taxes that would have otherwise been payable. | ||||||||||||
The following table summarizes the changes in our unrecognized tax benefits (in millions). | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Balance at beginning of year | $ | 4.7 | $ | 4.9 | $ | 4.8 | ||||||
Changes in tax positions related to | ||||||||||||
Current year | 0.9 | 0.7 | 1 | |||||||||
Prior years | 0.2 | — | (.2 | ) | ||||||||
Expired statute of limitations | (.9 | ) | (.8 | ) | — | |||||||
Balance at end of year | $ | 4.9 | $ | 4.8 | $ | 5.6 | ||||||
If recognized, these tax benefits would affect our effective tax rate; however, we do not expect that unrecognized tax benefits for tax positions taken with respect to 2014 and prior years will significantly change in 2015. The U.S. has concluded examinations related to federal tax obligations through the year 2009. Net interest payable recognized in our consolidated balance sheets was $1.0 million at December 31, 2013, and $1.3 million at December 31, 2014. Our accounting policy with respect to interest and penalties arising from income tax settlements is to recognize them as part of our provision for income taxes. Interest recognized as part of our provision for income taxes was not material. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY. | 12 Months Ended | |
Dec. 31, 2014 | ||
Stockholders' Equity Note [Abstract] | ||
Stockholders' equity | ||
NOTE 8 | – STOCKHOLDERS' EQUITY. | |
SHARE REPURCHASES. | ||
The Board of Directors has authorized the future repurchase of up to 20,900,804 common shares as of December 31, 2014. | ||
DIVIDENDS. | ||
Regular cash dividends declared per share were $1.36 in 2012, $1.52 in 2013, and $1.76 in 2014. In December 2012, the Board of Directors also declared a special dividend of $1.00 per share that was paid on December 28, 2012. | ||
RESTRICTED CAPITAL. | ||
Our consolidated stockholders' equity at December 31, 2014, includes about $95 million that is restricted as to use by various regulations and agreements arising in the ordinary course of our business. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION. | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Stock-based compensation | ||||||||||
NOTE 9 | – STOCK-BASED COMPENSATION. | |||||||||
SHARES AUTHORIZED FOR STOCK-BASED COMPENSATION PROGRAMS. | ||||||||||
At December 31, 2014, a total of 44,918,174 shares of unissued common stock were authorized for issuance under our stock-based compensation plans. Additionally, a total of 3,412,508 shares are authorized for issuance under a plan whereby substantially all employees may acquire common stock through payroll deductions at prevailing market prices. | ||||||||||
STOCK OPTIONS. | ||||||||||
The following table summarizes the status of and changes in our stock option grants during 2014. | ||||||||||
Options | Weighted- | Weighted-average | ||||||||
average | remaining | |||||||||
exercise | contractual | |||||||||
price | term in | |||||||||
years | ||||||||||
Outstanding at December 31, 2013 | 31,574,958 | $ | 52.18 | |||||||
Semiannual grants | 3,506,465 | $ | 80.15 | |||||||
New hire grants | 37,250 | $ | 80.04 | |||||||
Non-employee director grants | 16,800 | $ | 80.81 | |||||||
Exercised | (4,924,172 | ) | $ | 42.74 | ||||||
Forfeited | (448,836 | ) | $ | 61.37 | ||||||
Expired | (946 | ) | $ | 52.62 | ||||||
Outstanding at December 31, 2014 | 29,761,519 | $ | 56.95 | 5.8 | ||||||
Exercisable at December 31, 2014 | 18,631,393 | $ | 50.14 | 4.5 | ||||||
Compensation and related costs includes a charge for stock option-based compensation expense of $74.5 million in 2012, $64.2 million in 2013, and $63.4 million in 2014. | ||||||||||
The total intrinsic value of options exercised was $239.6 million in 2012, $182.6 million in 2013, and $196.5 million in 2014. At December 31, 2014, the aggregate intrinsic value of in-the-money options outstanding was $860.5 million, including $665.4 million related to options exercisable. | ||||||||||
RESTRICTED SHARES AND STOCK UNITS. | ||||||||||
The following table summarizes the status of and changes in our nonvested restricted shares and restricted stock units during 2014. | ||||||||||
Restricted | Restricted | Weighted- | ||||||||
shares | stock | average | ||||||||
units | fair value | |||||||||
Nonvested at December 31, 2013 | 1,877,086 | 823,593 | $ | 67.21 | ||||||
Granted to employees and non-employee directors - time based | 759,135 | 374,445 | $ | 80.17 | ||||||
Granted to employees - performance based | 12,000 | 67,200 | $ | 80.14 | ||||||
Vested (value at vest date was $58.6 million) | (469,469 | ) | (230,268 | ) | $ | 64.78 | ||||
Forfeited | (117,193 | ) | (28,217 | ) | $ | 69.29 | ||||
Nonvested at December 31, 2014 | 2,061,559 | 1,006,753 | $ | 72.79 | ||||||
The nonvested at December 31, 2014, includes 45,600 performance-based restricted shares and 159,525 performance-based restricted stock units. These nonvested performance-based restricted shares and units include 33,600 shares and 92,325 units for which the performance period has lapsed and the performance threshold has been met. | ||||||||||
Compensation and related costs includes expenses for restricted shares and restricted stock units of $29.6 million in 2012, $50.4 million in 2013, and $70.0 million in 2014. | ||||||||||
At December 31, 2014, non-employee directors held 48,262 vested stock units that will convert to common shares upon their separation from the Board. | ||||||||||
FUTURE STOCK–BASED COMPENSATION EXPENSE. | ||||||||||
The following table presents the compensation expense (in millions) to be recognized over the remaining vesting periods of the stock-based compensation awards outstanding at December 31, 2014. Estimated future compensation expense will change to reflect future awards, including options, unrestricted shares, restricted shares, and restricted stock units; changes in estimated forfeitures; changes in the probability of performance thresholds being met; and adjustments for actual forfeitures. | ||||||||||
First quarter 2015 | $ | 29 | ||||||||
Second quarter 2015 | 28.7 | |||||||||
Third quarter 2015 | 28.4 | |||||||||
Fourth quarter 2015 | 24.9 | |||||||||
2015 | 111 | |||||||||
2016 through 2019 | 116 | |||||||||
Total | $ | 227 | ||||||||
EARNINGS_PER_SHARE_CALCULATION
EARNINGS PER SHARE CALCULATIONS. | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per share calculations | ||||||||||||
NOTE 10 | – EARNINGS PER SHARE CALCULATIONS. | |||||||||||
The following table presents the reconciliation (in millions) of our net income to net income allocated to our common stockholders and the weighted-average shares (in millions) that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflects the potential dilution, determined using the treasury stock method that could occur if outstanding stock options were exercised and non-participating stock awards vested. | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Net income | $ | 883.6 | $ | 1,047.70 | $ | 1,229.60 | ||||||
Less net income allocated to outstanding restricted stock and stock unit holders | (5.5 | ) | (9.3 | ) | (14.2 | ) | ||||||
Net income allocated to common stockholders | $ | 878.1 | $ | 1,038.40 | $ | 1,215.40 | ||||||
Weighted-average common shares | ||||||||||||
Outstanding | 253.4 | 258.3 | 259.6 | |||||||||
Outstanding assuming dilution | 261 | 266.3 | 267.4 | |||||||||
The following table shows the weighted-average outstanding stock options (in millions) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive. | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Weighted-average outstanding stock options excluded | 5.4 | 3.1 | 3.8 | |||||||||
OTHER_COMPREHENSIVE_INCOME_AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||
Other comprehensive income and accumulated other comprehensive income | ||||||||||||||||||||||||
NOTE 11 | – OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. | |||||||||||||||||||||||
The following table presents the deferred tax benefits (income taxes) impact of the components (in millions) of other comprehensive income. | ||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||
Deferred tax benefits (income taxes) on: | ||||||||||||||||||||||||
Net unrealized holding gains or losses | $ | (39.7 | ) | $ | (57.8 | ) | $ | 0.8 | ||||||||||||||||
Reclassification adjustments: | ||||||||||||||||||||||||
Recognized in the provision for income taxes related to capital gain distributions | 1.8 | 6 | 11.9 | |||||||||||||||||||||
Recognized in the provision for income taxes related to net gains realized on dispositions | 13.6 | 5.3 | 18.8 | |||||||||||||||||||||
Recognized in non-operating investment income for net unrealized holding gains derecognized upon the sale of savings bank subsidiary | — | 0.6 | — | |||||||||||||||||||||
Net deferred tax benefits (income taxes) on net unrealized holding gains or losses recognized in other comprehensive income | (24.3 | ) | (45.9 | ) | 31.5 | |||||||||||||||||||
Deferred tax benefits on currency translation adjustments | 3.7 | 8.3 | 0.7 | |||||||||||||||||||||
Total deferred tax benefits (income taxes) | $ | (20.6 | ) | $ | (37.6 | ) | $ | 32.2 | ||||||||||||||||
The changes (in millions) in each component of accumulated other comprehensive income for each year ended December 31 are presented below. | ||||||||||||||||||||||||
Net unrealized holding gains | ||||||||||||||||||||||||
Investments in sponsored funds | Debt securities held by savings bank subsidiary | Equity share of UTI’s net unrealized holding gains | Total net unrealized holding gains | Currency translation adjustments | Total | |||||||||||||||||||
Balances at December 31, 2011 | $ | 106.3 | $ | 1.9 | $ | 0.2 | $ | 108.4 | $ | (5.6 | ) | $ | 102.8 | |||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | 99.9 | 0.1 | 0.2 | 100.2 | (10.7 | ) | 89.5 | |||||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (39.8 | ) | — | — | (39.8 | ) | — | (39.8 | ) | |||||||||||||||
60.1 | 0.1 | 0.2 | 60.4 | (10.7 | ) | 49.7 | ||||||||||||||||||
Deferred tax benefits (income taxes) | (24.1 | ) | (.1 | ) | (.1 | ) | (24.3 | ) | 3.7 | (20.6 | ) | |||||||||||||
Other comprehensive income (loss) | 36 | — | 0.1 | 36.1 | (7.0 | ) | 29.1 | |||||||||||||||||
Balances at December 31, 2012 | 142.3 | 1.9 | 0.3 | 144.5 | (12.6 | ) | 131.9 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | 149.7 | (1.6 | ) | — | 148.1 | (23.7 | ) | 124.4 | ||||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (28.8 | ) | (1.6 | ) | — | (30.4 | ) | — | (30.4 | ) | ||||||||||||||
120.9 | (3.2 | ) | — | 117.7 | (23.7 | ) | 94 | |||||||||||||||||
Deferred tax benefits (income taxes) | (47.2 | ) | 1.3 | — | (45.9 | ) | 8.3 | (37.6 | ) | |||||||||||||||
Other comprehensive income (loss) | 73.7 | (1.9 | ) | — | 71.8 | (15.4 | ) | 56.4 | ||||||||||||||||
Balances at December 31, 2013 | 216 | — | 0.3 | 216.3 | (28.0 | ) | 188.3 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | (2.1 | ) | — | 0.2 | (1.9 | ) | (1.8 | ) | (3.7 | ) | ||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (80.4 | ) | — | — | (80.4 | ) | — | (80.4 | ) | |||||||||||||||
(82.5 | ) | — | 0.2 | (82.3 | ) | (1.8 | ) | (84.1 | ) | |||||||||||||||
Deferred tax benefits | 31.5 | — | — | 31.5 | 0.7 | 32.2 | ||||||||||||||||||
Other comprehensive income (loss) | (51.0 | ) | — | 0.2 | (50.8 | ) | (1.1 | ) | (51.9 | ) | ||||||||||||||
Balances at December 31, 2014 | $ | 165 | $ | — | $ | 0.5 | $ | 165.5 | $ | (29.1 | ) | $ | 136.4 | |||||||||||
OTHER_DISCLOSURES
OTHER DISCLOSURES. | 12 Months Ended | |
Dec. 31, 2014 | ||
Disclosure Text Block Supplement [Abstract] | ||
Other disclosures | ||
NOTE 12 | – OTHER DISCLOSURES. | |
CONTINGENCIES. | ||
From time to time, various claims against us arise in the ordinary course of business, including employment-related claims. In the opinion of management, after consultation with counsel, the likelihood that an adverse determination in one or more pending claims would have a material adverse effect on our financial position or results of operations is remote. | ||
RETIREMENT PLANS. | ||
Compensation and related costs includes expense recognized for our defined contribution retirement plans of $58.2 million in 2012, $61.8 million in 2013, and $70.6 million in 2014. | ||
SAVINGS BANK SUBSIDIARY. | ||
On May 23, 2013, we entered into an agreement to sell 100% of the capital stock of our savings bank subsidiary to Jacob M. Safra for cash equal to the bank's net book value on the closing date plus $500,000. We completed the sale on December 5, 2013, for proceeds of $23.6 million. The total gain we recognized in non-operating investment income also included $1.0 million of net unrealized holding gains previously recognized on the saving bank's available-for-sale portfolio that were reclassified from accumulated other comprehensive income. |
SUPPLEMENTARY_QUARTERLY_FINANC
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Supplementary quarterly financial data (unaudited) | ||||||||||||||||
NOTE 13 | – SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). | |||||||||||||||
Net revenues | Net income | Basic earnings on common stock | Diluted earnings on common stock | |||||||||||||
(in millions) | (per share) | |||||||||||||||
2013 | ||||||||||||||||
1st quarter | $ | 815.7 | $ | 241.9 | $ | 0.93 | $ | 0.91 | ||||||||
2nd quarter | $ | 854.3 | $ | 247.8 | $ | 0.95 | $ | 0.92 | ||||||||
3rd quarter | $ | 884.4 | $ | 270.3 | $ | 1.03 | $ | 1 | ||||||||
4th quarter | $ | 929.8 | $ | 287.7 | $ | 1.1 | $ | 1.06 | ||||||||
2014 | ||||||||||||||||
1st quarter | $ | 954.6 | $ | 304.3 | $ | 1.16 | $ | 1.12 | ||||||||
2nd quarter | $ | 984.3 | $ | 305.8 | $ | 1.16 | $ | 1.13 | ||||||||
3rd quarter | $ | 1,020.80 | $ | 303.6 | $ | 1.15 | $ | 1.12 | ||||||||
4th quarter | $ | 1,022.40 | $ | 315.9 | $ | 1.21 | $ | 1.18 | ||||||||
The sums of quarterly earnings per share do not equal annual earnings per share because the computations are done independently. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (by policy) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Nature of operations | T. Rowe Price Group derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the sponsored T. Rowe Price U.S. mutual funds and other investment portfolios. We also provide our investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; and trust services. | |||||||||||
Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations. | ||||||||||||
Basis of preparation - basis of accounting | These consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the U.S. | |||||||||||
Basis of preparation - use of estimates | These principles require that we make certain estimates and assumptions. Actual results may vary from our estimates. | |||||||||||
Basis of preparation - reclassifications | Certain prior year amounts have been reclassified to conform to the 2014 presentation. | |||||||||||
Consolidation | Our financial statements include the accounts of all subsidiaries and sponsored portfolios in which we have a controlling financial interest. We are generally deemed to have a controlling financial interest when we own the majority of the voting interest of an entity or are considered to be the primary beneficiary of a variable interest entity. All material intercompany accounts and transactions are eliminated in consolidation. We have determined that the sponsored portfolios in which we have investments at December 31, 2013 and 2014, are voting interest entities and, as a result, have consolidated those sponsored portfolios in which we own a majority of the voting interest. | |||||||||||
If we determine that we no longer have a controlling financial interest in a subsidiary or a sponsored portfolio, we deconsolidate the carrying value of their assets and liabilities, and record our remaining equity interest, if any, at its fair value. Any gain or loss realized upon deconsolidation is included in non-operating investment income in our consolidated statements of income. | ||||||||||||
Cash equivalents | Cash equivalents consist primarily of short-term, highly liquid investments in our sponsored money market mutual funds. The cost of these funds is equivalent to fair value. | |||||||||||
Investments in sponsored funds - available for sale | These are investments we have made for both general corporate investment purposes and to provide seed capital for newly formed funds. These sponsored funds were determined to be voting interest entities and are classified as available-for-sale. These investments are carried at fair value using the quoted closing net asset value, or NAV, per share of each fund as of the balance sheet date. Changes in net unrealized holding gains (losses) on these investments are recognized in other comprehensive income. | |||||||||||
We review the carrying amount of each investment on a quarterly basis and recognize an impairment charge in non-operating investment income whenever an unrealized loss is considered other than temporary. In determining whether a fund holding is other-than-temporarily impaired, we consider various factors, including the duration of time it has existed, the severity of the impairment, any subsequent changes in value, and our intent and ability to hold the fund for a period of time sufficient for an anticipated recovery in fair value. Subject to the other considerations noted above, we believe a fund holding with an unrealized loss that has persisted daily throughout the six months between quarter-ends is generally presumed to have an other-than-temporary impairment. We may also recognize an other-than-temporary impairment if particular circumstances of the underlying investment do not warrant our belief that a near-term recovery is possible. | ||||||||||||
Other investments - cost and equity method investments | Cost method investments consist of investments in entities over which we do not exercise significant influence over the operating and financial policies of the investee. | |||||||||||
Equity method investments consist of investments in entities, including sponsored portfolios, over which we have the ability to exercise significant influence over the operating and financial policies of the investee. The carrying values of these investments are adjusted to reflect our proportionate share of the investee's net income or loss, any unrealized gain or loss resulting from the translation of foreign denominated financial statements into U.S. dollars, and dividends received. Our proportionate share of income or loss is included in non-operating investment income in the consolidated statements of income. As permitted under existing accounting guidance, we adopted a policy by which we recognize our share of UTI Asset Management Company Limited’s (UTI) earnings on a quarter lag as current financial information is not available in a timely manner. The basis difference between our carrying value and our proportionate share of UTI’s book value is primarily related to consideration paid in excess of the stepped-up basis of assets and liabilities on the date of purchase. | ||||||||||||
We evaluate our equity and cost method investments for impairment when events or changes in circumstances indicate that the carrying value of the investment exceeds its fair value, and the decline in fair value is other than temporary. | ||||||||||||
Other investments - trading securities | Investments held as trading consist of the underlying securities of sponsored portfolios in which we have a controlling financial interest and sponsored portfolio investments we expect to hold for only a short period of time. These investments are generally the initial seed investments we make at the portfolio's formation. If we are deemed to have a controlling financial interest in the sponsored portfolio, we will consolidate the investment, and the portfolio's underlying securities are accounted for as trading securities. These investments are carried at fair value, with changes in fair value recognized in non-operating investment income. The valuation policies, methods, and sources for these investments are the same as those employed by the T. Rowe Price U.S. mutual funds to price similar investment holdings as further described under our revenue recognition policy below. | |||||||||||
Concentrations of risk | Concentration of credit risk in accounts receivable is believed to be minimal in that our clients generally have substantial assets, including those in the investment portfolios that we manage for them. | |||||||||||
Our investments in sponsored funds and investments held as trading expose us to market risk, that is, the potential future loss of value that would result from a decline in the fair value of each investment or its underlying net assets. Our underlying holdings of our assets under management are also subject to market risk, which may arise from changes in equity prices, credit ratings, foreign currency exchange rates, and interest rates. | ||||||||||||
Property and equipment | Property and equipment is stated at cost net of accumulated depreciation and amortization computed using the straight-line method. Provisions for depreciation and amortization are based on the following weighted-average estimated useful lives: computer and communications software and equipment, 3 years; buildings and improvements, 33 years; leasehold improvements, 9 years; furniture and other equipment, 7 years; and leased land, 99 years. | |||||||||||
Goodwill | We evaluate the carrying amount of goodwill in our consolidated balance sheets for possible impairment on an annual basis in the third quarter of each year using a fair value approach. Our evaluations have indicated that no impairment exists. | |||||||||||
We internally conduct, manage, and report our operations as one investment advisory business. We do not have distinct operating segments or components that separately constitute a business. Accordingly, we attribute goodwill to a single reportable business segment and reporting unit—our investment advisory business. | ||||||||||||
Revenue recognition - investment advisory, distribution, and servicing fees | Fees for investment advisory services, which are based on a percentage of assets under management, and related administrative services that we provide to investment advisory clients, including our sponsored funds and portfolios, are recognized in the period that our services are provided. | |||||||||||
Our assets under management are valued in accordance with a valuation and pricing policy that defines the valuation and pricing processes for each major type of investment held in our sponsored U.S. mutual funds and other client investment portfolios. Fair values used in our processes are primarily determined from quoted market prices; prices furnished by dealers who make markets in such securities; or from data provided by an independent pricing service that considers yield or price of investments of comparable quality, coupon, maturity, and type. Investments for which market prices are not readily available are not a material portion of our total assets under management. | ||||||||||||
Distribution and servicing fees earned from 12b-1 plans of the Advisor Class, R Class, and variable annuity class shares of our sponsored U.S. mutual funds are recognized in the period that they are earned, which is the same period that the related mutual funds recognize their expense. These fees are offset entirely by the distribution and servicing costs paid to third-party financial intermediaries that source the assets of these share classes. | ||||||||||||
We provide all services to the sponsored U.S. mutual funds under contracts that are subject to periodic review and approval by each of the funds’ Boards. Regulations require that the funds’ shareholders also approve material changes to investment advisory contracts. | ||||||||||||
Revenue recognition - taxes billed to clients | Taxes billed to our clients based on our fees for services rendered are not included in revenues. | |||||||||||
Advertising | Costs of advertising are expensed the first time that the advertising takes place. | |||||||||||
Stock-based compensation | We maintain three stockholder-approved employee long-term incentive plans (2012 Long-Term Incentive Plan, 2004 Stock Incentive Plan, and 2001 Stock Incentive Plan, collectively the LTI Plans) and two stockholder-approved non-employee director plans (2007 Non-Employee Director Equity Plan and 1998 Director Stock Option Plan). We believe that our stock-based compensation programs align the interests of our employees and directors with those of our common stockholders. As of December 31, 2014, a total of 14,101,640 shares were available for future grant under the 2012 Long-Term Incentive Plan and 2007 Non-Employee Director Equity Plan. | |||||||||||
Under our LTI Plans, we have issued restricted shares and restricted stock units to employees that settle in shares of our common stock after vesting. Vesting of these awards is based on the individual continuing to render service over an average 5.5-year graded schedule. All restricted shareholders and restricted stock unit holders receive non-forfeitable cash dividends and cash dividend equivalents, respectively, on our dividend payable date. | ||||||||||||
We grant performance-based restricted shares and restricted stock units to certain executive officers in which the number of restricted shares or restricted stock units ultimately retained is determined based on achievement of certain performance thresholds. The number of restricted shares or restricted stock units retained is also subject to the same time-based vesting requirement as the other restricted shares or restricted stock units described above. Cash dividends and cash dividend equivalents are accrued and paid to the holders of performance-based restricted shares and restricted stock units only after the performance period has lapsed and the performance thresholds have been met. | ||||||||||||
Under our LTI plans, we have granted qualified incentive and nonqualified fixed stock options with a maximum term of 10 years to employees. Vesting of our employee option grants is based on the individual continuing to render service and generally occurs over an average 5.5-year graded schedule. The exercise price of each option granted is equivalent to the market price of the common stock at the date of grant. | ||||||||||||
We grant options, with a maximum term of 10 years, restricted shares and restricted stock units to non-employee directors under the stockholder approved 2007 Non-Employee Director Plan. These grants vest over 6 months to one year and, in the case of restricted stock units, are settled upon the non-employee directors’ departure from the Board. Non-employee directors holding restricted shares receive non-forfeitable dividends while restricted stock unit holders are issued non-forfeitable dividend equivalents in the form of vested stock units on our dividend payable date. | ||||||||||||
We recognize the grant-date fair value of these awards as compensation expense ratably over the awards' requisite service period. The expense recognized includes an estimate of awards that will be forfeited and considers, in the case of our performance-based restricted shares and units the probability of the performance thresholds being met. Both time-based and performance-based restricted shares and units are valued on the grant-date using the closing market price of our common stock. We use the Black-Scholes option-pricing model to estimate the fair value of each option grant as follows: | ||||||||||||
Weighted-average | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Grant-date fair value per option awarded | $ | 16.27 | $ | 19.56 | $ | 21.12 | ||||||
Assumptions used: | ||||||||||||
Expected life in years | 6.8 | 7 | 7 | |||||||||
Expected volatility | 32 | % | 31 | % | 30 | % | ||||||
Dividend yield | 2.1 | % | 2.1 | % | 2.2 | % | ||||||
Risk-free interest rate | 1.3 | % | 1.9 | % | 2.2 | % | ||||||
Our expected life assumptions are based on the vesting period for each option grant and our historical experience with respect to the average holding period from vesting to option exercise. The assumptions for expected volatility are based on historical experience for the same periods as our expected lives. Dividend yields are based on recent historical experience and future expectations. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as our expected lives. | ||||||||||||
Earnings per share | We compute our basic and diluted earnings per share under the two-class method, which considers our outstanding restricted shares and stock units, on which we pay non-forfeitable dividends, as if they were a separate class of stock. | |||||||||||
Comprehensive income | The components of comprehensive income are presented in a separate statement following our consolidated statements of income and include net income, the change in net unrealized security holding gains (losses), and the change in our currency translation adjustments. The currency translation adjustments result from translating our proportionate share of the financial statements of UTI, our equity method investment, and certain consolidated investment portfolios into U.S. dollars. Assets and liabilities are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using weighted-average exchange rates for the period. | |||||||||||
The change in net unrealized security holding gains (losses) included those related to the debt securities held by our savings bank subsidiary up until December 2013 when we completed the sale of the bank. The investments held by the savings bank were in marketable debt securities, including mortgage- and other asset-backed securities and were classified as available-for-sale and reported at fair value. | ||||||||||||
The changes in accumulated balances of each component of other comprehensive income, the deferred tax impacts of each component, and information about significant items reclassified out of accumulated other comprehensive income are presented in the notes to the financial statements. The notes also indicate the line item of our consolidated income statements to which the significant reclassifications were recognized. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||||||||
Assumptions used in option pricing model and grant date fair value of options | We use the Black-Scholes option-pricing model to estimate the fair value of each option grant as follows: | |||||||||||
Weighted-average | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Grant-date fair value per option awarded | $ | 16.27 | $ | 19.56 | $ | 21.12 | ||||||
Assumptions used: | ||||||||||||
Expected life in years | 6.8 | 7 | 7 | |||||||||
Expected volatility | 32 | % | 31 | % | 30 | % | ||||||
Dividend yield | 2.1 | % | 2.1 | % | 2.2 | % | ||||||
Risk-free interest rate | 1.3 | % | 1.9 | % | 2.2 | % |
INFORMATION_ABOUT_RECEIVABLES_1
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Information about Receivables, Revenues, and Services [Abstract] | ||||||||||||||||||||
Components of revenues from advisory services | Revenues (in millions) from advisory services provided under agreements with our sponsored mutual funds and other investment clients include: | |||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Sponsored U.S. mutual funds | ||||||||||||||||||||
Stock and blended asset | $ | 1,437.60 | $ | 1,759.70 | $ | 2,086.00 | ||||||||||||||
Bond and money market | 352.7 | 366.4 | 399.8 | |||||||||||||||||
1,790.30 | 2,126.10 | 2,485.80 | ||||||||||||||||||
Other investment portfolios | ||||||||||||||||||||
Stock and blended asset | 635.1 | 735.6 | 824.5 | |||||||||||||||||
Bond, money market, and stable value | 166.6 | 160.9 | 154.2 | |||||||||||||||||
801.7 | 896.5 | 978.7 | ||||||||||||||||||
Total | $ | 2,592.00 | $ | 3,022.60 | $ | 3,464.50 | ||||||||||||||
Components of assets under management | The following table summarizes the investment portfolios and assets under management (in billions) on which we earn advisory fees. | |||||||||||||||||||
Average during | As of December 31, | |||||||||||||||||||
2012 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||
Sponsored U.S. mutual funds | ||||||||||||||||||||
Stock and blended asset | $ | 241.6 | $ | 299.1 | $ | 359.3 | $ | 341.7 | $ | 373 | ||||||||||
Bond and money market | 85 | 92.1 | 101.6 | 93.6 | 104.6 | |||||||||||||||
326.6 | 391.2 | 460.9 | 435.3 | 477.6 | ||||||||||||||||
Other investment portfolios | ||||||||||||||||||||
Stock and blended asset | 158 | 179.3 | 201.6 | 195.3 | 206.9 | |||||||||||||||
Bond, money market, and stable value | 64.8 | 63.3 | 62.2 | 61.8 | 62.3 | |||||||||||||||
222.8 | 242.6 | 263.8 | 257.1 | 269.2 | ||||||||||||||||
Total | $ | 549.4 | $ | 633.8 | $ | 724.7 | $ | 692.4 | $ | 746.8 | ||||||||||
Components of other fees | The following table summarizes the other fees (in millions) earned from our sponsored U.S. mutual funds. | |||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Administrative fees | $ | 258.3 | $ | 264.8 | $ | 296.1 | ||||||||||||||
Distribution and servicing fees | $ | 96.1 | $ | 117.2 | $ | 143.6 | ||||||||||||||
INVESTMENTS_IN_SPONSORED_FUNDS1
INVESTMENTS IN SPONSORED FUNDS - AVAILABLE-FOR-SALE. (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Available-for-sale Securities [Abstract] | ||||||||||||||||
Investments in sponsored funds reconciliation | Our investments (in millions) in sponsored funds accounted for as available-for-sale at December 31 include: | |||||||||||||||
Aggregate cost | Unrealized holding | Aggregate | ||||||||||||||
Gains | Losses | fair value | ||||||||||||||
2013 | ||||||||||||||||
Stock and blended asset funds | $ | 354.7 | $ | 302.5 | $ | — | $ | 657.2 | ||||||||
Bond funds | 904 | 53.6 | (2.9 | ) | 954.7 | |||||||||||
Total | $ | 1,258.70 | $ | 356.1 | $ | (2.9 | ) | $ | 1,611.90 | |||||||
2014 | ||||||||||||||||
Stock and blended asset funds | $ | 505.4 | $ | 231.4 | $ | (4.2 | ) | $ | 732.6 | |||||||
Bond funds | 1,107.90 | 52 | (8.5 | ) | 1,151.40 | |||||||||||
Total | $ | 1,613.30 | $ | 283.4 | $ | (12.7 | ) | $ | 1,884.00 | |||||||
OTHER_INVESTMENTS_Tables
OTHER INVESTMENTS. (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Investments, All Other Investments [Abstract] | ||||||||
Components of other investments | These investments (in millions) at December 31 include: | |||||||
2013 | 2014 | |||||||
Cost method investments | ||||||||
10% interest in Daiwa SB Investments Ltd. (Japan) | $ | 6.6 | $ | 3 | ||||
Other investments | 53.5 | 60.7 | ||||||
Equity method investments | ||||||||
26% interest in UTI Asset Management Company Limited (India) | 122.6 | 132.4 | ||||||
Sponsored fund investments | 104.1 | 125.6 | ||||||
Other investments | 4.8 | 5.7 | ||||||
Investments held as trading | ||||||||
Sponsored fund investments | 8.5 | 10.3 | ||||||
Securities held by consolidated sponsored investment portfolios | 12.5 | 69.6 | ||||||
U.S. Treasury note | 1 | 1 | ||||||
Total | $ | 313.6 | $ | 408.3 | ||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS. (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair value measurements table | The following table summarizes our investments (in millions) that are recognized in our consolidated balance sheets at year-end using fair value measurements determined based on the differing levels of inputs. | |||||||
Level 1 | Level 2 | |||||||
2013 | ||||||||
Cash equivalents | $ | 1,288.10 | $ | — | ||||
Investments in sponsored funds | 1,611.90 | — | ||||||
Investments held as trading | 21 | — | ||||||
Total | $ | 2,921.00 | $ | — | ||||
2014 | ||||||||
Cash equivalents | $ | 1,345.80 | $ | — | ||||
Investments in sponsored funds | 1,884.00 | — | ||||||
Investments held as trading | 27.7 | 52.2 | ||||||
Total | $ | 3,257.50 | $ | 52.2 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT. (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and equipment table | Property and equipment (in millions) at December 31 consists of: | |||||||
2013 | 2014 | |||||||
Computer and communications software and equipment | $ | 430.4 | $ | 512 | ||||
Buildings and improvements | 386.6 | 397.1 | ||||||
Leasehold improvements | 93.2 | 93.7 | ||||||
Furniture and other equipment | 131.1 | 131.6 | ||||||
Land | 40.3 | 40.3 | ||||||
Leased land | 2.7 | 2.7 | ||||||
1,084.30 | 1,177.40 | |||||||
Less accumulated depreciation and amortization | 511.4 | 591 | ||||||
Total | $ | 572.9 | $ | 586.4 | ||||
INCOME_TAXES_Tables
INCOME TAXES. (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of components of income tax provision | The provision for income taxes (in millions) consists of: | |||||||||||
2012 | 2013 | 2014 | ||||||||||
Current income taxes | ||||||||||||
U.S. federal | $ | 437.3 | $ | 523.3 | $ | 635.8 | ||||||
State and local | 73.8 | 92.9 | 126.8 | |||||||||
Foreign | 31.3 | 20.7 | 16.3 | |||||||||
Deferred income taxes (tax benefits) | 9.1 | 15.8 | (5.4 | ) | ||||||||
Total | $ | 551.5 | $ | 652.7 | $ | 773.5 | ||||||
Schedule of effective income tax rate reconciliation | The following table reconciles the statutory federal income tax rate to the effective income tax rate. | |||||||||||
2012 | 2013 | 2014 | ||||||||||
Statutory U.S. federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes for current year, net of federal income tax benefits | 3.5 | 3.7 | 4 | |||||||||
Other items | (.1 | ) | (.3 | ) | (.4 | ) | ||||||
Effective income tax rate | 38.4 | % | 38.4 | % | 38.6 | % | ||||||
Schedule of deferred tax assets and liabilities | The net deferred tax asset (liability) (in millions) recognized in our consolidated balance sheets in income taxes payable at December 31, 2013, and other assets at December 31, 2014, includes the following: | |||||||||||
December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred tax liabilities | ||||||||||||
Related to property and equipment | $ | (36.3 | ) | $ | (38.3 | ) | ||||||
Recognized in other comprehensive income on net unrealized holding gains | (137.5 | ) | (106.0 | ) | ||||||||
Other | (19.4 | ) | (21.9 | ) | ||||||||
(193.2 | ) | (166.2 | ) | |||||||||
Deferred tax assets | ||||||||||||
Related to stock-based compensation | 136.7 | 147.9 | ||||||||||
Related to other-than-temporary impairments of investments in sponsored funds | 30.4 | 25.7 | ||||||||||
Related to accrued compensation | 2.9 | 3 | ||||||||||
Recognized in other comprehensive income on currency translation adjustment | 15 | 15.7 | ||||||||||
Other | 5.3 | 9.9 | ||||||||||
190.3 | 202.2 | |||||||||||
Net deferred tax asset (liability) | $ | (2.9 | ) | $ | 36 | |||||||
Schedule of unrecognized tax benefits | The following table summarizes the changes in our unrecognized tax benefits (in millions). | |||||||||||
2012 | 2013 | 2014 | ||||||||||
Balance at beginning of year | $ | 4.7 | $ | 4.9 | $ | 4.8 | ||||||
Changes in tax positions related to | ||||||||||||
Current year | 0.9 | 0.7 | 1 | |||||||||
Prior years | 0.2 | — | (.2 | ) | ||||||||
Expired statute of limitations | (.9 | ) | (.8 | ) | — | |||||||
Balance at end of year | $ | 4.9 | $ | 4.8 | $ | 5.6 | ||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION. (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Rollforward of stock options | The following table summarizes the status of and changes in our stock option grants during 2014. | |||||||||
Options | Weighted- | Weighted-average | ||||||||
average | remaining | |||||||||
exercise | contractual | |||||||||
price | term in | |||||||||
years | ||||||||||
Outstanding at December 31, 2013 | 31,574,958 | $ | 52.18 | |||||||
Semiannual grants | 3,506,465 | $ | 80.15 | |||||||
New hire grants | 37,250 | $ | 80.04 | |||||||
Non-employee director grants | 16,800 | $ | 80.81 | |||||||
Exercised | (4,924,172 | ) | $ | 42.74 | ||||||
Forfeited | (448,836 | ) | $ | 61.37 | ||||||
Expired | (946 | ) | $ | 52.62 | ||||||
Outstanding at December 31, 2014 | 29,761,519 | $ | 56.95 | 5.8 | ||||||
Exercisable at December 31, 2014 | 18,631,393 | $ | 50.14 | 4.5 | ||||||
Rollforward of nonvested restricted shares and restricted stock units | The following table summarizes the status of and changes in our nonvested restricted shares and restricted stock units during 2014. | |||||||||
Restricted | Restricted | Weighted- | ||||||||
shares | stock | average | ||||||||
units | fair value | |||||||||
Nonvested at December 31, 2013 | 1,877,086 | 823,593 | $ | 67.21 | ||||||
Granted to employees and non-employee directors - time based | 759,135 | 374,445 | $ | 80.17 | ||||||
Granted to employees - performance based | 12,000 | 67,200 | $ | 80.14 | ||||||
Vested (value at vest date was $58.6 million) | (469,469 | ) | (230,268 | ) | $ | 64.78 | ||||
Forfeited | (117,193 | ) | (28,217 | ) | $ | 69.29 | ||||
Nonvested at December 31, 2014 | 2,061,559 | 1,006,753 | $ | 72.79 | ||||||
Future stock-based compensation expense | The following table presents the compensation expense (in millions) to be recognized over the remaining vesting periods of the stock-based compensation awards outstanding at December 31, 2014. Estimated future compensation expense will change to reflect future awards, including options, unrestricted shares, restricted shares, and restricted stock units; changes in estimated forfeitures; changes in the probability of performance thresholds being met; and adjustments for actual forfeitures. | |||||||||
First quarter 2015 | $ | 29 | ||||||||
Second quarter 2015 | 28.7 | |||||||||
Third quarter 2015 | 28.4 | |||||||||
Fourth quarter 2015 | 24.9 | |||||||||
2015 | 111 | |||||||||
2016 through 2019 | 116 | |||||||||
Total | $ | 227 | ||||||||
EARNINGS_PER_SHARE_CALCULATION1
EARNINGS PER SHARE CALCULATIONS. (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per share reconciliation | The following table presents the reconciliation (in millions) of our net income to net income allocated to our common stockholders and the weighted-average shares (in millions) that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflects the potential dilution, determined using the treasury stock method that could occur if outstanding stock options were exercised and non-participating stock awards vested. | |||||||||||
2012 | 2013 | 2014 | ||||||||||
Net income | $ | 883.6 | $ | 1,047.70 | $ | 1,229.60 | ||||||
Less net income allocated to outstanding restricted stock and stock unit holders | (5.5 | ) | (9.3 | ) | (14.2 | ) | ||||||
Net income allocated to common stockholders | $ | 878.1 | $ | 1,038.40 | $ | 1,215.40 | ||||||
Weighted-average common shares | ||||||||||||
Outstanding | 253.4 | 258.3 | 259.6 | |||||||||
Outstanding assuming dilution | 261 | 266.3 | 267.4 | |||||||||
Antidilutive securities | The following table shows the weighted-average outstanding stock options (in millions) that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive. | |||||||||||
2012 | 2013 | 2014 | ||||||||||
Weighted-average outstanding stock options excluded | 5.4 | 3.1 | 3.8 | |||||||||
OTHER_COMPREHENSIVE_INCOME_AND1
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||
Deferred tax benefit (income tax) impact of the components of other comprehensive income | The following table presents the deferred tax benefits (income taxes) impact of the components (in millions) of other comprehensive income. | |||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||
Deferred tax benefits (income taxes) on: | ||||||||||||||||||||||||
Net unrealized holding gains or losses | $ | (39.7 | ) | $ | (57.8 | ) | $ | 0.8 | ||||||||||||||||
Reclassification adjustments: | ||||||||||||||||||||||||
Recognized in the provision for income taxes related to capital gain distributions | 1.8 | 6 | 11.9 | |||||||||||||||||||||
Recognized in the provision for income taxes related to net gains realized on dispositions | 13.6 | 5.3 | 18.8 | |||||||||||||||||||||
Recognized in non-operating investment income for net unrealized holding gains derecognized upon the sale of savings bank subsidiary | — | 0.6 | — | |||||||||||||||||||||
Net deferred tax benefits (income taxes) on net unrealized holding gains or losses recognized in other comprehensive income | (24.3 | ) | (45.9 | ) | 31.5 | |||||||||||||||||||
Deferred tax benefits on currency translation adjustments | 3.7 | 8.3 | 0.7 | |||||||||||||||||||||
Total deferred tax benefits (income taxes) | $ | (20.6 | ) | $ | (37.6 | ) | $ | 32.2 | ||||||||||||||||
Changes in accumulated other comprehensive income | The changes (in millions) in each component of accumulated other comprehensive income for each year ended December 31 are presented below. | |||||||||||||||||||||||
Net unrealized holding gains | ||||||||||||||||||||||||
Investments in sponsored funds | Debt securities held by savings bank subsidiary | Equity share of UTI’s net unrealized holding gains | Total net unrealized holding gains | Currency translation adjustments | Total | |||||||||||||||||||
Balances at December 31, 2011 | $ | 106.3 | $ | 1.9 | $ | 0.2 | $ | 108.4 | $ | (5.6 | ) | $ | 102.8 | |||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | 99.9 | 0.1 | 0.2 | 100.2 | (10.7 | ) | 89.5 | |||||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (39.8 | ) | — | — | (39.8 | ) | — | (39.8 | ) | |||||||||||||||
60.1 | 0.1 | 0.2 | 60.4 | (10.7 | ) | 49.7 | ||||||||||||||||||
Deferred tax benefits (income taxes) | (24.1 | ) | (.1 | ) | (.1 | ) | (24.3 | ) | 3.7 | (20.6 | ) | |||||||||||||
Other comprehensive income (loss) | 36 | — | 0.1 | 36.1 | (7.0 | ) | 29.1 | |||||||||||||||||
Balances at December 31, 2012 | 142.3 | 1.9 | 0.3 | 144.5 | (12.6 | ) | 131.9 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | 149.7 | (1.6 | ) | — | 148.1 | (23.7 | ) | 124.4 | ||||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (28.8 | ) | (1.6 | ) | — | (30.4 | ) | — | (30.4 | ) | ||||||||||||||
120.9 | (3.2 | ) | — | 117.7 | (23.7 | ) | 94 | |||||||||||||||||
Deferred tax benefits (income taxes) | (47.2 | ) | 1.3 | — | (45.9 | ) | 8.3 | (37.6 | ) | |||||||||||||||
Other comprehensive income (loss) | 73.7 | (1.9 | ) | — | 71.8 | (15.4 | ) | 56.4 | ||||||||||||||||
Balances at December 31, 2013 | 216 | — | 0.3 | 216.3 | (28.0 | ) | 188.3 | |||||||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | (2.1 | ) | — | 0.2 | (1.9 | ) | (1.8 | ) | (3.7 | ) | ||||||||||||||
Reclassification adjustments recognized in non-operating investment income | (80.4 | ) | — | — | (80.4 | ) | — | (80.4 | ) | |||||||||||||||
(82.5 | ) | — | 0.2 | (82.3 | ) | (1.8 | ) | (84.1 | ) | |||||||||||||||
Deferred tax benefits | 31.5 | — | — | 31.5 | 0.7 | 32.2 | ||||||||||||||||||
Other comprehensive income (loss) | (51.0 | ) | — | 0.2 | (50.8 | ) | (1.1 | ) | (51.9 | ) | ||||||||||||||
Balances at December 31, 2014 | $ | 165 | $ | — | $ | 0.5 | $ | 165.5 | $ | (29.1 | ) | $ | 136.4 | |||||||||||
SUPPLEMENTARY_QUARTERLY_FINANC1
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Supplementary quarterly financial data | ||||||||||||||||
Net revenues | Net income | Basic earnings on common stock | Diluted earnings on common stock | |||||||||||||
(in millions) | (per share) | |||||||||||||||
2013 | ||||||||||||||||
1st quarter | $ | 815.7 | $ | 241.9 | $ | 0.93 | $ | 0.91 | ||||||||
2nd quarter | $ | 854.3 | $ | 247.8 | $ | 0.95 | $ | 0.92 | ||||||||
3rd quarter | $ | 884.4 | $ | 270.3 | $ | 1.03 | $ | 1 | ||||||||
4th quarter | $ | 929.8 | $ | 287.7 | $ | 1.1 | $ | 1.06 | ||||||||
2014 | ||||||||||||||||
1st quarter | $ | 954.6 | $ | 304.3 | $ | 1.16 | $ | 1.12 | ||||||||
2nd quarter | $ | 984.3 | $ | 305.8 | $ | 1.16 | $ | 1.13 | ||||||||
3rd quarter | $ | 1,020.80 | $ | 303.6 | $ | 1.15 | $ | 1.12 | ||||||||
4th quarter | $ | 1,022.40 | $ | 315.9 | $ | 1.21 | $ | 1.18 | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Investments) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Available-for-sale Securities [Abstract] | |
Duration of fund holding unrealized loss between quarter ends generally presumed to represent other than temporary impairment | 6 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Detail) (Weighted average [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Computer and communications software and equipment [Member] | |
Property and equipment | |
Estimated useful life | 3 years |
Buildings and improvements [Member] | |
Property and equipment | |
Estimated useful life | 33 years |
Leasehold improvements [Member] | |
Property and equipment | |
Estimated useful life | 9 years |
Furniture and other equipment [Member] | |
Property and equipment | |
Estimated useful life | 7 years |
Leased land [Member] | |
Property and equipment | |
Estimated useful life | 99 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
reporting_unit | |
Segment | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Number of distinct operating segments through which we internally conduct and manage our operations | 1 |
Number of distinct operating segments through which we report our operations | 1 |
Number of reportable business segments and units to which goodwill is attributed | 1 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-based Compensation) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock awards and options | |||
Weighted-average grant-date fair value per option awarded (in dollars per option) | $21.12 | $19.56 | $16.27 |
Weighted average [Member] | |||
Stock awards and options | |||
Expected life assumption | 7 years | 7 years | 6 years 10 months |
Expected volatility assumption | 30.00% | 31.00% | 32.00% |
Dividend yield assumption | 2.20% | 2.10% | 2.10% |
Risk-free interest rate assumption | 2.20% | 1.90% | 1.30% |
Stock-based compensation plan [Member] | |||
Stock awards and options | |||
Shares available for future grant (shares) | 14,101,640 | ||
Employee Stock-Based Compensation Programs [Member] | |||
Stock awards and options | |||
Stockholder-approved plans (plans) | 3 | ||
Employee Stock-Based Compensation Programs [Member] | Restricted shares and restricted stock units [Member] | Weighted average [Member] | |||
Stock awards and options | |||
Graded vesting period | 5 years 6 months | ||
Employee Stock-Based Compensation Programs [Member] | Stock options [Member] | Maximum [Member] | |||
Stock awards and options | |||
Term | 10 years | ||
Employee Stock-Based Compensation Programs [Member] | Stock options [Member] | Weighted average [Member] | |||
Stock awards and options | |||
Graded vesting period | 5 years 6 months | ||
Non-employee director [Member] | |||
Stock awards and options | |||
Stockholder-approved plans (plans) | 2 | ||
Non-employee director [Member] | Minimum [Member] | |||
Stock awards and options | |||
Graded vesting period | 6 months | ||
Non-employee director [Member] | Maximum [Member] | |||
Stock awards and options | |||
Graded vesting period | 1 year | ||
Non-employee director [Member] | Stock options [Member] | Maximum [Member] | |||
Stock awards and options | |||
Term | 10 years |
CASH_EQUIVALENTS_Detail
CASH EQUIVALENTS. (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Cash and Cash Equivalents [Abstract] | ||
Cash equivalent investments in our sponsored money market mutual funds | $1,345.80 | $1,288.10 |
INFORMATION_ABOUT_RECEIVABLES_2
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Receivables from Sponsored U.S. Mutual Funds) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $442.80 | $398.80 |
Sponsored U.S. mutual funds [Member] | ||
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $245.80 | $221.90 |
INFORMATION_ABOUT_RECEIVABLES_3
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Investment Advisory Services) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment advisory services | |||
Revenues from advisory services | $3,464,500,000 | $3,022,600,000 | $2,592,000,000 |
Average assets under management | 724,700,000,000 | 633,800,000,000 | 549,400,000,000 |
Period end assets under management | 746,800,000,000 | 692,400,000,000 | |
Sponsored U.S. mutual funds [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 2,485,800,000 | 2,126,100,000 | 1,790,300,000 |
Average assets under management | 460,900,000,000 | 391,200,000,000 | 326,600,000,000 |
Period end assets under management | 477,600,000,000 | 435,300,000,000 | |
Sponsored U.S. mutual funds [Member] | Stock and blended asset [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 2,086,000,000 | 1,759,700,000 | 1,437,600,000 |
Average assets under management | 359,300,000,000 | 299,100,000,000 | 241,600,000,000 |
Period end assets under management | 373,000,000,000 | 341,700,000,000 | |
Sponsored U.S. mutual funds [Member] | Bond and money market [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 399,800,000 | 366,400,000 | 352,700,000 |
Average assets under management | 101,600,000,000 | 92,100,000,000 | 85,000,000,000 |
Period end assets under management | 104,600,000,000 | 93,600,000,000 | |
Other investment portfolios [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 978,700,000 | 896,500,000 | 801,700,000 |
Average assets under management | 263,800,000,000 | 242,600,000,000 | 222,800,000,000 |
Period end assets under management | 269,200,000,000 | 257,100,000,000 | |
Other investment portfolios [Member] | Stock and blended asset [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 824,500,000 | 735,600,000 | 635,100,000 |
Average assets under management | 201,600,000,000 | 179,300,000,000 | 158,000,000,000 |
Period end assets under management | 206,900,000,000 | 195,300,000,000 | |
Other investment portfolios [Member] | Bond, money market, and stable value [Member] | |||
Investment advisory services | |||
Revenues from advisory services | 154,200,000 | 160,900,000 | 166,600,000 |
Average assets under management | 62,200,000,000 | 63,300,000,000 | 64,800,000,000 |
Period end assets under management | $62,300,000,000 | $61,800,000,000 |
INFORMATION_ABOUT_RECEIVABLES_4
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Revenues and Services Concentration) (Detail) (Geographic concentration [Member]) | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic concentration [Member] | ||
Revenues and services concentration | ||
Concentration risk, additional characteristic | investment advisory clients outside the U.S. | investment advisory clients outside the U.S. |
Concentration risk, percentage | 5.60% | 6.50% |
Concentration risk, benchmark description | assets under management at December 31, 2014 | assets under management at December 31, 2013 |
INFORMATION_ABOUT_RECEIVABLES_5
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Administrative and Distribution Services Provided to Sponsored U.S Mutual Funds) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Administrative and distribution services provided to sponsored U.S. mutual funds | |||
Administrative fees | $374 | $343.70 | $332.60 |
Distribution and servicing fees | 143.6 | 117.2 | 96.1 |
Sponsored U.S. mutual funds [Member] | |||
Administrative and distribution services provided to sponsored U.S. mutual funds | |||
Administrative fees | 296.1 | 264.8 | 258.3 |
Distribution and servicing fees | $143.60 | $117.20 | $96.10 |
INVESTMENTS_IN_SPONSORED_FUNDS2
INVESTMENTS IN SPONSORED FUNDS - AVAILABLE-FOR-SALE. (Investments) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | security | security |
Investments in sponsored funds - available-for-sale | ||
Aggregate cost | $1,613.30 | $1,258.70 |
Unrealized holding gains | 283.4 | 356.1 |
Unrealized holding losses | -12.7 | -2.9 |
Aggregate fair value | 1,884 | 1,611.90 |
Fund holdings with temporary unrealized holding losses (number of securities) | 12 | 6 |
Unrealized holding losses at December 31, 2013 are attributable to fund holdings with an aggregate fair value of | 155.9 | |
Unrealized holding losses at December 31, 2014 are attributable to fund holdings with an aggregate fair value of | 788.5 | |
Stock and blended asset funds [Member] | ||
Investments in sponsored funds - available-for-sale | ||
Aggregate cost | 505.4 | 354.7 |
Unrealized holding gains | 231.4 | 302.5 |
Unrealized holding losses | -4.2 | 0 |
Aggregate fair value | 732.6 | 657.2 |
Bond funds [Member] | ||
Investments in sponsored funds - available-for-sale | ||
Aggregate cost | 1,107.90 | 904 |
Unrealized holding gains | 52 | 53.6 |
Unrealized holding losses | -8.5 | -2.9 |
Aggregate fair value | $1,151.40 | $954.70 |
INVESTMENTS_IN_SPONSORED_FUNDS3
INVESTMENTS IN SPONSORED FUNDS - AVAILABLE-FOR-SALE. (Dividends Earned) (Detail) (Investments in sponsored funds [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments in sponsored funds [Member] | |||
Investment income | |||
Dividends, excluding capital gain distributions | $14.70 | $10.60 | $11.80 |
OTHER_INVESTMENTS_Detail
OTHER INVESTMENTS. (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other investments | ||
U.S. Treasury note | $1,000,000 | $1,000,000 |
Total | 408,300,000 | 313,600,000 |
Deconsolidation value | 25,500,000 | 106,300,000 |
Gain recognized upon deconsolidation | 0 | 0 |
Commitment to make additional contributions to various investment partnerships | 36,600,000 | |
Sponsored mutual fund investments [Member] | ||
Other investments | ||
Investments held as trading | 10,300,000 | 8,500,000 |
Securities held by consolidated sponsored investment portfolios [Member] | ||
Other investments | ||
Investments held as trading | 69,600,000 | 12,500,000 |
26% Interest in UTI Asset Management Company Limited (India) [Member] | ||
Other investments | ||
Equity method investments | 132,400,000 | 122,600,000 |
Equity method investment (ownership percentage) | 26.00% | 26.00% |
Sponsored fund investments [Member] | ||
Other investments | ||
Equity method investments | 125,600,000 | 104,100,000 |
Other equity method investments [Member] | ||
Other investments | ||
Equity method investments | 5,700,000 | 4,800,000 |
10% Interest in Daiwa SB Investments Ltd. (Japan) [Member] | ||
Other investments | ||
Cost method investments | 3,000,000 | 6,600,000 |
Cost method investment (ownership percentage) | 10.00% | 10.00% |
Other cost method investments [Member] | ||
Other investments | ||
Cost method investments | $60,700,000 | $53,500,000 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS. (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair value measurements | ||
Investments in sponsored funds | $1,884 | $1,611.90 |
Level 1 [Member] | ||
Fair value measurements | ||
Total | 3,257.50 | 2,921 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value measurements | ||
Cash equivalents | 1,345.80 | 1,288.10 |
Investments in sponsored funds | 1,884 | 1,611.90 |
Investments held as trading | 27.7 | 21 |
Level 2 [Member] | ||
Fair value measurements | ||
Total | 52.2 | 0 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value measurements | ||
Cash equivalents | 0 | 0 |
Investments in sponsored funds | 0 | 0 |
Investments held as trading | $52.20 | $0 |
PROPERTY_AND_EQUIPMENT_Owned_D
PROPERTY AND EQUIPMENT. (Owned) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property and equipment | |||
Property and equipment, gross | $1,177.40 | $1,084.30 | |
Less accumulated depreciation and amortization | 591 | 511.4 | |
Total | 586.4 | 572.9 | |
Computer and communications software and equipment [Member] | |||
Property and equipment | |||
Property and equipment, gross | 512 | 430.4 | |
Buildings and improvements [Member] | |||
Property and equipment | |||
Property and equipment, gross | 397.1 | 386.6 | |
Leasehold improvements [Member] | |||
Property and equipment | |||
Property and equipment, gross | 93.7 | 93.2 | |
Furniture and other equipment [Member] | |||
Property and equipment | |||
Property and equipment, gross | 131.6 | 131.1 | |
Land [Member] | |||
Property and equipment | |||
Property and equipment, gross | 40.3 | 40.3 | |
Leased land [Member] | |||
Property and equipment | |||
Property and equipment, gross | 2.7 | 2.7 | |
Compensation and related costs attributable to the development of computer software for internal use [Member] | |||
Property and equipment | |||
Property and equipment, additions | $19.60 | $15.50 | $14.90 |
PROPERTY_AND_EQUIPMENT_Leased_
PROPERTY AND EQUIPMENT. (Leased) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases, Operating [Abstract] | |||
Rental expense | $29.30 | $31.50 | $28.30 |
Future minimum operating lease payments | |||
Future minimum operating lease payments, due in 2015 | 26.4 | ||
Future minimum operating lease payments, due in 2016 | 25.1 | ||
Future minimum operating lease payments, due in 2017 | 22.9 | ||
Future minimum operating lease payments, due in 2018 | 23.8 | ||
Future minimum operating lease payments, due in 2019 | 22.5 | ||
Future minimum operating lease payments, due in later years | $119.90 |
INCOME_TAXES_Provision_and_Eff
INCOME TAXES. (Provision and Effective Tax Rate Reconciliation) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income taxes | |||
U.S. federal | $635.80 | $523.30 | $437.30 |
State and local | 126.8 | 92.9 | 73.8 |
Foreign | 16.3 | 20.7 | 31.3 |
Deferred income taxes (tax benefits) | -5.4 | 15.8 | 9.1 |
Total | 773.5 | 652.7 | 551.5 |
Statutory U.S. federal income tax rate (percentage) | 35.00% | 35.00% | 35.00% |
State income taxes for current year, net of federal income tax benefits (percentage) | 4.00% | 3.70% | 3.50% |
Other items (percentage) | -0.40% | -0.30% | -0.10% |
Effective income tax rate (percentage) | 38.60% | 38.40% | 38.40% |
Related to other-than-temporary impairments previously recognized on sponsored fund investments [Member] | |||
Current income taxes | |||
Deferred income taxes (tax benefits) | 4.7 | 4.3 | 14.2 |
Related to accrued compensation [Member] | |||
Current income taxes | |||
Deferred income taxes (tax benefits) | 5.2 | -5.2 | |
Relating to property and equipment [Member] | |||
Current income taxes | |||
Deferred income taxes (tax benefits) | 2 | 5.3 | |
Relating to the recognition of stock-based compensation expense [Member] | |||
Current income taxes | |||
Deferred income taxes (tax benefits) | ($11.20) |
INCOME_TAXES_Net_Deferred_Tax_
INCOME TAXES. (Net Deferred Tax Asset (Liability) and Other Tax Disclosures) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets | |||
Estimated unremitted earnings of foreign subsidiaries, for which a deferred tax liability has not been recognized | $326 | ||
Net income taxes paid included in cash outflows from operating activities | 763.7 | 532.9 | 514.9 |
Additional income tax benefits from stock-based compensation plans activity that reduced the amount of income taxes that would have otherwise been payable | 53.4 | 45.9 | 60.9 |
Income taxes payable [Member] | |||
Deferred tax liabilities | |||
Related to property and equipment | -36.3 | ||
Recognized in other comprehensive income on net unrealized holding gains | -137.5 | ||
Other | -19.4 | ||
Total deferred tax liabilities | -193.2 | ||
Deferred tax assets | |||
Related to stock-based compensation | 136.7 | ||
Related to other-than-temporary impairments of investments in sponsored funds | 30.4 | ||
Related to accrued compensation | 2.9 | ||
Recognized in other comprehensive income on currency translation adjustment | 15 | ||
Other | 5.3 | ||
Total deferred tax assets | 190.3 | ||
Net deferred tax asset (liability) | -2.9 | ||
Other assets [Member] | |||
Deferred tax liabilities | |||
Related to property and equipment | -38.3 | ||
Recognized in other comprehensive income on net unrealized holding gains | -106 | ||
Other | -21.9 | ||
Total deferred tax liabilities | -166.2 | ||
Deferred tax assets | |||
Related to stock-based compensation | 147.9 | ||
Related to other-than-temporary impairments of investments in sponsored funds | 25.7 | ||
Related to accrued compensation | 3 | ||
Recognized in other comprehensive income on currency translation adjustment | 15.7 | ||
Other | 9.9 | ||
Total deferred tax assets | 202.2 | ||
Net deferred tax asset (liability) | 36 | ||
Tax refund receivables | $61.70 | $1.20 |
INCOME_TAXES_Unrecognized_Tax_
INCOME TAXES. (Unrecognized Tax Benefits) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Uncertainties [Abstract] | |||
Balance at beginning of year | $4.80 | $4.90 | $4.70 |
Changes in tax positions related to current year | 1 | 0.7 | 0.9 |
Changes in tax positions related to prior years | -0.2 | 0 | 0.2 |
Changes in tax positions related to expired statute of limitations | 0 | -0.8 | -0.9 |
Balance at end of year | 5.6 | 4.8 | 4.9 |
Net interest payable | $1.30 | $1 |
STOCKHOLDERS_EQUITY_Detail
STOCKHOLDERS' EQUITY. (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 28, 2012 |
Stockholders' Equity Note | ||||
Common shares authorized for future repurchase (shares) | 20,900,804 | |||
Restricted stockholders' equity (dollars) | $95 | |||
Regular cash dividend [Member] | ||||
Stockholders' Equity Note | ||||
Cash dividends declared per share | $1.76 | $1.52 | $1.36 | |
Special dividend [Member] | ||||
Stockholders' Equity Note | ||||
Cash dividends declared per share | $1 | |||
Cash dividends paid per share | $1 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION. (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock options | ||||
Outstanding at December 31, 2013 | 29,761,519 | 31,574,958 | ||
Exercised | -4,924,172 | |||
Forfeited | -448,836 | |||
Expired | -946 | |||
Outstanding at December 31, 2014 | 29,761,519 | 29,761,519 | 31,574,958 | |
Exercisable at December 31, 2014 | 18,631,393 | 18,631,393 | ||
Stock options weighted-average exercise price | ||||
Weighted-average exercise price of options outstanding at December 31, 2013 (in dollars per option) | $56.95 | $52.18 | ||
Weighted-average exercise price of options exercised (in dollars per option) | $42.74 | |||
Weighted-average exercise price of options forfeited (in dollars per option) | $61.37 | |||
Weighted-average exercise price of options expired (in dollars per option) | $52.62 | |||
Weighted-average exercise price of options outstanding at December 31, 2014 (in dollars per option) | $56.95 | $56.95 | $52.18 | |
Weighted-average exercise price of options exercisable at December 31, 2014 (in dollars per option) | $50.14 | $50.14 | ||
Weighted-average remaining contractual term of options outstanding at December 31, 2014 | 5 years 9 months | |||
Weighted-average remaining contractual term of options exercisable at December 31, 2014 | 4 years 6 months | |||
Stock-based compensation expense (dollars) | $133.40 | $114.60 | $104.10 | |
Total intrinsic value of options exercised (dollars) | 196.5 | 182.6 | 239.6 | |
Aggregate intrinsic value of in-the-money options outstanding (dollars) | 860.5 | 860.5 | ||
Aggregate intrinsic value of options exercisable (dollars) | 665.4 | 665.4 | ||
Restricted shares and stock units weighted-average fair value | ||||
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2013 (in dollars per share) | $72.79 | $67.21 | ||
Weighted-average fair value of restricted shares and restricted stock units vested (in dollars per share) | $64.78 | |||
Weighted-average fair value of restricted shares and restricted stock units forfeited (in dollars per share) | $69.29 | |||
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2014 (in dollars per share) | $72.79 | $72.79 | $67.21 | |
Value at vest date (dollars) | 58.6 | |||
Vested restricted stock units | 48,262 | 48,262 | ||
Future stock-based compensation expense. | ||||
First quarter 2015 (dollars) | 29 | 29 | ||
Second quarter 2015 (dollars) | 28.7 | 28.7 | ||
Third quarter 2015 (dollars) | 28.4 | 28.4 | ||
Fourth quarter 2015 (dollars) | 24.9 | 24.9 | ||
Total 2015 (dollars) | 111 | 111 | ||
2016 through 2019 (dollars) | 116 | 116 | ||
Total (dollars) | 227 | 227 | ||
Time based [Member] | ||||
Restricted shares and stock units weighted-average fair value | ||||
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $80.17 | |||
Stock option [Member] | Compensation and related costs [Member] | ||||
Stock options weighted-average exercise price | ||||
Stock-based compensation expense (dollars) | 63.4 | 64.2 | 74.5 | |
Restricted shares [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 1,877,086 | |||
Vested (value at vest date was $58.6 million) | -469,469 | |||
Forfeited | -117,193 | |||
Nonvested at December 31, 2014 | 2,061,559 | 2,061,559 | ||
Restricted shares [Member] | Time based [Member] | ||||
Stock awards | ||||
Granted | 759,135 | |||
Restricted shares [Member] | Performance based [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 45,600 | |||
Nonvested at December 31, 2014 | 45,600 | 45,600 | ||
Restricted shares [Member] | Performance based [Member] | Performance threshold met [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 33,600 | |||
Nonvested at December 31, 2014 | 33,600 | 33,600 | ||
Restricted stock units [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 823,593 | |||
Vested (value at vest date was $58.6 million) | -230,268 | |||
Forfeited | -28,217 | |||
Nonvested at December 31, 2014 | 1,006,753 | 1,006,753 | ||
Restricted stock units [Member] | Time based [Member] | ||||
Stock awards | ||||
Granted | 374,445 | |||
Restricted stock units [Member] | Performance based [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 159,525 | |||
Nonvested at December 31, 2014 | 159,525 | 159,525 | ||
Restricted stock units [Member] | Performance based [Member] | Performance threshold met [Member] | ||||
Stock awards | ||||
Nonvested at December 31, 2013 | 92,325 | |||
Nonvested at December 31, 2014 | 92,325 | 92,325 | ||
Restricted shares and restricted stock units [Member] | Compensation and related costs [Member] | ||||
Stock options weighted-average exercise price | ||||
Stock-based compensation expense (dollars) | $70 | $50.40 | $29.60 | |
Stock-based compensation plan [Member] | ||||
Stock-based compensation | ||||
Shares of unissued common stock authorized for issuance | 44,918,174 | 44,918,174 | ||
Employee stock purchase plan [Member] | ||||
Stock-based compensation | ||||
Shares authorized for issuance | 3,412,508 | 3,412,508 | ||
Employee global long-term incentive plan [Member] | Performance based [Member] | ||||
Restricted shares and stock units weighted-average fair value | ||||
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $80.14 | |||
Employee global long-term incentive plan [Member] | Restricted shares [Member] | Performance based [Member] | ||||
Stock awards | ||||
Granted | 12,000 | |||
Employee global long-term incentive plan [Member] | Restricted stock units [Member] | Performance based [Member] | ||||
Stock awards | ||||
Granted | 67,200 | |||
Employee global long-term incentive plan [Member] | Semiannual [Member] | ||||
Stock options | ||||
Grants | 3,506,465 | |||
Stock options weighted-average exercise price | ||||
Weighted-average exercise price of option grants (in dollars per option) | $80.15 | |||
Employee global long-term incentive plan [Member] | New hire [Member] | ||||
Stock options | ||||
Grants | 37,250 | |||
Stock options weighted-average exercise price | ||||
Weighted-average exercise price of option grants (in dollars per option) | $80.04 | |||
Non-employee director [Member] | ||||
Stock options | ||||
Grants | 16,800 | |||
Stock options weighted-average exercise price | ||||
Weighted-average exercise price of option grants (in dollars per option) | $80.81 |
EARNINGS_PER_SHARE_CALCULATION2
EARNINGS PER SHARE CALCULATIONS. (Detail) (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 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $315.90 | $303.60 | $305.80 | $304.30 | $287.70 | $270.30 | $247.80 | $241.90 | $1,229.60 | $1,047.70 | $883.60 |
Less net income allocated to outstanding restricted stock and stock unit holders (basic) | -14.2 | -9.3 | -5.5 | ||||||||
Less net income allocated to outstanding restricted stock and stock unit holders (diluted) | -14.2 | -9.3 | -5.5 | ||||||||
Net income allocated to common stockholders (basic) | 1,215.40 | 1,038.40 | 878.1 | ||||||||
Net income allocated to common stockholders (diluted) | $1,215.40 | $1,038.40 | $878.10 | ||||||||
Weighted-average common shares | |||||||||||
Outstanding (shares) | 259.6 | 258.3 | 253.4 | ||||||||
Outstanding assuming dilution (shares) | 267.4 | 266.3 | 261 | ||||||||
Weighted-average outstanding stock options excluded (options) | 3.8 | 3.1 | 5.4 |
OTHER_COMPREHENSIVE_INCOME_AND2
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Deferred Tax Benefit (Income Tax) Impact) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax benefits (income taxes) on: | |||
Net unrealized holding gains or losses | $0.80 | ($57.80) | ($39.70) |
Reclassification adjustments | |||
Recognized in the provision for income taxes related to capital gain distributions | 11.9 | 6 | 1.8 |
Recognized in the provision for income taxes related to net gains realized on dispositions | 18.8 | 5.3 | 13.6 |
Recognized in non-operating investment income for net unrealized holding gains derecognized upon the sale of savings bank subsidiary | 0 | 0.6 | 0 |
Net deferred tax benefits (income taxes) on net unrealized holding gains or losses recognized in other comprehensive income | 31.5 | -45.9 | -24.3 |
Deferred tax benefits on currency translation adjustments | 0.7 | 8.3 | 3.7 |
Total deferred tax benefits (income taxes) | $32.20 | ($37.60) | ($20.60) |
OTHER_COMPREHENSIVE_INCOME_AND3
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Accumulated Other Comprehensive Income) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | $188.30 | $131.90 | $102.80 |
Other comprehensive income (loss) before reclassifications and income taxes | -3.7 | 124.4 | 89.5 |
Reclassification adjustments recognized in non-operating investment income | -80.4 | -30.4 | -39.8 |
Other comprehensive income (loss) before income taxes | -84.1 | 94 | 49.7 |
Deferred tax benefits (income taxes) | 32.2 | -37.6 | -20.6 |
Total other comprehensive income (loss) | -51.9 | 56.4 | 29.1 |
Accumulated other comprehensive income | 136.4 | 188.3 | 131.9 |
Net unrealized holding gains (losses) [Member] | |||
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | 216.3 | 144.5 | 108.4 |
Other comprehensive income (loss) before reclassifications and income taxes | -1.9 | 148.1 | 100.2 |
Reclassification adjustments recognized in non-operating investment income | -80.4 | -30.4 | -39.8 |
Other comprehensive income (loss) before income taxes | -82.3 | 117.7 | 60.4 |
Deferred tax benefits (income taxes) | 31.5 | -45.9 | -24.3 |
Total other comprehensive income (loss) | -50.8 | 71.8 | 36.1 |
Accumulated other comprehensive income | 165.5 | 216.3 | 144.5 |
Net unrealized holding gains (losses) [Member] | Investments in sponsored funds [Member] | |||
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | 216 | 142.3 | 106.3 |
Other comprehensive income (loss) before reclassifications and income taxes | -2.1 | 149.7 | 99.9 |
Reclassification adjustments recognized in non-operating investment income | -80.4 | -28.8 | -39.8 |
Other comprehensive income (loss) before income taxes | -82.5 | 120.9 | 60.1 |
Deferred tax benefits (income taxes) | 31.5 | -47.2 | -24.1 |
Total other comprehensive income (loss) | -51 | 73.7 | 36 |
Accumulated other comprehensive income | 165 | 216 | 142.3 |
Net unrealized holding gains (losses) [Member] | Debt securities held by savings bank subsidiary [Member] | |||
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | 0 | 1.9 | 1.9 |
Other comprehensive income (loss) before reclassifications and income taxes | 0 | -1.6 | 0.1 |
Reclassification adjustments recognized in non-operating investment income | 0 | -1.6 | 0 |
Other comprehensive income (loss) before income taxes | 0 | -3.2 | 0.1 |
Deferred tax benefits (income taxes) | 0 | 1.3 | -0.1 |
Total other comprehensive income (loss) | 0 | -1.9 | 0 |
Accumulated other comprehensive income | 0 | 0 | 1.9 |
Net unrealized holding gains (losses) [Member] | Proportionate share of investments held by UTI [Member] | |||
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | 0.3 | 0.3 | 0.2 |
Other comprehensive income (loss) before reclassifications and income taxes | 0.2 | 0 | 0.2 |
Reclassification adjustments recognized in non-operating investment income | 0 | 0 | 0 |
Other comprehensive income (loss) before income taxes | 0.2 | 0 | 0.2 |
Deferred tax benefits (income taxes) | 0 | 0 | -0.1 |
Total other comprehensive income (loss) | 0.2 | 0 | 0.1 |
Accumulated other comprehensive income | 0.5 | 0.3 | 0.3 |
Currency translation adjustment [Member] | |||
Changes in each component of accumulated other comprehensive income | |||
Accumulated other comprehensive income | -28 | -12.6 | -5.6 |
Other comprehensive income (loss) before reclassifications and income taxes | -1.8 | -23.7 | -10.7 |
Reclassification adjustments recognized in non-operating investment income | 0 | 0 | 0 |
Other comprehensive income (loss) before income taxes | -1.8 | -23.7 | -10.7 |
Deferred tax benefits (income taxes) | 0.7 | 8.3 | 3.7 |
Total other comprehensive income (loss) | -1.1 | -15.4 | -7 |
Accumulated other comprehensive income | ($29.10) | ($28) | ($12.60) |
OTHER_DISCLOSURES_Retirement_P
OTHER DISCLOSURES. (Retirement Plans) (Detail) (Compensation and related costs [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and related costs [Member] | |||
Retirement Plans | |||
Expense recognized for defined contribution retirement plans | $70.60 | $61.80 | $58.20 |
OTHER_DISCLOSURES_Savings_Bank
OTHER DISCLOSURES. (Savings Bank Subsidiary Sale) (Details) (Savings bank subsidiary [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Savings bank subsidiary | |
Capital stock of subsidiary sold (percentage) | 100.00% |
Proceeds from sale of subsidiary | $23,600,000 |
Non-operating investment income [Member] | Portion of purchase price in excess of subsidiary net book value [Member] | |
Savings bank subsidiary | |
Gain recognized | 500,000 |
Non-operating investment income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |
Savings bank subsidiary | |
Gain recognized | $1,000,000 |
SUPPLEMENTARY_QUARTERLY_FINANC2
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). (Detail) (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 Information [Abstract] | |||||||||||
Net revenues | $1,022.40 | $1,020.80 | $984.30 | $954.60 | $929.80 | $884.40 | $854.30 | $815.70 | $3,982.10 | $3,484.20 | $3,022.50 |
Net income | $315.90 | $303.60 | $305.80 | $304.30 | $287.70 | $270.30 | $247.80 | $241.90 | $1,229.60 | $1,047.70 | $883.60 |
Basic earnings on common stock | $1.21 | $1.15 | $1.16 | $1.16 | $1.10 | $1.03 | $0.95 | $0.93 | $4.68 | $4.02 | $3.47 |
Diluted earnings on common stock | $1.18 | $1.12 | $1.13 | $1.12 | $1.06 | $1 | $0.92 | $0.91 | $4.55 | $3.90 | $3.36 |