Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Janus Henderson Group plc | |
Entity Central Index Key | 1,274,173 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 200,406,138 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Fees and other receivables | $ 335.7 | $ 419.6 |
OEIC and unit trust receivables | 183.7 | 239.9 |
Other current assets | 68.5 | 75.9 |
Total current assets | 1,966.4 | 2,242.6 |
Non-current assets: | ||
Property, equipment and software, net | 65 | 70.6 |
Intangible assets, net | 3,168 | 3,204.8 |
Goodwill | 1,504.5 | 1,533.9 |
Retirement benefit asset, net | 203.2 | 199.3 |
Other non-current assets | 16.3 | 21.5 |
Total assets | 6,923.4 | 7,272.7 |
Current liabilities: | ||
Current portion of accrued compensation, benefits and staff costs | 228 | 398.7 |
Current portion of long-term debt | 9.4 | 57.2 |
OEIC and unit trust payables | 181.4 | 234.8 |
Total current liabilities | 644 | 1,005.1 |
Non-current liabilities: | ||
Accrued compensation, benefits and staff costs | 38.2 | 23 |
Long-term debt | 320.6 | 322 |
Deferred tax liabilities, net | 748.1 | 752.6 |
Retirement benefit obligations, net | 4.6 | 4.6 |
Other non-current liabilities | 81.2 | 99.6 |
Total liabilities | 1,836.7 | 2,206.9 |
Commitments and contingencies (See Note 13) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 177.8 | 190.3 |
EQUITY | ||
Common stock ( $1.50 par 480,000,000 shares authorized and 200,406,138 issued and outstanding) | 300.6 | 300.6 |
Additional paid-in-capital | 3,783.5 | 3,842.9 |
Treasury shares (4,577,552 and 4,071,284 shares held, respectively) | (172.9) | (155.8) |
Accumulated other comprehensive loss, net of tax | (355.5) | (301.8) |
Retained earnings | 1,324.9 | 1,151.4 |
Total shareholders' equity | 4,880.6 | 4,837.3 |
Nonredeemable noncontrolling interests | 28.3 | 38.2 |
Total equity | 4,908.9 | 4,875.5 |
Total liabilities, redeemable noncontrolling interests and equity | 6,923.4 | 7,272.7 |
Consolidated excluding VIEs | ||
Current assets: | ||
Cash and cash equivalents | 669.8 | 760.1 |
Investment securities | 313.4 | 280.4 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 214.9 | 292.9 |
Consolidated VIEs | ||
Current assets: | ||
Cash and cash equivalents | 34 | 34.1 |
Investment securities | 351 | 419.7 |
Other current assets | 10.3 | 12.9 |
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 10.3 | $ 21.5 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Common stock, par (in dollars/pounds per share) | $ 1.50 | $ 1.50 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 200,406,138 | 200,406,138 |
Common stock, shares outstanding | 200,406,138 | 200,406,138 |
Treasury shares (in shares) | 4,577,552 | 4,071,284 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 592.4 | $ 396.6 | $ 1,180.1 | $ 629.6 |
Operating expenses: | ||||
Employee compensation and benefits | 151 | 123.6 | 297.7 | 194 |
Long-term incentive plans | 55.2 | 47.3 | 95.2 | 63.7 |
Distribution expenses | 114.7 | 72.5 | 232 | 123.1 |
Investment administration | 11.7 | 9.7 | 23.1 | 19.9 |
Marketing | 9.5 | 10.1 | 18 | 13.3 |
General, administrative and occupancy | 59.2 | 67.3 | 131.4 | 92.4 |
Depreciation and amortization | 15.8 | 9.4 | 31.2 | 15.7 |
Total operating expenses | 417.1 | 339.9 | 828.6 | 522.1 |
Operating income | 175.3 | 56.7 | 351.5 | 107.5 |
Interest expense | (3.9) | (2) | (7.7) | (3.1) |
Investment gains (losses), net | (16.6) | 9.8 | (17.3) | 8.9 |
Other non-operating income (expenses), net | 13.9 | (2) | 52.8 | (0.7) |
Income before taxes | 168.7 | 62.5 | 379.3 | 112.6 |
Income tax provision | (38.2) | (21) | (85.6) | (28.5) |
Net income | 130.5 | 41.5 | 293.7 | 84.1 |
Net loss attributable to noncontrolling interests | 10.1 | 0.2 | 12.1 | 0.2 |
Net income attributable to JHG | $ 140.6 | $ 41.7 | $ 305.8 | $ 84.3 |
Earnings per share attributable to JHG common shareholders: | ||||
Basic (in dollars per share) | $ 0.70 | $ 0.29 | $ 1.52 | $ 0.66 |
Diluted (in dollars per share) | $ 0.70 | $ 0.28 | $ 1.51 | $ 0.64 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation gains (losses) | $ (104.7) | $ 51.2 | $ (52) | $ 74.5 |
Net unrealized losses on available-for-sale securities | (0.4) | |||
Other comprehensive income (loss), net of tax | (104.7) | 51.2 | (52) | 74.1 |
Other comprehensive loss attributable to noncontrolling interests | 0.6 | 15.9 | 0.8 | 16.3 |
Other comprehensive income (loss) attributable to JHG | (104.1) | 67.1 | (51.2) | 90.4 |
Total comprehensive income | 25.8 | 92.7 | 241.7 | 158.2 |
Total comprehensive loss attributable to noncontrolling interests | 10.7 | 16.1 | 12.9 | 16.5 |
Total comprehensive income attributable to JHG | 36.5 | 108.8 | 254.6 | 174.7 |
Management fees | ||||
Revenue: | ||||
Revenue | 493.5 | 300 | 996.4 | 501 |
Performance fees | ||||
Revenue: | ||||
Revenue | 13.5 | 57.7 | 9.6 | 72.5 |
Shareowner servicing fees | ||||
Revenue: | ||||
Revenue | 31.8 | 9.9 | 63.3 | 9.9 |
Other revenue | ||||
Revenue: | ||||
Revenue | $ 53.6 | $ 29 | $ 110.8 | $ 46.2 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities: | ||||
Net income | $ 130.5 | $ 41.5 | $ 293.7 | $ 84.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 15.8 | 9.4 | 31.2 | 15.7 |
Stock-based compensation plan expense | 41.2 | 30.9 | ||
Investment gains (losses), net | 16.6 | (9.8) | 17.3 | (8.9) |
Gain from BNP Paribas transaction | (22.3) | |||
Dai-ichi option fair value adjustment | (24.7) | |||
Contributions to pension plans in excess of costs recognized | (9) | (11.7) | ||
Other, net | 0.4 | 9 | ||
Changes in operating assets and liabilities: | ||||
OEIC and unit trust receivables and payables | 2.8 | 2.6 | ||
Other assets | 118.6 | (107.9) | ||
Other accruals and liabilities | (268.3) | 47.8 | ||
Net operating activities | 180.9 | 61.6 | ||
Investing activities: | ||||
Cash acquired from acquisition | 417.2 | |||
Proceeds from (purchases of): | ||||
Property, equipment and software | (11.3) | (8.4) | ||
Investment securities, net | 43.9 | 14 | ||
Investment securities by consolidated seeded investment products, net | (16.7) | 148.8 | ||
Proceeds from BNP Paribas transaction, net | 36.5 | |||
Net cash received (paid) on settled hedges | 3.6 | (7.3) | ||
Net investing activities | 56 | 564.3 | ||
Financing activities: | ||||
Proceeds from settlement of convertible note hedge | 59.3 | |||
Settlement of stock warrant | (47.8) | |||
Proceeds from issuance of options | 25.7 | |||
Proceeds from stock-based compensation plans | 0.3 | 2.1 | ||
Purchase of common stock for stock-based compensation plans | (84.1) | (39.1) | ||
Dividends paid to shareholders | (134.7) | (128.6) | ||
Repayment of long-term debt | (81.9) | |||
Payment of contingent consideration | (18.8) | |||
Distributions to noncontrolling interests | (3.4) | (0.5) | ||
Third-party sales (redemptions) in consolidated seeded investment products, net | 16.7 | (148.8) | ||
Principal payments under capital lease obligations | (0.7) | (0.1) | ||
Net financing activities | (306.6) | (277.8) | ||
Cash and cash equivalents: | ||||
Effect of foreign exchange rate changes | (20.7) | 12.4 | ||
Net change | (90.4) | 360.5 | ||
At beginning of period | 794.2 | 323.2 | ||
At end of period | 703.8 | 683.7 | 703.8 | 683.7 |
Supplemental cash flow information: | ||||
Cash paid for interest | 7.4 | 0.3 | ||
Cash paid for income taxes, net of refunds | 104.9 | 25 | ||
Reconciliation of cash and cash equivalents | ||||
Cash and cash equivalents | 703.8 | 683.7 | 794.2 | 323.2 |
Consolidated VIEs | ||||
Cash and cash equivalents: | ||||
At end of period | 34 | 43.7 | 34 | 43.7 |
Reconciliation of cash and cash equivalents | ||||
Cash and cash equivalents | 34 | 43.7 | 34 | 43.7 |
Consolidated excluding VIEs | ||||
Cash and cash equivalents: | ||||
At end of period | 669.8 | 640 | 669.8 | 640 |
Reconciliation of cash and cash equivalents | ||||
Cash and cash equivalents | $ 669.8 | $ 640 | $ 669.8 | $ 640 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Common stock | Additional paid-in-capital | Treasury shares | Accumulated other comprehensive loss | Retained earnings | Nonredeemable noncontrolling interests | Total |
Balance at Dec. 31, 2016 | $ 234.4 | $ 1,237.9 | $ (155.1) | $ (434.5) | $ 764.8 | $ 44.8 | $ 1,692.3 |
Balance (in shares) at Dec. 31, 2016 | 1,131,800,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Share consolidation (in shares) | (1,018,600,000) | ||||||
Net income | 84.3 | (0.5) | 83.8 | ||||
Other comprehensive income (loss) | 90.4 | (16.3) | 74.1 | ||||
Dividends paid to shareholders | (128.6) | (128.6) | |||||
Distributions to noncontrolling interests | (0.5) | (0.5) | |||||
Derivative instruments acquired on acquisition | 54.4 | 54.4 | |||||
Noncontrolling interests recognized on acquisition | 16.5 | 16.5 | |||||
Settlement of derivative instruments | (11.5) | (11.5) | |||||
Purchase of common stock for stock-based compensation plans | (39.1) | (39.1) | |||||
Issuance of common stock | $ 130.8 | 2,551.2 | 2,682 | ||||
Issuance of common stock (in shares) | 87,200,000 | ||||||
Redenomination and reduction of par value of stock | $ (64.6) | 64.6 | |||||
Acquisition adjustment in relation to unvested awards | (81.3) | (81.3) | |||||
Vesting of stock-based compensation plans | (13.9) | 36.3 | (22.4) | ||||
Stock-based compensation plan expense | 21 | 9.9 | 30.9 | ||||
Proceeds from stock-based compensation plans | 2.1 | 2.1 | |||||
Balance at Jun. 30, 2017 | $ 300.6 | 3,824.5 | (157.9) | (344.1) | 708 | 44 | 4,375.1 |
Balance (in shares) at Jun. 30, 2017 | 200,400,000 | ||||||
Balance at Dec. 31, 2017 | $ 300.6 | 3,842.9 | (155.8) | (301.8) | 1,151.4 | 38.2 | $ 4,875.5 |
Balance (in shares) at Dec. 31, 2017 | 200,400,000 | 200,406,138 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Other comprehensive income (loss) | $ (52) | ||||||
Balance at Jun. 30, 2018 | $ 300.6 | 3,783.5 | (172.9) | (355.5) | 1,324.9 | 28.3 | $ 4,908.9 |
Balance (in shares) at Jun. 30, 2018 | 200,400,000 | 200,406,138 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Cumulative-effect adjustment | 2.5 | (2.7) | $ (0.2) | ||||
Balance at Jan. 01, 2018 | $ 300.6 | 3,842.9 | (155.8) | (304.3) | 1,154.1 | 38.2 | 4,875.7 |
Balance (in shares) at Jan. 01, 2018 | 200,400,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 305.8 | (6.8) | 299 | ||||
Other comprehensive income (loss) | (51.2) | (51.2) | |||||
Dividends paid to shareholders | 0.1 | (134.8) | (134.7) | ||||
Distributions to noncontrolling interests | (3.1) | (3.1) | |||||
Fair value adjustments to redeemable noncontrolling interests | (0.2) | (0.2) | |||||
Redemptions of convertible debt | (34) | (34) | |||||
Purchase of common stock for stock-based compensation plans | (37.5) | (46.6) | (84.1) | ||||
Vesting of stock-based compensation plans | (29.5) | 29.5 | |||||
Stock-based compensation plan expense | 41.2 | 41.2 | |||||
Proceeds from stock-based compensation plans | 0.3 | 0.3 | |||||
Balance at Jun. 30, 2018 | $ 300.6 | $ 3,783.5 | $ (172.9) | $ (355.5) | $ 1,324.9 | $ 28.3 | $ 4,908.9 |
Balance (in shares) at Jun. 30, 2018 | 200,400,000 | 200,406,138 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | Note 1 — Basis of Presentation and Significant Accounting Policies Basis of Presentation In the opinion of management of Janus Henderson Group plc (“JHG” or “the Group”), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of JHG in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in JHG’s Annual Report on Form 10-K for the year ended December 31, 2017. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date and are included in the notes to the condensed consolidated financial statements. On May 30, 2017, JHG completed a merger of equals with Janus Capital Group Inc. (“JCG”) (the “Merger”). As a result of the Merger, JCG and its consolidated subsidiaries became subsidiaries of JHG. Recent Accounting Pronouncements Adopted Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new revenue recognition standard. The standard’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. The revenue standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued an amendment to its principal-versus-agent guidance in the FASB’s new revenue standard. The key provisions of the amendment are assessing the nature of the entity’s promise to the customer, identifying the specified goods or services, and applying the control principle and indicators of control. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. In addition, entities are required to adopt the amendment by using the same transition method they used to adopt the new revenue standard. The Group adopted the new revenue recognition standard, along with the updated principal-versus-agent guidance, effective January 1, 2018, using the retrospective method, which required adjustments to be reflected as of January 1, 2016. In connection with the adoption of this guidance, the Group determined that the new guidance does not change the timing of when the Group recognizes revenue. However, management did conclude that certain distribution and servicing fees earned from its U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities could no longer be reported net of the expenses paid to third-party intermediaries that perform such services. Under the new guidance, the Group is deemed to have control over the distribution and servicing activities before they are transferred to the U.S. mutual funds. As such, distribution and servicing fees collected from the Group’s U.S. mutual funds are reported separately from distribution and servicing fees paid to third-party intermediaries on the Group’s Condensed Consolidated Statements of Comprehensive Income. The adoption of the standard increased management fees, other revenue and distribution expenses on the Group’s Condensed Consolidated Statements of Comprehensive as follows (in millions): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Increase in: Management fees $ $ $ $ Other revenue $ $ $ $ Distribution expenses $ $ $ $ The adoption of the standard did not have an impact to net income attributable to JHG on the Group’s Condensed Consolidated Statements of Comprehensive Income. Financial Instruments In January 2016, the FASB issued amendments to its financial instruments standard, including changes relating to the accounting for equity investments and the presentation and disclosure requirements for financial instruments. Under the amended guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. The amended guidance also requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category (e.g., fair value, amortized cost, lower of cost or market value) and form of financial asset (e.g., loans, securities). The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. On January 1, 2018, the Group adopted the financial instruments accounting standard on a modified retrospective basis. The accounting standard required the Group to reclassify a $2.5 million unrealized gain related to available-for-sale securities in accumulated other comprehensive income to retained earnings as a beginning of period cumulative-effect adjustment. As of January 1, 2018, the balance in accumulated comprehensive income related to available-for-sale securities is zero, and gains and losses associated with all equity securities are recognized in investment gains (losses), net on the Group’s Condensed Consolidated Statements of Comprehensive Income. Retirement Benefit Plans In March 2017, the FASB issued an Accounting Standards Update (“ASU”) that requires the bifurcation of net periodic pension costs. The service cost component will be presented with other employee compensation costs in operating income, while the other components of net periodic pension costs will be presented separately outside of operations. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Group anticipates the impact to be approximately $5.3 million of other components, excluding service costs, to be recognized outside of operating expenses on an annualized basis. Statements of Cash Flows In August 2016, the FASB issued an ASU to clarify guidance on the classification of certain cash receipts and cash payments in the statements of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice regarding eight types of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The adoption of the new accounting standard did not have a material impact on the Group’s Condensed Consolidated Statements of Cash Flows. Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued a new standard on accounting for leases. The new standard represents a significant change to lease accounting and introduces a lessee model that brings most leases onto the balance sheet. The standard also aligns certain of the underlying principles of the new lessor model with those in the FASB’s new revenue recognition standard. Furthermore, the new standard addresses other concerns related to the current leases model. The standard is effective for fiscal years beginning after December 15, 2018. The Group is evaluating the effect of adopting this new accounting standard. Hedge Accounting In August 2017, the FASB issued an ASU that amends hedge accounting. The ASU expands the strategies eligible for hedge accounting, changes how companies assess hedge effectiveness and will require new disclosures and presentation. The ASU is effective on January 1, 2019, for calendar year-end companies; however, early adoption is permitted. The Group is evaluating the effect of adopting this new accounting standard. Revenue Recognition Policy — Updated January 1, 2018 Revenue is measured and recognized based on the five-step process outlined in US GAAP. Revenue is determined based on the transaction price negotiated with the customer, net of rebates. Management fees, performance fees, shareowner servicing fees and other revenue are derived from providing professional services to manage investment products. Management fees are earned over time as services are provided and are generally based on a percentage of the market value of assets under management (“AUM”). These fees are calculated as a percentage of either the daily, month-end or quarter-end average asset balance in accordance with contractual agreements. Performance fees are specified in certain fund and client contracts and are based on investment performance either on an absolute basis or compared to an established index over a specified period of time. Performance fees are generated on certain management contracts when performance hurdles or other specified criteria are achieved. Performance fees for all fund ranges and separate accounts are recognized when it is probable that a significant reversal of revenue recognized will not occur in future periods. There are no performance fee contracts where revenue can be clawed back. There are no cumulative revenues recognized that would be reversed if all of the existing investments became worthless. Management fees are primarily received monthly or quarterly, while performance fees are usually received monthly, quarterly or annually by the Group, although the frequency of receipt varies between agreements. Management and performance fee revenue not yet received is recognized within fees and other receivables on the Group’s Condensed Consolidated Balance Sheets. Shareowner servicing fees are earned for services rendered related to transfer agent and administrative activities performed for investment products. These services are transferred over time and are generally based on a percentage of the market value of AUM. Other revenue includes distribution and servicing fees earned from U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities. These services are transferred over time and are generally based on a percentage of the market value of AUM. U.S. Mutual Fund Performance Fees The investment management fee paid by each U.S. mutual fund subject to a performance fee is the base management fee plus or minus a performance fee adjustment as determined by the relative investment performance of the fund compared to a specified benchmark index. Under the performance based fee structure, the investment advisory fee paid by each fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the fund’s average daily net assets during the previous month, plus or minus (2) a performance fee adjustment calculated by applying a variable rate of up to 0.15% to the fund’s average daily net assets during the performance measurement period. The performance measurement period begins as a trailing period ranging from 12 to 18 months, and each subsequent month is added to each successive performance measurement period until a 36-month period is achieved. At that point, the measurement period becomes a rolling 36-month period. The addition of performance fees to all funds without such fees is subject to the approval of both a majority of the shareholders of such funds and the funds’ independent board of trustees. Principal versus Agent The Group utilizes third-party intermediaries to fulfill certain performance obligations in its revenue agreements. Generally, JHG is deemed to be the principal in these arrangements, because the Group controls the investment management and other related services before they are transferred to customers. Such control is evidenced by the Group’s primary responsibility to customers, the ability to negotiate the third-party contract price and select and direct third-party service providers, or a combination of these factors. Therefore, distribution and service fee revenues and the related third-party distribution and service expenses are reported on a gross basis. |
Consolidation
Consolidation | 6 Months Ended |
Jun. 30, 2018 | |
Consolidation | |
Consolidation | Note 2 — Consolidation Variable Interest Entities Consolidated Variable Interest Entities JHG’s consolidated variable interest entities (“VIEs”) as of June 30, 2018 and December 31, 2017, include certain consolidated seeded investment products in which the Group has an investment and acts as the investment manager. The assets of these VIEs are not available to JHG or the creditors of JHG. JHG may not, under any circumstances, access cash and cash equivalents held by consolidated VIEs to use in its operating activities or otherwise. In addition, the investors in these VIEs have no recourse to the credit of the Group. Unconsolidated Variable Interest Entities At June 30, 2018, and December 31, 2017, JHG’s carrying values of investment securities included on the Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs were $3.9 million and $6.2 million, respectively. JHG’s total exposure to unconsolidated VIEs represents the value of its economic ownership interest in the investment securities. Voting Rights Entities Consolidated Voting Rights Entities The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on JHG’s Condensed Consolidated Balance Sheets, including JHG’s net interest in these products (in millions): June 30, December 31, 2018 2017 Investment securities $ $ Cash and cash equivalents Other current assets Accounts payable and accrued liabilities ) ) Total Redeemable noncontrolling interests in consolidated VREs ) ) JHG’s net interest in consolidated VREs $ $ JHG’s total exposure to consolidated VREs represents the value of its economic ownership interest in these seeded investment products. JHG may not, under any circumstances, access cash and cash equivalents held by consolidated VREs to use in its operating activities or for any other purpose. Unconsolidated Voting Rights Entities At June 30, 2018, and December 31, 2017, JHG’s carrying values of investment securities included on the Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs were $42.9 million and $50.0 million, respectively. JHG’s total exposure to unconsolidated VREs represents the value of its economic ownership interest in the investment securities. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investment Securities | |
Investment Securities | Note 3 — Investment Securities JHG’s investment securities as of June 30, 2018, and December 31, 2017, are summarized as follows (in millions): June 30, December 31, 2018 2017 Seeded investment products: Consolidated VIEs $ $ Consolidated VREs Unconsolidated VIEs and VREs Separate accounts Pooled investment funds Total seeded investment products Investments related to deferred compensation plans Other investments Total investment securities $ $ All investment securities as of June 30, 2018, and December 31, 2017, are equity securities. Net unrealized losses on investment securities held as of June 30, 2018 and 2017, are summarized as follows (in millions): Three months ended Six months ended 2018 2017 2018 2017 Unrealized losses on investment securities held at period end $ ) $ ) $ ) $ ) Derivative Instruments JHG maintains an economic hedge program that uses derivative instruments to mitigate against market volatility of certain seeded investments by using index and commodity futures (“futures”), index swaps, total return swaps (“TRSs”) and credit default swaps. Foreign currency exposures associated with the Group’s seeded investment products are also hedged by using foreign currency forward contracts. The Group also has a net investment hedge related to foreign currency translation on hedged seed investments denominated in currencies other than the Group’s functional currency. JHG was party to the following derivative instruments as of June 30, 2018, and December 31, 2017 (in millions): Notional value June 30, 2018 December 31, 2017 Futures $ $ Credit default swaps Index swaps — Total return swaps Foreign currency forward contracts The derivative instruments are not designated as hedges for accounting purposes, with the exception of foreign currency forward contracts used for net investment hedging. Changes in fair value of the futures, index swaps, TRSs and credit default swaps are recognized in investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income. Changes in the fair value of the foreign currency forward contracts designated as hedges for accounting purposes are recognized in other comprehensive income, net of tax, on JHG’s Condensed Consolidated Statements of Comprehensive Income. The value of the individual derivative contracts is recognized on a gross basis and included in other current assets or accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets and are immaterial individually and in aggregate. The Group recognized the following net foreign currency translation gains and losses on hedged seed investments denominated in currencies other than the Group’s functional currency and net gains and losses associated with foreign currency forward contracts under net investment hedge accounting for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended Six months ended 2018 2017 2018 2017 Foreign currency translation $ ) $ $ ) $ Foreign currency forward contracts ) ) Total $ — $ — $ — $ — Derivative Instruments in Consolidated Seeded Investment Products Certain of the Group’s consolidated seeded investment products utilize derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within other current assets or accounts payable and accrued liabilities on JHG’s Condensed Consolidated Balance Sheets and are immaterial individually and in aggregate. Gains and losses on these derivative instruments are classified within investment losses, net on JHG’s Condensed Consolidated Statements of Comprehensive Income. JHG’s consolidated seeded investment products were party to the following derivative instruments as of June 30, 2018, and December 31, 2017 (in millions): Notional value June 30, 2018 December 31, 2017 Futures $ $ Contracts for differences Credit default swaps Total return swaps Interest rate swaps Options Swaptions Foreign currency forward contracts As of June 30, 2018, certain consolidated seeded investment products sold credit protection through the use of credit default swap contracts. The contracts provide alternative credit risk exposure to individual companies and countries outside of traditional bond markets. The terms of the credit default swap contracts range from one to five years. As sellers in credit default swap contracts, the consolidated seeded investment products would be required to pay the notional value of a referenced debt obligation to the counterparty in the event of a default on the debt obligation by the issuer. The notional value represents the estimated maximum potential undiscounted amount of future payments required upon the occurrence of a credit default event. As of June 30, 2018 and December 31, 2017, the notional values of the agreements totaled $3.9 million and $4.0 million, respectively. The credit default swap contracts include recourse provisions that allow for recovery of a certain percentage of amounts paid upon the occurrence of a credit default event. As of June 30, 2018 and December 31, 2017, the fair value of the credit default swap contracts selling protection was ($0.3) million and $0.1 million, respectively. Investment Gains (Losses), Net Investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income included the following for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended Six months ended 2018 2017 2018 2017 Seeded investment products $ ) $ ) $ ) $ ) Fair value movements on derivatives ) ) Gain on sale of Volantis — — Other ) ) Investment gains (losses), net $ ) $ $ ) $ Cash Flows Cash flows related to investment securities for the six months ended June 30, 2018 and 2017, are summarized as follows (in millions): Six months ended June 30, 2018 2017 Purchases Sales, Purchases Sales, Investment securities $ ) ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | Note 4 — Fair Value Measurements The following table presents assets, liabilities and redeemable noncontrolling interests presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of June 30, 2018 (in millions): Fair value measurements using: Quoted prices in Significant other Significant Total Assets: Cash equivalents $ $ — $ — $ Investment securities: Consolidated VIEs Other investment securities — Total investment securities Seed hedge derivatives — — Derivatives in consolidated seeded investment products — — Volantis contingent consideration — — Total assets $ $ $ $ Liabilities: Derivatives in consolidated seeded investment products $ — $ $ — $ Financial liabilities in consolidated seeded investment products — — Seed hedge derivatives — — Current portion of long-term debt(1) — — Long-term debt(1) — — Deferred bonuses — — Contingent consideration — — Dai-ichi options — — Total liabilities $ $ $ $ Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ $ Intech — — Total redeemable noncontrolling interests $ — $ — $ $ (1) Carried at amortized cost and disclosed at fair value. The following table presents assets, liabilities and redeemable noncontrolling interests presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2017 (in millions): Fair value measurements using: Quoted prices in Significant other Significant Total Assets: Cash equivalents $ $ — $ — $ Investment securities: Consolidated VIEs Other investment securities Total investment securities Seed hedge derivatives — — Derivatives in consolidated seeded investment products — Contingent consideration — — Total assets $ $ $ $ Liabilities: Derivatives in consolidated seeded investment products $ $ $ — $ Financial liabilities in consolidated seeded investment products — — Seed hedge derivatives — Current portion of long-term debt(1) — — Long-term debt(1) — — Deferred bonuses — — Contingent consideration — — Dai-ichi options — — Total liabilities $ $ $ $ Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ $ Intech — — Total redeemable noncontrolling interests $ — $ — $ $ Level 1 Fair Value Measurements JHG’s Level 1 fair value measurements consist mostly of seeded investment products, investments in advised mutual funds, cash equivalents and investments related to deferred compensation plans with quoted market prices in active markets. The fair value level of consolidated seeded investment products is determined by the underlying securities of the product. The fair value level of unconsolidated seeded investment products is determined using the respective net asset value (“NAV”) of each product. Level 2 Fair Value Measurements JHG’s Level 2 fair value measurements consist mostly of consolidated seeded investment products, derivative instruments and JHG’s long-term debt. The fair value of consolidated seeded investment products is determined by the underlying securities of the product. The fair value of JHG’s long-term debt is determined using broker quotes and recent trading activity, which are considered Level 2 inputs. Level 3 Fair Value Measurements Investment Securities As of June 30, 2018, and December 31, 2017, certain securities within consolidated VIEs were valued using significant unobservable inputs, resulting in Level 3 classification. (1) Carried at amortized cost and disclosed at fair value. Valuation techniques and significant unobservable inputs used in the valuation of JHG’s material Level 3 assets included within consolidated VIEs as of June 30, 2018, and December 31, 2017, were as follows (in millions): As of June 30, 2018 Fair value Valuation Significant Range (weighted Investment securities of consolidated VIEs $ Discounted Discount rate 14.0% - 15.0% (14.7)% cash flow EBITDA multiple 11.6 - 19.3 (17.2) Price-earnings ratio 30.1 - 61.3 (38.6) As of December 31, 2017 Fair value Valuation Significant Range (weighted Investment securities of consolidated VIEs $ Discounted Discount rate 12.0% - 15.0% (14.3)% cash flow EBITDA multiple 11.6 - 15.1 (14.3) Price-earnings ratio 22.6 - 61.3 (52.4) Contingent Consideration The maximum amount payable and fair value of Geneva, Perennial, Kapstream and VelocityShares contingent consideration is summarized below (in millions): As of June 30, 2018 Geneva Perennial Kapstream VelocityShares Maximum amount payable $ $ $ $ Fair value included in: Accounts payable and accrued liabilities $ — $ — $ $ — Non-current liabilities — Total fair value $ $ $ $ — As of December 31, 2017 Geneva Perennial Kapstream VelocityShares Fair value included in: Accounts payable and accrued liabilities $ — $ — $ $ Non-current liabilities — Total fair value $ $ $ $ Acquisition of Geneva The consideration payable on the acquisition of Geneva Capital Management LLC (“Geneva”) in 2014 included two contingent tranches of up to $45.0 million and $25.0 million, payable over seven years. The fair value of the Geneva contingent consideration is estimated at each reporting date by forecasting revenue, as defined by the sale and purchase agreement, over the contingency period and by determining whether targets will be met. Significant unobservable inputs used in the valuation are limited to forecast revenues, which factor in expected growth in AUM based on performance and industry trends. No fair value adjustment was necessary in the period ended June 30, 2018. Acquisition of Perennial The consideration payable on the acquisition of Perennial Fixed Interest Partners Pty Ltd and Perennial Growth Management Pty Ltd (together “Perennial”) included contingent consideration payable in 2019 if revenues of the Perennial equities business meet certain targets. The total maximum payment over the remaining contingent consideration period is $5.5 million as of June 30, 2018. In addition, there is a maximum amount of $38.8 million payable in two tranches in 2019 and 2020, which have employee service conditions attached (“earn-out”). The earn-out is accrued over the service period as compensation expense and is based on net management fee revenue. The fair value of the Perennial contingent consideration and earn-out is calculated at each reporting date by forecasting Perennial revenues over the contingency period and determining whether the forecasted amounts meet the defined targets. The significant unobservable input used in the valuation is forecasted revenue. No fair value adjustments to the consideration were made during the three and six months ended June 30, 2018. Acquisition of Kapstream The outstanding Kapstream Capital Pty Limited (“Kapstream”) contingent cash consideration in respect to the initial acquisition of a 51% controlling interest is payable in the third quarter of 2018 if certain Kapstream AUM reach defined targets. On June 30, 2018, (36 months after acquisition) Kapstream reached defined AUM targets and the Group paid $3.8 million in July of 2018. The purchase of the remaining 49% had contingent consideration of up to $43.0 million. Payment of the contingent consideration is subject to all Kapstream products and certain products advised by the Group, reaching defined revenue targets on the first, second and third anniversaries of January 31, 2017. The contingent consideration is payable in three equal installments on the anniversary dates and is indexed to the performance of the premier share class of the Kapstream Absolute Return Income Fund. When Kapstream achieves the defined revenue targets, the holders receive the value of the contingent consideration adjusted for gains or losses attributable to the mutual fund to which the contingent consideration is indexed, subject to tax withholding. On January 31, 2018, the first anniversary of the acquisition, Kapstream reached defined revenue targets, and the Group paid $15.3 million in February 2018. The fair value of the Kapstream contingent consideration is calculated at each reporting date by forecasting certain Kapstream AUM or defined revenue over the contingency period and determining whether the forecasted amounts meet the defined targets. Significant unobservable inputs used in the valuation are limited to forecasted Kapstream AUM and performance against defined revenue targets. No fair value adjustment was necessary during the three and six months ended June 30, 2018. Acquisition of VelocityShares JCG’s acquisition of VS Holdings Inc. (“VelocityShares”) in 2014 included contingent consideration. The payment is contingent on certain VelocityShares’ exchange-traded products (“ETPs”) reaching defined net revenue targets. VelocityShares reached defined net revenue targets in November 2017, and the Group paid $3.6 million in January 2018. The fair value of the VelocityShares contingent consideration is calculated at each reporting date by forecasting net ETP revenue, as defined by the purchase agreement, over the contingency period and by determining whether net forecasted ETP revenue targets are achieved. Significant unobservable inputs used in the valuation are considered non-public data and limited to forecasted gross revenues and certain expense items, which are deducted from these revenues. Fair value adjustments to the consideration during the three months ended June 30, 2018, resulted in a $2.7 million decrease to the liability which reduced the fair value to nil as of June 30, 2018. The fair value adjustment was recorded to other non-operating income (expenses), net on the Group’s Condensed Consolidated Statements of Comprehensive Income. Disposal of Volantis On April 1, 2017, the Group completed the sale of Volantis. Consideration for the sale was a 10% share of the management and performance fees generated by Volantis for a period of three years. The fair value of the Volantis contingent consideration is estimated at each reporting date by forecasting revenues over the contingency period of three years. Significant unobservable inputs used in the valuation are limited to forecast revenues, which factor in expected growth in AUM based on performance and industry trends. Increases in forecast revenue increase the fair value of the consideration, while decreases in forecast revenue decrease the fair value. The forecasted share of revenues is then discounted back to the valuation date using an 11.8% discount rate. As of June 30, 2018, the fair value of the Volantis contingent consideration was $7.3 million. Deferred Bonuses Deferred bonuses represent liabilities to employees over the vesting period that will be settled by investments in JHG products. The significant unobservable inputs are investment designations and vesting periods. Dai-ichi Options As of June 30, 2018, the fair value of the options sold to Dai-ichi Life Holdings Inc. (“Dai-ichi”) was $2.1 million. The fair value was determined using a Black-Scholes option pricing model. The Black-Scholes model requires management to estimate certain variables, primarily the volatility of the underlying shares. Changes in the fair value of the options are recognized in other non-operating income (expenses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income. Redeemable Noncontrolling Interests in Intech Redeemable noncontrolling interests in Intech Investment Management LLC (“Intech”) are measured at fair value on a quarterly basis or more frequently if events or circumstances indicate that a material change in the fair value of Intech has occurred. The fair value of Intech is determined using a valuation methodology that incorporates observable metrics from publicly traded peer companies as valuation comparables and adjustments related to investment performance and changes in AUM. Changes in fair value are recognized in other non-operating income (expenses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income. Redeemable Noncontrolling Interests in Consolidated Seeded Investment Products Redeemable noncontrolling interests are measured at fair value. Their fair values are primarily driven by the fair value of the investments in consolidated funds. The significant unobservable inputs are investment designations. The fair value of redeemable noncontrolling interests may also fluctuate from period to period based on changes in the Group’s relative ownership percentage of seed investments. Changes in fair value are recognized in investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income. Changes in Fair Value Changes in fair value of JHG’s Level 3 assets for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended Six months ended 2018 2017 2018 2017 Beginning of period fair value $ $ $ $ Balance acquired from the Merger — — Additions — — Settlements ) — ) — Movements recognized in net income ) ) ) ) Movements recognized in other comprehensive income ) ) End of period fair value $ $ $ $ Changes in fair value of JHG’s individual Level 3 liabilities and redeemable noncontrolling interests for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Contingent Deferred Dai-ichi Redeemable Contingent Deferred Dai-ichi Redeemable Beginning of period fair value $ $ $ $ $ $ $ — $ Balances acquired from the Merger — — — — — Additions — — — — — — — — Changes in ownership — — — ) — — — Net movement in bonus deferrals — ) — — — ) — — Fair value adjustments ) — ) ) — Unrealized gains (losses) — — — ) — — — ) Amortization of Intech appreciation rights — — — — — — Distributions — — — ) — — — ) Foreign currency translation ) — ) ) — ) End of period fair value $ $ $ $ $ $ $ $ Six months ended June 30, 2018 2017 Contingent Deferred Dai-ichi Redeemable Contingent Deferred Dai-ichi Redeemable Beginning of period fair value $ $ $ $ $ $ $ — $ Balances acquired from the Merger — — — — — Additions — — — — — — — — Changes in ownership — — — ) — — — ) Net movement in bonus deferrals — ) — — — — — Fair value adjustments — ) — Unrealized gains (losses) — — — ) — — — ) Amortization of Intech appreciation rights — — — ) — — — Distributions ) — — ) — — — ) Foreign currency translation ) — ) — ) End of period fair value $ $ $ $ $ $ $ $ Nonrecurring Fair Value Measurements Nonrecurring Level 3 fair value measurements include goodwill and intangible assets. The Group measures the fair value of goodwill and intangible assets on initial recognition using discounted cash flow analysis that requires assumptions regarding projected future earnings and discount rates. Because of the significance of the unobservable inputs in the fair value measurements of these assets, such measurements are classified as Level 3. Transfers Between Fair Value Levels The underlying securities of funds and separate accounts may trade on a foreign stock exchange. In some cases, the closing price of such securities may be adjusted to capture the effects of any post-closing activity affecting the markets in which they trade. Security prices are adjusted based on historical impacts for similar post-close activity. These adjustments result in the securities being classified as Level 2 and may also result in the movement of securities between Level 1 and Level 2. Transfers are recognized at the end of each reporting period. Transfers between Level 1 and Level 2 classifications for the six months ended June 30, 2018 and 2017, are as follows (in millions): June 30, 2018 2017 Transfers from Level 1 to Level 2 $ $ — Transfers from Level 2 to Level 1 $ $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 5 — Goodwill and Intangible Assets The following table presents movements in intangible assets and goodwill during the period (in millions): Foreign December 31, currency June 30, 2017 Amortization translation Disposal 2018 Indefinite-lived intangible assets: Investment management agreements $ $ — $ ) $ — $ Trademarks — ) — Definite-lived intangible assets: Client relationships — ) — Accumulated amortization ) ) — ) Net intangible assets $ $ ) $ ) $ — $ Goodwill $ $ — $ ) $ ) $ Transaction with BNP Paribas On March 31, 2018, the Group and BNP Paribas Securities Services (“BNP Paribas”) completed a transaction transferring JHG’s back-office (including fund administration and fund accounting), middle-office (including portfolio accounting, securities operations and trading operations) and custody functions in the U.S. to BNP Paribas. As part of the transaction, more than 100 JHG employees, based in Denver, Colorado, have transitioned to BNP Paribas, and BNP Paribas became the fund services provider for JHG’s U.S. regulated mutual funds. Gross consideration of $40.0 million received for the transaction resulted in the recognition of a $22.3 million gain in other non-operating income (expenses), net on the Condensed Consolidated Statements of Comprehensive Income. JHG also allocated $9.5 million of goodwill to the transaction, which resulted in a $9.5 million goodwill reduction, disclosed in the disposal column in the table above. Future Amortization Expected future amortization expense related to client relationships is summarized below (in millions): Year ended December 31, Amount 2018 (remainder of year) $ 2019 2020 2021 2022 Thereafter Total $ |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt | |
Debt | Note 6 — Debt Debt as of June 30, 2018, and December 31, 2017, consisted of the following (in millions): June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ $ $ $ 0.750% Convertible Senior Notes due 2018 Total debt Less: Current portion of long-term debt Total long-term debt $ $ $ $ 4.875% Senior Notes Due 2025 The Group’s 4.875% Senior Notes due 2025 (“2025 Senior Notes”) have a principal value of $300.0 million as of June 30, 2018, pay interest at 4.875% semiannually on February 1 and August 1 of each year, and mature on August 1, 2025. The 2025 Senior Notes include unamortized debt premium, net at June 30, 2018, of $20.6 million, which will be amortized over the remaining life of the notes. The unamortized debt premium is recorded as a liability within long-term debt on JHG’s Condensed Consolidated Balance Sheets. JHG fully and unconditionally guarantees the obligations of JCG in relation to the 2025 Senior Notes. 0.750% Convertible Senior Notes Due 2018 The Group’s 0.750% Convertible Notes due 2018 (“2018 Convertible Notes”) have a principal value of $9.4 million as of June 30, 2018, pay interest at 0.750% semiannually on January 15 and July 15 of each year, and mature on July 15, 2018. The fair value as of June 30, 2018, in the table above represents the fair value of the liability component. JHG fully and unconditionally guarantees the obligations of JCG in relation to the 2018 Convertible Notes. Holders of the 2018 Convertible Notes may convert the notes during a particular calendar quarter if the last reported sale price of JHG’s common stock is greater than or equal to 130% of the applicable conversion price for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding quarter. The 2018 Convertible Notes are convertible from July 1, 2018 to July 15, 2018 (maturity date), regardless of the conversion criteria. During the three and six months ended June 30, 2018, $0.2 million and $48.1 million of principal was redeemed and settled with cash for a total cash outlay of $0.3 million and $81.9 million, respectively. The difference between the principal redeemed and the cash paid primarily represents the value of the conversion feature. During the period from July 1, 2018 to July 15, 2018, the remaining $9.4 million in principal was redeemed and settled with cash for a total cash outlay of $13.5 million. As of July 15, 2018, the obligations associated with the 2018 Convertible Notes have been settled with cash, and the carrying value was reduced to zero. Credit Facility At June 30, 2018, JHG had a $200 million, unsecured, revolving credit facility (“Credit Facility”) with Bank of America Merrill Lynch International Limited as coordinator, book runner and mandated lead arranger. JHG and its subsidiaries can use the Credit Facility for general corporate purposes. The rate of interest for each interest period is the aggregate of the applicable margin, which is based on JHG’s long-term credit rating and the London Interbank Offered Rate (“LIBOR”); the Euro Interbank Offered Rate (“EURIBOR”) in relation to any loan in euros (“EUR”); or in relation to any loan in Australian dollars (“AUD”), the benchmark rate for that currency. JHG is required to pay a quarterly commitment fee on any unused portion of the Credit Facility, which is also based on JHG’s long-term credit rating. Under the Credit Facility, the financing leverage ratio cannot exceed 3.00x EBITDA. At June 30, 2018, JHG was in compliance with all covenants, and there were no borrowings under the Credit Facility at June 30, 2018, or during the three months ended June 30, 2018. The maturity date of the Credit Facility is February 16, 2023. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes | |
Income Taxes | Note 7 — Income Taxes The Group’s effective tax rates for the three and six months ended June 30, 2018 and 2017, are as follows: Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Effective tax rate % % % % On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which made broad and complex changes to the U.S. tax code. Among other things, the Act reduced the U.S. federal corporate tax rate to 21%, included new limitations on executive compensation, and implemented a new system of taxation for non-U.S. earnings, including a one-time transition tax on the deemed repatriation of undistributed earnings of non-U.S. subsidiaries. As of June 30, 2018, the Group has not completed its accounting for the tax effects of enactment of the Act because all of the necessary information is not currently available, prepared or analyzed. Therefore, any amounts recorded are estimates and, as permitted by Staff Accounting Bulletin 118 (“SAB 118”), the Group will continue to assess the impact of the Act and may record adjustments to estimates during the remainder of the year. The final effects of the Act may differ from the Group’s estimates, potentially materially, due to, among other things, changes in interpretation of the Act, or any additional regulatory guidance. The Group expects to complete the accounting for the impact as the analysis is finalized, but in no event later than one year from the enactment date of the Act. The decrease in the effective tax rates for the three and six months ended June 30, 2018, compared to the same periods in 2017 is primarily due to the lower tax rate in the U.S. subsequent to passage of the rate reduction in the Act and the decrease in non-tax deductible merger costs. As of June 30, 2018, and December 31, 2017, JHG had $10.1 million and $10.2 million of unrecognized tax benefits held for uncertain tax positions, respectively. JHG estimates that the existing liability for uncertain tax positions could decrease by up to $0.7 million within the next 12 months, without giving effect to changes in foreign currency translation. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 8 — Noncontrolling Interests Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of June 30, 2018, and December 31, 2017, consisted of the following (in millions): June 30, December 31, 2018 2017 Consolidated seeded investment products $ $ Intech: Appreciation rights Founding member ownership interests Total redeemable noncontrolling interests $ $ Consolidated Seeded Investment Products Noncontrolling interests in consolidated seeded investment products are classified as redeemable noncontrolling interests when there is an obligation to repurchase units at the investor’s request. Redeemable noncontrolling interests in consolidated seeded investment products may fluctuate from period to period and are impacted by changes in JHG’s relative ownership, changes in the amount of third-party investment in seeded products and volatility in the market value of the seeded products’ underlying securities. Third-party redemption of investments is redeemed from the respective product’s net assets and cannot be redeemed from the assets of other seeded products or from the assets of JHG. The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Opening balance $ $ $ $ Balance acquired from the Merger — — Changes in market value ) ) ) ) Changes in ownership ) ) ) Foreign currency translation ) ) ) ) Closing balance $ $ $ $ Intech Intech ownership interests held by a founding member had an estimated fair value of $4.6 million as of June 30, 2018, representing an approximate 1.1% ownership of Intech. This founding member is entitled to retain his remaining Intech interests until his death and has the option to require JHG to purchase his ownership interests of Intech at fair value. Intech appreciation rights are being amortized on a graded vesting method over the respective vesting period. The appreciation rights are exercisable upon termination of employment from Intech to the extent vested. Upon exercise, the appreciation rights are settled in Intech equity. Nonredeemable Noncontrolling Interests Nonredeemable noncontrolling interests as of June 30, 2018, and December 31, 2017, are as follows (in millions): June 30, December 31, 2018 2017 Nonredeemable noncontrolling interests in: Seed capital investments $ $ Intech Total nonredeemable noncontrolling interests $ $ |
Long-Term Incentive and Employe
Long-Term Incentive and Employee Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Long-Term Incentive and Employee Compensation | |
Long-Term Incentive and Employee Compensation | Note 9 — Long-Term Incentive and Employee Compensation The Group granted $63.1 million and $173.2 million in long-term incentive awards during the three and six months ended June 30, 2018, respectively, which generally vest and will be recognized on a graded vesting method over a three- or four-year period. The shares underlying certain 2018 grants were purchased on the open market during the three and six months ended June 30, 2018 at a cost of $1.3 million and $82.3 million, respectively. |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefit Plans | |
Retirement Benefit Plans | Note 10 — Retirement Benefit Plans The Group operates defined contribution retirement benefit plans and defined benefit pension plans. The main defined benefit pension plan sponsored by the Group is the defined benefit section of the Janus Henderson Group UK Pension Scheme (“JHGPS”). Net Periodic Benefit Credit The components of net periodic benefit credit in respect of defined benefit plans for the three and six months ended June 30, 2018 and 2017, include the following (in millions): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Service cost $ ) $ ) $ ) $ ) Interest cost ) ) ) ) Expected return on plan assets Net periodic benefit credit $ $ $ $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 11 — Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Retirement Available- Retirement Foreign benefit Foreign for-sale benefit currency asset, net Total currency securities asset, net Total Beginning balance $ ) $ $ ) $ ) $ $ $ ) Other comprehensive income (loss) ) — ) — — Less: other comprehensive loss attributable to noncontrolling interests — — — Ending balance $ ) $ $ ) $ ) $ $ $ ) Six months ended June 30, 2018 2017 Available- Retirement Available- Retirement Foreign for-sale benefit Foreign for-sale benefit currency securities asset, net Total currency securities asset, net Total Beginning balance $ ) $ $ $ ) $ ) $ $ $ ) Cumulative-effect adjustment — ) — ) — — — — Adjusted beginning balance ) — ) ) ) Other comprehensive income (loss) ) — — ) ) — Less: other comprehensive loss attributable to noncontrolling interests — — — — Ending balance $ ) $ — $ $ ) $ ) $ $ $ ) On January 1, 2018, the Group adopted the financial instruments accounting standard on a modified retrospective basis. The accounting standard required the Group to reclassify a $2.5 million unrealized gain related to available-for-sale securities in accumulated other comprehensive loss to retained earnings as a beginning of period cumulative-effect adjustment. As of January 1, 2018, the balance in accumulated comprehensive loss related to available-for-sale securities is zero, and gains and losses associated with all equity securities are recognized in investment gains (losses), net on the Group’s Condensed Consolidated Statements of Comprehensive Income. The components of other comprehensive income, net of tax for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Pre-tax Tax Net Pre-tax Tax Net amount benefit amount amount benefit amount Foreign currency translation adjustments $ ) $ — $ ) $ $ — $ Total other comprehensive income (loss) $ ) $ — $ ) $ $ — $ Six months ended June 30, 2018 2017 Pre-tax Tax Net Pre-tax Tax Net amount benefit amount amount benefit amount Foreign currency translation adjustments $ ) $ — $ ) $ $ — $ Net unrealized losses on available-for-sale securities — — — ) — ) Total other comprehensive income (loss) $ ) $ — $ ) $ $ — $ |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | Note 12 — Earnings and Dividends Per Share Earnings Per Share The following is a summary of the earnings per share calculation for the three and six months ended June 30, 2018 and 2017 (in millions, except per share data): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net income attributable to JHG $ $ $ $ Less: Allocation of earnings to participating stock-based awards Net income attributable to JHG common shareholders $ $ $ $ Weighted-average common shares outstanding - basic Dilutive effect of: 2018 Convertible Notes — — Non-participating stock-based awards Weighted-average common shares outstanding - diluted Earnings per share: Basic $ $ $ $ Diluted (two class) $ $ $ $ The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Unvested nonparticipating stock awards Dai-ichi options — — The Dai-Ichi options are anti-dilutive as the exercise price of the options is above the average price of JHG’s stock for the periods presented. Dividends Per Share The payment of cash dividends is within the discretion of JHG’s Board of Directors and depends on many factors, including, but not limited to, the Group’s results of operations, financial condition, capital requirements, and general business conditions and legal requirements. The following is a summary of cash dividends paid during the three and six months ended June 30, 2018: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ February 5, 2018 $ March 2, 2018 $ May 8, 2018 $ June 1, 2018 On July 31, 2018, JHG’s Board of Directors declared a cash dividend of $0.36 per share. The quarterly dividend will be paid on August 24, 2018, to shareholders of record at the close of business on August 13, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Commitments and contingencies may arise in the normal course of business. As of June 30, 2018, there were no material changes in the commitments and contingencies as reported in JHG’s Annual Report on Form 10-K for the year ended December 31, 2017. Litigation and Other Regulatory Matters JHG is periodically involved in various legal proceedings and other regulatory matters. Richard Pease v. Henderson Administration Limited The outcome of a court case involving an ex-employee was determined in the first quarter of 2018. The case related to the fees the Group should receive after a fund was transferred to an ex-employee and the ex-employee’s entitlement to deferred and forfeited remuneration. Subject to any successful appeal, the judgment given in the case resulted in the Group recognizing a $12.2 million charge in general, administrative and occupancy on JHG’s Condensed Consolidated Statements of Comprehensive Income after the judge held that the ex-employee’s contract gave him an entitlement to deferred and forfeited remuneration. The amount also represents legal costs relating to the case. Eisenberg v. Credit Suisse AG and Janus Index, Halbert v. Credit Suisse AG and Janus Index, and Qiu v. Credit Suisse AG and Janus Index On March 15, 2018, a purported class action lawsuit was filed in the United States District Court for the Southern District of New York (“SDNY”) against Janus Index & Calculation Services LLC (“Janus Index”), a subsidiary of the Group, on behalf of a proposed class consisting of investors who purchased VelocityShares Daily Inverse VIX Short-Term ETN (Ticker: XIV) between January 29, 2018 and February 5, 2018 ( Eisenberg v. Credit Suisse AG and Janus Index ). Credit Suisse, the issuer of the XIV notes, is also named as a defendant in the lawsuit. The plaintiffs allege Credit Suisse and Janus Index disseminated and/or approved materially false and misleading intraday indicative values for XIV, causing inflated values of XIV at market close on February 5, 2018. On April 17, 2018, a second lawsuit was filed against Janus Index and Credit Suisse in the United States District Court of the Northern District of Alabama by certain investors in XIV ( Halbert v. Credit Suisse AG and Janus Index ). On May 4, 2018, a third lawsuit, styled as a class action on behalf of investors who purchased XIV between January 29, 2018 and February 5, 2018, was filed against Janus Index and Credit Suisse AG in the SDNY (Qiu v. Credit Suisse AG and Janus Index) . The Halbert and Qiu allegations generally copy the allegations in the Eisenberg case. The Group believes the claims in these lawsuits are without merit and is strongly defending the actions. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events | |
Subsequent Events | Note 14 — Subsequent Events On July 31, 2018, the JHG Board of Directors (the “Board’) determined that integration goals are successfully being delivered and that the co-CEO structure has achieved the objectives established at the time of Merger. Accordingly, the Board appointed Richard M. Weil as the sole CEO. In connection with the Board’s decision, JHG will recognize approximately $12 million of severance charges in the third quarter of 2018, including acceleration of long-term incentive compensation. |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation In the opinion of management of Janus Henderson Group plc (“JHG” or “the Group”), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of JHG in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in JHG’s Annual Report on Form 10-K for the year ended December 31, 2017. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date and are included in the notes to the condensed consolidated financial statements. On May 30, 2017, JHG completed a merger of equals with Janus Capital Group Inc. (“JCG”) (the “Merger”). As a result of the Merger, JCG and its consolidated subsidiaries became subsidiaries of JHG. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new revenue recognition standard. The standard’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. The revenue standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued an amendment to its principal-versus-agent guidance in the FASB’s new revenue standard. The key provisions of the amendment are assessing the nature of the entity’s promise to the customer, identifying the specified goods or services, and applying the control principle and indicators of control. The amendment is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. In addition, entities are required to adopt the amendment by using the same transition method they used to adopt the new revenue standard. The Group adopted the new revenue recognition standard, along with the updated principal-versus-agent guidance, effective January 1, 2018, using the retrospective method, which required adjustments to be reflected as of January 1, 2016. In connection with the adoption of this guidance, the Group determined that the new guidance does not change the timing of when the Group recognizes revenue. However, management did conclude that certain distribution and servicing fees earned from its U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities could no longer be reported net of the expenses paid to third-party intermediaries that perform such services. Under the new guidance, the Group is deemed to have control over the distribution and servicing activities before they are transferred to the U.S. mutual funds. As such, distribution and servicing fees collected from the Group’s U.S. mutual funds are reported separately from distribution and servicing fees paid to third-party intermediaries on the Group’s Condensed Consolidated Statements of Comprehensive Income. The adoption of the standard increased management fees, other revenue and distribution expenses on the Group’s Condensed Consolidated Statements of Comprehensive as follows (in millions): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Increase in: Management fees $ $ $ $ Other revenue $ $ $ $ Distribution expenses $ $ $ $ The adoption of the standard did not have an impact to net income attributable to JHG on the Group’s Condensed Consolidated Statements of Comprehensive Income. Financial Instruments In January 2016, the FASB issued amendments to its financial instruments standard, including changes relating to the accounting for equity investments and the presentation and disclosure requirements for financial instruments. Under the amended guidance, all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income) for equity securities with readily determinable fair values. The amended guidance also requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category (e.g., fair value, amortized cost, lower of cost or market value) and form of financial asset (e.g., loans, securities). The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. On January 1, 2018, the Group adopted the financial instruments accounting standard on a modified retrospective basis. The accounting standard required the Group to reclassify a $2.5 million unrealized gain related to available-for-sale securities in accumulated other comprehensive income to retained earnings as a beginning of period cumulative-effect adjustment. As of January 1, 2018, the balance in accumulated comprehensive income related to available-for-sale securities is zero, and gains and losses associated with all equity securities are recognized in investment gains (losses), net on the Group’s Condensed Consolidated Statements of Comprehensive Income. Retirement Benefit Plans In March 2017, the FASB issued an Accounting Standards Update (“ASU”) that requires the bifurcation of net periodic pension costs. The service cost component will be presented with other employee compensation costs in operating income, while the other components of net periodic pension costs will be presented separately outside of operations. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The Group anticipates the impact to be approximately $5.3 million of other components, excluding service costs, to be recognized outside of operating expenses on an annualized basis. Statements of Cash Flows In August 2016, the FASB issued an ASU to clarify guidance on the classification of certain cash receipts and cash payments in the statements of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice regarding eight types of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. The adoption of the new accounting standard did not have a material impact on the Group’s Condensed Consolidated Statements of Cash Flows. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Leases In February 2016, the FASB issued a new standard on accounting for leases. The new standard represents a significant change to lease accounting and introduces a lessee model that brings most leases onto the balance sheet. The standard also aligns certain of the underlying principles of the new lessor model with those in the FASB’s new revenue recognition standard. Furthermore, the new standard addresses other concerns related to the current leases model. The standard is effective for fiscal years beginning after December 15, 2018. The Group is evaluating the effect of adopting this new accounting standard. Hedge Accounting In August 2017, the FASB issued an ASU that amends hedge accounting. The ASU expands the strategies eligible for hedge accounting, changes how companies assess hedge effectiveness and will require new disclosures and presentation. The ASU is effective on January 1, 2019, for calendar year-end companies; however, early adoption is permitted. The Group is evaluating the effect of adopting this new accounting standard. Revenue Recognition Policy — Updated January 1, 2018 Revenue is measured and recognized based on the five-step process outlined in US GAAP. Revenue is determined based on the transaction price negotiated with the customer, net of rebates. Management fees, performance fees, shareowner servicing fees and other revenue are derived from providing professional services to manage investment products. Management fees are earned over time as services are provided and are generally based on a percentage of the market value of assets under management (“AUM”). These fees are calculated as a percentage of either the daily, month-end or quarter-end average asset balance in accordance with contractual agreements. Performance fees are specified in certain fund and client contracts and are based on investment performance either on an absolute basis or compared to an established index over a specified period of time. Performance fees are generated on certain management contracts when performance hurdles or other specified criteria are achieved. Performance fees for all fund ranges and separate accounts are recognized when it is probable that a significant reversal of revenue recognized will not occur in future periods. There are no performance fee contracts where revenue can be clawed back. There are no cumulative revenues recognized that would be reversed if all of the existing investments became worthless. Management fees are primarily received monthly or quarterly, while performance fees are usually received monthly, quarterly or annually by the Group, although the frequency of receipt varies between agreements. Management and performance fee revenue not yet received is recognized within fees and other receivables on the Group’s Condensed Consolidated Balance Sheets. Shareowner servicing fees are earned for services rendered related to transfer agent and administrative activities performed for investment products. These services are transferred over time and are generally based on a percentage of the market value of AUM. Other revenue includes distribution and servicing fees earned from U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities. These services are transferred over time and are generally based on a percentage of the market value of AUM. U.S. Mutual Fund Performance Fees The investment management fee paid by each U.S. mutual fund subject to a performance fee is the base management fee plus or minus a performance fee adjustment as determined by the relative investment performance of the fund compared to a specified benchmark index. Under the performance based fee structure, the investment advisory fee paid by each fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the fund’s average daily net assets during the previous month, plus or minus (2) a performance fee adjustment calculated by applying a variable rate of up to 0.15% to the fund’s average daily net assets during the performance measurement period. The performance measurement period begins as a trailing period ranging from 12 to 18 months, and each subsequent month is added to each successive performance measurement period until a 36-month period is achieved. At that point, the measurement period becomes a rolling 36-month period. The addition of performance fees to all funds without such fees is subject to the approval of both a majority of the shareholders of such funds and the funds’ independent board of trustees. Principal versus Agent The Group utilizes third-party intermediaries to fulfill certain performance obligations in its revenue agreements. Generally, JHG is deemed to be the principal in these arrangements, because the Group controls the investment management and other related services before they are transferred to customers. Such control is evidenced by the Group’s primary responsibility to customers, the ability to negotiate the third-party contract price and select and direct third-party service providers, or a combination of these factors. Therefore, distribution and service fee revenues and the related third-party distribution and service expenses are reported on a gross basis. |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Standards Update 2014-09 | |
Recent Accounting Pronouncements | |
Schedule of impact of adoption on management fees, other revenue and distribution expenses | The adoption of the standard increased management fees, other revenue and distribution expenses on the Group’s Condensed Consolidated Statements of Comprehensive as follows (in millions): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Increase in: Management fees $ $ $ $ Other revenue $ $ $ $ Distribution expenses $ $ $ $ |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Consolidation | |
Schedule of consolidated voting right entities (VREs) | The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on JHG’s Condensed Consolidated Balance Sheets, including JHG’s net interest in these products (in millions): June 30, December 31, 2018 2017 Investment securities $ $ Cash and cash equivalents Other current assets Accounts payable and accrued liabilities ) ) Total Redeemable noncontrolling interests in consolidated VREs ) ) JHG’s net interest in consolidated VREs $ $ |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of investment securities | JHG’s investment securities as of June 30, 2018, and December 31, 2017, are summarized as follows (in millions): June 30, December 31, 2018 2017 Seeded investment products: Consolidated VIEs $ $ Consolidated VREs Unconsolidated VIEs and VREs Separate accounts Pooled investment funds Total seeded investment products Investments related to deferred compensation plans Other investments Total investment securities $ $ |
Summary of net unrealized losses on trading securities held | All investment securities as of June 30, 2018, and December 31, 2017, are equity securities. Net unrealized losses on investment securities held as of June 30, 2018 and 2017, are summarized as follows (in millions): Three months ended Six months ended 2018 2017 2018 2017 Unrealized losses on investment securities held at period end $ ) $ ) $ ) $ ) |
Schedule of net foreign currency translation gains and losses on hedged seed investments denominated in currencies other than the Group's functional currency and net gains and losses associated with foreign currency forward contracts under net investment hedging | The Group recognized the following net foreign currency translation gains and losses on hedged seed investments denominated in currencies other than the Group’s functional currency and net gains and losses associated with foreign currency forward contracts under net investment hedge accounting for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended Six months ended 2018 2017 2018 2017 Foreign currency translation $ ) $ $ ) $ Foreign currency forward contracts ) ) Total $ — $ — $ — $ — |
Schedule of investment gains (losses), on Consolidated Statements of Comprehensive Income | Investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income included the following for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended Six months ended 2018 2017 2018 2017 Seeded investment products $ ) $ ) $ ) $ ) Fair value movements on derivatives ) ) Gain on sale of Volantis — — Other ) ) Investment gains (losses), net $ ) $ $ ) $ |
Cash flows related to investment securities | Cash flows related to investment securities for the six months ended June 30, 2018 and 2017, are summarized as follows (in millions): Six months ended June 30, 2018 2017 Purchases Sales, Purchases Sales, Investment securities $ ) ) |
Not Designated as Hedging Instrument | |
Schedule of derivative instruments | JHG was party to the following derivative instruments as of June 30, 2018, and December 31, 2017 (in millions): Notional value June 30, 2018 December 31, 2017 Futures $ $ Credit default swaps Index swaps — Total return swaps Foreign currency forward contracts |
Seeded investment products | |
Schedule of derivative instruments | JHG’s consolidated seeded investment products were party to the following derivative instruments as of June 30, 2018, and December 31, 2017 (in millions): Notional value June 30, 2018 December 31, 2017 Futures $ $ Contracts for differences Credit default swaps Total return swaps Interest rate swaps Options Swaptions Foreign currency forward contracts |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Schedule of assets, liabilities and redeemable noncontrolling interests presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis | The following table presents assets, liabilities and redeemable noncontrolling interests presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of June 30, 2018 (in millions): Fair value measurements using: Quoted prices in Significant other Significant Total Assets: Cash equivalents $ $ — $ — $ Investment securities: Consolidated VIEs Other investment securities — Total investment securities Seed hedge derivatives — — Derivatives in consolidated seeded investment products — — Volantis contingent consideration — — Total assets $ $ $ $ Liabilities: Derivatives in consolidated seeded investment products $ — $ $ — $ Financial liabilities in consolidated seeded investment products — — Seed hedge derivatives — — Current portion of long-term debt(1) — — Long-term debt(1) — — Deferred bonuses — — Contingent consideration — — Dai-ichi options — — Total liabilities $ $ $ $ Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ $ Intech — — Total redeemable noncontrolling interests $ — $ — $ $ (1) Carried at amortized cost and disclosed at fair value. The following table presents assets, liabilities and redeemable noncontrolling interests presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2017 (in millions): Fair value measurements using: Quoted prices in Significant other Significant Total Assets: Cash equivalents $ $ — $ — $ Investment securities: Consolidated VIEs Other investment securities Total investment securities Seed hedge derivatives — — Derivatives in consolidated seeded investment products — Contingent consideration — — Total assets $ $ $ $ Liabilities: Derivatives in consolidated seeded investment products $ $ $ — $ Financial liabilities in consolidated seeded investment products — — Seed hedge derivatives — Current portion of long-term debt(1) — — Long-term debt(1) — — Deferred bonuses — — Contingent consideration — — Dai-ichi options — — Total liabilities $ $ $ $ Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ $ Intech — — Total redeemable noncontrolling interests $ — $ — $ $ |
Summary of valuation techniques and significant unobservable inputs used in the valuation of material Level 3 assets included within consolidated VIEs | Valuation techniques and significant unobservable inputs used in the valuation of JHG’s material Level 3 assets included within consolidated VIEs as of June 30, 2018, and December 31, 2017, were as follows (in millions): As of June 30, 2018 Fair value Valuation Significant Range (weighted Investment securities of consolidated VIEs $ Discounted Discount rate 14.0% - 15.0% (14.7)% cash flow EBITDA multiple 11.6 - 19.3 (17.2) Price-earnings ratio 30.1 - 61.3 (38.6) As of December 31, 2017 Fair value Valuation Significant Range (weighted Investment securities of consolidated VIEs $ Discounted Discount rate 12.0% - 15.0% (14.3)% cash flow EBITDA multiple 11.6 - 15.1 (14.3) Price-earnings ratio 22.6 - 61.3 (52.4) |
Schedule of maximum amount payable and fair value of Geneva, Perennial, Kapstream and VelocityShares contingent consideration | The maximum amount payable and fair value of Geneva, Perennial, Kapstream and VelocityShares contingent consideration is summarized below (in millions): As of June 30, 2018 Geneva Perennial Kapstream VelocityShares Maximum amount payable $ $ $ $ Fair value included in: Accounts payable and accrued liabilities $ — $ — $ $ — Non-current liabilities — Total fair value $ $ $ $ — As of December 31, 2017 Geneva Perennial Kapstream VelocityShares Fair value included in: Accounts payable and accrued liabilities $ — $ — $ $ Non-current liabilities — Total fair value $ $ $ $ |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for collective items | Changes in fair value of JHG’s Level 3 assets for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended Six months ended 2018 2017 2018 2017 Beginning of period fair value $ $ $ $ Balance acquired from the Merger — — Additions — — Settlements ) — ) — Movements recognized in net income ) ) ) ) Movements recognized in other comprehensive income ) ) End of period fair value $ $ $ $ |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for individual items | Changes in fair value of JHG’s individual Level 3 liabilities and redeemable noncontrolling interests for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Contingent Deferred Dai-ichi Redeemable Contingent Deferred Dai-ichi Redeemable Beginning of period fair value $ $ $ $ $ $ $ — $ Balances acquired from the Merger — — — — — Additions — — — — — — — — Changes in ownership — — — ) — — — Net movement in bonus deferrals — ) — — — ) — — Fair value adjustments ) — ) ) — Unrealized gains (losses) — — — ) — — — ) Amortization of Intech appreciation rights — — — — — — Distributions — — — ) — — — ) Foreign currency translation ) — ) ) — ) End of period fair value $ $ $ $ $ $ $ $ Six months ended June 30, 2018 2017 Contingent Deferred Dai-ichi Redeemable Contingent Deferred Dai-ichi Redeemable Beginning of period fair value $ $ $ $ $ $ $ — $ Balances acquired from the Merger — — — — — Additions — — — — — — — — Changes in ownership — — — ) — — — ) Net movement in bonus deferrals — ) — — — — — Fair value adjustments — ) — Unrealized gains (losses) — — — ) — — — ) Amortization of Intech appreciation rights — — — ) — — — Distributions ) — — ) — — — ) Foreign currency translation ) — ) — ) End of period fair value $ $ $ $ $ $ $ $ |
Schedule of transfers between Level 1 and Level 2 classifications | Transfers are recognized at the end of each reporting period. Transfers between Level 1 and Level 2 classifications for the six months ended June 30, 2018 and 2017, are as follows (in millions): June 30, 2018 2017 Transfers from Level 1 to Level 2 $ $ — Transfers from Level 2 to Level 1 $ $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets | |
Schedule of movements in intangible assets and goodwill | The following table presents movements in intangible assets and goodwill during the period (in millions): Foreign December 31, currency June 30, 2017 Amortization translation Disposal 2018 Indefinite-lived intangible assets: Investment management agreements $ $ — $ ) $ — $ Trademarks — ) — Definite-lived intangible assets: Client relationships — ) — Accumulated amortization ) ) — ) Net intangible assets $ $ ) $ ) $ — $ Goodwill $ $ — $ ) $ ) $ |
Client relationships | |
Goodwill and Intangible Assets | |
Summary of expected future amortization expenses | Expected future amortization expense related to client relationships is summarized below (in millions): Year ended December 31, Amount 2018 (remainder of year) $ 2019 2020 2021 2022 Thereafter Total $ |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt | |
Components of debt | Debt as of June 30, 2018, and December 31, 2017, consisted of the following (in millions): June 30, 2018 December 31, 2017 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ $ $ $ 0.750% Convertible Senior Notes due 2018 Total debt Less: Current portion of long-term debt Total long-term debt $ $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes | |
Schedule of effective income tax rates | Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Effective tax rate % % % % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interests | |
Summary of redeemable noncontrolling interests | Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of June 30, 2018, and December 31, 2017, consisted of the following (in millions): June 30, December 31, 2018 2017 Consolidated seeded investment products $ $ Intech: Appreciation rights Founding member ownership interests Total redeemable noncontrolling interests $ $ |
Schedule of movement in redeemable noncontrolling interests in consolidated seeded investment products | The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three and six months ended June 30, 2018 and 2017 (in millions): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Opening balance $ $ $ $ Balance acquired from the Merger — — Changes in market value ) ) ) ) Changes in ownership ) ) ) Foreign currency translation ) ) ) ) Closing balance $ $ $ $ |
Summary of nonredeemable noncontrolling interests | Nonredeemable noncontrolling interests as of June 30, 2018, and December 31, 2017, are as follows (in millions): June 30, December 31, 2018 2017 Nonredeemable noncontrolling interests in: Seed capital investments $ $ Intech Total nonredeemable noncontrolling interests $ $ |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefit Plans | |
Schedule of components of net periodic benefit credit | The components of net periodic benefit credit in respect of defined benefit plans for the three and six months ended June 30, 2018 and 2017, include the following (in millions): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Service cost $ ) $ ) $ ) $ ) Interest cost ) ) ) ) Expected return on plan assets Net periodic benefit credit $ $ $ $ |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Loss | |
Schedule of the changes in accumulated other comprehensive loss, net of tax | Changes in accumulated other comprehensive loss, net of tax, for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Retirement Available- Retirement Foreign benefit Foreign for-sale benefit currency asset, net Total currency securities asset, net Total Beginning balance $ ) $ $ ) $ ) $ $ $ ) Other comprehensive income (loss) ) — ) — — Less: other comprehensive loss attributable to noncontrolling interests — — — Ending balance $ ) $ $ ) $ ) $ $ $ ) Six months ended June 30, 2018 2017 Available- Retirement Available- Retirement Foreign for-sale benefit Foreign for-sale benefit currency securities asset, net Total currency securities asset, net Total Beginning balance $ ) $ $ $ ) $ ) $ $ $ ) Cumulative-effect adjustment — ) — ) — — — — Adjusted beginning balance ) — ) ) ) Other comprehensive income (loss) ) — — ) ) — Less: other comprehensive loss attributable to noncontrolling interests — — — — Ending balance $ ) $ — $ $ ) $ ) $ $ $ ) |
Components of other comprehensive income, net of tax | The components of other comprehensive income, net of tax for the three and six months ended June 30, 2018 and 2017, are as follows (in millions): Three months ended June 30, 2018 2017 Pre-tax Tax Net Pre-tax Tax Net amount benefit amount amount benefit amount Foreign currency translation adjustments $ ) $ — $ ) $ $ — $ Total other comprehensive income (loss) $ ) $ — $ ) $ $ — $ Six months ended June 30, 2018 2017 Pre-tax Tax Net Pre-tax Tax Net amount benefit amount amount benefit amount Foreign currency translation adjustments $ ) $ — $ ) $ $ — $ Net unrealized losses on available-for-sale securities — — — ) — ) Total other comprehensive income (loss) $ ) $ — $ ) $ $ — $ |
Earnings and Dividends Per Sh32
Earnings and Dividends Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings and Dividends Per Share | |
Summary of earnings per share calculation | The following is a summary of the earnings per share calculation for the three and six months ended June 30, 2018 and 2017 (in millions, except per share data): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Net income attributable to JHG $ $ $ $ Less: Allocation of earnings to participating stock-based awards Net income attributable to JHG common shareholders $ $ $ $ Weighted-average common shares outstanding - basic Dilutive effect of: 2018 Convertible Notes — — Non-participating stock-based awards Weighted-average common shares outstanding - diluted Earnings per share: Basic $ $ $ $ Diluted (two class) $ $ $ $ |
Schedule of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Unvested nonparticipating stock awards Dai-ichi options — — |
Schedule of cash dividends declared and paid | The following is a summary of cash dividends paid during the three and six months ended June 30, 2018: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ February 5, 2018 $ March 2, 2018 $ May 8, 2018 $ June 1, 2018 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies (Details) $ in Millions | Jan. 01, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)item | Jun. 30, 2017USD ($) |
Recent Accounting Pronouncements | |||||
Reclassification of other comprehensive income to retained earnings | $ 2.5 | ||||
Net unrealized gain on available-for-sale securities | $ (0.4) | ||||
Revenue Recognition | |||||
Distribution expenses | $ 114.7 | $ 72.5 | $ 232 | 123.1 | |
Mutual funds | |||||
Revenue Recognition | |||||
Number of components involved in investment advisory fee payment | item | 2 | ||||
Performance fee adjustment, ultimate measurement period | 36 months | ||||
Mutual funds | Minimum | |||||
Revenue Recognition | |||||
Performance fee adjustment, base measurement period | 12 months | ||||
Mutual funds | Maximum | |||||
Revenue Recognition | |||||
Performance fee adjustment, variable rate | 0.15% | ||||
Performance fee adjustment, base measurement period | 18 months | ||||
Accounting Standards Update 2014-09 | |||||
Revenue Recognition | |||||
Distribution expenses | 29.3 | 11.8 | $ 59.6 | 15.3 | |
Accounting Standards Update 2016-01 | |||||
Recent Accounting Pronouncements | |||||
Reclassification of other comprehensive income to retained earnings | $ 2.5 | ||||
Accounting Standards Update 2017-07 | |||||
Recent Accounting Pronouncements | |||||
Amount of other components of net periodic pension costs presented outside of operations | 5.3 | ||||
Management fees | |||||
Revenue Recognition | |||||
Revenue | 493.5 | 300 | 996.4 | 501 | |
Management fees | Accounting Standards Update 2014-09 | |||||
Revenue Recognition | |||||
Revenue | 3.6 | 4 | 8.1 | 7.5 | |
Other revenue | |||||
Revenue Recognition | |||||
Revenue | 53.6 | 29 | 110.8 | 46.2 | |
Other revenue | Accounting Standards Update 2014-09 | |||||
Revenue Recognition | |||||
Revenue | $ 25.7 | $ 7.8 | $ 51.5 | $ 7.8 |
Consolidation - VIEs (Details)
Consolidation - VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Unconsolidated VIEs | ||
Investment securities | $ 3.9 | $ 6.2 |
Consolidation - VREs (Details)
Consolidation - VREs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other current assets | $ 68.5 | $ 75.9 |
Consolidated VREs | ||
Investment securities | 21.5 | 18.9 |
Cash and cash equivalents | 5.6 | 5.9 |
Other current assets | 0.2 | 0.6 |
Accounts payable and accrued liabilities | (1.5) | (2.2) |
Total | 25.8 | 23.2 |
Redeemable noncontrolling interests in consolidated VREs | 8.4 | 6.6 |
JHG's net interest in consolidated VREs | 17.4 | 16.6 |
Unconsolidated VREs | ||
Investment securities | $ 42.9 | $ 50 |
Investment Securities - General
Investment Securities - General Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Short-term investments: | |||||
Estimated Fair Value | $ 664.4 | $ 664.4 | $ 700.1 | ||
Net gains (losses) in net income related to: | |||||
Foreign currency translation | (3.3) | $ 0.1 | (3.8) | $ 0.7 | |
Foreign currency forward contracts | 3.3 | (0.1) | 3.8 | (0.7) | |
Seeded investment products | |||||
Short-term investments: | |||||
Seeded investment products | 519.8 | 519.8 | 597.9 | ||
Investment securities | Seeded investment products | |||||
Short-term investments: | |||||
Unrealized losses on investment securities held at period end | (13.6) | $ (7) | (21.5) | $ (4.5) | |
Investment securities | Separate accounts | |||||
Short-term investments: | |||||
Seeded investment products | 74.6 | 74.6 | 75.6 | ||
Investment securities | Pooled investment funds | |||||
Short-term investments: | |||||
Seeded investment products | 25.9 | 25.9 | 27.5 | ||
Investment securities | Investments related to deferred compensation plans | |||||
Short-term investments: | |||||
Estimated Fair Value | 138.5 | 138.5 | 94 | ||
Investment securities | Other investments | |||||
Short-term investments: | |||||
Estimated Fair Value | 6.1 | 6.1 | 8.2 | ||
Consolidated VIEs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | 351 | 351 | 419.7 | ||
Consolidated VREs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | 21.5 | 21.5 | 18.9 | ||
Unconsolidated VIEs and VREs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | 46.8 | 46.8 | 56.2 | ||
Consolidated | Credit default swap, selling protection contracts | Seeded investment products | |||||
Short-term investments: | |||||
Notional value of derivative | 3.9 | 3.9 | 4 | ||
Futures | Derivative Instruments | Not Designated as Hedging Instrument | |||||
Short-term investments: | |||||
Notional value of derivative | 148.3 | 148.3 | 190.6 | ||
Futures | Derivative Instruments | Seeded investment products | |||||
Short-term investments: | |||||
Notional value of derivative | 187.9 | 187.9 | 241.2 | ||
Credit default swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||||
Short-term investments: | |||||
Notional value of derivative | 145.6 | 145.6 | 117.5 | ||
Credit default swaps | Derivative Instruments | Seeded investment products | |||||
Short-term investments: | |||||
Notional value of derivative | 25.1 | 25.1 | 15 | ||
Index swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||||
Short-term investments: | |||||
Notional value of derivative | 76.7 | ||||
Total return swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||||
Short-term investments: | |||||
Notional value of derivative | 88.4 | 88.4 | 70.3 | ||
Total return swaps | Derivative Instruments | Seeded investment products | |||||
Short-term investments: | |||||
Notional value of derivative | 43.6 | 43.6 | 36.7 | ||
Foreign currency forward contracts | Derivative Instruments | Not Designated as Hedging Instrument | |||||
Short-term investments: | |||||
Notional value of derivative | 163.3 | 163.3 | 118.8 | ||
Foreign currency forward contracts | Derivative Instruments | Seeded investment products | |||||
Short-term investments: | |||||
Notional value of derivative | $ 171.8 | $ 171.8 | $ 135.9 |
Investment Securities - Offsett
Investment Securities - Offsetting Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Investment Losses, Net | |||||
Investment gains (losses), net | $ (16.6) | $ 9.8 | $ (17.3) | $ 8.9 | |
Seeded investment products | |||||
Investment Losses, Net | |||||
Investment gains (losses), net | (12.8) | (2.1) | (20.8) | (0.9) | |
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 3.9 | 3.9 | $ 4 | ||
Fair value of credit default swap contracts | (0.3) | $ (0.3) | 0.1 | ||
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | Minimum | |||||
Seeded investment products, credit protection | |||||
Term of credit default swap contracts (in years) | 1 year | ||||
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | Maximum | |||||
Seeded investment products, credit protection | |||||
Term of credit default swap contracts (in years) | 5 years | ||||
Fair value movements on derivatives | |||||
Investment Losses, Net | |||||
Investment gains (losses), net | (4.6) | 1.8 | $ 2.6 | (0.3) | |
Gain on sale of Volantis | |||||
Investment Losses, Net | |||||
Investment gains (losses), net | 10.2 | 10.2 | |||
Other investments | |||||
Investment Losses, Net | |||||
Investment gains (losses), net | 0.8 | $ (0.1) | 0.9 | (0.1) | |
Investment securities | |||||
Cash flows related to investment securities | |||||
Purchases and settlements | (30.9) | (45.7) | |||
Sales, settlements and maturities | 58.1 | $ 208.5 | |||
Derivative Instruments | Seeded investment products | Futures | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 187.9 | 187.9 | 241.2 | ||
Derivative Instruments | Seeded investment products | Contracts for differences | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 9.5 | 9.5 | 10.2 | ||
Derivative Instruments | Seeded investment products | Total return swaps | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 43.6 | 43.6 | 36.7 | ||
Derivative Instruments | Seeded investment products | Interest rate swaps | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 50.6 | 50.6 | 58.3 | ||
Derivative Instruments | Seeded investment products | Options | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 93.2 | 93.2 | 144.3 | ||
Derivative Instruments | Seeded investment products | Swaptions | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | 8.3 | 8.3 | 2.7 | ||
Derivative Instruments | Seeded investment products | Foreign currency forward contracts | |||||
Seeded investment products, credit protection | |||||
Notional value of derivative | $ 171.8 | $ 171.8 | $ 135.9 |
Fair Value Measurements - Level
Fair Value Measurements - Level of Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Liabilities | |||||||
Total redeemable noncontrolling interests | $ 177.8 | $ 190.3 | |||||
Seeded investment products | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 163 | $ 202.9 | 174.9 | $ 152.2 | $ 146 | $ 158 | |
Consolidated VIEs | |||||||
Assets | |||||||
Total investment securities | 351 | 419.7 | |||||
Unconsolidated VIEs | |||||||
Assets | |||||||
Total investment securities | 3.9 | 6.2 | |||||
Consolidated VREs | |||||||
Assets | |||||||
Total investment securities | 21.5 | 18.9 | |||||
Unconsolidated VREs | |||||||
Assets | |||||||
Total investment securities | 42.9 | 50 | |||||
Consolidated | Seeded investment products | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 163 | 174.9 | |||||
Fair value measurements, recurring | |||||||
Assets | |||||||
Cash equivalents | 310.3 | 422.5 | |||||
Contingent consideration | 7.3 | 9 | |||||
Total assets | 991.9 | 1,139 | |||||
Liabilities | |||||||
Current portion of long-term debt | 9.4 | ||||||
Long-term debt | 308.3 | ||||||
Contingent consideration | 57.3 | 76.6 | |||||
Total liabilities | 447.4 | 574.1 | |||||
Total redeemable noncontrolling interests | 177.8 | 190.3 | |||||
Fair value measurements, recurring | Deferred bonuses | |||||||
Liabilities | |||||||
Derivative liabilities | 64.3 | 64.7 | |||||
Current portion of long-term debt | [1] | 57.3 | |||||
Fair value measurements, recurring | Dai-ichi options | |||||||
Liabilities | |||||||
Derivative liabilities | 2.1 | 26.1 | |||||
Fair value measurements, recurring | Investment securities | |||||||
Assets | |||||||
Total investment securities | 664.4 | 700.1 | |||||
Fair value measurements, recurring | Seed hedge derivatives | |||||||
Assets | |||||||
Derivative assets | 6.7 | 0.9 | |||||
Liabilities | |||||||
Derivative liabilities | 1.1 | 10.1 | |||||
Long-term debt | [1] | 323.4 | |||||
Fair value measurements, recurring | Seeded investment products | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 174.9 | ||||||
Fair value measurements, recurring | Level 1 | |||||||
Assets | |||||||
Cash equivalents | 310.3 | 422.5 | |||||
Total assets | 614.2 | 743 | |||||
Liabilities | |||||||
Total liabilities | 2 | 19.3 | |||||
Fair value measurements, recurring | Level 1 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 303.9 | 316.7 | |||||
Fair value measurements, recurring | Level 1 | Seed hedge derivatives | |||||||
Assets | |||||||
Derivative assets | 0.9 | ||||||
Liabilities | |||||||
Derivative liabilities | 5.9 | ||||||
Fair value measurements, recurring | Level 2 | |||||||
Assets | |||||||
Total assets | 339 | 349.5 | |||||
Liabilities | |||||||
Current portion of long-term debt | 9.4 | ||||||
Long-term debt | 308.3 | ||||||
Total liabilities | 321.7 | 387.4 | |||||
Fair value measurements, recurring | Level 2 | Deferred bonuses | |||||||
Liabilities | |||||||
Current portion of long-term debt | [1] | 57.3 | |||||
Fair value measurements, recurring | Level 2 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 329.1 | 345.9 | |||||
Fair value measurements, recurring | Level 2 | Seed hedge derivatives | |||||||
Assets | |||||||
Derivative assets | 6.7 | ||||||
Liabilities | |||||||
Derivative liabilities | 1.1 | 4.2 | |||||
Long-term debt | [1] | 323.4 | |||||
Fair value measurements, recurring | Level 3 | |||||||
Assets | |||||||
Contingent consideration | 7.3 | 9 | |||||
Total assets | 38.7 | 46.5 | |||||
Liabilities | |||||||
Contingent consideration | 57.3 | 76.6 | |||||
Total liabilities | 123.7 | 167.4 | |||||
Total redeemable noncontrolling interests | 177.8 | 190.3 | |||||
Fair value measurements, recurring | Level 3 | Deferred bonuses | |||||||
Liabilities | |||||||
Derivative liabilities | 64.3 | 64.7 | |||||
Fair value measurements, recurring | Level 3 | Dai-ichi options | |||||||
Liabilities | |||||||
Derivative liabilities | 2.1 | 26.1 | |||||
Fair value measurements, recurring | Level 3 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 31.4 | 37.5 | |||||
Fair value measurements, recurring | Level 3 | Seeded investment products | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 174.9 | ||||||
Fair value measurements, recurring | Consolidated VIEs | Investment securities | |||||||
Assets | |||||||
Total investment securities | 351 | 419.7 | |||||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 107.8 | 131 | |||||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 211.8 | 251.4 | |||||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | |||||||
Assets | |||||||
Total investment securities | 31.4 | 37.3 | |||||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 31.4 | 37.3 | |||||
Fair value measurements, recurring | Unconsolidated VIEs | Investment securities | |||||||
Assets | |||||||
Total investment securities | 313.4 | 280.4 | |||||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 196.1 | 185.7 | |||||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 117.3 | 94.5 | |||||
Fair value measurements, recurring | Unconsolidated VIEs | Level 3 | Investment securities | |||||||
Assets | |||||||
Total investment securities | 0.2 | ||||||
Fair value measurements, recurring | Intech | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 14.8 | 15.4 | |||||
Fair value measurements, recurring | Intech | Level 3 | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | 14.8 | 15.4 | |||||
Fair value measurements, recurring | Consolidated | Seeded investment products | |||||||
Assets | |||||||
Derivative assets | 3.2 | 6.5 | |||||
Liabilities | |||||||
Derivative liabilities | 2.9 | 4.3 | |||||
Financial liabilities in consolidated seeded investment products | 2 | 11.6 | |||||
Total redeemable noncontrolling interests | 163 | ||||||
Fair value measurements, recurring | Consolidated | Level 1 | Seeded investment products | |||||||
Assets | |||||||
Derivative assets | 2.9 | ||||||
Liabilities | |||||||
Derivative liabilities | 1.8 | ||||||
Financial liabilities in consolidated seeded investment products | 2 | 11.6 | |||||
Fair value measurements, recurring | Consolidated | Level 2 | Seeded investment products | |||||||
Assets | |||||||
Derivative assets | 3.2 | 3.6 | |||||
Liabilities | |||||||
Derivative liabilities | 2.9 | $ 2.5 | |||||
Fair value measurements, recurring | Consolidated | Level 3 | Seeded investment products | |||||||
Liabilities | |||||||
Total redeemable noncontrolling interests | $ 163 | ||||||
[1] | Carried at amortized cost and disclosed at fair value. |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation techniques and significant unobservable inputs (Details) - Consolidated VIEs $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Changes in fair value | ||
Investment securities | $ 351 | $ 419.7 |
Level 3 | Fair value measurements, recurring | ||
Changes in fair value | ||
Investment securities | $ 31.4 | $ 37.3 |
Level 3 | Fair value measurements, recurring | Discounted cash flow | Minimum | ||
Changes in fair value | ||
Discount rate | 14.00% | 12.00% |
EBITDA multiple | 0.116 | 11.6 |
Price-earnings ratio | 0.301 | 22.6 |
Level 3 | Fair value measurements, recurring | Discounted cash flow | Maximum | ||
Changes in fair value | ||
Discount rate | 15.00% | 15.00% |
EBITDA multiple | 0.193 | 15.1 |
Price-earnings ratio | 0.613 | 61.3 |
Level 3 | Fair value measurements, recurring | Discounted cash flow | Weighted-average | ||
Changes in fair value | ||
Discount rate | 14.70% | 14.30% |
EBITDA multiple | 0.172 | 14.3 |
Price-earnings ratio | 0.386 | 52.4 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Geneva | ||
Contingent Consideration | ||
Maximum amount payable | $ 70 | |
Fair value included in: | ||
Non-current liabilities | 20.2 | $ 19.3 |
Total fair value | 20.2 | 19.3 |
Perennial | ||
Contingent Consideration | ||
Maximum amount payable | 44.3 | |
Fair value included in: | ||
Non-current liabilities | 7.7 | 7 |
Total fair value | 7.7 | 7 |
Kapstream | ||
Contingent Consideration | ||
Maximum amount payable | 36 | |
Fair value included in: | ||
Accounts payable and accrued liabilities | 17.3 | 18.8 |
Non-current liabilities | 12.1 | 25.4 |
Total fair value | 29.4 | 44.2 |
VelocityShares | ||
Contingent Consideration | ||
Maximum amount payable | 8 | |
Fair value included in: | ||
Accounts payable and accrued liabilities | 6.1 | |
Total fair value | $ 0 | $ 6.1 |
Fair Value Measurements - Acqui
Fair Value Measurements - Acquisition of Geneva (Details) - Geneva $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2014USD ($)tranche | |
Acquisitions | ||
Number of contingent consideration payment tranches | tranche | 2 | |
Contingent consideration payable period | 7 years | |
Fair value adjustment | $ 0 | |
Maximum | ||
Acquisitions | ||
Contingent consideration payable in first tranche | $ 45 | |
Contingent consideration payable in second tranche | $ 25 |
Fair Value Measurements - Acq42
Fair Value Measurements - Acquisition of Perennial (Details) - Perennial $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($)tranche | Jun. 30, 2018USD ($)tranche | |
Acquisitions | ||
Remaining maximum contingent consideration payable | $ 5.5 | $ 5.5 |
Additional maximum contingent consideration payable in 2019 & 2020 | $ 38.8 | $ 38.8 |
Number of contingent consideration payment tranches | tranche | 2 | 2 |
Fair value adjustment | $ 0 | $ 0 |
Fair Value Measurements - Acq43
Fair Value Measurements - Acquisition of Kapstream (Details) - Kapstream $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2017USD ($)item | Jul. 31, 2015 | |
Business acquisition | |||||||
Ownership interest acquired (as a percent) | 49.00% | 51.00% | |||||
Contingent consideration payable period, high end | 36 months | ||||||
Contingent cash consideration paid, for revenue target acheived | $ 3.8 | $ 15.3 | |||||
Fair value of contingent consideration liability | $ 29.4 | $ 29.4 | $ 44.2 | ||||
Number of installments | item | 3 | ||||||
Fair value adjustment | $ 0 | $ 0 | |||||
Maximum | |||||||
Business acquisition | |||||||
Fair value of contingent consideration liability | $ 43 |
Fair Value Measurements - Acq44
Fair Value Measurements - Acquisition of VelocityShares (Details) - VelocityShares - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Business acquisition | |||
Contingent cash consideration paid, for revenue target acheived | $ 3.6 | ||
Changes in contingent consideration liability | $ (2.7) | ||
Fair value of contingent consideration liability | $ 0 | $ 6.1 |
Fair Value Measurements - Dispo
Fair Value Measurements - Disposal of Volantis (Details) - Volantis - USD ($) $ in Millions | Apr. 01, 2017 | Jun. 30, 2018 |
Disposal of Volantis | ||
Period of performance of investee for recognizing consideration | 3 years | |
Discontinued Operations, Disposed of by Sale | ||
Disposal of Volantis | ||
Percentage of share for consideration of sale | 10.00% | |
Discount rate for forecasted contingent revenues (as a percent) | 11.80% | |
Fair value of contingent consideration | $ 7.3 |
Fair Value Measurements - Dai-i
Fair Value Measurements - Dai-ichi Options (Details) $ in Millions | Jun. 30, 2018USD ($) |
Dai-ichi option | |
Disposal of Dai-ichi Options | |
Fair value of the options | $ 2.1 |
Fair Value Measurements - Lev47
Fair Value Measurements - Level 3 Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | $ 46.5 | $ 42.7 | ||
Balances acquired from the Merger | 3 | |||
Additions | 10.2 | |||
Settlements | (2.2) | |||
Movements recognized in net income | (5.3) | (0.8) | ||
Movements recognized in other comprehensive income | (0.3) | 2.3 | ||
Foreign currency translation | $ (3.3) | $ 0.1 | (3.8) | 0.7 |
Balance at the end of the year, Liability Value | 38.7 | 57.4 | 38.7 | 57.4 |
Level 3 | Fair value measurements, recurring | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 47.2 | 43.2 | ||
Balances acquired from the Merger | 3 | |||
Additions | 10.2 | |||
Settlements | (1.8) | |||
Movements recognized in net income | (6.1) | (0.8) | ||
Movements recognized in other comprehensive income | (0.6) | 1.8 | ||
Balance at the end of the year, Liability Value | 38.7 | 57.4 | 38.7 | 57.4 |
Level 3 | Fair value measurements, recurring | Contingent consideration | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 59.2 | 27.3 | 76.6 | 25.5 |
Balances acquired from the Merger | 45.4 | 45.4 | ||
Fair value adjustments | 0.2 | (1.8) | 1.8 | 3.3 |
Distributions | (18.8) | |||
Foreign currency translation | (1.7) | 1.5 | (2.3) | 1.8 |
Balance at the end of the year, Liability Value | 57.3 | 76 | 57.3 | 76 |
Level 3 | Fair value measurements, recurring | Deferred bonuses | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 79.5 | 54.5 | 64.7 | 42.9 |
Net movement in bonus deferrals | (15.2) | (6.1) | (0.4) | 5 |
Foreign currency translation | 1.9 | 2.4 | ||
Balance at the end of the year, Liability Value | 64.3 | 50.3 | 64.3 | 50.3 |
Level 3 | Fair value measurements, recurring | Dai-ichi options | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 4.3 | 26.1 | ||
Balances acquired from the Merger | 25.7 | 25.7 | ||
Fair value adjustments | 1.9 | (1.2) | (24.7) | 1.2 |
Foreign currency translation | (0.3) | 0.7 | ||
Balance at the end of the year, Liability Value | 2.1 | 26.9 | 2.1 | 26.9 |
Level 3 | Fair value measurements, recurring | Redeemable noncontrolling interests | ||||
Changes in fair value | ||||
Balance at the beginning of the year, Liability Value | 217.7 | 146 | 190.3 | 158 |
Balances acquired from the Merger | 42.9 | 42.9 | ||
Changes in ownership | (32.6) | 0.3 | (5.5) | (5.1) |
Unrealized gains (losses) | (6.5) | (16.5) | (5.4) | (23.8) |
Fair value adjustments | 0.2 | (0.3) | 0.2 | 0.3 |
Amortization of Intech appreciation rights | 0.3 | 0.4 | (0.6) | 0.4 |
Distributions | (0.3) | (0.1) | (0.4) | (0.1) |
Foreign currency translation | (0.6) | (1.3) | (0.8) | (0.6) |
Balance at the end of the year, Liability Value | $ 177.8 | $ 172 | $ 177.8 | $ 172 |
Fair Value Measurements - Trans
Fair Value Measurements - Transfers Between Levels (Details) $ in Millions | Jun. 30, 2018USD ($) |
Fair Value Measurements | |
Transfers from Level 1 to Level 2 | $ 2.9 |
Transfers from Level 2 to Level 1 | $ 1.4 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)employee | |
Net intangible assets | |
Net intangible assets, balance at the beginning of the period | $ 3,204.8 |
Amortization | (14.8) |
Foreign currency translation | (22) |
Net intangible assets, balance at the end of the period | 3,168 |
Definite-lived intangible assets: | |
Accumulated amortization, balance at the end of the period | (89.7) |
Foreign currency translation | 1.3 |
Amortization | (14.8) |
Accumulated amortization, balance at the end of the period | (103.2) |
Goodwill | |
Goodwill, balance at the beginning of the period | 1,533.9 |
Foreign currency translation | (19.9) |
Disposal | (9.5) |
Goodwill, balance at the end of the period | 1,504.5 |
Transaction with BNP Paribas | |
Allocated goodwill | 9.5 |
JHG's Back Office | |
Goodwill | |
Disposal | (9.5) |
Transaction with BNP Paribas | |
Consideration for discontinued operations | 40 |
Allocated goodwill | $ 9.5 |
JHG's Back Office | Minimum | |
Transaction with BNP Paribas | |
Number of employees transitioned | employee | 100 |
Non-operating income, net | JHG's Back Office | |
Transaction with BNP Paribas | |
Gain on discontinued operations | $ 22.3 |
Client relationships | |
Definite-lived intangible assets: | |
Balance at the beginning of the period | 369.4 |
Foreign currency translation | (3) |
Balance at the end of the period | 366.4 |
Future Amortization expense: | |
2018 (remainder of year) | 14.8 |
2,019 | 29.5 |
2,020 | 29.5 |
2,021 | 26.7 |
2,022 | 18.2 |
Thereafter | 144.5 |
Total | 263.2 |
Investment management agreements | |
Indefinite-lived intangible assets: | |
Balance at the beginning of the period | 2,543.9 |
Foreign currency translation | (20) |
Balance at the end of the period | 2,523.9 |
Trademarks | |
Indefinite-lived intangible assets: | |
Balance at the beginning of the period | 381.2 |
Foreign currency translation | (0.3) |
Balance at the end of the period | $ 380.9 |
Debt (Details)
Debt (Details) $ in Millions | Jul. 15, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)item | Dec. 31, 2017USD ($) |
Components of debt | ||||
Less: Current portion of long-term debt | $ 9.4 | $ 9.4 | $ 57.2 | |
Total long-term debt | 320.6 | 320.6 | 322 | |
Other Disclosures | ||||
Settlement of debt in cash | 81.9 | |||
Carrying value | ||||
Components of debt | ||||
Total debt | 330 | 330 | 379.2 | |
Less: Current portion of long-term debt | 9.4 | 9.4 | 57.2 | |
Total long-term debt | 320.6 | 320.6 | 322 | |
Fair value | ||||
Components of debt | ||||
Total debt | 317.7 | 317.7 | 380.7 | |
Less: Current portion of long-term debt | 9.4 | 9.4 | 57.3 | |
Total long-term debt | $ 308.3 | $ 308.3 | 323.4 | |
4.875% Senior Notes due 2025 | ||||
Components of debt | ||||
Interest rate (as a percent) | 4.875% | 4.875% | ||
Other Disclosures | ||||
Face value of debt issued | $ 300 | $ 300 | ||
4.875% Senior Notes due 2025 | Carrying value | ||||
Components of debt | ||||
Total debt | 320.6 | 320.6 | 322 | |
4.875% Senior Notes due 2025 | Fair value | ||||
Components of debt | ||||
Total debt | $ 308.3 | $ 308.3 | 323.4 | |
0.750% Convertible Senior Notes due 2018 | ||||
Components of debt | ||||
Interest rate (as a percent) | 0.75% | 0.75% | ||
Other Disclosures | ||||
Percentage of the conversion price that the last reported sales price of the entity's common stock must equal or exceed as per conversion eligibility terms | 130.00% | |||
Number of trading days within 30 consecutive trading days required per the conversion eligibility terms, minimum | item | 20 | |||
Number of consecutive trading days required per the conversion eligibility terms | item | 30 | |||
Redemption of debt instruments principal amount | $ 9.4 | $ 0.2 | $ 48.1 | |
Settlement of debt in cash | 13.5 | 0.3 | 81.9 | |
0.750% Convertible Senior Notes due 2018 | Carrying value | ||||
Components of debt | ||||
Total debt | $ 0 | 9.4 | 9.4 | 57.2 |
0.750% Convertible Senior Notes due 2018 | Fair value | ||||
Components of debt | ||||
Total debt | 9.4 | 9.4 | $ 57.3 | |
Credit Facility | ||||
Other Disclosures | ||||
Credit facility, maximum borrowing capacity | 200 | $ 200 | ||
Credit facility covenant terms, financing leverage ratio, maximum | 3 | |||
Borrowings under the Credit Facility | 0 | $ 0 | ||
Janus Capital Group Inc | 4.875% Senior Notes due 2025 | ||||
Other Disclosures | ||||
Unamortized premium, net | 20.6 | 20.6 | ||
Janus Capital Group Inc | 0.750% Convertible Senior Notes due 2018 | ||||
Other Disclosures | ||||
Face value of debt issued | $ 9.4 | $ 9.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Income Taxes | ||||||
Effective tax rate (as a percent) | 22.60% | 33.60% | 22.60% | 25.40% | ||
Corporation tax rate (as a percent) | 21.00% | |||||
Unrecognized tax benefits held for uncertain tax positions | $ 10.1 | $ 10.1 | $ 10.2 | |||
Anticipated decrease in income tax contingency reserves in the next 12 months | $ 0.7 | $ 0.7 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | |
Redeemable Noncontrolling Interests | ||||||
Total redeemable noncontrolling interests | $ 177.8 | $ 190.3 | $ 190.3 | $ 177.8 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||||
Opening balance | 190.3 | |||||
Closing balance | 177.8 | 177.8 | 190.3 | |||
Seeded investment products | ||||||
Redeemable Noncontrolling Interests | ||||||
Total redeemable noncontrolling interests | 202.9 | $ 146 | 174.9 | $ 158 | 158 | 163 |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||||
Opening balance | 202.9 | 146 | 174.9 | 158 | 158 | |
Balance acquired from the Merger | 23.2 | 23.2 | ||||
Changes in market value | (6.7) | (16.2) | (5.6) | (23.5) | ||
Changes in ownership | (32.6) | 0.3 | (5.5) | (5.1) | ||
Foreign currency translation | (0.6) | (1.1) | (0.8) | (0.4) | ||
Closing balance | 163 | $ 152.2 | 163 | $ 152.2 | 174.9 | |
Intech | ||||||
Redeemable Noncontrolling Interests | ||||||
INTECH appreciation rights | 10.2 | 11 | ||||
Intech Founders | ||||||
Redeemable Noncontrolling Interests | ||||||
Total redeemable noncontrolling interests | 4.6 | 4.4 | 4.4 | $ 4.6 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||||
Opening balance | 4.4 | |||||
Closing balance | 4.6 | 4.6 | 4.4 | |||
Remaining interest (as a percent) | 1.10% | |||||
Consolidated | Seeded investment products | ||||||
Redeemable Noncontrolling Interests | ||||||
Total redeemable noncontrolling interests | 163 | 174.9 | 174.9 | $ 163 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||||
Opening balance | 174.9 | |||||
Closing balance | $ 163 | $ 163 | $ 174.9 |
Noncontrolling Interests - Nonr
Noncontrolling Interests - Nonredeemable (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 28.3 | $ 38.2 |
Intech | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | 13.2 | 13.3 |
Seeded investment products | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 15.1 | $ 24.9 |
Long-Term Incentive and Emplo54
Long-Term Incentive and Employee Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Long-Term Incentive and Employee Compensation | ||
Long-term incentive awards granted | $ 63.1 | $ 173.2 |
Amount of shares purchased in the open market | $ 1.3 | $ 82.3 |
Maximum | ||
Long-Term Incentive and Employee Compensation | ||
Vesting period | 4 years | |
Minimum | ||
Long-Term Incentive and Employee Compensation | ||
Vesting period | 3 years |
Retirement benefit plans (Detai
Retirement benefit plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Components of net periodic benefit cost | ||||
Service cost | $ (0.3) | $ (0.3) | $ (0.6) | $ (0.6) |
Interest cost | (4.2) | (5.3) | (9) | (10.5) |
Expected return on plan assets | 5.4 | 6 | 11.5 | 11.9 |
Net periodic benefit credit | $ 0.9 | $ 0.4 | $ 1.9 | $ 0.8 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2017 |
Changes in accumulated other comprehensive loss, net of tax | |||||||
Beginning balance | $ 4,837.3 | $ 4,837.3 | |||||
Cumulative-effect adjustment | 0.2 | ||||||
Other comprehensive loss attributable to noncontrolling interests | $ 0.6 | $ 15.9 | 0.8 | $ 16.3 | |||
Ending balance | 4,880.6 | $ 4,880.6 | 4,880.6 | ||||
Amounts reclassified from accumulated other comprehensive loss | |||||||
Reclassification of other comprehensive income to retained earnings | 2.5 | ||||||
Net unrealized gain on available-for-sale securities | (0.4) | ||||||
Accumulated other comprehensive loss | |||||||
Changes in accumulated other comprehensive loss, net of tax | |||||||
Beginning balance | (301.8) | (251.4) | (411.2) | (304.3) | (301.8) | (434.5) | $ (434.5) |
Cumulative-effect adjustment | (2.5) | ||||||
Other comprehensive income (loss) | (104.7) | 51.2 | (52) | 74.1 | |||
Other comprehensive loss attributable to noncontrolling interests | 0.6 | 15.9 | 0.8 | 16.3 | |||
Ending balance | (304.3) | (355.5) | (344.1) | (355.5) | (355.5) | (344.1) | (344.1) |
Foreign currency translation adjustments | |||||||
Changes in accumulated other comprehensive loss, net of tax | |||||||
Beginning balance | (325.3) | (272.4) | (447.6) | (325.3) | (325.3) | (471.3) | (471.3) |
Other comprehensive income (loss) | (104.7) | 51.2 | (52) | 74.5 | |||
Other comprehensive loss attributable to noncontrolling interests | 0.6 | 15.9 | 0.8 | 16.3 | |||
Ending balance | (325.3) | (376.5) | (380.5) | (376.5) | (376.5) | (380.5) | (380.5) |
Available-for-sale securities | |||||||
Changes in accumulated other comprehensive loss, net of tax | |||||||
Beginning balance | 2.5 | 4.3 | 2.5 | 4.7 | 4.7 | ||
Cumulative-effect adjustment | (2.5) | ||||||
Other comprehensive income (loss) | (0.4) | ||||||
Ending balance | 4.3 | 4.3 | 4.3 | ||||
Amounts reclassified from accumulated other comprehensive loss | |||||||
Net unrealized gain on available-for-sale securities | 0 | ||||||
Retirement benefit asset, net | |||||||
Changes in accumulated other comprehensive loss, net of tax | |||||||
Beginning balance | 21 | 21 | 32.1 | 21 | 21 | 32.1 | 32.1 |
Ending balance | $ 21 | $ 21 | $ 32.1 | $ 21 | $ 21 | $ 32.1 | $ 32.1 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other comprehensive income, net of tax | |||||
Pre-tax amount | $ (104.7) | $ 51.2 | $ (52) | $ 74.1 | |
Other comprehensive income (loss), net of tax | (104.7) | 51.2 | $ (51.2) | (52) | 74.1 |
Foreign currency translation adjustments | |||||
Other comprehensive income, net of tax | |||||
Pre-tax amount | (104.7) | 51.2 | (52) | 74.5 | |
Other comprehensive income (loss), net of tax | $ (104.7) | $ 51.2 | $ (52) | 74.5 | |
Available-for-sale securities | |||||
Other comprehensive income, net of tax | |||||
Pre-tax amount | (0.4) | ||||
Other comprehensive income (loss), net of tax | $ (0.4) |
Earnings and Dividends Per Sh58
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 31, 2018 | Jun. 01, 2018 | May 08, 2018 | Mar. 02, 2018 | Feb. 05, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Earnings per share | |||||||||
Net income attributable to JHG | $ 140.6 | $ 41.7 | $ 305.8 | $ 84.3 | |||||
Less: Allocation of earnings to participating stock-based awards | 3.8 | 1.1 | 7.6 | 2 | |||||
Net income attributable to JHG common shareholders | $ 136.8 | $ 40.6 | $ 298.2 | $ 82.3 | |||||
Weighted-average common shares outstanding - basic | 195.8 | 140.2 | 195.9 | 124.6 | |||||
Dilutive effect of: | |||||||||
2018 Convertible Notes | 1.6 | 1.6 | |||||||
Dilutive effect of non-participating stock-based awards | 0.8 | 2 | 1.3 | 1.9 | |||||
Weighted-average common shares outstanding - diluted | 196.6 | 143.8 | 197.2 | 128.1 | |||||
Earnings per share: | |||||||||
Basic (in dollars per share) | $ 0.70 | $ 0.29 | $ 1.52 | $ 0.66 | |||||
Diluted (two class) (in dollars per share) | $ 0.70 | $ 0.28 | $ 1.51 | $ 0.64 | |||||
Cash dividend declared (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.32 | ||||||
Cash dividends paid | $ 71.6 | $ 63.1 | $ 134.7 | $ 128.6 | |||||
Unvested nonparticipating stock awards | |||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | |||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 0.6 | 2.3 | 0.6 | 1.7 | |||||
Dai-ichi options | |||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | |||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 10 | 10 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
General and Administrative Expense | Richard Pease Versus Henderson Administration Limited | |
Deferred and forfeited remuneration to ex-employee | $ 12.2 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Subsequent Events | Forecast | |
Subsequent Events | |
Severance charge | $ 12 |