Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Janus Henderson Group plc | |
Entity Central Index Key | 0001274173 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 195,154,321 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Fees and other receivables | $ 300.2 | $ 309.2 |
OEIC and unit trust receivables | 264.7 | 144.4 |
Other current assets | 78 | 69.4 |
Total current assets | 1,960.7 | 2,019.1 |
Non-current assets: | ||
Property, equipment and software, net | 72.6 | 69.5 |
Intangible assets, net | 3,125.4 | 3,123.3 |
Goodwill | 1,493.6 | 1,478 |
Retirement benefit asset, net | 213 | 206.5 |
Other non-current assets | 157.8 | 15.5 |
Total assets | 7,023.1 | 6,911.9 |
Current liabilities: | ||
Current portion of accrued compensation, benefits and staff costs | 167.3 | 345.4 |
OEIC and unit trust payables | 274.7 | 143.3 |
Total current liabilities | 716.3 | 728.4 |
Non-current liabilities: | ||
Accrued compensation, benefits and staff costs | 44.6 | 54.7 |
Long-term debt | 318.4 | 319.1 |
Deferred tax liabilities, net | 730.7 | 729.9 |
Retirement benefit obligations, net | 3.7 | 3.7 |
Other non-current liabilities | 197.3 | 79.2 |
Total liabilities | 2,011 | 1,915 |
Commitments and contingencies (See Note 14) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 137 | 136.1 |
EQUITY | ||
Common stock ( $1.50 par, 480,000,000 shares authorized and 195,177,421 and 196,412,764 shares issued and outstanding, respectively) | 292.7 | 294.6 |
Additional paid-in-capital | 3,802.1 | 3,824.5 |
Treasury shares (4,326,953 and 4,523,802 shares held, respectively) | (165.4) | (170.8) |
Accumulated other comprehensive loss, net of tax | (386.8) | (423.5) |
Retained earnings | 1,309.9 | 1,314.5 |
Total shareholders’ equity | 4,852.5 | 4,839.3 |
Nonredeemable noncontrolling interests | 22.6 | 21.5 |
Total equity | 4,875.1 | 4,860.8 |
Total liabilities, redeemable noncontrolling interests and equity | 7,023.1 | 6,911.9 |
Consolidated excluding VIEs | ||
Current assets: | ||
Cash and cash equivalents | 717.1 | 880.4 |
Investment securities | 270.7 | 291.8 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 263.3 | 233.2 |
Consolidated VIEs | ||
Current assets: | ||
Cash and cash equivalents | 22.8 | 36.2 |
Investment securities | 297.4 | 282.7 |
Other current assets | 9.8 | 5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 11 | $ 6.5 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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 | 195,177,421 | 196,412,764 |
Common stock, shares outstanding | 195,177,421 | 196,412,764 |
Treasury shares (in shares) | 4,326,953 | 4,523,802 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 519.3 | $ 587.7 |
Operating expenses: | ||
Employee compensation and benefits | 145 | 146.7 |
Long-term incentive plans | 48.4 | 40 |
Distribution expenses | 101.9 | 117.3 |
Investment administration | 11.8 | 11.4 |
Marketing | 7.5 | 8.5 |
General, administrative and occupancy | 65.2 | 72.2 |
Depreciation and amortization | 15 | 15.4 |
Total operating expenses | 394.8 | 411.5 |
Operating income | 124.5 | 176.2 |
Interest expense | (4.1) | (3.8) |
Investment gains (losses), net | 13.3 | (0.7) |
Other non-operating income (expenses), net | (3.9) | 38.9 |
Income before taxes | 129.8 | 210.6 |
Income tax provision | (29.9) | (47.4) |
Net income | 99.9 | 163.2 |
Net loss (income) attributable to noncontrolling interests | (5.8) | 2 |
Net income attributable to JHG | $ 94.1 | $ 165.2 |
Earnings per share attributable to JHG common shareholders: | ||
Basic (in dollars per share) | $ 0.48 | $ 0.82 |
Diluted (in dollars per share) | $ 0.48 | $ 0.82 |
Other comprehensive income, net of tax: | ||
Foreign currency translation gains | $ 36.8 | $ 52.7 |
Other comprehensive loss (income) attributable to noncontrolling interests | (0.1) | 0.2 |
Other comprehensive income (loss) attributable to JHG | 36.7 | 52.9 |
Total comprehensive income | 136.7 | 215.9 |
Total comprehensive loss (income) attributable to noncontrolling interests | (5.9) | 2.2 |
Total comprehensive income attributable to JHG | 130.8 | 218.1 |
Management fees | ||
Revenue: | ||
Total revenue | 441.9 | 502.9 |
Performance fees | ||
Revenue: | ||
Total revenue | (5.6) | (3.9) |
Shareowner servicing fees | ||
Revenue: | ||
Total revenue | 35.9 | 38.4 |
Other revenue | ||
Revenue: | ||
Total revenue | $ 47.1 | $ 50.3 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income | $ 99.9 | $ 163.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15 | 15.4 |
Deferred income taxes | 0.4 | |
Stock-based compensation plan expense | 20.1 | 16.4 |
Operating lease provision | 4.7 | |
Investment gains (losses), net | (13.3) | 0.7 |
Gain from BNP Paribas transaction | (23) | |
Dai-ichi option fair value adjustments | (22.8) | |
Contributions to pension plans in excess of costs recognized | (1.8) | (4.6) |
Other, net | (3.2) | (13.8) |
Changes in operating assets and liabilities: | ||
OEIC and unit trust receivables and payables | 11.1 | 2.3 |
Other assets | 1.8 | 119.5 |
Other accruals and liabilities | (169.4) | (191.6) |
Net operating activities | (34.7) | 61.7 |
Proceeds from (purchase of): | ||
Investment securities, net | 19.3 | 17.1 |
Property, equipment and software | (7.5) | (6.5) |
Investment securities by consolidated seeded investment products, net | 46.1 | (38.4) |
Proceeds from BNP Paribas transaction, net | 36.5 | |
Cash received (paid) on settled hedges, net | (7.4) | 2.9 |
Dividends received from equity-method investments | 0.5 | |
Proceeds from sale of Volantis | 0.3 | |
Net investing activities | 51.3 | 11.6 |
Financing activities: | ||
Proceeds from stock-based compensation plans | 0.2 | |
Purchase of common stock for stock-based compensation plans | (37.1) | (82.7) |
Purchase of common stock for share buyback program | (30.9) | |
Dividends paid to shareholders | (69.7) | (63.1) |
Repayment of long-term debt | (81.6) | |
Payment of contingent consideration | (14.1) | (18.8) |
Distributions to noncontrolling interests | (0.1) | (0.2) |
Third-party sales (redemptions) in consolidated seeded investment products, net | (46.1) | 38.4 |
Principal payments under capital lease obligations | (0.3) | (0.4) |
Net financing activities | (198.3) | (208.2) |
Cash and cash equivalents: | ||
Effect of foreign exchange rate changes | 5 | 6.1 |
Net change | (176.7) | (128.8) |
At beginning of period | 916.6 | 794.2 |
At end of period | 739.9 | 665.4 |
Supplemental cash flow information: | ||
Cash paid for interest | 7.3 | 7.4 |
Cash paid for income taxes, net of refunds | 12.6 | 26.4 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 916.6 | 794.2 |
Consolidated VIEs | ||
Cash and cash equivalents: | ||
At end of period | 22.8 | 54 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 22.8 | 54 |
Consolidated excluding VIEs | ||
Cash and cash equivalents: | ||
At end of period | 717.1 | 611.4 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | $ 717.1 | $ 611.4 |
CONDENSED CONSOLIDATED STATEM_3
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, 2017 | $ 300.6 | $ 3,842.9 | $ (155.8) | $ (304.3) | $ 1,154.1 | $ 38.2 | $ 4,875.7 |
Balance (in shares) at Dec. 31, 2017 | 200,400,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 165.2 | (3.4) | 161.8 | ||||
Other comprehensive income (loss) | 52.9 | 52.9 | |||||
Dividends paid to shareholders | (63.1) | (63.1) | |||||
Distributions to noncontrolling interests | (0.1) | (0.1) | |||||
Fair value adjustments to redeemable noncontrolling interests | (0.3) | (0.3) | |||||
Redemptions of convertible debt | (33.9) | (33.9) | |||||
Purchase of common stock for stock-based compensation plans | (37.3) | (45.4) | (82.7) | ||||
Vesting of stock-based compensation plans | (2.3) | 2.3 | |||||
Stock-based compensation plan expense | 16.4 | 16.4 | |||||
Proceeds from stock-based compensation plans | 0.2 | 0.2 | |||||
Balance at Mar. 31, 2018 | $ 300.6 | 3,786 | (198.9) | (251.4) | 1,255.9 | 34.7 | 4,926.9 |
Balance (in shares) at Mar. 31, 2018 | 200,400,000 | ||||||
Balance at Dec. 31, 2018 | $ 294.6 | 3,824.5 | (170.8) | (423.5) | 1,314.5 | 21.5 | $ 4,860.8 |
Balance (in shares) at Dec. 31, 2018 | 196,400,000 | 196,412,764 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 94.1 | 1.2 | $ 95.3 | ||||
Other comprehensive income (loss) | 36.7 | 36.7 | |||||
Dividends paid to shareholders | (69.7) | (69.7) | |||||
Share buyback program | $ (1.9) | (29) | (30.9) | ||||
Share buyback program (in shares) | (1,200,000) | ||||||
Distributions to noncontrolling interests | (0.1) | (0.1) | |||||
Purchase of common stock for stock-based compensation plans | (31.4) | (5.7) | (37.1) | ||||
Vesting of stock-based compensation plans | (11.1) | 11.1 | |||||
Stock-based compensation plan expense | 20.1 | 20.1 | |||||
Balance at Mar. 31, 2019 | $ 292.7 | $ 3,802.1 | $ (165.4) | $ (386.8) | $ 1,309.9 | $ 22.6 | $ 4,875.1 |
Balance (in shares) at Mar. 31, 2019 | 195,200,000 | 195,177,421 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018. The December 31, 2018 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. 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. Certain prior year amounts in the Condensed Consolidated Statements of Comprehensive Income have been reclassified to conform to current year presentation. Specifically, revenue amounts related to certain transfer agent and administrative activities performed for investment products that were previously classified in other revenue were reclassified to shareowner servicing fees. There is no change to consolidated total revenue, operating income, net income or cash flows as a result of this change in classification. Recent Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (“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 leases onto the balance sheet. The standard also aligns certain 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 prior leases model. The standard became effective January 1, 2019. The Group adopted the new standard effective January 1, 2019, using the modified retrospective approach. Comparative prior periods were not adjusted upon adoption, as the Group utilized the practical expedients available under the guidance. Specifically, the Group did not (i) reassess existing contracts for embedded leases, (ii) reassess existing lease agreements for finance or operating classification, or (iii) reassess existing lease agreements in consideration of initial direct costs. Upon adoption, the Group recognized $129.8 million in right-of-use (“ROU”) assets related to its leased property and equipment. Corresponding lease liabilities of $146.4 million were also recognized. The Group’s property leases represent the vast majority of its right of use assets and lease liabilities, with office spaces in Denver and London representing a significant portion of its leased property. The Group’s leases policy follows. Refer to further disclosure in Note 6. Leases Policy – Updated January 1, 2019 The Group determines if an arrangement is a lease at inception. Operating lease ROU assets are included in other non-current assets in the Group’s Condensed Consolidated Balance Sheets. The current and non-current portions of operating lease liabilities are included in accounts payable and accrued liabilities and other non-current liabilities, respectively. Finance lease ROU assets are included in property, equipment and software, net, and finance lease liabilities are included in other non-current liabilities. ROU assets represent the Group’s right to use an underlying asset for the lease term, and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of JHG’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Hedge Accounting In August 2017, the FASB issued an updated standard that amended hedge accounting. The standard expanded the strategies eligible for hedge accounting, changed how companies assess hedge effectiveness and required new disclosures and presentation. The Group adopted the standard effective January 1, 2019. The adoption did not have a material impact on the Group’s results of operations or financial position. Recent Accounting Pronouncements Not Yet Adopted Retirement Benefit Plans In August 2018, the FASB issued an accounting standards update (“ASU”) that modifies the disclosure requirements for employers that sponsor defined benefit pension plans. The ASU removes, adds and clarifies a number of disclosure requirements related to sponsored benefit plans. The standard is effective January 1, 2021, for calendar year-end companies, and early adoption is permitted. The Group is evaluating the effect of adopting this new accounting standard. Implementation Costs — Cloud Computing Arrangements In August 2018, the FASB issued an ASU that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for implementation costs incurred to develop or obtain internal-use software. The ASU is effective January 1, 2020, for calendar year-end companies and for the interim periods within those years. Early adoption is permitted. The ASU allows either a retrospective or prospective approach to all implementation costs incurred after adoption. The Group is evaluating the effect of adopting this new accounting standard. |
Consolidation
Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Consolidation | |
Consolidation | Note 2 — Consolidation Variable Interest Entities Consolidated Variable Interest Entities JHG’s consolidated variable interest entities (“VIEs”) as of March 31, 2019, and December 31, 2018, 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 March 31, 2019, and December 31, 2018, JHG’s carrying values of investment securities included on the Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs were $3.6 million and $3.1 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): March 31, December 31, 2019 2018 Investment securities $ 9.2 $ 13.9 Cash and cash equivalents 0.2 1.4 Other current assets 0.1 0.1 Accounts payable and accrued liabilities (0.1) (0.1) Total 9.4 15.3 Redeemable noncontrolling interests in consolidated VREs (4.3) (6.0) JHG's net interest in consolidated VREs $ 5.1 $ 9.3 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 March 31, 2019, and December 31, 2018, JHG’s carrying values of investment securities included on the Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs were $55.4 million and $50.7 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 | 3 Months Ended |
Mar. 31, 2019 | |
Investment Securities | |
Investment Securities | Note 3 — Investment Securities JHG’s investment securities as of March 31, 2019, and December 31, 2018, are summarized as follows (in millions): March 31, December 31, 2019 2018 Seeded investment products: Consolidated VIEs $ 297.4 $ 282.7 Consolidated VREs 9.2 13.9 Unconsolidated VIEs and VREs 59.0 53.8 Separate accounts 66.5 71.6 Pooled investment funds 10.6 25.5 Total seeded investment products 442.7 447.5 Investments related to deferred compensation plans 125.0 120.3 Other investments 0.4 6.7 Total investment securities $ 568.1 $ 574.5 Trading Securities Net unrealized gains (losses) on investment securities held as of March 31, 2019 and 2018, are summarized as follows (in millions): Three months ended March 31, 2019 2018 Unrealized gains (losses) on investment securities held at period end $ 11.1 $ (7.9) 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 March 31, 2019, and December 31, 2018 (in millions): Notional Value March 31, 2019 December 31, 2018 Futures $ 135.8 $ 147.1 Credit default swaps 84.8 133.2 Total return swaps 72.0 77.2 Foreign currency forward contracts 167.7 131.8 The derivative instruments are not designated as hedges for accounting purposes, with the exception of certain 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 months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Foreign currency translation $ 0.3 $ (0.5) Foreign currency forward contracts (0.3) 0.5 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 gains (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 March 31, 2019, and December 31, 2018 (in millions): Notional Value March 31, 2019 December 31, 2018 Futures $ 118.6 $ 267.8 Contracts for differences 6.5 8.7 Credit default swaps 1.3 6.2 Total return swaps 42.1 23.7 Interest rate swaps 27.8 61.5 Options 2.7 9.6 Swaptions — 8.3 Foreign currency forward contracts 143.9 154.9 As of March 31, 2019, and December 31, 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 March 31, 2019, and December 31, 2018, the notional values of the agreements totaled $2.9 million and $3.9 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 March 31, 2019, and December 31, 2018, the fair value of the credit default swap contracts selling protection was $0.1 million for both periods. Investment Gains (Losses), Net Investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income included the following for the three months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Seeded investment products and derivatives, net $ 8.2 $ (0.8) Other 5.1 0.1 Investment gains (losses), net $ 13.3 $ (0.7) Cash Flows Cash flows related to investment securities for the three months ended March 31, 2019 and 2018, are summarized as follows (in millions): Three months ended March 31, 2019 2018 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities $ (176.7) $ 222.8 $ (52.3) $ 31.0 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 231.1 $ — $ — $ 231.1 Investment securities: Consolidated VIEs 104.8 176.8 15.8 297.4 Other investment securities 194.0 76.7 — 270.7 Total investment securities 298.8 253.5 15.8 568.1 Seed hedge derivatives — 0.2 — 0.2 Derivatives in consolidated seeded investment products — 1.3 — 1.3 Volantis contingent consideration — — 4.0 4.0 Total assets $ 529.9 $ 255.0 $ 19.8 $ 804.7 Liabilities: Derivatives in consolidated seeded investment products $ — $ 1.4 $ — $ 1.4 Seed hedge derivatives — 6.7 — 6.7 Long-term debt (1) — 309.2 — 309.2 Deferred bonuses — — 83.1 83.1 Contingent consideration — — 49.8 49.8 Total liabilities $ — $ 317.3 $ 132.9 $ 450.2 Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ 122.0 $ 122.0 Intech — — 15.0 15.0 Total redeemable noncontrolling interests $ — $ — $ 137.0 $ 137.0 (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, 2018 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 381.8 $ — $ — $ 381.8 Investment securities: Consolidated VIEs 103.8 159.7 19.2 282.7 Other investment securities 194.5 97.3 — 291.8 Total investment securities 298.3 257.0 19.2 574.5 Seed hedge derivatives — 3.2 — 3.2 Derivatives in consolidated seeded investment products — 0.9 — 0.9 Contingent consideration — — 3.9 3.9 Total assets $ 680.1 $ 261.1 $ 23.1 $ 964.3 Liabilities: Derivatives in consolidated seeded investment products $ — $ 2.1 $ — $ 2.1 Financial liabilities in consolidated seeded investment products 0.4 — — 0.4 Seed hedge derivatives — 1.1 — 1.1 Long-term debt (1) — 301.4 — 301.4 Deferred bonuses — — 68.5 68.5 Contingent consideration — — 61.3 61.3 Total liabilities $ 0.4 $ 304.6 $ 129.8 $ 434.8 Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ 121.6 $ 121.6 Intech — — 14.5 14.5 Total redeemable noncontrolling interests $ — $ — $ 136.1 $ 136.1 (1) 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 March 31, 2019, and December 31, 2018, certain securities within consolidated VIEs were valued using significant unobservable inputs, resulting in Level 3 classification. Valuation techniques and significant unobservable inputs used in the valuation of JHG’s material Level 3 assets included within consolidated VIEs as of March 31, 2019, and December 31, 2018, were as follows (in millions): Significant Fair Valuation unobservable As of March 31, 2019 value technique inputs Inputs Investment securities of consolidated VIEs $ 15.8 Discounted Discount rate 15% cash flow EBITDA multiple 16.4 Price-earnings ratio 27.7 Significant Fair Valuation unobservable Range As of December 31, 2018 value technique inputs (weighted-average) Investment securities of consolidated VIEs $ 19.2 Discounted Discount rate 15% cash flow EBITDA multiple 18.5 Price-earnings ratio 28.4 Contingent Consideration The maximum amount payable and fair value of Geneva Capital Management LLC (“Geneva”), Perennial Fixed Interest Partners Pty Ltd and Perennial Growth Management Pty Ltd (together “Perennial”) and Kapstream Capital Pty Limited (“Kapstream”) contingent consideration is summarized below (in millions): As of March 31, 2019 Geneva Perennial Kapstream Maximum amount payable $ 61.3 $ 37.3 $ 13.9 Fair value included in: Accounts payable and accrued liabilities $ — $ 11.0 $ 12.9 Other non-current liabilities 25.9 — — Total fair value $ 25.9 $ 11.0 $ 12.9 As of December 31, 2018 Geneva Perennial Kapstream Fair value included in: Accounts payable and accrued liabilities $ — $ — $ 13.8 Other non-current liabilities 25.3 9.9 12.3 Total fair value $ 25.3 $ 9.9 $ 26.1 Acquisition of Geneva The consideration payable on the acquisition of Geneva in 2014 included two contingent tranches payable over six years. The fair value of the contingent consideration payable upon the acquisition of Geneva 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 assets under management (“AUM”) based on performance and industry trends. The unwind of the discount resulted in a $0.6 million increase to the liability during the three months ended March 31, 2019. Acquisition of Perennial The acquisition of Perennial included earn-out payable in 2020. The earn-out has employee service conditions, is based on net management fee revenue and is accrued over the service period as compensation expense. The fair value of the Perennial 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, and the liability increased $1.1 million during the three months ended March 31, 2019 due to changes in forecasted revenue. Acquisition of Kapstream The purchase of the remaining 49% of Kapstream 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 and 2019, the first and second anniversary of the acquisition, Kapstream reached defined revenue targets, and the Group paid $15.3 million in February 2018 and $14.1 million in February 2019. 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 months ended March 31, 2019, however, the liability decreased $13.2 million due to the second anniversary payment, unwind of the discount and foreign currency translation. Disposal of Volantis On April 1, 2017, the Group completed the sale of the Volantis UK Small Cap (“Volantis”) alternative team assets. 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 a discount rate. As of March 31, 2019, the fair value of the Volantis contingent consideration was $4.0 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. 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 in consolidated seeded investment products are measured at fair value. Their fair values are primarily driven by the fair value of the investments in consolidated funds. 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 months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Beginning of period fair value $ 23.1 $ 46.5 Settlements (0.3) (0.4) Movement recognized in net income (3.1) 0.8 Movements recognized in other comprehensive income 0.1 0.3 End of period fair value $ 19.8 $ 47.2 Changes in fair value of JHG’s individual Level 3 liabilities and redeemable noncontrolling interests for the three months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Redeemable Redeemable Contingent Deferred noncontrolling Contingent Deferred Dai-ichi noncontrolling consideration bonuses interests consideration bonuses option interests Beginning of period fair value $ 61.3 $ 68.5 $ 136.1 $ 76.6 $ 64.7 $ 26.1 $ 190.3 Changes in ownership — — (4.0) — — — 27.1 Net movement in bonus deferrals — 14.6 — — 14.8 — — Fair value adjustments — — — 2.0 — (22.8) 0.4 Unrealized gains (losses) 2.4 — 4.6 — — — 1.1 Amortization of Intech appreciation rights — — 0.3 — — — (0.9) Distributions (14.1) — — (18.8) — — (0.1) Foreign currency translation 0.2 — — (0.6) — 1.0 (0.2) End of period fair value $ 49.8 $ 83.1 $ 137.0 $ 59.2 $ 79.5 $ 4.3 $ 217.7 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and 2018 (in millions): December 31, Foreign March 31, 2018 Amortization translation Disposal 2019 Indefinite-lived intangible assets: Investment management agreements $ 2,495.5 $ — $ 9.2 $ — $ 2,504.7 Trademarks 380.8 — — — 380.8 Definite-lived intangible assets: Client relationships 363.3 — 1.2 — 364.5 Accumulated amortization (116.3) (7.4) (0.9) — (124.6) Net intangible assets $ 3,123.3 $ (7.4) $ 9.5 $ — $ 3,125.4 Goodwill $ 1,478.0 $ — $ 15.6 $ — $ 1,493.6 December 31, Foreign March 31, 2017 Amortization translation Disposal 2018 Indefinite-lived intangible assets: Investment management agreements $ 2,543.9 $ — $ 8.9 $ — $ 2,552.8 Trademarks 381.2 — (0.1) — 381.1 Definite-lived intangible assets: Client relationships 369.4 — 0.7 — 370.1 Accumulated amortization (89.7) (7.4) (1.3) — (98.4) Net intangible assets $ 3,204.8 $ (7.4) $ 8.2 $ — $ 3,205.6 Goodwill $ 1,533.9 $ — $ 24.1 $ (9.5) $ 1,548.5 Future Amortization Expected future amortization expense related to client relationships is summarized below (in millions): Future amortization Amount 2019 (remainder of year) $ 22.1 2020 29.4 2021 26.6 2022 18.1 2023 17.8 Thereafter 125.9 Total $ 239.9 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Leases | Note 6 — Leases The Group’s leases include operating and finance leases for property and equipment. Property leases include office space in the United Kingdom (“UK”), Europe, the United States (“U.S.”) and the Asia-Pacific region. Equipment leases include copiers and server equipment located throughout JHG’s office space. The Group’s leases have remaining lease terms of one year to 10 years. Certain leases include options to extend or early terminate the leases, however, the Group currently does not intend exercising these options and they are not reflected in the Group’s lease assets and liabilities. The impact of operating and financing leases on the Group’s financial statements is summarized below. Balance Sheet Operating and financing lease assets and liabilities on JHG’s Condensed Consolidated Balance Sheets as of March 31, 2019, consisted of the following (in millions): Operating lease right-of-use assets: March 31, 2019 Other non-current assets $ 144.4 Operating lease liabilities: Accounts payable and accrued liabilities $ 27.0 Other non-current liabilities 143.0 Total operating lease liabilities $ 170.0 Finance lease right-of-use assets: Property and equipment, cost $ 13.1 Accumulated depreciation (11.4) Property and equipment, net $ 1.7 Finance lease liabilities Accounts payable and accrued liabilities $ Other non-current liabilities Total finance lease liabilities $ Statement of Comprehensive Income The components of lease expense on JHG’s Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019, is summarized below (in millions): Three months ended March 31, 2019 Operating lease cost (1) $ 10.9 Finance lease cost: Amortization of right-of-use asset (2) $ 0.3 Interest on lease liabilities (3) — Total finance lease cost $ 0.3 (1) Included in general, administrative and occupancy on the Group’s Condensed Consolidated Statements of Comprehensive Income. (2) Included in depreciation and amortization on the Group’s Condensed Consolidated Statements of Comprehensive Income. (3) Included in interest expense on the Group’s Condensed Consolidated Statements of Comprehensive Income. The Group subleases certain office buildings in the UK and received $1.7 million from the tenants during the three months ended March 31, 2019. Cash Flow Statement Cash payments for operating and finance leases included in the Group’s Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019, consisted of the following (in millions): Three months ended March 31, 2019 Operating cash flows from operating leases $ 7.6 Operating cash flows from finance leases $ — Financing cash flows from finance leases $ 0.3 Non-cash lease transactions during the three months ended March 31, 2019, included a $19.8 million ROU asset and corresponding lease liability for a UK property lease commenced in March 2019. The Group also recognized a $4.7 million impairment of a subleased ROU operating asset; collection of rents under the sublease were deemed uncertain, and an impairment was booked accordingly. Supplemental Information As of March 31, 2019, the Group has an additional operating lease for office space in the U.S. that has not yet commenced. The lease will commence on September 1, 2019 with a lease term of 11 years. The future rent obligations associated with the lease are $8.4 million. The weighted-average remaining lease term, weighted-average discount rate and future lease maturities are summarized below. Weighted-average remaining lease term (in months): March 31, 2019 Operating leases 81 Finance leases 21 Weighted-average discount rate: March 31, 2019 Operating leases Finance leases Future lease obligations (in millions) Operating leases Finance leases 2019 (excluding three months ended March 31, 2019) $ 24.2 $ 0.9 2020 30.9 0.7 2021 28.6 0.1 2022 24.4 — 2023 22.6 — Thereafter 72.0 — Total lease payments 202.7 1.7 Less interest 32.7 — Total $ 170.0 $ 1.7 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Debt | Note 7 — Debt Debt as of March 31, 2019, and December 31, 2018, consisted of the following (in millions): March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 318.4 $ 309.2 $ 319.1 $ 301.4 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 March 31, 2019, 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 March 31, 2019, of $18.4 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 Janus Capital Group Inc. (“JCG”) in relation to the 2025 Senior Notes. Credit Facility At March 31, 2019, 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 March 31, 2019, JHG was in compliance with all covenants, and there were no borrowings under the Credit Facility at March 31, 2019, or during the three months ended March 31, 2019. The maturity date of the Credit Facility is February 16, 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Income Taxes | Note 8 — Income Taxes The Group’s effective tax rates for the three months ended March 31, 2019 and 2018, are as follows: Three months ended March 31, 2019 2018 Effective tax rate % % The increase in the effective tax rate for the three months ended March 31, 2019, compared to the same period in 2018 is primarily due to an increase in non-deductible compensation-related expenses. As of March 31, 2019, and December 31, 2018, JHG had $11.7 million and $12.4 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 $1.5 million within the next 12 months, without giving effect to changes in foreign currency translation. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 9 — Noncontrolling Interests Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of March 31, 2019, and December 31, 2018, consisted of the following (in millions): March 31, December 31, 2019 2018 Consolidated seeded investment products $ 122.0 $ 121.6 Intech: Appreciation rights 11.3 10.9 Founding member ownership interests 3.7 3.6 Total redeemable noncontrolling interests $ 137.0 $ 136.1 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 months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Opening balance $ 121.6 $ 174.9 Changes in market value 4.5 1.1 Changes in ownership (4.2) 27.1 Foreign currency translation 0.1 (0.2) Closing balance $ 122.0 $ 202.9 Intech Intech ownership interests held by a founding member had an estimated fair value of $3.7 million as of March 31, 2019, 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 in 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 March 31, 2019, and December 31, 2018, are as follows (in millions): March 31, December 31, 2019 2018 Nonredeemable noncontrolling interests in: Seed capital investments $ 9.4 $ 8.3 Intech 13.2 13.2 Total nonredeemable noncontrolling interests $ 22.6 $ 21.5 |
Long-Term Incentive and Employe
Long-Term Incentive and Employee Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Long-Term Incentive and Employee Compensation | |
Long-Term Incentive and Employee Compensation | Note 10 — Long-Term Incentive and Employee Compensation The Group granted $149.4 million in long-term incentive awards during the three months ended March 31, 2019, which generally vest and will be recognized on a graded vesting method over a three- or four-year period. The shares underlying certain 2019 grants were purchased on the open market during the three months ended March 31, 2019, at a cost of $37.1 million. |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefit Plans | |
Retirement Benefit Plans | Note 11 — 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 months ended March 31, 2019 and 2018, include the following (in millions): Three months ended March 31, 2019 2018 Service cost $ (0.3) $ (0.3) Interest cost (4.7) (4.8) Expected return on plan assets 5.4 6.1 Net periodic benefit credit $ 0.4 $ 1.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 12 — Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, Three months ended March 31, 2019 2018 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (448.2) $ 24.7 $ (423.5) $ (325.3) $ 21.0 $ (304.3) Other comprehensive income 36.8 — 36.8 52.7 — 52.7 Less: other comprehensive loss (income) attributable to noncontrolling interests (0.1) — (0.1) 0.2 — 0.2 Ending balance $ (411.5) $ 24.7 $ (386.8) $ (272.4) $ 21.0 $ (251.4) The components of other comprehensive income, net of tax for the three months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Pre-tax Tax Pre-tax Tax amount impact Net amount amount impact Net amount Foreign currency translation adjustments $ 35.3 $ 1.5 $ 36.8 $ 52.7 $ — $ 52.7 |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | Note 13 — Earnings and Dividends Per Share Earnings Per Share The following is a summary of the earnings per share calculation for the three months ended March 31, 2019 and 2018 (in millions, except per share data): Three months ended March 31, 2019 2018 Net income attributable to JHG $ 94.1 $ 165.2 Less: Allocation of earnings to participating stock-based awards (2.4) (4.2) Net income attributable to JHG common shareholders $ 91.7 $ 161.0 Weighted-average common shares outstanding - basic 191.8 195.9 Dilutive effect of non -participating stock-based awards 0.7 1.0 Weighted-average common shares outstanding - diluted 192.5 196.9 Earnings per share: Basic $ 0.48 $ 0.82 Diluted (two class) $ 0.48 $ 0.82 The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended March 31, 2019 2018 Unvested nonparticipating stock awards 1.0 0.4 Dai-ichi options — 10.0 The Dai-ichi options expired on October 3, 2018. 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 months ended March 31, 2019: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 4, 2019 $ 69.7 February 26, 2019 On May 2, 2019, JHG’s Board of Directors declared a cash dividend of $0.36 per share. The quarterly dividend will be paid on May 29, 2019, to shareholders of record at the close of business on May 13, 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 — Commitments and Contingencies Commitments and contingencies may arise in the normal course of business. Refer to Note 6 – Leases for information related to operating and financing lease commitments. As of March 31, 2019, there were no other material changes in the commitments and contingencies as reported in JHG’s Annual Report on Form 10-K for the year ended December 31, 2018. 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 (the “Fund Transfer Fees”) and the ex‑employee’s entitlement to deferred and forfeited remuneration. 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 was not bound to pay the Fund Transfer Fees and that the ex-employee’s contract gave him an entitlement to deferred and forfeited remuneration. The amount also includes legal costs relating to the case. Henderson Administration Limited (“HAL”), a wholly owned subsidiary of JHG, appealed the part of the judgment relating to the Fund Transfer Fees and judgment was handed down by the Court of Appeal of England and Wales on February 15, 2019, in favor of HAL. As a result, and subject to any further appeal, the Group was awarded the Fund Transfer Fees and related interest of approximately $5.0 million and $0.3 million, respectively. It will also be entitled to certain costs relating to the appeal and the earlier trial insofar as they relate to the Fund Transfer Fees claim. Eisenberg v. Credit Suisse AG and Janus Indices, Halbert v. Credit Suisse AG and Janus Indices, Qiu v. Credit Suisse AG and Janus Indices and Y-GAR Capital v. Credit Suisse AG and Janus Indices, and Rubinstein v. Credit Suisse Group AG and Janus Indices On March 15, 2018, a 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, which effective January 1, 2019, was renamed Janus Henderson Indices LLC (“Janus Indices”), a subsidiary of the Group, on behalf of a 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 Indices ). Credit Suisse, the issuer of the XIV notes, is also named as a defendant in the lawsuit. The plaintiffs generally allege statements by Credit Suisse and Janus Indices, including those in the registration statement, were materially false and misleading based on its discussion of how the intraday indicative value (“IIV”) is calculated and that the IIV was not an accurate gauge of the economic value of the notes. On April 17, 2018, a second lawsuit was filed against Janus Indices 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 Indices ). 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 Indices and Credit Suisse AG in the SDNY ( Qiu v. Credit Suisse AG and Janus Indices ). The Halbert and Qiu allegations generally copy the allegations in the Eisenberg case. On August 20, 2018, an amended complaint was filed in the Eisenberg and Qiu cases (which have been consolidated in the SDNY under the name Set Capital LLC, et al. v. Credit Suisse AG, et al. ), adding Janus Distributors LLC, doing business as Janus Henderson Distributors, and Janus Henderson Group plc as parties, and adding allegations of market manipulation by all of the defendants. On February 7, 2019, a fourth lawsuit was filed against Janus Indices, Janus Distributors LLC, Janus Henderson Group plc, and Credit Suisse in the United States District Court of the Eastern District of New York (“EDNY”) by certain investors in XIV ( Y-GAR Capital LLC v. Credit Suisse Group AG, et al.) The allegations in Y-GAR generally assert that the disclosures relating to XIV were false and misleading. On March 29, 2019, the plaintiff withdrew the suit from the EDNY and re-filed it in the SDNY. On February 4, 2019, a fifth lawsuit was filed against Janus Index, Janus Distributors LLC, Janus Henderson Group plc and various Credit Suisse persons in the SDNY ( Rubinstein v. Credit Suisse Group AG, et al.) . The Janus Henderson defendants were served with the complaint on April 1, 2019. The suit is styled as a class action and involves VelocityShares Daily Inverse VIX Medium-Term ETN (Ticker: ZIV), but otherwise generally copies the allegations in the XIV cases described above. The Group believes the claims in these exchange-traded note lawsuits are without merit and is strongly defending the actions. With respect to the unaudited financial information of Janus Henderson Group plc for the three-month period ended March 31, 2019, appearing herein, PricewaterhouseCoopers LLP (United States) reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated May 2, 2019, appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP (United States) is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a "report" or a "part" of the registration statement prepared or certified by PricewaterhouseCoopers LLP (United States) within the meaning of Sections 7 and 11 of the Act. With respect to the unaudited financial information of Janus Henderson Group plc for the three-month period ended March 31, 2018, appearing herein, PricewaterhouseCoopers LLP (United Kingdom) reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated May 9, 2018, except with respect to the reference to our opinion on the consolidated financial statements in the final paragraph, as to which the date is February 26, 2019, appearing herein, states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP (United Kingdom) is not subject to the liability provisions of Section 11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a "report" or a "part" of the registration statement prepared or certified by PricewaterhouseCoopers LLP (United Kingdom) within the meaning of Sections 7 and 11 of the Act. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018. The December 31, 2018 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. 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. Certain prior year amounts in the Condensed Consolidated Statements of Comprehensive Income have been reclassified to conform to current year presentation. Specifically, revenue amounts related to certain transfer agent and administrative activities performed for investment products that were previously classified in other revenue were reclassified to shareowner servicing fees. There is no change to consolidated total revenue, operating income, net income or cash flows as a result of this change in classification. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted Leases In February 2016, the Financial Accounting Standards Board (“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 leases onto the balance sheet. The standard also aligns certain 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 prior leases model. The standard became effective January 1, 2019. The Group adopted the new standard effective January 1, 2019, using the modified retrospective approach. Comparative prior periods were not adjusted upon adoption, as the Group utilized the practical expedients available under the guidance. Specifically, the Group did not (i) reassess existing contracts for embedded leases, (ii) reassess existing lease agreements for finance or operating classification, or (iii) reassess existing lease agreements in consideration of initial direct costs. Upon adoption, the Group recognized $129.8 million in right-of-use (“ROU”) assets related to its leased property and equipment. Corresponding lease liabilities of $146.4 million were also recognized. The Group’s property leases represent the vast majority of its right of use assets and lease liabilities, with office spaces in Denver and London representing a significant portion of its leased property. The Group’s leases policy follows. Refer to further disclosure in Note 6. Leases Policy – Updated January 1, 2019 The Group determines if an arrangement is a lease at inception. Operating lease ROU assets are included in other non-current assets in the Group’s Condensed Consolidated Balance Sheets. The current and non-current portions of operating lease liabilities are included in accounts payable and accrued liabilities and other non-current liabilities, respectively. Finance lease ROU assets are included in property, equipment and software, net, and finance lease liabilities are included in other non-current liabilities. ROU assets represent the Group’s right to use an underlying asset for the lease term, and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of JHG’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Hedge Accounting In August 2017, the FASB issued an updated standard that amended hedge accounting. The standard expanded the strategies eligible for hedge accounting, changed how companies assess hedge effectiveness and required new disclosures and presentation. The Group adopted the standard effective January 1, 2019. The adoption did not have a material impact on the Group’s results of operations or financial position. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Retirement Benefit Plans In August 2018, the FASB issued an accounting standards update (“ASU”) that modifies the disclosure requirements for employers that sponsor defined benefit pension plans. The ASU removes, adds and clarifies a number of disclosure requirements related to sponsored benefit plans. The standard is effective January 1, 2021, for calendar year-end companies, and early adoption is permitted. The Group is evaluating the effect of adopting this new accounting standard. Implementation Costs — Cloud Computing Arrangements In August 2018, the FASB issued an ASU that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for implementation costs incurred to develop or obtain internal-use software. The ASU is effective January 1, 2020, for calendar year-end companies and for the interim periods within those years. Early adoption is permitted. The ASU allows either a retrospective or prospective approach to all implementation costs incurred after adoption. The Group is evaluating the effect of adopting this new accounting standard |
Consolidation (Tables)
Consolidation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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): March 31, December 31, 2019 2018 Investment securities $ 9.2 $ 13.9 Cash and cash equivalents 0.2 1.4 Other current assets 0.1 0.1 Accounts payable and accrued liabilities (0.1) (0.1) Total 9.4 15.3 Redeemable noncontrolling interests in consolidated VREs (4.3) (6.0) JHG's net interest in consolidated VREs $ 5.1 $ 9.3 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of investment securities | JHG’s investment securities as of March 31, 2019, and December 31, 2018, are summarized as follows (in millions): March 31, December 31, 2019 2018 Seeded investment products: Consolidated VIEs $ 297.4 $ 282.7 Consolidated VREs 9.2 13.9 Unconsolidated VIEs and VREs 59.0 53.8 Separate accounts 66.5 71.6 Pooled investment funds 10.6 25.5 Total seeded investment products 442.7 447.5 Investments related to deferred compensation plans 125.0 120.3 Other investments 0.4 6.7 Total investment securities $ 568.1 $ 574.5 |
Schedule of net unrealized gains (losses) on trading securities | Trading Securities Net unrealized gains (losses) on investment securities held as of March 31, 2019 and 2018, are summarized as follows (in millions): Three months ended March 31, 2019 2018 Unrealized gains (losses) on investment securities held at period end $ 11.1 $ (7.9) |
Schedule of net foreign currency translation gains (losses) on hedged seed investments denominated in foreign currencies and net gains (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 months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Foreign currency translation $ 0.3 $ (0.5) Foreign currency forward contracts (0.3) 0.5 Total $ — $ — |
Schedule of investment gains (losses), net in Consolidated Statements of Comprehensive Income | Investment gains (losses), net on JHG’s Condensed Consolidated Statements of Comprehensive Income included the following for the three months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Seeded investment products and derivatives, net $ 8.2 $ (0.8) Other 5.1 0.1 Investment gains (losses), net $ 13.3 $ (0.7) |
Cash flows related to investment securities | Cash flows related to investment securities for the three months ended March 31, 2019 and 2018, are summarized as follows (in millions): Three months ended March 31, 2019 2018 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities $ (176.7) $ 222.8 $ (52.3) $ 31.0 |
Not Designated as Hedging Instrument | |
Schedule of derivative instruments | JHG was party to the following derivative instruments as of March 31, 2019, and December 31, 2018 (in millions): Notional Value March 31, 2019 December 31, 2018 Futures $ 135.8 $ 147.1 Credit default swaps 84.8 133.2 Total return swaps 72.0 77.2 Foreign currency forward contracts 167.7 131.8 |
Seeded investment products | |
Schedule of derivative instruments | JHG’s consolidated seeded investment products were party to the following derivative instruments as of March 31, 2019, and December 31, 2018 (in millions): Notional Value March 31, 2019 December 31, 2018 Futures $ 118.6 $ 267.8 Contracts for differences 6.5 8.7 Credit default swaps 1.3 6.2 Total return swaps 42.1 23.7 Interest rate swaps 27.8 61.5 Options 2.7 9.6 Swaptions — 8.3 Foreign currency forward contracts 143.9 154.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 231.1 $ — $ — $ 231.1 Investment securities: Consolidated VIEs 104.8 176.8 15.8 297.4 Other investment securities 194.0 76.7 — 270.7 Total investment securities 298.8 253.5 15.8 568.1 Seed hedge derivatives — 0.2 — 0.2 Derivatives in consolidated seeded investment products — 1.3 — 1.3 Volantis contingent consideration — — 4.0 4.0 Total assets $ 529.9 $ 255.0 $ 19.8 $ 804.7 Liabilities: Derivatives in consolidated seeded investment products $ — $ 1.4 $ — $ 1.4 Seed hedge derivatives — 6.7 — 6.7 Long-term debt (1) — 309.2 — 309.2 Deferred bonuses — — 83.1 83.1 Contingent consideration — — 49.8 49.8 Total liabilities $ — $ 317.3 $ 132.9 $ 450.2 Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ 122.0 $ 122.0 Intech — — 15.0 15.0 Total redeemable noncontrolling interests $ — $ — $ 137.0 $ 137.0 (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, 2018 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 381.8 $ — $ — $ 381.8 Investment securities: Consolidated VIEs 103.8 159.7 19.2 282.7 Other investment securities 194.5 97.3 — 291.8 Total investment securities 298.3 257.0 19.2 574.5 Seed hedge derivatives — 3.2 — 3.2 Derivatives in consolidated seeded investment products — 0.9 — 0.9 Contingent consideration — — 3.9 3.9 Total assets $ 680.1 $ 261.1 $ 23.1 $ 964.3 Liabilities: Derivatives in consolidated seeded investment products $ — $ 2.1 $ — $ 2.1 Financial liabilities in consolidated seeded investment products 0.4 — — 0.4 Seed hedge derivatives — 1.1 — 1.1 Long-term debt (1) — 301.4 — 301.4 Deferred bonuses — — 68.5 68.5 Contingent consideration — — 61.3 61.3 Total liabilities $ 0.4 $ 304.6 $ 129.8 $ 434.8 Redeemable noncontrolling interests: Consolidated seeded investment products $ — $ — $ 121.6 $ 121.6 Intech — — 14.5 14.5 Total redeemable noncontrolling interests $ — $ — $ 136.1 $ 136.1 (1) |
Summary of valuation techniques and significant unobservable inputs used in the valuation of the company's private equity investments | Valuation techniques and significant unobservable inputs used in the valuation of JHG’s material Level 3 assets included within consolidated VIEs as of March 31, 2019, and December 31, 2018, were as follows (in millions): Significant Fair Valuation unobservable As of March 31, 2019 value technique inputs Inputs Investment securities of consolidated VIEs $ 15.8 Discounted Discount rate 15% cash flow EBITDA multiple 16.4 Price-earnings ratio 27.7 Significant Fair Valuation unobservable Range As of December 31, 2018 value technique inputs (weighted-average) Investment securities of consolidated VIEs $ 19.2 Discounted Discount rate 15% cash flow EBITDA multiple 18.5 Price-earnings ratio 28.4 |
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 Capital Management LLC (“Geneva”), Perennial Fixed Interest Partners Pty Ltd and Perennial Growth Management Pty Ltd (together “Perennial”) and Kapstream Capital Pty Limited (“Kapstream”) contingent consideration is summarized below (in millions): As of March 31, 2019 Geneva Perennial Kapstream Maximum amount payable $ 61.3 $ 37.3 $ 13.9 Fair value included in: Accounts payable and accrued liabilities $ — $ 11.0 $ 12.9 Other non-current liabilities 25.9 — — Total fair value $ 25.9 $ 11.0 $ 12.9 As of December 31, 2018 Geneva Perennial Kapstream Fair value included in: Accounts payable and accrued liabilities $ — $ — $ 13.8 Other non-current liabilities 25.3 9.9 12.3 Total fair value $ 25.3 $ 9.9 $ 26.1 |
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 months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Beginning of period fair value $ 23.1 $ 46.5 Settlements (0.3) (0.4) Movement recognized in net income (3.1) 0.8 Movements recognized in other comprehensive income 0.1 0.3 End of period fair value $ 19.8 $ 47.2 |
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 months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Redeemable Redeemable Contingent Deferred noncontrolling Contingent Deferred Dai-ichi noncontrolling consideration bonuses interests consideration bonuses option interests Beginning of period fair value $ 61.3 $ 68.5 $ 136.1 $ 76.6 $ 64.7 $ 26.1 $ 190.3 Changes in ownership — — (4.0) — — — 27.1 Net movement in bonus deferrals — 14.6 — — 14.8 — — Fair value adjustments — — — 2.0 — (22.8) 0.4 Unrealized gains (losses) 2.4 — 4.6 — — — 1.1 Amortization of Intech appreciation rights — — 0.3 — — — (0.9) Distributions (14.1) — — (18.8) — — (0.1) Foreign currency translation 0.2 — — (0.6) — 1.0 (0.2) End of period fair value $ 49.8 $ 83.1 $ 137.0 $ 59.2 $ 79.5 $ 4.3 $ 217.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets | |
Summary of goodwill and intangible assets | The following table presents movements in intangible assets and goodwill during the three months ended March 31, 2019 and 2018 (in millions): December 31, Foreign March 31, 2018 Amortization translation Disposal 2019 Indefinite-lived intangible assets: Investment management agreements $ 2,495.5 $ — $ 9.2 $ — $ 2,504.7 Trademarks 380.8 — — — 380.8 Definite-lived intangible assets: Client relationships 363.3 — 1.2 — 364.5 Accumulated amortization (116.3) (7.4) (0.9) — (124.6) Net intangible assets $ 3,123.3 $ (7.4) $ 9.5 $ — $ 3,125.4 Goodwill $ 1,478.0 $ — $ 15.6 $ — $ 1,493.6 December 31, Foreign March 31, 2017 Amortization translation Disposal 2018 Indefinite-lived intangible assets: Investment management agreements $ 2,543.9 $ — $ 8.9 $ — $ 2,552.8 Trademarks 381.2 — (0.1) — 381.1 Definite-lived intangible assets: Client relationships 369.4 — 0.7 — 370.1 Accumulated amortization (89.7) (7.4) (1.3) — (98.4) Net intangible assets $ 3,204.8 $ (7.4) $ 8.2 $ — $ 3,205.6 Goodwill $ 1,533.9 $ — $ 24.1 $ (9.5) $ 1,548.5 |
Client relationships | |
Goodwill and Intangible Assets | |
Schedule of expected future amortization | Expected future amortization expense related to client relationships is summarized below (in millions): Future amortization Amount 2019 (remainder of year) $ 22.1 2020 29.4 2021 26.6 2022 18.1 2023 17.8 Thereafter 125.9 Total $ 239.9 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Schedule of operating and financing lease assets and liabilities | Operating and financing lease assets and liabilities on JHG’s Condensed Consolidated Balance Sheets as of March 31, 2019, consisted of the following (in millions): Operating lease right-of-use assets: March 31, 2019 Other non-current assets $ 144.4 Operating lease liabilities: Accounts payable and accrued liabilities $ 27.0 Other non-current liabilities 143.0 Total operating lease liabilities $ 170.0 Finance lease right-of-use assets: Property and equipment, cost $ 13.1 Accumulated depreciation (11.4) Property and equipment, net $ 1.7 Finance lease liabilities Accounts payable and accrued liabilities $ Other non-current liabilities Total finance lease liabilities $ |
Schedule of components of lease expense | The components of lease expense on JHG’s Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019, is summarized below (in millions): Three months ended March 31, 2019 Operating lease cost (1) $ 10.9 Finance lease cost: Amortization of right-of-use asset (2) $ 0.3 Interest on lease liabilities (3) — Total finance lease cost $ 0.3 (1) Included in general, administrative and occupancy on the Group’s Condensed Consolidated Statements of Comprehensive Income. (2) Included in depreciation and amortization on the Group’s Condensed Consolidated Statements of Comprehensive Income. (3) Included in interest expense on the Group’s Condensed Consolidated Statements of Comprehensive Income. |
Schedule of cash flow statement | Cash payments for operating and finance leases included in the Group’s Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019, consisted of the following (in millions): Three months ended March 31, 2019 Operating cash flows from operating leases $ 7.6 Operating cash flows from finance leases $ — Financing cash flows from finance leases $ 0.3 |
Schedule of supplemental information | Weighted-average remaining lease term (in months): March 31, 2019 Operating leases 81 Finance leases 21 Weighted-average discount rate: March 31, 2019 Operating leases Finance leases |
Schedule of future minimum payments under noncancelable operating leases | Future lease obligations (in millions) Operating leases Finance leases 2019 (excluding three months ended March 31, 2019) $ 24.2 $ 0.9 2020 30.9 0.7 2021 28.6 0.1 2022 24.4 — 2023 22.6 — Thereafter 72.0 — Total lease payments 202.7 1.7 Less interest 32.7 — Total $ 170.0 $ 1.7 |
Schedule of future minimum payments under noncancelable finance leases | Future lease obligations (in millions) Operating leases Finance leases 2019 (excluding three months ended March 31, 2019) $ 24.2 $ 0.9 2020 30.9 0.7 2021 28.6 0.1 2022 24.4 — 2023 22.6 — Thereafter 72.0 — Total lease payments 202.7 1.7 Less interest 32.7 — Total $ 170.0 $ 1.7 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Components of debt | Debt as of March 31, 2019, and December 31, 2018, consisted of the following (in millions): March 31, 2019 December 31, 2018 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 318.4 $ 309.2 $ 319.1 $ 301.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Schedule of effective income tax rates | Three months ended March 31, 2019 2018 Effective tax rate % % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Noncontrolling Interests | |
Summary of redeemable noncontrolling interests | Redeemable noncontrolling interests as of March 31, 2019, and December 31, 2018, consisted of the following (in millions): March 31, December 31, 2019 2018 Consolidated seeded investment products $ 122.0 $ 121.6 Intech: Appreciation rights 11.3 10.9 Founding member ownership interests 3.7 3.6 Total redeemable noncontrolling interests $ 137.0 $ 136.1 |
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 months ended March 31, 2019 and 2018 (in millions): Three months ended March 31, 2019 2018 Opening balance $ 121.6 $ 174.9 Changes in market value 4.5 1.1 Changes in ownership (4.2) 27.1 Foreign currency translation 0.1 (0.2) Closing balance $ 122.0 $ 202.9 |
Summary of nonredeemable noncontrolling interests | Nonredeemable noncontrolling interests as of March 31, 2019, and December 31, 2018, are as follows (in millions): March 31, December 31, 2019 2018 Nonredeemable noncontrolling interests in: Seed capital investments $ 9.4 $ 8.3 Intech 13.2 13.2 Total nonredeemable noncontrolling interests $ 22.6 $ 21.5 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018, include the following (in millions): Three months ended March 31, 2019 2018 Service cost $ (0.3) $ (0.3) Interest cost (4.7) (4.8) Expected return on plan assets 5.4 6.1 Net periodic benefit credit $ 0.4 $ 1.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, Three months ended March 31, 2019 2018 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (448.2) $ 24.7 $ (423.5) $ (325.3) $ 21.0 $ (304.3) Other comprehensive income 36.8 — 36.8 52.7 — 52.7 Less: other comprehensive loss (income) attributable to noncontrolling interests (0.1) — (0.1) 0.2 — 0.2 Ending balance $ (411.5) $ 24.7 $ (386.8) $ (272.4) $ 21.0 $ (251.4) |
Components of other comprehensive income (loss), net of tax | The components of other comprehensive income, net of tax for the three months ended March 31, 2019 and 2018, are as follows (in millions): Three months ended March 31, 2019 2018 Pre-tax Tax Pre-tax Tax amount impact Net amount amount impact Net amount Foreign currency translation adjustments $ 35.3 $ 1.5 $ 36.8 $ 52.7 $ — $ 52.7 |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 (in millions, except per share data): Three months ended March 31, 2019 2018 Net income attributable to JHG $ 94.1 $ 165.2 Less: Allocation of earnings to participating stock-based awards (2.4) (4.2) Net income attributable to JHG common shareholders $ 91.7 $ 161.0 Weighted-average common shares outstanding - basic 191.8 195.9 Dilutive effect of non -participating stock-based awards 0.7 1.0 Weighted-average common shares outstanding - diluted 192.5 196.9 Earnings per share: Basic $ 0.48 $ 0.82 Diluted (two class) $ 0.48 $ 0.82 |
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 March 31, 2019 2018 Unvested nonparticipating stock awards 1.0 0.4 Dai-ichi options — 10.0 |
Schedule of cash dividends declared and paid | The following is a summary of cash dividends paid during the three months ended March 31, 2019: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 4, 2019 $ 69.7 February 26, 2019 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Millions | Jan. 01, 2019USD ($) |
Recent Accounting Pronouncements | |
Practical expedients - reassessing the leases | true |
Accounting Standards Update 2016-02 | |
Recent Accounting Pronouncements | |
Right of use assets | $ 129.8 |
Lease liability | $ 146.4 |
Consolidation - VIEs (Details)
Consolidation - VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Unconsolidated VIEs | ||
Investment securities | $ 3.6 | $ 3.1 |
Consolidation - VREs (Details)
Consolidation - VREs (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other current assets | $ 78 | $ 69.4 |
Consolidated VREs | ||
Investment securities | 9.2 | 13.9 |
Cash and cash equivalents | 0.2 | 1.4 |
Other current assets | 0.1 | 0.1 |
Accounts payable and accrued liabilities | (0.1) | (0.1) |
Total | 9.4 | 15.3 |
Redeemable noncontrolling interests in consolidated VREs | (4.3) | (6) |
JHG's net interest in consolidated VREs | 5.1 | 9.3 |
Unconsolidated VREs | ||
Investment securities | $ 55.4 | $ 50.7 |
Investment Securities - General
Investment Securities - General Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Short-term investments: | |||
Estimated Fair Value | $ 568.1 | $ 574.5 | |
Net gains (losses) in net income related to: | |||
Foreign currency translation | 0.3 | $ (0.5) | |
Foreign currency forward contracts | (0.3) | 0.5 | |
Seeded investment products | |||
Short-term investments: | |||
Seeded investment products | 442.7 | 447.5 | |
Investment securities | Seeded investment products | |||
Short-term investments: | |||
Unrealized gains (losses) on investment securities held at period end | 11.1 | $ (7.9) | |
Investment securities | Separate accounts | |||
Short-term investments: | |||
Seeded investment products | 66.5 | 71.6 | |
Investment securities | Pooled investment funds | |||
Short-term investments: | |||
Seeded investment products | 10.6 | 25.5 | |
Investment securities | Investments related to deferred compensation plans | |||
Short-term investments: | |||
Estimated Fair Value | 125 | 120.3 | |
Investment securities | Other investments | |||
Short-term investments: | |||
Estimated Fair Value | 0.4 | 6.7 | |
Consolidated VIEs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 297.4 | 282.7 | |
Consolidated VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 9.2 | 13.9 | |
Unconsolidated VIEs and VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 59 | 53.8 | |
Consolidated | Credit default swap, selling protection contracts | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 2.9 | 3.9 | |
Futures | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 135.8 | 147.1 | |
Futures | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 118.6 | 267.8 | |
Credit default swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 84.8 | 133.2 | |
Credit default swaps | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 1.3 | 6.2 | |
Total return swaps | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 42.1 | 23.7 | |
Total return swaps and index swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 72 | 77.2 | |
Foreign currency forward contracts | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 167.7 | 131.8 | |
Foreign currency forward contracts | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | $ 143.9 | $ 154.9 |
Investment Securities - Offsett
Investment Securities - Offsetting Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | $ 13.3 | $ (0.7) | |
Cash flows related to investment securities | |||
Purchases and settlements | 19.3 | 17.1 | |
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 2.9 | $ 3.9 | |
Fair value of credit default swap contracts | $ 0.1 | 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 | ||
Seeded investment products and derivatives | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | $ 8.2 | (0.8) | |
Other investments | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | 5.1 | 0.1 | |
Investment securities | |||
Cash flows related to investment securities | |||
Purchases and settlements | (176.7) | (52.3) | |
Sales, settlements and maturities | 222.8 | $ 31 | |
Derivative Instruments | Seeded investment products | Futures | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 118.6 | 267.8 | |
Derivative Instruments | Seeded investment products | Contracts for differences | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 6.5 | 8.7 | |
Derivative Instruments | Seeded investment products | Interest rate swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 27.8 | 61.5 | |
Derivative Instruments | Seeded investment products | Total return swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 42.1 | 23.7 | |
Derivative Instruments | Seeded investment products | Credit default swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 1.3 | 6.2 | |
Derivative Instruments | Seeded investment products | Options | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 2.7 | 9.6 | |
Derivative Instruments | Seeded investment products | Swaptions | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 8.3 | ||
Derivative Instruments | Seeded investment products | Foreign currency forward contracts | |||
Seeded investment products, credit protection | |||
Notional value of derivative | $ 143.9 | $ 154.9 |
Fair Value Measurements - Level
Fair Value Measurements - Level of Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Liabilities | ||||
Total redeemable noncontrolling interests | $ 137 | $ 136.1 | ||
Seeded investment products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 122 | 121.6 | $ 202.9 | $ 174.9 |
Unconsolidated VIEs | ||||
Assets | ||||
Total investment securities | 3.6 | 3.1 | ||
Intech Founders | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 3.7 | 3.6 | ||
Consolidated | Seeded investment products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 122 | 121.6 | ||
Consolidated VIEs | ||||
Assets | ||||
Total investment securities | 297.4 | 282.7 | ||
Fair value measurements, recurring | ||||
Assets | ||||
Cash equivalents | 231.1 | 381.8 | ||
Contingent consideration | 4 | 3.9 | ||
Total assets | 804.7 | 964.3 | ||
Liabilities | ||||
Long-term debt | 309.2 | 301.4 | ||
Contingent consideration | 49.8 | 61.3 | ||
Total liabilities | 450.2 | 434.8 | ||
Total redeemable noncontrolling interests | 137 | 136.1 | ||
Fair value measurements, recurring | Deferred bonuses | ||||
Liabilities | ||||
Derivative liabilities | 83.1 | |||
Current portion of long-term debt | 68.5 | |||
Fair value measurements, recurring | Investment securities | ||||
Assets | ||||
Total investment securities | 568.1 | 574.5 | ||
Fair value measurements, recurring | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 0.2 | 3.2 | ||
Liabilities | ||||
Derivative liabilities | 6.7 | 1.1 | ||
Fair value measurements, recurring | Level 1 | ||||
Assets | ||||
Cash equivalents | 231.1 | 381.8 | ||
Total assets | 529.9 | 680.1 | ||
Liabilities | ||||
Total liabilities | 0.4 | |||
Fair value measurements, recurring | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 298.8 | 298.3 | ||
Fair value measurements, recurring | Level 2 | ||||
Assets | ||||
Total assets | 255 | 261.1 | ||
Liabilities | ||||
Long-term debt | 309.2 | 301.4 | ||
Total liabilities | 317.3 | 304.6 | ||
Fair value measurements, recurring | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 253.5 | 257 | ||
Fair value measurements, recurring | Level 2 | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 0.2 | 3.2 | ||
Liabilities | ||||
Derivative liabilities | 6.7 | 1.1 | ||
Fair value measurements, recurring | Level 3 | ||||
Assets | ||||
Contingent consideration | 4 | 3.9 | ||
Total assets | 19.8 | 23.1 | ||
Liabilities | ||||
Contingent consideration | 49.8 | 61.3 | ||
Total liabilities | 132.9 | 129.8 | ||
Total redeemable noncontrolling interests | 137 | 136.1 | ||
Fair value measurements, recurring | Level 3 | Deferred bonuses | ||||
Liabilities | ||||
Derivative liabilities | 83.1 | |||
Current portion of long-term debt | 68.5 | |||
Fair value measurements, recurring | Level 3 | Investment securities | ||||
Assets | ||||
Total investment securities | 15.8 | 19.2 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Investment securities | ||||
Assets | ||||
Total investment securities | 270.7 | 291.8 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 194 | 194.5 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 76.7 | 97.3 | ||
Fair value measurements, recurring | Intech | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 15 | 14.5 | ||
Fair value measurements, recurring | Intech | Level 3 | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 15 | 14.5 | ||
Fair value measurements, recurring | Consolidated | Seeded investment products | ||||
Assets | ||||
Derivative assets | 1.3 | 0.9 | ||
Liabilities | ||||
Derivative liabilities | 1.4 | 2.1 | ||
Financial liabilities in consolidated seeded investment products | 0.4 | |||
Total redeemable noncontrolling interests | 122 | 121.6 | ||
Fair value measurements, recurring | Consolidated | Level 1 | Seeded investment products | ||||
Liabilities | ||||
Financial liabilities in consolidated seeded investment products | 0.4 | |||
Fair value measurements, recurring | Consolidated | Level 2 | Seeded investment products | ||||
Assets | ||||
Derivative assets | 1.3 | 0.9 | ||
Liabilities | ||||
Derivative liabilities | 1.4 | 2.1 | ||
Fair value measurements, recurring | Consolidated | Level 3 | Seeded investment products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 122 | 121.6 | ||
Fair value measurements, recurring | Consolidated VIEs | Investment securities | ||||
Assets | ||||
Total investment securities | 297.4 | 282.7 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 104.8 | 103.8 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 176.8 | 159.7 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | Investment securities | ||||
Assets | ||||
Total investment securities | $ 15.8 | $ 19.2 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation techniques and significant unobservable inputs (Details) - Consolidated VIEs - Level 3 - Fair value measurements, recurring $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Changes in fair value | ||
Investment securities | $ 15.8 | $ 19.2 |
Discounted cash flow | ||
Changes in fair value | ||
Discount rate | 15.00% | 15.00% |
EBITDA multiple | 16.40% | 18.50% |
Price-earnings ratio | 27.7 | 28.4 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Geneva | ||
Contingent Consideration | ||
Maximum amount payable | $ 61.3 | |
Fair value included in: | ||
Other non-current liabilities | 25.9 | $ 25.3 |
Total fair value | 25.9 | 25.3 |
Perennial | ||
Contingent Consideration | ||
Maximum amount payable | 37.3 | |
Fair value included in: | ||
Accounts payable and accrued liabilities | 11 | |
Other non-current liabilities | 9.9 | |
Total fair value | 11 | 9.9 |
Kapstream | ||
Contingent Consideration | ||
Maximum amount payable | 13.9 | |
Fair value included in: | ||
Accounts payable and accrued liabilities | 12.9 | 13.8 |
Other non-current liabilities | 12.3 | |
Total fair value | $ 12.9 | $ 26.1 |
Fair Value Measurements - Acqui
Fair Value Measurements - Acquisition of Geneva (Details) - Geneva $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2014tranche | |
Acquisitions | ||
Number of contingent consideration payment tranches | tranche | 2 | |
Contingent consideration payable period | 6 years | |
Increase in contingency liability due to unwind of discount | $ | $ 0.6 |
Fair Value Measurements - Acq_2
Fair Value Measurements - Acquisition of Perennial (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Perennial | |
Acquisitions | |
Increase in earn-out accruals | $ 1.1 |
Fair Value Measurements - Acq_3
Fair Value Measurements - Acquisition of Kapstream (Details) - Kapstream $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2017USD ($)item | |
Business acquisition | |||||
Ownership interest acquired (as a percent) | 49.00% | ||||
Contingent cash consideration paid, for revenue target achieved | $ 14.1 | $ 15.3 | |||
Fair value of contingent consideration liability | $ 12.9 | $ 26.1 | |||
Number of installments | item | 3 | ||||
Fair value adjustment to contingent consideration | 0 | ||||
(Decrease) in contingency liability, other | $ (13.2) | ||||
Maximum | |||||
Business acquisition | |||||
Fair value of contingent consideration liability | $ 43 |
Fair Value Measurements - Dispo
Fair Value Measurements - Disposal of Volantis (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Mar. 31, 2019 |
Disposal of Volantis | ||
Revenue forecasting period | 3 years | |
Volantis | ||
Disposal of Volantis | ||
Period of performance of investee for recognizing consideration | 3 years | |
Volantis | Discontinued Operations, Disposed of by Sale | ||
Disposal of Volantis | ||
Percentage of share for consideration of sale | 10.00% | |
Fair value of contingent consideration | $ 4 |
Fair Value Measurements - Lev_2
Fair Value Measurements - Level 3 Rollforward (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Changes in fair value | |||
Foreign currency translation | $ 0.3 | $ (0.5) | |
Change in fair value of Level 3 assets | |||
Balance at the beginning of period, Asset value | 23.1 | 46.5 | $ 46.5 |
Settlements | (0.3) | (0.4) | |
Movements recognized in net income | (3.1) | 0.8 | |
Movements recognized in other comprehensive income | 0.1 | 0.3 | |
Balance at the end of period, Asset value | 19.8 | 47.2 | 23.1 |
Consolidated VIEs | |||
Changes in fair value | |||
Investment securities | 297.4 | 282.7 | |
Level 3 | Fair value measurements, recurring | Consolidated VIEs | |||
Changes in fair value | |||
Investment securities | $ 15.8 | $ 19.2 | |
Level 3 | Fair value measurements, recurring | Discounted cash flow | Consolidated VIEs | |||
Changes in fair value | |||
Price-earnings ratio | 27.7 | 28.4 | |
Level 3 | Fair value measurements, recurring | Contingent consideration | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | $ 61.3 | 76.6 | $ 76.6 |
Fair value adjustments | 2 | ||
Unrealized gains (losses) | 2.4 | ||
Distributions | (14.1) | (18.8) | |
Foreign currency translation | 0.2 | (0.6) | |
Balance at the end of period, Liability Value | 49.8 | 59.2 | 61.3 |
Level 3 | Fair value measurements, recurring | Deferred bonuses | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | 68.5 | 64.7 | 64.7 |
Net movement in bonus deferrals | 14.6 | 14.8 | |
Balance at the end of period, Liability Value | 83.1 | 79.5 | 68.5 |
Level 3 | Fair value measurements, recurring | Dai-ichi options | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | 26.1 | 26.1 | |
Fair value adjustments | (22.8) | ||
Foreign currency translation | 1 | ||
Balance at the end of period, Liability Value | 4.3 | ||
Level 3 | Fair value measurements, recurring | Redeemable noncontrolling interests | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | 136.1 | 190.3 | 190.3 |
Changes in ownership | (4) | 27.1 | |
Fair value adjustments | 0.4 | ||
Unrealized gains (losses) | 4.6 | 1.1 | |
Amortization of Intech appreciation rights | 0.3 | (0.9) | |
Distributions | (0.1) | ||
Foreign currency translation | (0.2) | ||
Balance at the end of period, Liability Value | $ 137 | $ 217.7 | $ 136.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Definite-lived intangible assets: | ||
Accumulated amortization, balance at the beginning of the period | $ (116.3) | $ (89.7) |
Amortization | (7.4) | (7.4) |
Foreign currency translation | 0.9 | 1.3 |
Accumulated amortization, balance at the end of the period | (124.6) | (98.4) |
Net intangible assets | ||
Net intangible assets, balance at the beginning of the period | 3,123.3 | 3,204.8 |
Amortization | (7.4) | (7.4) |
Foreign currency translation | 9.5 | 8.2 |
Net intangible assets, balance at the end of the period | 3,125.4 | 3,205.6 |
Goodwill | ||
Goodwill, balance at the beginning of the period | 1,478 | 1,533.9 |
Foreign currency translation | 15.6 | 24.1 |
Disposal | (9.5) | |
Goodwill, balance at the end of the period | 1,493.6 | 1,548.5 |
Transaction with BNP Paribas | ||
Allocated goodwill | 9.5 | |
Disposal | (9.5) | |
Future Amortization: | ||
2019 (remainder of year) | 22.1 | |
2020 | 29.4 | |
2021 | 26.6 | |
2022 | 18.1 | |
2023 | 17.8 | |
Thereafter | 125.9 | |
Total | 239.9 | |
Client relationships | ||
Definite-lived intangible assets: | ||
Balance at the beginning of the period | 363.3 | 369.4 |
Foreign currency translation | 1.2 | 0.7 |
Balance at the end of the period | 364.5 | 370.1 |
Investment management agreements | ||
Indefinite-lived intangible assets: | ||
Balance at the beginning of the period | 2,495.5 | 2,543.9 |
Foreign currency translation | 9.2 | 8.9 |
Balance at the end of the period | 2,504.7 | 2,552.8 |
Trademarks | ||
Indefinite-lived intangible assets: | ||
Balance at the beginning of the period | 380.8 | 381.2 |
Foreign currency translation | (0.1) | |
Balance at the end of the period | $ 380.8 | $ 381.1 |
Leases - (Details)
Leases - (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Option to extend - Operating | true |
Option to extend - Finance | true |
Option to terminate - Operating | true |
Option to terminate - Finance | true |
Minimum | |
Leases | |
Remaining lease term | 1 year |
Maximum | |
Leases | |
Remaining lease term | 10 years |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases | |
Operating lease right-of-use assets | $ 144.4 |
Financial position | us-gaap:OtherAssetsNoncurrent |
Operating lease liabilities - current | $ 27 |
Financial position | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating lease liabilities - noncurrent | $ 143 |
Financial position | us-gaap:OtherLiabilitiesNoncurrent |
Total Operating lease liabilities | $ 170 |
Property and equipment, at cost | 13.1 |
Accumulated depreciation | (11.4) |
Finance lease right-of-use assets | $ 1.7 |
Financial position | us-gaap:PropertyPlantAndEquipmentNet |
Finance lease liabilities - current | $ 1.1 |
Financial position | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Finance lease liabilities - noncurrent | $ 0.6 |
Financial position | us-gaap:OtherLiabilitiesNoncurrent |
Total Finance lease liabilities | $ 1.7 |
Leases - Statement of Comprehen
Leases - Statement of Comprehensive Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Components of lease cost: | |
Operating lease expense | $ 10.9 |
Finance lease cost: | |
Amortization of right-of-use asset | 0.3 |
Total finance lease cost | 0.3 |
Sublease income | $ 1.7 |
Leases - Cash Flow Statement (D
Leases - Cash Flow Statement (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Leases | |||
Operating cash flows from operating leases | $ 7.6 | ||
Financing cash flows from finance leases | 0.3 | $ 0.4 | |
Non-cash recognition of ROU asset | $ 19.8 | ||
Non-cash recognition of lease liability | $ 19.8 | ||
Impairment loss | $ 4.7 | ||
Term of lease that has not yet commenced | 11 years | 11 years | |
Future rent obligation of operating least that has not yet commenced | $ 8.4 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) | Mar. 31, 2019 |
Leases | |
Operating leases -Weighted-average remaining lease term (in months) | 81 months |
Finance leases - Weighted-average remaining lease term (in months) | 21 months |
Operating leases - Weighted-average discount rate | 4.70% |
Finance leases - Weighted-average discount rate | 2.60% |
Leases - Future lease obligatio
Leases - Future lease obligations (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating future lease obligations: | |
2019 (excluding three months ended March 31, 2019) | $ 24.2 |
2020 | 30.9 |
2021 | 28.6 |
2022 | 24.4 |
2023 | 22.6 |
Thereafter | 72 |
Total lease payments | 202.7 |
Less interest | 32.7 |
Total | 170 |
Finance leases maturities: | |
2019 (excluding three months ended March 31, 2019) | 0.9 |
2020 | 0.7 |
2021 | 0.1 |
Total lease payments | 1.7 |
Total | $ 1.7 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
4.875% Senior Notes due 2025 | ||
Components of debt | ||
Interest rate (as a percent) | 4.875% | |
Other Disclosures | ||
Face value of debt issued | $ 300 | |
4.875% Senior Notes due 2025 | Carrying value | ||
Components of debt | ||
Total debt | 318.4 | $ 319.1 |
4.875% Senior Notes due 2025 | Fair value | ||
Components of debt | ||
Total debt | 309.2 | $ 301.4 |
Credit Facility | ||
Other Disclosures | ||
Credit facility, maximum borrowing capacity | $ 200 | |
Credit facility covenant terms, financing leverage ratio, maximum | 3 | |
Borrowings under the Credit Facility | $ 0 | |
Janus Capital Group Inc | 4.875% Senior Notes due 2025 | ||
Other Disclosures | ||
Unamortized premium, net | $ 18.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Taxes | |||
Effective tax rate (as a percent) | 23.00% | 22.50% | |
Unrecognized tax liability | $ 11.7 | $ 12.4 | |
Anticipated decrease in income tax contingency reserves in the next 12 months | $ 1.5 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | |
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | $ 136.1 | $ 136.1 | $ 137 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 136.1 | |||
Closing balance | 137 | 136.1 | ||
Seeded investment products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 121.6 | $ 174.9 | 174.9 | 122 |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 121.6 | 174.9 | 174.9 | |
Changes in market value | 4.5 | 1.1 | ||
Changes in ownership | (4.2) | 27.1 | ||
Foreign currency translation | 0.1 | (0.2) | ||
Closing balance | 122 | $ 202.9 | 121.6 | |
Intech Founders | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 3.6 | 3.6 | $ 3.7 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 3.6 | |||
Closing balance | 3.7 | 3.6 | ||
Remaining interest (as a percent) | 1.10% | |||
Consolidated | Seeded investment products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 121.6 | 121.6 | $ 122 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 121.6 | |||
Closing balance | 122 | 121.6 | ||
Intech | Intech | ||||
Redeemable Noncontrolling Interests | ||||
INTECH appreciation rights | $ 11.3 | $ 10.9 |
Noncontrolling Interests - Nonr
Noncontrolling Interests - Nonredeemable (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 22.6 | $ 21.5 |
Seeded investment products | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | 9.4 | 8.3 |
Intech | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 13.2 | $ 13.2 |
Long-Term Incentive and Emplo_2
Long-Term Incentive and Employee Compensation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Long-Term Incentive and Employee Compensation | |
Long-term incentive awards granted | $ 149.4 |
Amount of shares purchased in the open market | $ 37.1 |
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 - Actu
Retirement benefit plans - Actuarial gains(losses), benefit cost, cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Components of net periodic benefit cost | ||
Service cost | $ (0.3) | $ (0.3) |
Interest cost | (4.7) | (4.8) |
Expected return on plan assets | 5.4 | 6.1 |
Net periodic benefit credit | $ 0.4 | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | $ 4,839.3 | |
Less: other comprehensive loss attributable to noncontrolling interests | 0.1 | $ (0.2) |
Ending balance | 4,852.5 | |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | (423.5) | (304.3) |
Other comprehensive income | 36.8 | 52.7 |
Less: other comprehensive loss attributable to noncontrolling interests | (0.1) | 0.2 |
Ending balance | (386.8) | (251.4) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | (448.2) | (325.3) |
Other comprehensive income | 36.8 | 52.7 |
Less: other comprehensive loss attributable to noncontrolling interests | (0.1) | 0.2 |
Ending balance | (411.5) | (272.4) |
Retirement benefit asset, net | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | 24.7 | 21 |
Ending balance | $ 24.7 | $ 21 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - OCI (Details) - Foreign currency translation adjustments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other comprehensive income, net of tax | ||
Pre-tax amount | $ 35.3 | $ 52.7 |
Tax impact | (1.5) | |
Net amount | $ 36.8 | $ 52.7 |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 02, 2019 | Feb. 27, 2019 | Feb. 04, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Earnings per share | |||||
Net income attributable to JHG | $ 94.1 | $ 165.2 | |||
Less: Allocation of earnings to participating stock-based awards | (2.4) | (4.2) | |||
Net income attributable to JHG common shareholders | $ 91.7 | $ 161 | |||
Weighted-average common shares outstanding - basic | 191.8 | 195.9 | |||
Dilutive effect of non-participating stock-based awards | 0.7 | 1 | |||
Weighted-average common shares outstanding - diluted | 192.5 | 196.9 | |||
Earnings per share: | |||||
Basic (in dollars per share) | $ 0.48 | $ 0.82 | |||
Diluted (two class) (in dollars per share) | $ 0.48 | $ 0.82 | |||
Cash dividend declared (in dollars per share) | $ 0.36 | $ 0.36 | |||
Cash dividends paid | $ 69.7 | $ 69.7 | $ 63.1 | ||
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 | 1 | 0.4 | |||
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 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Richard Pease Versus Henderson Administration Limited - USD ($) $ in Millions | Feb. 15, 2019 | Mar. 31, 2018 |
Charges related to case | $ 12.2 | |
Fund Transfer Fees awarded to the Group | $ 5 | |
Interest awarded | $ 0.3 |