Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 25, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | PRICE T ROWE GROUP INC | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 243,433,151 | |
Entity Central Index Key | 1,113,169 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 1,401 | $ 1,172.3 |
Accounts receivable and accrued revenue | 446.9 | 446 |
Investments | 1,214.9 | 1,961.2 |
Assets of consolidated sponsored investment portfolios ($0 and $1,917.3 million, respectively, related to variable interest entities) | 2,134 | 57.7 |
Property and equipment, net | 615.6 | 607.1 |
Goodwill | 665.7 | 665.7 |
Other assets | 245.4 | 196.9 |
Total assets | 6,723.5 | 5,106.9 |
LIABILITIES | ||
Accounts payable and accrued expenses | 205 | 170.6 |
Liabilities of consolidated sponsored investment portfolios ($0 and $41.1 million, respectively, related to variable interest entities) | 52.5 | 0 |
Accrued compensation and related costs | 478 | 153.1 |
Income taxes payable | 40.4 | 21.2 |
Total liabilities | 775.9 | 344.9 |
Commitments and contingent liabilities | ||
Redeemable non-controlling interests | 1,113.9 | 0 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, undesignated, $.20 par value – authorized and unissued 20,000,000 shares | 0 | 0 |
Common stock, $.20 par value - authorized 750,000,000; issued 250,469,000 shares at December 31, 2015, and 244,829,000 at September 30, 2016 | 49 | 50.1 |
Additional capital in excess of par value | 654.5 | 654.6 |
Retained earnings | 4,096.9 | 3,970.7 |
Accumulated other comprehensive income | 33.3 | 86.6 |
Total stockholders’ equity | 4,833.7 | 4,762 |
Total liabilities, redeemable non-controlling interests, and stockholders’ equity | $ 6,723.5 | $ 5,106.9 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Assets of consolidated sponsored investment portfolios | $ 2,134 | $ 57.7 |
Liabilities of consolidated sponsored investment portfolios | $ 52.5 | $ 0 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares outstanding (in shares) | 244,829,000 | 250,469,000 |
Common stock, shares issued (in shares) | 244,829,000 | 250,469,000 |
Variable interest entities [Member] | ||
Assets of consolidated sponsored investment portfolios | $ 1,917.3 | $ 0 |
Liabilities of consolidated sponsored investment portfolios | $ 41.1 | $ 0 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||||
Investment advisory fees | $ 970.5 | $ 922.6 | $ 2,761.9 | $ 2,761.3 |
Administrative fees | 85.7 | 88.3 | 263.6 | 272.9 |
Distribution and servicing fees | 36.7 | 38.1 | 106.2 | 114.2 |
Net revenues | 1,092.9 | 1,049 | 3,131.7 | 3,148.4 |
Operating expenses | ||||
Compensation and related costs | 386.2 | 379.4 | 1,112.4 | 1,086.8 |
Advertising and promotion | 14.7 | 13.2 | 52.7 | 52.7 |
Distribution and servicing costs | 36.7 | 38.1 | 106.2 | 114.2 |
Depreciation and amortization of property and equipment | 34 | 33.1 | 100 | 94.4 |
Occupancy and facility costs | 45.3 | 40.3 | 127.5 | 118.5 |
Other operating expenses | 100.3 | 86.6 | 296.6 | 237.9 |
Nonrecurring charge related to Dell appraisal rights matter | 0 | 0 | 166.2 | 0 |
Total operating expenses | 617.2 | 590.7 | 1,961.6 | 1,704.5 |
Net operating income | 475.7 | 458.3 | 1,170.1 | 1,443.9 |
Non-operating income | ||||
Net investment income on investments | 14.5 | 3.5 | 91.1 | 61.8 |
Net investment income (losses) on consolidated sponsored investment portfolios | 73.8 | (1.5) | 124 | 0.9 |
Other expenses | 0 | (1.7) | (0.2) | (2.6) |
Total non-operating income | 88.3 | 0.3 | 214.9 | 60.1 |
Income before income taxes | 564 | 458.6 | 1,385 | 1,504 |
Provision for income taxes | 201.3 | 181.5 | 497.8 | 584.2 |
Net income | 362.7 | 277.1 | 887.2 | 919.8 |
Less: net income attributable to redeemable non-controlling interests | 34.9 | 0 | 52 | 0 |
Net income attributable to T. Rowe Price Group | $ 327.8 | $ 277.1 | $ 835.2 | $ 919.8 |
Earnings per share on common stock of T. Rowe Price Group | ||||
Basic (in dollars per share) | $ 1.30 | $ 1.08 | $ 3.32 | $ 3.54 |
Diluted (in dollars per share) | 1.28 | 1.06 | 3.25 | 3.45 |
Dividends declared per share (in dollars per share) | $ 0.54 | $ 0.52 | $ 1.62 | $ 3.56 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 362.7 | $ 277.1 | $ 887.2 | $ 919.8 |
Other comprehensive income (loss) | ||||
Net unrealized holding gains (losses) on available-for-sale investments | 10.3 | (54.8) | 9.4 | (32.7) |
Reclassification adjustments recognized in non-operating income: net gains realized on dispositions determined using average cost | 0 | (9.6) | (52.3) | (48.9) |
Reclassification adjustments recognized in non-operating income: other-than-temporary impairments | 0 | 4.8 | 0 | 4.8 |
Total net unrealized holding gains (losses) recognized in other comprehensive income | 10.3 | (59.6) | (42.9) | (76.8) |
Total currency translation adjustments | 13 | 0.2 | 26.2 | (3.9) |
Other comprehensive income (loss) before income taxes | 23.3 | (59.4) | (16.7) | (80.7) |
Net deferred tax benefits (income taxes) | (4.7) | 22.5 | 13.5 | 33.2 |
Total other comprehensive income (loss) | 18.6 | (36.9) | (3.2) | (47.5) |
Total comprehensive income | 381.3 | 240.2 | 884 | 872.3 |
Less: comprehensive income attributable to redeemable non-controlling interests | 46.5 | 0 | 69.6 | 0 |
Comprehensive income attributable to T. Rowe Price Group | 334.8 | 240.2 | 814.4 | 872.3 |
Variable interest entities [Member] | ||||
Other comprehensive income (loss) | ||||
Currency translation adjustments of consolidated sponsored investment portfolios - variable interest entities | 16.8 | (3.1) | 30.8 | (5.2) |
Reclassification loss (gain) recognized in non-operating investment income upon deconsolidation of sponsored fund subsidiary | (1.1) | 5.8 | (1.1) | 5.8 |
Total currency translation adjustments | 15.7 | 2.7 | 29.7 | 0.6 |
Equity method investments [Member] | ||||
Other comprehensive income (loss) | ||||
Total currency translation adjustments | $ (2.7) | $ (2.5) | $ (3.5) | $ (4.5) |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 887.2 | $ 919.8 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization of property and equipment | 100 | 94.4 |
Stock-based compensation expense | 117.9 | 107.4 |
Realized gains on dispositions of available-for-sale sponsored investment portfolios | (52.3) | (48.9) |
Net gains recognized on investments | (28.1) | (3.2) |
Net change in trading securities held by consolidated sponsored investment portfolios | (1,084.1) | (2.5) |
Other changes in assets and liabilities | 327.6 | 326.6 |
Net cash provided by operating activities | 268.2 | 1,393.6 |
Cash flows from investing activities | ||
Purchases of available-for-sale sponsored fund investments | (0.1) | (155.3) |
Dispositions of available-for-sale sponsored fund investments | 89.2 | 227.7 |
Net cash of sponsored investment portfolios on consolidation | 54.3 | 0 |
Additions to property and equipment | (112.5) | (114.6) |
Other investing activity | 79.4 | (6.4) |
Net cash provided by (used in) investing activities | 110.3 | (48.6) |
Cash flows from financing activities | ||
Repurchases of common stock | (525.7) | (820.7) |
Common share issuances under stock-based compensation plans | 88.8 | 61.2 |
Dividends paid to common stockholders of T. Rowe Price Group | (406.6) | (927.2) |
Net subscriptions received from redeemable non-controlling interest holders | 798.2 | 0 |
Net cash used in financing activities | (45.3) | (1,686.7) |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | 0 |
Net change in cash and cash equivalents during period | 315 | (341.7) |
Cash and cash equivalents at beginning of year | 1,172.3 | 1,506.1 |
Cash and cash equivalents at end of period | $ 1,487.3 | $ 1,164.4 |
UNAUDITED CONDENSED CONSOLIDAT7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 1,401 | $ 1,172.3 |
Consolidated sponsored investment portfolios [Member] | ||
Cash and cash equivalents | $ 86.3 |
UNAUDITED CONDENSED CONSOLIDAT8
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Common stock [Member] | Additional capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Restricted shares [Member] | Restricted shares [Member]Common stock [Member] | Restricted shares [Member]Additional capital in excess of par value [Member] | Restricted stock units [Member] | Restricted stock units [Member]Common stock [Member] | Restricted stock units [Member]Additional capital in excess of par value [Member] | New accounting pronouncement, early adoption, effect [Member] | New accounting pronouncement, early adoption, effect [Member]Additional capital in excess of par value [Member] | New accounting pronouncement, early adoption, effect [Member]Retained earnings [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of adopting new accounting guidance | Accounting standards update 2015-02 [Member] | $ 32.5 | $ (32.5) | ||||||||||||
Cumulative effect of adopting new accounting guidance | Accounting standards update 2016-09, forfeiture rate component [Member] | $ 3.9 | $ 12.9 | $ (9) | |||||||||||
Balances, Adjusted | $ 4,765.9 | $ 50.1 | $ 667.5 | 3,994.2 | 54.1 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Reclassification of sponsored investment portfolios upon adoption of new accounting guidance on January 1, 2016 | Accounting standards update 2015-02 [Member] | 672.7 | |||||||||||||
Balances attributable to redeemable non-controlling interest, adjusted | 672.7 | |||||||||||||
Balances (in shares) at Dec. 31, 2015 | 250,469 | |||||||||||||
Balances at Dec. 31, 2015 | 4,762 | $ 50.1 | 654.6 | 3,970.7 | 86.6 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 835.2 | 835.2 | ||||||||||||
Other comprehensive income (loss), net of tax | (20.8) | (20.8) | ||||||||||||
Dividends declared | (406.9) | (406.9) | ||||||||||||
Common stock-based compensation plans activity | ||||||||||||||
Shares issued upon option exercises (shares) | 2,394 | |||||||||||||
Shares issued upon option exercises | 90.3 | $ 0.5 | 89.8 | |||||||||||
Shares issued, net of shares withheld for taxes (shares) | 1 | 36 | ||||||||||||
Shares issued, net of shares withheld for taxes | $ (0.1) | $ 0 | $ (0.1) | $ (0.9) | $ 0 | $ (0.9) | ||||||||
Forfeiture of restricted awards (shares) | (42) | |||||||||||||
Forfeiture of restricted awards | 0 | $ 0 | ||||||||||||
Stock-based compensation expense | 117.9 | 117.9 | ||||||||||||
Restricted stock units issued as dividend equivalents | 0 | 0 | 0 | |||||||||||
Common shares repurchased (shares) | (8,029) | |||||||||||||
Common shares repurchased | (546.9) | $ (1.6) | (219.7) | (325.6) | ||||||||||
Balances (in shares) at Sep. 30, 2016 | 244,829 | |||||||||||||
Balances at Sep. 30, 2016 | 4,833.7 | $ 49 | $ 654.5 | $ 4,096.9 | $ 33.3 | |||||||||
Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2015 | 0 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Net income attributable to redeemable non-controlling interests | 52 | |||||||||||||
Other comprehensive income (loss), net of tax, portion attributable to noncontrolling interest | 17.6 | |||||||||||||
Net subscriptions into sponsored investment portfolios | 770.2 | |||||||||||||
Net deconsolidations of sponsored investment portfolios | (398.6) | |||||||||||||
Ending balances attributable to redeemable non-controlling interests at Sep. 30, 2016 | $ 1,113.9 |
THE COMPANY AND BASIS OF PREPAR
THE COMPANY AND BASIS OF PREPARATION. | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND BASIS OF PREPARATION | THE COMPANY AND BASIS OF PREPARATION. T. Rowe Price Group (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, including separately managed accounts, subadvised funds, and other sponsored 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. These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States, which require the use of estimates and reflect all adjustments that are, in the opinion of management, necessary to a fair statement of our results for the interim periods presented. All such adjustments are of a normal recurring nature. Actual results may vary from our estimates. Certain prior year amounts have been reclassified to conform to the 2016 presentation. The unaudited interim financial information contained in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our 2015 Annual Report. NEW ACCOUNTING GUIDANCE. We implemented Accounting Standards Update No. 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis on January 1, 2016, which did not require the restatement of prior year periods. In connection with the adoption of this guidance, we reevaluated all of our investments for consolidation, including our investments in sponsored investment portfolios. The adoption of the guidance resulted in sponsored investment products regulated outside the U.S. previously accounted for as voting interest entities (VOE) to be evaluated as variable interest entities (VIE) and led to the consolidation of an additional 24 portfolios that were previously accounted for as available-for-sale securities. The adoption also resulted in the consolidation of an additional eight U.S. sponsored investment portfolios that were previously accounted for as available-for sale-securities. The impact to the condensed consolidated balance sheet upon adoption was the consolidation of $1.6 billion of assets, $21.3 million of liabilities, and $672.7 million of non-controlling interests. We also reclassified $32.5 million in accumulated comprehensive income to retained earnings. The consolidation guidance provides a scope exception for reporting entities with interests in legal entities that are required to comply with, or operate in accordance with, requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Additional disclosures relating to consolidated voting interest entities and variable interest entities, and the impact the new accounting guidance has had on the quarter and year-to-date period are included in Note 5. We early adopted Accounting Standards Update No. 2016-09 - Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting on July 1, 2016, which required adjustments to be reflected as of January 1, 2016. The amendments in this update change the accounting for certain aspects of stock-based compensation awards, including the accounting for income taxes upon settlement of awards, the classification of cash flows associated with awards, and the accounting for award forfeitures. The primary impact of early adoption was the recognition in our provision for income taxes for the nine-month period ended September 30, 2016, of excess tax benefits over financial statement expense totaling $16.9 million , or $.06 in diluted earnings per share, that was previously recognized in additional paid in capital during the first half of 2016. We also elected to account for forfeitures of stock-based compensation awards as they occur; therefore, we reversed forfeiture estimates, net of tax, of $9.0 million recognized prior to January 1, 2016, as a cumulative effect adjustment to our condensed consolidated balance sheet, resulting in a reduction of retained earnings of $9.0 million and an increase of other assets and additional paid in capital balances totaling $3.9 million and $12.9 million , respectively. Lastly, the guidance requires excess tax benefits from share-based compensation awards to be reported as operating activities in the consolidated statements of cash flows rather than financing activities. As permitted by the guidance, we elected to apply this guidance retrospectively and have reclassified $22.1 million in excess tax benefits previously disclosed as a financing activity in the statement of cash flows for the nine-month period ended September 30, 2015, to operating activities. CONSOLIDATION. Our condensed consolidated financial statements include the accounts of all subsidiaries and sponsored investment portfolios in which we have a controlling interest. We are generally deemed to have a controlling interest when we own the majority of the voting interest of an entity or are deemed to be the primary beneficiary of a VIE. We perform an analysis of our investments to determine if the investment entity is a VOE or VIE. Our analysis involves judgment and considers several factors, including an entity’s legal organization, capital structure, the rights of the equity investment holders, our ownership interest in the entity, and our contractual involvement with the entity. We continually review and reconsider our VIE or VOE conclusions upon the occurrence of certain events, such as changes to our ownership interest, changes to an entity’s legal structure, or amendments to governing documents. All material accounts and transactions between consolidated entities are eliminated in consolidation. Upon consolidation of sponsored investment portfolios, the Company retains the specialized investment company accounting principles of the underlying funds. All of the underlying investments held by these portfolios are carried at fair value with corresponding changes in the investments’ fair values reflected in non-operating income (expense) on the condensed consolidated statements of income. Variable interest entities VIEs are entities that, by design (i ) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, the obligation to absorb the entity’s losses, or the rights to receive the entity’s residual returns. We consolidate a VIE when we are the primary beneficiary, which is the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the VIE that could potentially be significant. Our Luxembourg-based SICAV (Société d'Investissement à Capital Variable) funds and other sponsored investment portfolios regulated outside the U.S. are determined to be VIEs. Along with VIEs that we consolidate, we also hold variable interests in other VIEs, including several investment partnerships, that are not consolidated because we are not the primary beneficiary. Redeemable non-controlling interests We recognize redeemable non-controlling interests for the portion of the net assets of our consolidated sponsored investment portfolios held by unrelated third party investors as their interest is convertible to cash and other assets at their option. As such, we reflect redeemable non-controlling interests as temporary equity in our condensed consolidated balance sheet. |
INFORMATION ABOUT RECEIVABLES,
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. | 9 Months Ended |
Sep. 30, 2016 | |
Information about Receivables, Revenues, and Services [Abstract] | |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES | INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. Accounts receivable from our sponsored investment portfolios, including our U.S. mutual funds, for advisory fees and advisory-related administrative services aggregate $287.1 million at December 31, 2015 , and $291.3 million at September 30, 2016 . Revenues (in millions) from advisory services provided under agreements with our sponsored U.S. mutual funds and other investment clients include: Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Sponsored U.S. mutual funds Stock and blended asset $ 563.0 $ 579.3 $ 1,681.7 $ 1,649.9 Bond and money market 107.8 124.2 318.0 354.8 670.8 703.5 1,999.7 2,004.7 Other investment portfolios Stock and blended asset 212.2 222.2 645.2 630.4 Bond, money market, and stable value 39.6 44.8 116.4 126.8 251.8 267.0 761.6 757.2 Total $ 922.6 $ 970.5 $ 2,761.3 $ 2,761.9 Other investment portfolios include advisory revenues of $93.5 million and $101.1 million for the three months ended September 30, 2015 and 2016 , respectively, that were earned on other sponsored investment portfolios. Fees earned during the nine months ended September 30, 2015 and 2016 , total $273.9 million and $283.3 million , respectively. We voluntarily waived $11.6 million and $2.1 million in money market related fees, including advisory fees and fund expenses, in the third quarter of 2015 and 2016 , respectively, in order to maintain a positive yield for investors. Fees waived during the nine months ended September 30, 2015 and 2016 , total $37.8 million and $9.4 million , respectively. The following table summarizes the investment portfolios and assets under management (in billions) on which we earn advisory fees. Average during Average during the third quarter of the first nine months of 2015 2016 2015 2016 Sponsored U.S. mutual funds Stock and blended asset $ 386.0 $ 399.3 $ 388.8 $ 381.5 Bond and money market 105.7 112.0 106.2 108.2 491.7 511.3 495.0 489.7 Other investment portfolios Stock and blended asset 207.2 218.2 210.3 208.2 Bond, money market, and stable value 64.2 74.1 63.3 70.4 271.4 292.3 273.6 278.6 Total $ 763.1 $ 803.6 $ 768.6 $ 768.3 As of 12/31/2015 9/30/2016 Sponsored U.S. mutual funds Stock and blended asset $ 383.0 $ 403.1 Bond and money market 104.1 113.9 487.1 517.0 Other investment portfolios Stock and blended asset 209.8 220.5 Bond, money market, and stable value 66.2 75.4 276.0 295.9 Total $ 763.1 $ 812.9 Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 4.9% and 5.0% of our assets under management at December 31, 2015 , and September 30, 2016 , respectively. The following table summarizes the other fees (in millions) earned from our sponsored U.S. mutual funds. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Administrative fees $ 71.2 $ 66.6 $ 221.8 $ 208.6 Distribution and servicing fees $ 38.1 $ 36.7 $ 114.2 $ 106.2 |
INVESTMENTS.
INVESTMENTS. | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS. The carrying values of investments (in millions) we do not consolidate are as follows: 12/31/2015 9/30/2016 Available-for-sale sponsored investment portfolios $ 1,612.3 $ 694.3 Equity method investments Sponsored investment portfolios 113.7 245.9 26% interest in UTI Asset Management Company Limited (India) 132.8 135.4 Investment partnerships 6.2 5.8 Sponsored investment portfolios held as trading 25.8 59.4 Cost method investments 69.4 73.1 U.S. Treasury note 1.0 1.0 Total $ 1,961.2 $ 1,214.9 In connection with the adoption of the new consolidation accounting guidance on January 1, 2016, we reevaluated all of our investments for consolidation, including our investments in sponsored investment portfolios. We determined that our interests in a number of our available-for-sale holdings held at December 31, 2015, were deemed controlling interests under the new accounting standard and resulted in these sponsored investment portfolios being consolidated on January 1, 2016. During the first nine months of 2015 and 2016, certain sponsored investment portfolios in which we provided initial seed capital at the time of formation were deconsolidated, as we no longer had a controlling interest. Additionally, during 2016 a sponsored investment portfolio that was being accounted for as an equity method investment was consolidated, as we regained a controlling interest. The net impact of these changes on our condensed consolidated balance sheet in 2016 was a net reduction of portfolio assets of $678.3 million , liabilities of $31.0 million and redeemable non-controlling interests of $398.6 million , which represent the carrying values on the date the portfolios were deconsolidated or consolidated. The impact of deconsolidation on our consolidated balance sheet in 2015 was immaterial. The impact of deconsolidating certain sponsored investment portfolios on our condensed consolidated statement of income during the first nine months of 2015 and 2016 was a loss of $5.8 million and a gain of $1.1 million , respectively. These losses and gains were the result of reclassifying currency translation adjustments accumulated on investment portfolios’ with non-USD functional currencies from accumulated other comprehensive income to non-operating income. Since the remaining consolidated investment portfolios’ functional currency in 2016 was U.S. dollars and carried at fair value, we did not recognize any additional gain or loss in our consolidated statement of income upon deconsolidation. Depending on our ownership interest, we are now reporting our residual interests in deconsolidated sponsored investment portfolios as either equity method or available-for-sale investments. AVAILABLE-FOR-SALE SPONSORED INVESTMENT PORTFOLIOS. The available-for-sale sponsored investment portfolios (in millions) include: Aggregate cost Unrealized holding Aggregate fair value gains losses December 31, 2015 Stock and blended asset funds $ 428.6 $ 180.3 $ (9.1 ) $ 599.8 Bond funds 990.5 39.1 (17.1 ) 1,012.5 Total $ 1,419.1 $ 219.4 $ (26.2 ) $ 1,612.3 September 30, 2016 Stock and blended asset funds $ 165.4 $ 97.3 $ (.1 ) $ 262.6 Bond funds 428.4 4.8 (1.5 ) 431.7 Total $ 593.8 $ 102.1 $ (1.6 ) $ 694.3 The following table details the number of holdings, the unrealized holding losses, and the aggregate fair value of available-for-sale sponsored investment portfolios with unrealized losses categorized by the length of time they have been in a continuous unrealized loss position: Number of holdings Unrealized holding losses Aggregate December 31, 2015 Less than 12 months 18 $ (15.8 ) $ 419.6 12 months or more 4 (10.4 ) 298.6 Total 22 $ (26.2 ) $ 718.2 September 30, 2016 Less than 12 months 4 $ (.1 ) $ 25.2 12 months or more 2 (1.5 ) 171.0 Total 6 $ (1.6 ) $ 196.2 In addition to the duration of the impairments, we reviewed the severity of the impairment as well as our intent and ability to hold the investments for a period of time sufficient for an anticipated recovery in fair value. Accordingly, impairment of these investment holdings is considered temporary at December 31, 2015 and September 30, 2016 . VARIABLE INTEREST ENTITIES. Our investments at September 30, 2016 , include $111.3 million of investments in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities at September 30, 2016 , is $164.5 million , which includes our carrying value, any unfunded capital commitments, and uncollected investment advisory and administrative fees. |
FAIR VALUE MEASUREMENTS.
FAIR VALUE MEASUREMENTS. | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS. We determine the fair value of our cash equivalents and certain 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 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 transfers between the levels. The following table summarizes our investments (in millions) that are recognized in our condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. Level 1 Level 2 December 31, 2015 Cash equivalents $ 997.5 $ — Available-for-sale sponsored investment portfolios 1,612.3 — Sponsored investment portfolios held as trading 25.8 — Total $ 2,635.6 $ — September 30, 2016 Cash equivalents $ 1,183.6 $ — Available-for-sale sponsored investment portfolios 694.3 — Sponsored investment portfolios held as trading 56.6 2.8 Total $ 1,934.5 $ 2.8 The table above excludes investments held by consolidated sponsored investment portfolios which are presented separately on our condensed consolidated balance sheets and are detailed in Note 5. |
CONSOLIDATED SPONSORED INVESTME
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. | 9 Months Ended |
Sep. 30, 2016 | |
Consolidated Sponsored Investment Portfolios [Abstract] | |
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS | CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. The sponsored investment portfolios that we consolidate in our condensed consolidated financial statements are generally those products we provided initial seed capital at the time of their formation and have a controlling interest. Our U.S. sponsored investment portfolios are considered voting interest entities, while those regulated outside the U.S. are considered variable interest entities. The following table details the net assets of the consolidated sponsored investment portfolios at September 30, 2016 . Voting interest entities Variable interest entities Total Cash and cash equivalents $ 12.6 $ 73.7 $ 86.3 Investments 200.1 1,815.5 2,015.6 Other assets 4.0 28.1 32.1 Total assets 216.7 1,917.3 2,134.0 Liabilities 11.4 41.1 52.5 Net assets $ 205.3 $ 1,876.2 $ 2,081.5 Attributable to redeemable non-controlling interests $ 64.5 $ 1,049.4 $ 1,113.9 Attributable to T. Rowe Price Group 140.8 826.8 967.6 $ 205.3 $ 1,876.2 $ 2,081.5 Although we can redeem our net interest in these sponsored investment portfolios at any time, we cannot directly access or sell the assets held by the portfolios to obtain cash for general operations. Additionally, the assets of these investment portfolios are not available to our general creditors. Since third party investors in these investment funds have no recourse to our credit, our overall risk related to the net assets of consolidated sponsored investment portfolios is limited to valuation changes associated with our net interest. We, however, are required to recognize the valuation changes associated with all underlying investments held by these portfolios in our condensed consolidated statements of income, and disclose the portion attributable to third party investors as net income attributable to redeemable non-controlling interests. The operating results (in millions) of the consolidated sponsored investment portfolios for the three- and nine- months ended September 30, 2016 , are reflected in our condensed consolidated statement of income as follows: Three months ended 9/30/2016 Nine months ended 9/30/2016 Voting Variable interest entities Total Voting Variable interest entities Total Operating expenses reflected in net operating income $ (.4 ) $ (3.4 ) $ (3.8 ) $ (1.2 ) $ (8.7 ) $ (9.9 ) Net investment income reflected in non-operating income 8.7 65.1 73.8 20.8 103.2 124.0 Impact on income before taxes $ 8.3 $ 61.7 $ 70.0 $ 19.6 $ 94.5 $ 114.1 Net income attributable to T. Rowe Price Group $ 6.2 $ 28.9 $ 35.1 $ 13.9 $ 48.2 $ 62.1 Net income attributable to redeemable non-controlling interests 2.1 32.8 34.9 5.7 46.3 52.0 $ 8.3 $ 61.7 $ 70.0 $ 19.6 $ 94.5 $ 114.1 The operating expenses of these consolidated portfolios are reflected in other operating expenses. For the three- and nine- months ended September 30, 2016 , we eliminated $2.2 million and $5.3 million , respectively, of these expenses against our investment advisory and administrative fees earned in preparing our condensed consolidated financial statements. The net investment income reflected in non-operating income includes dividend and interest income, and realized and unrealized gains and losses on the underlying securities held by the consolidated sponsored investment portfolios. The table below details the impact of these consolidated investment portfolios on the individual lines of our condensed consolidated statement of cash flows (in millions) for the nine months ended September 30, 2016 . Nine months ended 9/30/2016 Voting Variable interest entities Total Net cash provided by (used in) operating activities $ (48.0 ) $ (915.1 ) $ (963.1 ) Net cash provided by (used in) investing activities 22.2 32.1 54.3 Net cash provided by (used in) financing activities 38.4 974.9 1,013.3 Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios — (18.2 ) (18.2 ) Net change in cash and cash equivalents during period 12.6 73.7 86.3 Cash and cash equivalents at beginning of year — — — Cash and cash equivalents at end of period $ 12.6 $ 73.7 $ 86.3 The net cash provided by (used in) financing activities during the first nine months of 2016 includes $215.1 million of net subscriptions we made into the consolidated sponsored investment portfolios, net of dividends received. These cash flows were eliminated in consolidation. FAIR VALUE MEASUREMENTS. We determine the fair value of investments held by consolidated sponsored investment portfolios 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 investments using Level 3 inputs. These levels are not necessarily an indication of the risk or liquidity associated with these investment holdings. There have been no material transfers between the levels. The following table summarizes the investment holdings held by our consolidated sponsored investment portfolios (in millions) using fair value measurements determined based on the differing levels of inputs. Level 1 Level 2 December 31, 2015 Assets Equity securities $ 2.8 $ 11.2 Fixed income securities — 43.0 Other investments .7 — $ 3.5 $ 54.2 September 30, 2016 Assets Cash equivalents $ 10.8 $ 1.9 Equity securities 282.0 347.3 Fixed income securities — 1,367.6 Other investments .2 18.5 $ 293.0 $ 1,735.3 Liabilities $ (.5 ) $ (5.8 ) |
STOCKHOLDERS' EQUITY.
STOCKHOLDERS' EQUITY. | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY. Regular cash dividends declared per share during the first nine months of 2015 and 2016 were $1.56 and $1.62 , respectively. A $2.00 per share special dividend was also declared and paid in the first nine months of 2015. At September 30, 2016 , a liability of $21.2 million is included in accounts payable and accrued expenses for common stock repurchases that settled by October 5, 2016. |
STOCK-BASED COMPENSATION.
STOCK-BASED COMPENSATION. | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION. STOCK OPTIONS. The following table summarizes the status of, and changes in, our stock options during the first nine months of 2016 . Options Weighted- average exercise price Outstanding at December 31, 2015 30,818,229 $ 59.24 Non-employee director grants 13,050 $ 75.29 Exercised (3,116,764 ) $ 46.03 Forfeited (365,287 ) $ 71.78 Expired (29,827 ) $ 75.18 Outstanding at September 30, 2016 27,319,401 $ 60.58 Exercisable at September 30, 2016 16,760,572 $ 53.41 RESTRICTED SHARES AND STOCK UNITS. The following table summarizes the status of, and changes in, our nonvested restricted shares and restricted stock units during the first nine months of 2016 . Restricted shares Restricted stock units Weighted-average fair value Nonvested at December 31, 2015 1,470,827 2,216,431 $ 74.66 Time-based grants 2,600 2,756,079 $ 69.65 Performance-based grants — 259,312 $ 69.94 Vested (23,677 ) (49,716 ) $ 73.53 Forfeited (41,867 ) (76,321 ) $ 74.70 Nonvested at September 30, 2016 1,407,883 5,105,785 $ 72.36 Nonvested at September 30, 2016 , includes 21,600 performance-based restricted shares and 453,923 performance-based restricted stock units. These performance-based restricted shares and units include 21,600 restricted shares and 167,340 restricted stock units for which the performance period has lapsed and the performance threshold has been met. 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 awards outstanding at September 30, 2016 . Estimated future compensation expense will change to reflect future option grants, future awards of unrestricted shares and restricted stock units, changes in the probability of performance thresholds being met, and adjustments for actual forfeitures. Fourth quarter 2016 $ 47.2 2017 146.2 2018 through 2021 157.6 Total $ 351.0 |
EARNINGS PER SHARE CALCULATIONS
EARNINGS PER SHARE CALCULATIONS. | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS. The following table presents the reconciliation (in millions) of net income attributable to T. Rowe Price Group 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 reflect the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Net income attributable to T. Rowe Price Group $ 277.1 $ 327.8 $ 919.8 $ 835.2 Less: net income allocated to outstanding restricted stock and stock unit holders 4.1 7.3 11.8 17.1 Net income allocated to common stockholders $ 273.0 $ 320.5 $ 908.0 $ 818.1 Weighted-average common shares Outstanding 252.7 245.6 256.3 246.4 Outstanding assuming dilution 258.6 250.1 262.9 251.5 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. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Weighted-average outstanding stock options excluded 6.9 10.3 5.7 9.9 |
OTHER COMPREHENSIVE INCOME AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. The following table presents the impact of the components (in millions) of other comprehensive income or loss on deferred tax benefits (income taxes). Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Net deferred tax benefits (income taxes) on: Net unrealized holding gains or losses $ 21.0 $ (4.0 ) $ 15.5 $ (3.6 ) Reclassification adjustments recognized in the provision for income taxes: Net gains realized on dispositions 3.5 — 18.2 20.6 Other-than-temporary impairments (1.9 ) — (1.9 ) — Net deferred tax benefits (income taxes) on net unrealized holding gains or losses 22.6 (4.0 ) 31.8 17.0 Currency translation adjustments 1.1 (1.1 ) 2.6 (3.9 ) Reclassification adjustment recognized in the provision for income taxes upon deconsolidation of sponsored fund subsidiary (1.2 ) .4 (1.2 ) .4 Total deferred tax benefits (income taxes) on currency translation adjustments (.1 ) (.7 ) 1.4 (3.5 ) Total net deferred tax benefits (income taxes) $ 22.5 $ (4.7 ) $ 33.2 $ 13.5 The changes (in millions) in each component of accumulated other comprehensive income, including reclassification adjustments for the first nine months of 2016 are presented in the table below. Currency translation adjustments Net unrealized holding gains Equity method investments Consolidated sponsored investment portfolios - variable interest entities Total currency translation adjustments Total Balances at December 31, 2015 $ 120.3 $ (30.9 ) $ (2.8 ) $ (33.7 ) $ 86.6 Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance (32.0 ) (.5 ) — (.5 ) (32.5 ) Balance at January 1, 2016 88.3 (31.4 ) (2.8 ) (34.2 ) 54.1 Other comprehensive income (loss) before reclassifications and income taxes 9.4 (3.5 ) 13.2 9.7 19.1 Reclassification adjustments recognized in non-operating income (52.3 ) — (1.1 ) (1.1 ) (53.4 ) (42.9 ) (3.5 ) 12.1 8.6 (34.3 ) Net deferred tax benefits (income taxes) 17.0 1.2 (4.7 ) (3.5 ) 13.5 Other comprehensive income (loss) (25.9 ) (2.3 ) 7.4 5.1 (20.8 ) Balances at September 30, 2016 $ 62.4 $ (33.7 ) $ 4.6 $ (29.1 ) $ 33.3 |
DELL APPRAISAL RIGHTS MATTER.
DELL APPRAISAL RIGHTS MATTER. | 9 Months Ended |
Sep. 30, 2016 | |
Unusual or Infrequent Items, or Both [Abstract] | |
DELL APPRAISAL RIGHTS MATTER | DELL APPRAISAL RIGHTS MATTER. During the second quarter of 2016, we recognized a nonrecurring operating charge of $166.2 million to compensate certain T. Rowe Price mutual funds, trusts, separately managed accounts, and subadvised clients (collectively, “Clients”) for the difference in valuation plus statutory interest, resulting from the denial of their appraisal rights by the Delaware Chancery Court (Court) in connection with the 2013 leveraged buyout of Dell, Inc. (Dell). The Court ruled on May 11, 2016, that the Clients could not pursue an appraisal of any shares they held that were voted in favor of the Dell merger. The appraisal statute governing the transaction required the record holder to vote against or abstain from voting on the transaction in order to assert appraisal rights. After previously voting against prior transaction proposals, the voting instructions submitted on behalf of the Clients in connection with voting on the final proposed transaction were incorrectly submitted in favor of the transaction. On May 31, 2016, the Court determined that the fair value of Dell at the time of the merger was $17.62 per share, as opposed to the $13.75 price offered in the transaction. As a result, any shareholder perfecting appraisal rights is entitled to a payment at $17.62 per share plus statutory interest from the date the Dell transaction closed. The compensation to Clients was intended to make them whole for the voting discrepancy that resulted in the denial of their appraisal rights. |
SUPPLEMENTARY CONSOLIDATING CAS
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT | SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. The following table summarizes the cash flows (in millions) for the nine months ended September 30, 2016 , that are attributable to T. Rowe Price Group, our consolidated sponsored investment portfolios and the related eliminations required in preparing the statement. For nine months ended 9/30/2016 As reported for the nine months ended 9/30/2015 Cash flow attributable to T. Rowe Price Group Cash flow attributable to consolidated sponsored investment portfolios Eliminations As reported on statement of cash flows Cash flows from operating activities Net income $ 919.8 $ 835.2 $ 114.1 $ (62.1 ) $ 887.2 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization of property and equipment 94.4 100.0 $ — — 100.0 Stock-based compensation expense 107.4 117.9 $ — — 117.9 Realized gains on dispositions of available-for-sale sponsored investment portfolios (48.9 ) (52.3 ) $ — — (52.3 ) Net gains recognized on investments (3.2 ) (90.2 ) $ — 62.1 (28.1 ) Net change in trading securities held by consolidated sponsored investment portfolios (2.5 ) — $ (1,084.1 ) — (1,084.1 ) Other changes in assets and liabilities 326.6 324.7 $ 6.9 (4.0 ) 327.6 Net cash provided by (used in) operating activities 1,393.6 1,235.3 (963.1 ) (4.0 ) 268.2 Net cash provided by (used in) investing activities (48.6 ) (163.1 ) 54.3 219.1 110.3 Net cash provided by (used in) financing activities (1,686.7 ) (843.5 ) 1,013.3 (215.1 ) (45.3 ) Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios — — (18.2 ) — (18.2 ) Net change in cash and cash equivalents during period (341.7 ) 228.7 $ 86.3 — 315.0 Cash and cash equivalents at beginning of year 1,506.1 1,172.3 $ — — 1,172.3 Cash and cash equivalents at end of period $ 1,164.4 $ 1,401.0 $ 86.3 $ — $ 1,487.3 |
THE COMPANY AND BASIS OF PREP20
THE COMPANY AND BASIS OF PREPARATION. (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New accounting guidance | NEW ACCOUNTING GUIDANCE. We implemented Accounting Standards Update No. 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis on January 1, 2016, which did not require the restatement of prior year periods. In connection with the adoption of this guidance, we reevaluated all of our investments for consolidation, including our investments in sponsored investment portfolios. The adoption of the guidance resulted in sponsored investment products regulated outside the U.S. previously accounted for as voting interest entities (VOE) to be evaluated as variable interest entities (VIE) and led to the consolidation of an additional 24 portfolios that were previously accounted for as available-for-sale securities. The adoption also resulted in the consolidation of an additional eight U.S. sponsored investment portfolios that were previously accounted for as available-for sale-securities. The impact to the condensed consolidated balance sheet upon adoption was the consolidation of $1.6 billion of assets, $21.3 million of liabilities, and $672.7 million of non-controlling interests. We also reclassified $32.5 million in accumulated comprehensive income to retained earnings. The consolidation guidance provides a scope exception for reporting entities with interests in legal entities that are required to comply with, or operate in accordance with, requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Additional disclosures relating to consolidated voting interest entities and variable interest entities, and the impact the new accounting guidance has had on the quarter and year-to-date period are included in Note 5. We early adopted Accounting Standards Update No. 2016-09 - Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting on July 1, 2016, which required adjustments to be reflected as of January 1, 2016. The amendments in this update change the accounting for certain aspects of stock-based compensation awards, including the accounting for income taxes upon settlement of awards, the classification of cash flows associated with awards, and the accounting for award forfeitures. The primary impact of early adoption was the recognition in our provision for income taxes for the nine-month period ended September 30, 2016, of excess tax benefits over financial statement expense totaling $16.9 million , or $.06 in diluted earnings per share, that was previously recognized in additional paid in capital during the first half of 2016. We also elected to account for forfeitures of stock-based compensation awards as they occur; therefore, we reversed forfeiture estimates, net of tax, of $9.0 million recognized prior to January 1, 2016, as a cumulative effect adjustment to our condensed consolidated balance sheet, resulting in a reduction of retained earnings of $9.0 million and an increase of other assets and additional paid in capital balances totaling $3.9 million and $12.9 million , respectively. Lastly, the guidance requires excess tax benefits from share-based compensation awards to be reported as operating activities in the consolidated statements of cash flows rather than financing activities. As permitted by the guidance, we elected to apply this guidance retrospectively and have reclassified $22.1 million in excess tax benefits previously disclosed as a financing activity in the statement of cash flows for the nine-month period ended September 30, 2015, to operating activities. |
Consolidation | CONSOLIDATION. Our condensed consolidated financial statements include the accounts of all subsidiaries and sponsored investment portfolios in which we have a controlling interest. We are generally deemed to have a controlling interest when we own the majority of the voting interest of an entity or are deemed to be the primary beneficiary of a VIE. We perform an analysis of our investments to determine if the investment entity is a VOE or VIE. Our analysis involves judgment and considers several factors, including an entity’s legal organization, capital structure, the rights of the equity investment holders, our ownership interest in the entity, and our contractual involvement with the entity. We continually review and reconsider our VIE or VOE conclusions upon the occurrence of certain events, such as changes to our ownership interest, changes to an entity’s legal structure, or amendments to governing documents. All material accounts and transactions between consolidated entities are eliminated in consolidation. Upon consolidation of sponsored investment portfolios, the Company retains the specialized investment company accounting principles of the underlying funds. All of the underlying investments held by these portfolios are carried at fair value with corresponding changes in the investments’ fair values reflected in non-operating income (expense) on the condensed consolidated statements of income. Variable interest entities VIEs are entities that, by design (i ) lack sufficient equity to permit the entity to finance its activities independently, or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, the obligation to absorb the entity’s losses, or the rights to receive the entity’s residual returns. We consolidate a VIE when we are the primary beneficiary, which is the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the VIE that could potentially be significant. Our Luxembourg-based SICAV (Société d'Investissement à Capital Variable) funds and other sponsored investment portfolios regulated outside the U.S. are determined to be VIEs. Along with VIEs that we consolidate, we also hold variable interests in other VIEs, including several investment partnerships, that are not consolidated because we are not the primary beneficiary. Redeemable non-controlling interests We recognize redeemable non-controlling interests for the portion of the net assets of our consolidated sponsored investment portfolios held by unrelated third party investors as their interest is convertible to cash and other assets at their option. As such, we reflect redeemable non-controlling interests as temporary equity in our condensed consolidated balance sheet. |
INFORMATION ABOUT RECEIVABLES21
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 U.S. mutual funds and other investment clients include: Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Sponsored U.S. mutual funds Stock and blended asset $ 563.0 $ 579.3 $ 1,681.7 $ 1,649.9 Bond and money market 107.8 124.2 318.0 354.8 670.8 703.5 1,999.7 2,004.7 Other investment portfolios Stock and blended asset 212.2 222.2 645.2 630.4 Bond, money market, and stable value 39.6 44.8 116.4 126.8 251.8 267.0 761.6 757.2 Total $ 922.6 $ 970.5 $ 2,761.3 $ 2,761.9 |
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 Average during the third quarter of the first nine months of 2015 2016 2015 2016 Sponsored U.S. mutual funds Stock and blended asset $ 386.0 $ 399.3 $ 388.8 $ 381.5 Bond and money market 105.7 112.0 106.2 108.2 491.7 511.3 495.0 489.7 Other investment portfolios Stock and blended asset 207.2 218.2 210.3 208.2 Bond, money market, and stable value 64.2 74.1 63.3 70.4 271.4 292.3 273.6 278.6 Total $ 763.1 $ 803.6 $ 768.6 $ 768.3 As of 12/31/2015 9/30/2016 Sponsored U.S. mutual funds Stock and blended asset $ 383.0 $ 403.1 Bond and money market 104.1 113.9 487.1 517.0 Other investment portfolios Stock and blended asset 209.8 220.5 Bond, money market, and stable value 66.2 75.4 276.0 295.9 Total $ 763.1 $ 812.9 |
Components of other fees | The following table summarizes the other fees (in millions) earned from our sponsored U.S. mutual funds. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Administrative fees $ 71.2 $ 66.6 $ 221.8 $ 208.6 Distribution and servicing fees $ 38.1 $ 36.7 $ 114.2 $ 106.2 |
INVESTMENTS. (Tables)
INVESTMENTS. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Unconsolidated investments | The carrying values of investments (in millions) we do not consolidate are as follows: 12/31/2015 9/30/2016 Available-for-sale sponsored investment portfolios $ 1,612.3 $ 694.3 Equity method investments Sponsored investment portfolios 113.7 245.9 26% interest in UTI Asset Management Company Limited (India) 132.8 135.4 Investment partnerships 6.2 5.8 Sponsored investment portfolios held as trading 25.8 59.4 Cost method investments 69.4 73.1 U.S. Treasury note 1.0 1.0 Total $ 1,961.2 $ 1,214.9 |
Available-for-sale sponsored investment portfolios | The available-for-sale sponsored investment portfolios (in millions) include: Aggregate cost Unrealized holding Aggregate fair value gains losses December 31, 2015 Stock and blended asset funds $ 428.6 $ 180.3 $ (9.1 ) $ 599.8 Bond funds 990.5 39.1 (17.1 ) 1,012.5 Total $ 1,419.1 $ 219.4 $ (26.2 ) $ 1,612.3 September 30, 2016 Stock and blended asset funds $ 165.4 $ 97.3 $ (.1 ) $ 262.6 Bond funds 428.4 4.8 (1.5 ) 431.7 Total $ 593.8 $ 102.1 $ (1.6 ) $ 694.3 |
Continuous unrealized loss positions | The following table details the number of holdings, the unrealized holding losses, and the aggregate fair value of available-for-sale sponsored investment portfolios with unrealized losses categorized by the length of time they have been in a continuous unrealized loss position: Number of holdings Unrealized holding losses Aggregate December 31, 2015 Less than 12 months 18 $ (15.8 ) $ 419.6 12 months or more 4 (10.4 ) 298.6 Total 22 $ (26.2 ) $ 718.2 September 30, 2016 Less than 12 months 4 $ (.1 ) $ 25.2 12 months or more 2 (1.5 ) 171.0 Total 6 $ (1.6 ) $ 196.2 |
FAIR VALUE MEASUREMENTS. (Table
FAIR VALUE MEASUREMENTS. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements summary | The following table summarizes our investments (in millions) that are recognized in our condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. Level 1 Level 2 December 31, 2015 Cash equivalents $ 997.5 $ — Available-for-sale sponsored investment portfolios 1,612.3 — Sponsored investment portfolios held as trading 25.8 — Total $ 2,635.6 $ — September 30, 2016 Cash equivalents $ 1,183.6 $ — Available-for-sale sponsored investment portfolios 694.3 — Sponsored investment portfolios held as trading 56.6 2.8 Total $ 1,934.5 $ 2.8 |
CONSOLIDATED SPONSORED INVEST24
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Consolidated Sponsored Investment Portfolios [Abstract] | |
Net assets of consolidated sponsored investment portfolios | The following table details the net assets of the consolidated sponsored investment portfolios at September 30, 2016 . Voting interest entities Variable interest entities Total Cash and cash equivalents $ 12.6 $ 73.7 $ 86.3 Investments 200.1 1,815.5 2,015.6 Other assets 4.0 28.1 32.1 Total assets 216.7 1,917.3 2,134.0 Liabilities 11.4 41.1 52.5 Net assets $ 205.3 $ 1,876.2 $ 2,081.5 Attributable to redeemable non-controlling interests $ 64.5 $ 1,049.4 $ 1,113.9 Attributable to T. Rowe Price Group 140.8 826.8 967.6 $ 205.3 $ 1,876.2 $ 2,081.5 |
Operating results of consolidated sponsored investment portfolios | The operating results (in millions) of the consolidated sponsored investment portfolios for the three- and nine- months ended September 30, 2016 , are reflected in our condensed consolidated statement of income as follows: Three months ended 9/30/2016 Nine months ended 9/30/2016 Voting Variable interest entities Total Voting Variable interest entities Total Operating expenses reflected in net operating income $ (.4 ) $ (3.4 ) $ (3.8 ) $ (1.2 ) $ (8.7 ) $ (9.9 ) Net investment income reflected in non-operating income 8.7 65.1 73.8 20.8 103.2 124.0 Impact on income before taxes $ 8.3 $ 61.7 $ 70.0 $ 19.6 $ 94.5 $ 114.1 Net income attributable to T. Rowe Price Group $ 6.2 $ 28.9 $ 35.1 $ 13.9 $ 48.2 $ 62.1 Net income attributable to redeemable non-controlling interests 2.1 32.8 34.9 5.7 46.3 52.0 $ 8.3 $ 61.7 $ 70.0 $ 19.6 $ 94.5 $ 114.1 |
Cash flows of consolidated sponsored investment portfolios | The table below details the impact of these consolidated investment portfolios on the individual lines of our condensed consolidated statement of cash flows (in millions) for the nine months ended September 30, 2016 . Nine months ended 9/30/2016 Voting Variable interest entities Total Net cash provided by (used in) operating activities $ (48.0 ) $ (915.1 ) $ (963.1 ) Net cash provided by (used in) investing activities 22.2 32.1 54.3 Net cash provided by (used in) financing activities 38.4 974.9 1,013.3 Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios — (18.2 ) (18.2 ) Net change in cash and cash equivalents during period 12.6 73.7 86.3 Cash and cash equivalents at beginning of year — — — Cash and cash equivalents at end of period $ 12.6 $ 73.7 $ 86.3 |
Fair values of investments held by consolidated sponsored investment portfolios | The following table summarizes the investment holdings held by our consolidated sponsored investment portfolios (in millions) using fair value measurements determined based on the differing levels of inputs. Level 1 Level 2 December 31, 2015 Assets Equity securities $ 2.8 $ 11.2 Fixed income securities — 43.0 Other investments .7 — $ 3.5 $ 54.2 September 30, 2016 Assets Cash equivalents $ 10.8 $ 1.9 Equity securities 282.0 347.3 Fixed income securities — 1,367.6 Other investments .2 18.5 $ 293.0 $ 1,735.3 Liabilities $ (.5 ) $ (5.8 ) |
STOCK-BASED COMPENSATION. (Tabl
STOCK-BASED COMPENSATION. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 options during the first nine months of 2016 . Options Weighted- average exercise price Outstanding at December 31, 2015 30,818,229 $ 59.24 Non-employee director grants 13,050 $ 75.29 Exercised (3,116,764 ) $ 46.03 Forfeited (365,287 ) $ 71.78 Expired (29,827 ) $ 75.18 Outstanding at September 30, 2016 27,319,401 $ 60.58 Exercisable at September 30, 2016 16,760,572 $ 53.41 |
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 the first nine months of 2016 . Restricted shares Restricted stock units Weighted-average fair value Nonvested at December 31, 2015 1,470,827 2,216,431 $ 74.66 Time-based grants 2,600 2,756,079 $ 69.65 Performance-based grants — 259,312 $ 69.94 Vested (23,677 ) (49,716 ) $ 73.53 Forfeited (41,867 ) (76,321 ) $ 74.70 Nonvested at September 30, 2016 1,407,883 5,105,785 $ 72.36 |
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 awards outstanding at September 30, 2016 . Estimated future compensation expense will change to reflect future option grants, future awards of unrestricted shares and restricted stock units, changes in the probability of performance thresholds being met, and adjustments for actual forfeitures. Fourth quarter 2016 $ 47.2 2017 146.2 2018 through 2021 157.6 Total $ 351.0 |
EARNINGS PER SHARE CALCULATIO26
EARNINGS PER SHARE CALCULATIONS. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share reconciliation | The following table presents the reconciliation (in millions) of net income attributable to T. Rowe Price Group 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 reflect the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Net income attributable to T. Rowe Price Group $ 277.1 $ 327.8 $ 919.8 $ 835.2 Less: net income allocated to outstanding restricted stock and stock unit holders 4.1 7.3 11.8 17.1 Net income allocated to common stockholders $ 273.0 $ 320.5 $ 908.0 $ 818.1 Weighted-average common shares Outstanding 252.7 245.6 256.3 246.4 Outstanding assuming dilution 258.6 250.1 262.9 251.5 |
Anti-dilutive 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. Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Weighted-average outstanding stock options excluded 6.9 10.3 5.7 9.9 |
OTHER COMPREHENSIVE INCOME AN27
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Impact of the components of other comprehensive income (loss) on deferred tax benefits (income taxes) | The following table presents the impact of the components (in millions) of other comprehensive income or loss on deferred tax benefits (income taxes). Three months ended Nine months ended 9/30/2015 9/30/2016 9/30/2015 9/30/2016 Net deferred tax benefits (income taxes) on: Net unrealized holding gains or losses $ 21.0 $ (4.0 ) $ 15.5 $ (3.6 ) Reclassification adjustments recognized in the provision for income taxes: Net gains realized on dispositions 3.5 — 18.2 20.6 Other-than-temporary impairments (1.9 ) — (1.9 ) — Net deferred tax benefits (income taxes) on net unrealized holding gains or losses 22.6 (4.0 ) 31.8 17.0 Currency translation adjustments 1.1 (1.1 ) 2.6 (3.9 ) Reclassification adjustment recognized in the provision for income taxes upon deconsolidation of sponsored fund subsidiary (1.2 ) .4 (1.2 ) .4 Total deferred tax benefits (income taxes) on currency translation adjustments (.1 ) (.7 ) 1.4 (3.5 ) Total net deferred tax benefits (income taxes) $ 22.5 $ (4.7 ) $ 33.2 $ 13.5 |
Changes in accumulated other comprehensive income | The changes (in millions) in each component of accumulated other comprehensive income, including reclassification adjustments for the first nine months of 2016 are presented in the table below. Currency translation adjustments Net unrealized holding gains Equity method investments Consolidated sponsored investment portfolios - variable interest entities Total currency translation adjustments Total Balances at December 31, 2015 $ 120.3 $ (30.9 ) $ (2.8 ) $ (33.7 ) $ 86.6 Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance (32.0 ) (.5 ) — (.5 ) (32.5 ) Balance at January 1, 2016 88.3 (31.4 ) (2.8 ) (34.2 ) 54.1 Other comprehensive income (loss) before reclassifications and income taxes 9.4 (3.5 ) 13.2 9.7 19.1 Reclassification adjustments recognized in non-operating income (52.3 ) — (1.1 ) (1.1 ) (53.4 ) (42.9 ) (3.5 ) 12.1 8.6 (34.3 ) Net deferred tax benefits (income taxes) 17.0 1.2 (4.7 ) (3.5 ) 13.5 Other comprehensive income (loss) (25.9 ) (2.3 ) 7.4 5.1 (20.8 ) Balances at September 30, 2016 $ 62.4 $ (33.7 ) $ 4.6 $ (29.1 ) $ 33.3 |
SUPPLEMENTARY CONSOLIDATING C28
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary consolidating cash flow statement | The following table summarizes the cash flows (in millions) for the nine months ended September 30, 2016 , that are attributable to T. Rowe Price Group, our consolidated sponsored investment portfolios and the related eliminations required in preparing the statement. For nine months ended 9/30/2016 As reported for the nine months ended 9/30/2015 Cash flow attributable to T. Rowe Price Group Cash flow attributable to consolidated sponsored investment portfolios Eliminations As reported on statement of cash flows Cash flows from operating activities Net income $ 919.8 $ 835.2 $ 114.1 $ (62.1 ) $ 887.2 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization of property and equipment 94.4 100.0 $ — — 100.0 Stock-based compensation expense 107.4 117.9 $ — — 117.9 Realized gains on dispositions of available-for-sale sponsored investment portfolios (48.9 ) (52.3 ) $ — — (52.3 ) Net gains recognized on investments (3.2 ) (90.2 ) $ — 62.1 (28.1 ) Net change in trading securities held by consolidated sponsored investment portfolios (2.5 ) — $ (1,084.1 ) — (1,084.1 ) Other changes in assets and liabilities 326.6 324.7 $ 6.9 (4.0 ) 327.6 Net cash provided by (used in) operating activities 1,393.6 1,235.3 (963.1 ) (4.0 ) 268.2 Net cash provided by (used in) investing activities (48.6 ) (163.1 ) 54.3 219.1 110.3 Net cash provided by (used in) financing activities (1,686.7 ) (843.5 ) 1,013.3 (215.1 ) (45.3 ) Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios — — (18.2 ) — (18.2 ) Net change in cash and cash equivalents during period (341.7 ) 228.7 $ 86.3 — 315.0 Cash and cash equivalents at beginning of year 1,506.1 1,172.3 $ — — 1,172.3 Cash and cash equivalents at end of period $ 1,164.4 $ 1,401.0 $ 86.3 $ — $ 1,487.3 |
THE COMPANY AND BASIS OF PREP29
THE COMPANY AND BASIS OF PREPARATION. (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jan. 01, 2016USD ($)fund_holdings | Dec. 31, 2015USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Income tax benefit | $ (201.3) | $ (181.5) | $ (497.8) | $ (584.2) | |||
Diluted earnings per share (in dollars per share) | $ / shares | $ 1.28 | $ 1.06 | $ 3.25 | $ 3.45 | |||
Net cash provided by (used in) financing activities | $ 45.3 | $ 1,686.7 | |||||
Net cash provided by (used in) operating activities | $ 268.2 | 1,393.6 | |||||
Accounting standards update 2015-02 [Member] | Accumulated other comprehensive income [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | $ (32.5) | ||||||
Accounting standards update 2015-02 [Member] | Retained earnings [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | 32.5 | ||||||
Accounting standards update 2015-02 [Member] | Assets [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | $ (1,600) | ||||||
Accounting standards update 2015-02 [Member] | Liability [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | 21.3 | ||||||
Accounting standards update 2015-02 [Member] | Redeemable non-controlling interests [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | $ 672.7 | ||||||
Variable interest entities [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of sponsored investment portfolios consolidated | fund_holdings | 24 | ||||||
Voting interest entities [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of sponsored investment portfolios consolidated | fund_holdings | 8 | ||||||
New accounting pronouncement, early adoption, effect [Member] | Accounting standards update 2016-09, excess tax benefit component [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Income tax benefit | $ 16.9 | ||||||
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.06 | ||||||
Net cash provided by (used in) financing activities | 22.1 | ||||||
Net cash provided by (used in) operating activities | $ 22.1 | ||||||
New accounting pronouncement, early adoption, effect [Member] | Accounting standards update 2016-09, forfeiture rate component [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | 3.9 | ||||||
New accounting pronouncement, early adoption, effect [Member] | Accounting standards update 2016-09, forfeiture rate component [Member] | Retained earnings [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | (9) | ||||||
New accounting pronouncement, early adoption, effect [Member] | Accounting standards update 2016-09, forfeiture rate component [Member] | Additional paid-in capital [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | 12.9 | ||||||
New accounting pronouncement, early adoption, effect [Member] | Accounting standards update 2016-09, forfeiture rate component [Member] | Other assets [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Cumulative effect of adopting new accounting guidance | $ 3.9 |
INFORMATION ABOUT RECEIVABLES30
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Receivables) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $ 446.9 | $ 446 |
Sponsored U.S. mutual funds and other sponsored investment portfolios [Member] | ||
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $ 291.3 | $ 287.1 |
INFORMATION ABOUT RECEIVABLES31
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Investment Advisory Services) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Revenue and Services [Line Items] | |||||
Revenues from advisory services | $ 970.5 | $ 922.6 | $ 2,761.9 | $ 2,761.3 | |
Average assets under management | 803,600 | 763,100 | 768,300 | 768,600 | |
Period end assets under management | 812,900 | 812,900 | $ 763,100 | ||
Sponsored U.S. mutual funds [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 703.5 | 670.8 | 2,004.7 | 1,999.7 | |
Average assets under management | 511,300 | 491,700 | 489,700 | 495,000 | |
Period end assets under management | 517,000 | 517,000 | 487,100 | ||
Sponsored U.S. mutual funds [Member] | Stock and blended asset [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 579.3 | 563 | 1,649.9 | 1,681.7 | |
Average assets under management | 399,300 | 386,000 | 381,500 | 388,800 | |
Period end assets under management | 403,100 | 403,100 | 383,000 | ||
Sponsored U.S. mutual funds [Member] | Bond and money market [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 124.2 | 107.8 | 354.8 | 318 | |
Average assets under management | 112,000 | 105,700 | 108,200 | 106,200 | |
Period end assets under management | 113,900 | 113,900 | 104,100 | ||
Other investment portfolios [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 267 | 251.8 | 757.2 | 761.6 | |
Average assets under management | 292,300 | 271,400 | 278,600 | 273,600 | |
Period end assets under management | 295,900 | 295,900 | 276,000 | ||
Other investment portfolios [Member] | Stock and blended asset [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 222.2 | 212.2 | 630.4 | 645.2 | |
Average assets under management | 218,200 | 207,200 | 208,200 | 210,300 | |
Period end assets under management | 220,500 | 220,500 | 209,800 | ||
Other investment portfolios [Member] | Bond, money market, and stable value [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 44.8 | 39.6 | 126.8 | 116.4 | |
Average assets under management | 74,100 | 64,200 | 70,400 | 63,300 | |
Period end assets under management | 75,400 | 75,400 | $ 66,200 | ||
Other sponsored investment portfolios [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | 101.1 | 93.5 | 283.3 | 273.9 | |
Waived money market related fees [Member] | |||||
Revenue and Services [Line Items] | |||||
Revenues from advisory services | $ 2.1 | $ 11.6 | $ 9.4 | $ 37.8 |
INFORMATION ABOUT RECEIVABLES32
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Revenues and Services Concentration) (Details) | Sep. 30, 2016 | Dec. 31, 2015 |
Outside U.S. [Member] | Assets under management [Member] | Investment advisory clients [Member] | Geographic concentration [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.00% | 4.90% |
INFORMATION ABOUT RECEIVABLES33
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Other Fees Earned from Sponsored U.S. Mutual Funds) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue and Services [Line Items] | ||||
Administrative fees | $ 85.7 | $ 88.3 | $ 263.6 | $ 272.9 |
Distribution and servicing fees | 36.7 | 38.1 | 106.2 | 114.2 |
Sponsored U.S. mutual funds [Member] | ||||
Revenue and Services [Line Items] | ||||
Administrative fees | 66.6 | 71.2 | 208.6 | 221.8 |
Distribution and servicing fees | $ 36.7 | $ 38.1 | $ 106.2 | $ 114.2 |
INVESTMENTS. (Investments) (Det
INVESTMENTS. (Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Investment [Line Items] | |||||
Available-for-sale sponsored investment portfolios | $ 694.3 | $ 694.3 | $ 1,612.3 | ||
Trading investments | 59.4 | 59.4 | 25.8 | ||
Cost method investments | 73.1 | 73.1 | 69.4 | ||
U.S. Treasury note | 1 | 1 | 1 | ||
Total | 1,214.9 | 1,214.9 | 1,961.2 | ||
(Loss) gain recognized as a result of reclassifications into non-operating income | 88.3 | $ 0.3 | 214.9 | $ 60.1 | |
Assets [Member] | |||||
Investment [Line Items] | |||||
Deconsolidation value | 678.3 | ||||
Liability [Member] | |||||
Investment [Line Items] | |||||
Deconsolidation value | (31) | ||||
Redeemable non-controlling interests [Member] | |||||
Investment [Line Items] | |||||
Deconsolidation value | (398.6) | ||||
Sponsored investment portfolios [Member] | |||||
Investment [Line Items] | |||||
Equity method investments | 245.9 | 245.9 | 113.7 | ||
Interest in UTI Asset Management Company Limited (India) [Member] | |||||
Investment [Line Items] | |||||
Equity method investments | $ 135.4 | $ 135.4 | $ 132.8 | ||
Equity method investment (ownership percentage) | 26.00% | 26.00% | 26.00% | ||
Investment partnerships [Member] | |||||
Investment [Line Items] | |||||
Equity method investments | $ 5.8 | $ 5.8 | $ 6.2 | ||
Currency translation adjustments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||||
Investment [Line Items] | |||||
(Loss) gain recognized as a result of reclassifications into non-operating income | $ 1.1 | $ (5.8) |
INVESTMENTS. (Available-For-Sal
INVESTMENTS. (Available-For-Sale Sponsored Investment Portfolios) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | $ 593.8 | $ 1,419.1 |
Unrealized holding gains | 102.1 | 219.4 |
Unrealized holding losses | (1.6) | (26.2) |
Aggregate fair value | 694.3 | 1,612.3 |
Stock and blended asset funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | 165.4 | 428.6 |
Unrealized holding gains | 97.3 | 180.3 |
Unrealized holding losses | (0.1) | (9.1) |
Aggregate fair value | 262.6 | 599.8 |
Bond funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | 428.4 | 990.5 |
Unrealized holding gains | 4.8 | 39.1 |
Unrealized holding losses | (1.5) | (17.1) |
Aggregate fair value | $ 431.7 | $ 1,012.5 |
INVESTMENTS. (Unrealized Losses
INVESTMENTS. (Unrealized Losses on Available-For-Sale Sponsored Investment Portfolios) (Details) $ in Millions | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Fund holdings with temporary unrealized losses less than 12 months (number of securities) | security | 4 | 18 |
Fund holdings with temporary unrealized losses longer than 12 months (number of securities) | security | 2 | 4 |
Fund holdings with temporary unrealized holding losses (number of securities) | security | 6 | 22 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized holding losses on fund holdings that were in a continuous loss for less than 12 months | $ (0.1) | $ (15.8) |
Unrealized holding losses on fund holdings that were in a continuous loss for longer than 12 months | (1.5) | (10.4) |
Unrealized holding losses on fund holdings that were in a continuous loss | (1.6) | (26.2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Unrealized holding losses for less than 12 months at period end are attributable to fund holdings with an aggregate fair value of | 25.2 | 419.6 |
Unrealized holding losses for longer than 12 months at period end are attributable to fund holdings with an aggregate fair value of | 171 | 298.6 |
Unrealized holding losses at period end are attributable to fund holdings with an aggregate fair value of | $ 196.2 | $ 718.2 |
INVESTMENTS. (Variable Interest
INVESTMENTS. (Variable Interest Entities) (Details) - Variable interest entity, not primary beneficiary [Member] $ in Millions | Sep. 30, 2016USD ($) |
Variable Interest Entity [Line Items] | |
Nonconsolidated variable interest entity investments | $ 111.3 |
Maximum risk of loss related to nonconsolidated variable interest entities | $ 164.5 |
FAIR VALUE MEASUREMENTS. (Detai
FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale sponsored investment portfolios | $ 694.3 | $ 1,612.3 |
Sponsored investment portfolios held as trading | 59.4 | 25.8 |
Level 1 [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,183.6 | 997.5 |
Available-for-sale sponsored investment portfolios | 694.3 | 1,612.3 |
Sponsored investment portfolios held as trading | 56.6 | 25.8 |
Total | 1,934.5 | 2,635.6 |
Level 2 [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale sponsored investment portfolios | 0 | 0 |
Sponsored investment portfolios held as trading | 2.8 | 0 |
Total | $ 2.8 | $ 0 |
CONSOLIDATED SPONSORED INVEST39
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. (Net Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | $ 1,401 | $ 1,172.3 |
Investments | 1,214.9 | 1,961.2 |
Other assets | 245.4 | 196.9 |
Total assets | 6,723.5 | 5,106.9 |
Liabilities | 775.9 | 344.9 |
Attributable to redeemable non-controlling interests | 1,113.9 | 0 |
Consolidated sponsored investment portfolios [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 86.3 | |
Net assets | 2,081.5 | |
Attributable to redeemable non-controlling interests | 1,113.9 | |
Attributable to T. Rowe Price Group | 967.6 | |
Consolidated sponsored investment portfolios [Member] | Reportable entities [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 86.3 | 0 |
Investments | 2,015.6 | |
Other assets | 32.1 | |
Total assets | 2,134 | |
Liabilities | 52.5 | |
Net assets | 2,081.5 | |
Voting interest entities [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net assets | 205.3 | |
Attributable to redeemable non-controlling interests | 64.5 | |
Attributable to T. Rowe Price Group | 140.8 | |
Voting interest entities [Member] | Reportable entities [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 12.6 | 0 |
Investments | 200.1 | |
Other assets | 4 | |
Total assets | 216.7 | |
Liabilities | 11.4 | |
Net assets | 205.3 | |
Variable interest entities [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net assets | 1,876.2 | |
Attributable to redeemable non-controlling interests | 1,049.4 | |
Attributable to T. Rowe Price Group | 826.8 | |
Variable interest entities [Member] | Reportable entities [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash and cash equivalents | 73.7 | $ 0 |
Investments | 1,815.5 | |
Other assets | 28.1 | |
Total assets | 1,917.3 | |
Liabilities | 41.1 | |
Net assets | $ 1,876.2 |
CONSOLIDATED SPONSORED INVEST40
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. (Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Income Statements, Captions [Line Items] | ||||
Operating expenses | $ (617.2) | $ (590.7) | $ (1,961.6) | $ (1,704.5) |
Income before income taxes | 564 | 458.6 | 1,385 | 1,504 |
Net income attributable to redeemable non-controlling interests | 34.9 | 0 | 52 | 0 |
Investment advisory and administrative fees | (1,092.9) | $ (1,049) | (3,131.7) | $ (3,148.4) |
Consolidation eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating expenses | 2.2 | 5.3 | ||
Investment advisory and administrative fees | 2.2 | 5.3 | ||
Consolidated sponsored investment portfolios [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Income before income taxes | 70 | 114.1 | ||
Net income attributable to T. Rowe Price Group | 35.1 | 62.1 | ||
Net income attributable to redeemable non-controlling interests | 34.9 | 52 | ||
Consolidated sponsored investment portfolios [Member] | Reportable entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating expenses | (3.8) | (9.9) | ||
Non-operating investment income | 73.8 | 124 | ||
Income before income taxes | 70 | 114.1 | ||
Voting interest entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Income before income taxes | 8.3 | 19.6 | ||
Net income attributable to T. Rowe Price Group | 6.2 | 13.9 | ||
Net income attributable to redeemable non-controlling interests | 2.1 | 5.7 | ||
Voting interest entities [Member] | Reportable entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating expenses | (0.4) | (1.2) | ||
Non-operating investment income | 8.7 | 20.8 | ||
Income before income taxes | 8.3 | 19.6 | ||
Variable interest entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Income before income taxes | 61.7 | 94.5 | ||
Net income attributable to T. Rowe Price Group | 28.9 | 48.2 | ||
Net income attributable to redeemable non-controlling interests | 32.8 | 46.3 | ||
Variable interest entities [Member] | Reportable entities [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Operating expenses | (3.4) | (8.7) | ||
Non-operating investment income | 65.1 | 103.2 | ||
Income before income taxes | $ 61.7 | $ 94.5 |
CONSOLIDATED SPONSORED INVEST41
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 268.2 | $ 1,393.6 |
Net cash provided by (used in) investing activities | 110.3 | (48.6) |
Net cash provided by (used in) financing activities | (45.3) | (1,686.7) |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | 0 |
Net change in cash and cash equivalents during period | 315 | $ (341.7) |
Cash and cash equivalents at beginning of year | 1,172.3 | |
Cash and cash equivalents at end of period | 1,401 | |
Consolidation eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (4) | |
Net cash provided by (used in) investing activities | 219.1 | |
Net cash provided by (used in) financing activities | (215.1) | |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | 0 | |
Net change in cash and cash equivalents during period | 0 | |
Consolidated sponsored investment portfolios [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash and cash equivalents at end of period | 86.3 | |
Consolidated sponsored investment portfolios [Member] | Reportable entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (963.1) | |
Net cash provided by (used in) investing activities | 54.3 | |
Net cash provided by (used in) financing activities | 1,013.3 | |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | |
Net change in cash and cash equivalents during period | 86.3 | |
Cash and cash equivalents at beginning of year | 0 | |
Cash and cash equivalents at end of period | 86.3 | |
Voting interest entities [Member] | Reportable entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (48) | |
Net cash provided by (used in) investing activities | 22.2 | |
Net cash provided by (used in) financing activities | 38.4 | |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | 0 | |
Net change in cash and cash equivalents during period | 12.6 | |
Cash and cash equivalents at beginning of year | 0 | |
Cash and cash equivalents at end of period | 12.6 | |
Variable interest entities [Member] | Reportable entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (915.1) | |
Net cash provided by (used in) investing activities | 32.1 | |
Net cash provided by (used in) financing activities | 974.9 | |
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | |
Net change in cash and cash equivalents during period | 73.7 | |
Cash and cash equivalents at beginning of year | 0 | |
Cash and cash equivalents at end of period | $ 73.7 |
CONSOLIDATED SPONSORED INVEST42
CONSOLIDATED SPONSORED INVESTMENT PORTFOLIOS. (Fair Value Measurements) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | $ 59.4 | $ 25.8 |
Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 56.6 | 25.8 |
Cash equivalents | 1,183.6 | 997.5 |
Total | 1,934.5 | 2,635.6 |
Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 2.8 | 0 |
Cash equivalents | 0 | 0 |
Total | 2.8 | 0 |
Consolidated sponsored investment portfolios [Member] | Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 10.8 | |
Total | 293 | 3.5 |
Liabilities | (0.5) | |
Consolidated sponsored investment portfolios [Member] | Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1.9 | |
Total | 1,735.3 | 54.2 |
Liabilities | (5.8) | |
Consolidated sponsored investment portfolios [Member] | Equity securities [Member] | Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 282 | 2.8 |
Consolidated sponsored investment portfolios [Member] | Equity securities [Member] | Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 347.3 | 11.2 |
Consolidated sponsored investment portfolios [Member] | Fixed income securities [Member] | Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 0 | 0 |
Consolidated sponsored investment portfolios [Member] | Fixed income securities [Member] | Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 1,367.6 | 43 |
Consolidated sponsored investment portfolios [Member] | Other investments [Member] | Fair value, measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 0.2 | 0.7 |
Consolidated sponsored investment portfolios [Member] | Other investments [Member] | Fair value, measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | $ 18.5 | $ 0 |
STOCKHOLDERS' EQUITY. (Details)
STOCKHOLDERS' EQUITY. (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stockholders' Equity Note [Line Items] | ||||
Cash dividends declared per share | $ 0.54 | $ 0.52 | $ 1.62 | $ 3.56 |
Unsettled Common Stock Repurchases Liabilities | $ 21.2 | $ 21.2 | ||
Regular cash dividend [Member] | ||||
Stockholders' Equity Note [Line Items] | ||||
Cash dividends declared per share | $ 1.62 | 1.56 | ||
Special cash dividend [Member] | ||||
Stockholders' Equity Note [Line Items] | ||||
Cash dividends declared per share | 2 | |||
Cash dividends paid per share | $ 2 |
STOCK-BASED COMPENSATION. (Stoc
STOCK-BASED COMPENSATION. (Stock Options) (Details) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at December 31, 2015 (in shares) | shares | 30,818,229 |
Non-employee director grants (in shares) | shares | 13,050 |
Exercised (in shares) | shares | (3,116,764) |
Forfeited (in shares) | shares | (365,287) |
Expired (in shares) | shares | (29,827) |
Outstanding at September 30, 2016 (in shares) | shares | 27,319,401 |
Exercisable at September 30, 2016 (in shares) | shares | 16,760,572 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price of options outstanding at December 31, 2015 (in dollars per share) | $ / shares | $ 59.24 |
Weighted-average exercise price of option grants (in dollars per share) | $ / shares | 75.29 |
Weighted-average exercise price of options exercised (in dollars per share) | $ / shares | 46.03 |
Weighted-average exercise price of options forfeited (in dollars per share) | $ / shares | 71.78 |
Weighted-average exercise price of options expired (in dollars per share) | $ / shares | 75.18 |
Weighted-average exercise price of options outstanding at September 30, 2016 (in dollars per share) | $ / shares | 60.58 |
Weighted-average exercise price of options exercisable at September 30, 2016 (in dollars per share) | $ / shares | $ 53.41 |
STOCK-BASED COMPENSATION. (Rest
STOCK-BASED COMPENSATION. (Restricted Shares and Stock Units) (Details) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2015 (in dollars per share) | $ / shares | $ 74.66 |
Weighted-average fair value of restricted shares and restricted stock units vested (in dollars per share) | $ / shares | 73.53 |
Weighted-average fair value of restricted shares and restricted stock units forfeited (in dollars per share) | $ / shares | 74.70 |
Weighted-average fair value of nonvested restricted shares and restricted stock units at September 30, 2016 (in dollars per share) | $ / shares | 72.36 |
Time-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $ / shares | 69.65 |
Performance-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $ / shares | $ 69.94 |
Restricted shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at December 31, 2015 (in shares) | 1,470,827 |
Vested (in shares) | (23,677) |
Forfeited (in shares) | (41,867) |
Nonvested at September 30, 2016 (in shares) | 1,407,883 |
Restricted shares [Member] | Time-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Grants (in shares) | 2,600 |
Restricted shares [Member] | Performance-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Grants (in shares) | 0 |
Nonvested at September 30, 2016 (in shares) | 21,600 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested shares where performance threshold has been met (in shares) | 21,600 |
Restricted stock units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at December 31, 2015 (in shares) | 2,216,431 |
Vested (in shares) | (49,716) |
Forfeited (in shares) | (76,321) |
Nonvested at September 30, 2016 (in shares) | 5,105,785 |
Restricted stock units [Member] | Time-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Grants (in shares) | 2,756,079 |
Restricted stock units [Member] | Performance-based [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Grants (in shares) | 259,312 |
Nonvested at September 30, 2016 (in shares) | 453,923 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested shares where performance threshold has been met (in shares) | 167,340 |
STOCK-BASED COMPENSATION. (Futu
STOCK-BASED COMPENSATION. (Future Stock-Based Compensation Expense) (Details) $ in Millions | Sep. 30, 2016USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Fourth quarter 2016 | $ 47.2 |
2,017 | 146.2 |
2018 through 2021 | 157.6 |
Total | $ 351 |
EARNINGS PER SHARE CALCULATIO47
EARNINGS PER SHARE CALCULATIONS. (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to T. Rowe Price Group | $ 327.8 | $ 277.1 | $ 835.2 | $ 919.8 |
Less: net income allocated to outstanding restricted stock and stock unit holders (basic) | 7.3 | 4.1 | 17.1 | 11.8 |
Less: net income allocated to outstanding restricted stock and stock unit holders (diluted) | 7.3 | 4.1 | 17.1 | 11.8 |
Net income allocated to common stockholders (basic) | 320.5 | 273 | 818.1 | 908 |
Net income allocated to common stockholders (diluted) | $ 320.5 | $ 273 | $ 818.1 | $ 908 |
Weighted-average common shares | ||||
Outstanding (in shares) | 245.6 | 252.7 | 246.4 | 256.3 |
Outstanding assuming dilution (in shares) | 250.1 | 258.6 | 251.5 | 262.9 |
Weighted-average outstanding stock options excluded (in shares) | 10.3 | 6.9 | 9.9 | 5.7 |
OTHER COMPREHENSIVE INCOME AN48
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Deferred Tax Benefits (Income Taxes)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net unrealized holding gains or losses [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net deferred tax benefits (income taxes) on other comprehensive income (loss) before reclassifications | $ (4) | $ 21 | $ (3.6) | $ 15.5 |
Total net deferred tax benefits (income taxes) | (4) | 22.6 | 17 | 31.8 |
Net gains realized on dispositions [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 0 | 3.5 | 20.6 | 18.2 |
Other-than-temporary impairments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 0 | (1.9) | 0 | (1.9) |
Currency translation adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net deferred tax benefits (income taxes) on other comprehensive income (loss) before reclassifications | (1.1) | 1.1 | (3.9) | 2.6 |
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 0.4 | (1.2) | 0.4 | (1.2) |
Total net deferred tax benefits (income taxes) | (0.7) | (0.1) | (3.5) | 1.4 |
Total accumulated other comprehensive income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total net deferred tax benefits (income taxes) | $ (4.7) | $ 22.5 | $ 13.5 | $ 33.2 |
OTHER COMPREHENSIVE INCOME AN49
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | $ 4,762 | ||||
Balances, Adjusted | $ 4,765.9 | ||||
Other comprehensive income (loss) | (20.8) | ||||
Balances | $ 4,833.7 | 4,833.7 | |||
Net unrealized holding gains [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | 120.3 | ||||
Balances, Adjusted | 88.3 | ||||
Other comprehensive income (loss) before reclassifications and income taxes | 9.4 | ||||
Reclassification adjustments recognized in non-operating income | (52.3) | ||||
Other comprehensive income (loss), before taxes | (42.9) | ||||
Net deferred tax benefits (income taxes) | (4) | $ 22.6 | 17 | $ 31.8 | |
Other comprehensive income (loss) | (25.9) | ||||
Balances | 62.4 | 62.4 | |||
Net unrealized holding gains [Member] | Accounting standards update 2015-02 [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (32) | ||||
Currency translation adjustments [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | (33.7) | ||||
Balances, Adjusted | (34.2) | ||||
Other comprehensive income (loss) before reclassifications and income taxes | 9.7 | ||||
Reclassification adjustments recognized in non-operating income | (1.1) | ||||
Other comprehensive income (loss), before taxes | 8.6 | ||||
Net deferred tax benefits (income taxes) | (0.7) | (0.1) | (3.5) | 1.4 | |
Other comprehensive income (loss) | 5.1 | ||||
Balances | (29.1) | (29.1) | |||
Currency translation adjustments [Member] | Accounting standards update 2015-02 [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (0.5) | ||||
Currency translation adjustments [Member] | Equity method investments [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | (30.9) | ||||
Balances, Adjusted | (31.4) | ||||
Other comprehensive income (loss) before reclassifications and income taxes | (3.5) | ||||
Reclassification adjustments recognized in non-operating income | 0 | ||||
Other comprehensive income (loss), before taxes | (3.5) | ||||
Net deferred tax benefits (income taxes) | 1.2 | ||||
Other comprehensive income (loss) | (2.3) | ||||
Balances | (33.7) | (33.7) | |||
Currency translation adjustments [Member] | Equity method investments [Member] | Accounting standards update 2015-02 [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (0.5) | ||||
Currency translation adjustments [Member] | Consolidated sponsored investment portfolios - variable interest entities [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | (2.8) | ||||
Balances, Adjusted | (2.8) | ||||
Other comprehensive income (loss) before reclassifications and income taxes | 13.2 | ||||
Reclassification adjustments recognized in non-operating income | (1.1) | ||||
Other comprehensive income (loss), before taxes | 12.1 | ||||
Net deferred tax benefits (income taxes) | (4.7) | ||||
Other comprehensive income (loss) | 7.4 | ||||
Balances | 4.6 | 4.6 | |||
Currency translation adjustments [Member] | Consolidated sponsored investment portfolios - variable interest entities [Member] | Accounting standards update 2015-02 [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | 0 | ||||
Total accumulated other comprehensive income [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Balances | 86.6 | ||||
Balances, Adjusted | 54.1 | ||||
Other comprehensive income (loss) before reclassifications and income taxes | 19.1 | ||||
Reclassification adjustments recognized in non-operating income | (53.4) | ||||
Other comprehensive income (loss), before taxes | (34.3) | ||||
Net deferred tax benefits (income taxes) | (4.7) | $ 22.5 | 13.5 | $ 33.2 | |
Other comprehensive income (loss) | (20.8) | ||||
Balances | $ 33.3 | $ 33.3 | |||
Total accumulated other comprehensive income [Member] | Accounting standards update 2015-02 [Member] | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | $ (32.5) |
OTHER COMPREHENSIVE INCOME AN50
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassification Adjustments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification adjustment out of accumulated other comprehensive income | ||||
Non-operating income | $ (88.3) | $ (0.3) | $ (214.9) | $ (60.1) |
Provision for income taxes | 201.3 | 181.5 | 497.8 | 584.2 |
Reclassification out of accumulated other comprehensive income [Member] | Net unrealized holding gains or losses [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Non-operating income | (52.3) | |||
Reclassification out of accumulated other comprehensive income [Member] | Net gains realized on dispositions [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Provision for income taxes | 0 | 3.5 | 20.6 | 18.2 |
Reclassification out of accumulated other comprehensive income [Member] | Other-than-temporary impairments [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Provision for income taxes | 0 | (1.9) | 0 | (1.9) |
Reclassification out of accumulated other comprehensive income [Member] | Currency translation adjustments [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Non-operating income | (1.1) | 5.8 | ||
Provision for income taxes | $ 0.4 | $ (1.2) | 0.4 | $ (1.2) |
Reclassification out of accumulated other comprehensive income [Member] | Total accumulated other comprehensive income [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Non-operating income | (53.4) | |||
Variable interest entities [Member] | Reclassification out of accumulated other comprehensive income [Member] | Currency translation adjustments [Member] | ||||
Reclassification adjustment out of accumulated other comprehensive income | ||||
Non-operating income | $ (1.1) |
DELL APPRAISAL RIGHTS MATTER. (
DELL APPRAISAL RIGHTS MATTER. (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Unusual or Infrequent Item [Line Items] | |||||
Nonrecurring charge related to Dell appraisal rights matter | $ 0 | $ 0 | $ 166.2 | $ 0 | |
Dell appraisal rights matter [Member] | |||||
Unusual or Infrequent Item [Line Items] | |||||
Nonrecurring charge related to Dell appraisal rights matter | $ 166.2 | ||||
Court determined fair value per share at time of Dell merger (in dollars per share) | $ 17.62 | ||||
Price offered per share in Dell merger (in dollars per share) | 13.75 | ||||
Payment per share for any shareholder perfecting appraisal rights (in dollars per share) | $ 17.62 |
SUPPLEMENTARY CONSOLIDATING C52
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 362.7 | $ 277.1 | $ 887.2 | $ 919.8 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation and amortization of property and equipment | 34 | 33.1 | 100 | 94.4 |
Stock-based compensation expense | 117.9 | 107.4 | ||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | (52.3) | (48.9) | ||
Net gains recognized on investments | (28.1) | (3.2) | ||
Net change in trading securities held by consolidated sponsored investment portfolios | (1,084.1) | (2.5) | ||
Other changes in assets and liabilities | 327.6 | 326.6 | ||
Net cash provided by (used in) operating activities | 268.2 | 1,393.6 | ||
Net cash provided by (used in) investing activities | 110.3 | (48.6) | ||
Net cash provided by (used in) financing activities | (45.3) | (1,686.7) | ||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | 0 | ||
Net change in cash and cash equivalents during period | 315 | (341.7) | ||
Cash and cash equivalents at beginning of year | 1,172.3 | 1,506.1 | ||
Cash and cash equivalents at end of period | 1,487.3 | $ 1,164.4 | 1,487.3 | $ 1,164.4 |
Consolidation eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (62.1) | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation and amortization of property and equipment | 0 | |||
Stock-based compensation expense | 0 | |||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | 0 | |||
Net gains recognized on investments | 62.1 | |||
Net change in trading securities held by consolidated sponsored investment portfolios | 0 | |||
Other changes in assets and liabilities | (4) | |||
Net cash provided by (used in) operating activities | (4) | |||
Net cash provided by (used in) investing activities | 219.1 | |||
Net cash provided by (used in) financing activities | (215.1) | |||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | 0 | |||
Net change in cash and cash equivalents during period | 0 | |||
Cash and cash equivalents at beginning of year | 0 | |||
Cash and cash equivalents at end of period | 0 | 0 | ||
Attributable to T. Rowe Price Group [Member] | Reportable entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 835.2 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation and amortization of property and equipment | 100 | |||
Stock-based compensation expense | 117.9 | |||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | (52.3) | |||
Net gains recognized on investments | (90.2) | |||
Net change in trading securities held by consolidated sponsored investment portfolios | 0 | |||
Other changes in assets and liabilities | 324.7 | |||
Net cash provided by (used in) operating activities | 1,235.3 | |||
Net cash provided by (used in) investing activities | (163.1) | |||
Net cash provided by (used in) financing activities | (843.5) | |||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | 0 | |||
Net change in cash and cash equivalents during period | 228.7 | |||
Cash and cash equivalents at beginning of year | 1,172.3 | |||
Cash and cash equivalents at end of period | 1,401 | 1,401 | ||
Consolidated sponsored investment portfolios [Member] | Reportable entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 114.1 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||
Depreciation and amortization of property and equipment | 0 | |||
Stock-based compensation expense | 0 | |||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | 0 | |||
Net gains recognized on investments | 0 | |||
Net change in trading securities held by consolidated sponsored investment portfolios | (1,084.1) | |||
Other changes in assets and liabilities | 6.9 | |||
Net cash provided by (used in) operating activities | (963.1) | |||
Net cash provided by (used in) investing activities | 54.3 | |||
Net cash provided by (used in) financing activities | 1,013.3 | |||
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment portfolios | (18.2) | |||
Net change in cash and cash equivalents during period | 86.3 | |||
Cash and cash equivalents at beginning of year | 0 | |||
Cash and cash equivalents at end of period | $ 86.3 | $ 86.3 |