Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 26, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38103 | |
Entity Registrant Name | JANUS HENDERSON GROUP PLC | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 98-1376360 | |
Entity Address, Address Line One | 201 Bishopsgate | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | EC2M3AE | |
Country Region | +44 | |
City Area Code | (0) 20 | |
Local Phone Number | 7818 1818 | |
Title of 12(b) Security | Common Stock, $1.50 Per Share Par Value | |
Trading Symbol | JHG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 172,349,989 | |
Entity Central Index Key | 0001274173 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Fees and other receivables | $ 386 | $ 373.6 |
OEIC and unit trust receivables | 227.9 | 114.7 |
Other current assets | 107.1 | 111.1 |
Total current assets | 2,187 | 2,193.7 |
Non-current assets: | ||
Property, equipment and software, net | 66.4 | 77.9 |
Intangible assets, net | 2,637.3 | 2,686.3 |
Goodwill | 1,389.9 | 1,383.9 |
Retirement benefit asset, net | 193.9 | 191.3 |
Other non-current assets | 156 | 157.7 |
Total assets | 6,630.5 | 6,690.8 |
Current liabilities: | ||
Current portion of accrued compensation, benefits and staff costs | 275.2 | 371 |
OEIC and unit trust payables | 231.8 | 121.5 |
Total current liabilities | 733.4 | 727.8 |
Non-current liabilities: | ||
Accrued compensation, benefits and staff costs | 32.3 | 53.7 |
Long-term debt | 311.9 | 313.3 |
Deferred tax liabilities, net | 648.2 | 627.4 |
Retirement benefit obligations, net | 4.8 | 4.7 |
Other non-current liabilities | 133.4 | 144.3 |
Total liabilities | 1,864 | 1,871.2 |
Commitments and contingencies (See Note 14) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 124.9 | 85.8 |
EQUITY | ||
Common stock, $1.50 par value; 480,000,000 shares authorized, and 172,349,989 and 180,403,176 shares issued and outstanding as of June 30, 2021, and December 31, 2020, respectively | 258.5 | 270.6 |
Additional paid-in-capital | 3,743.6 | 3,815 |
Treasury shares, 1,406,401 and 2,548,063 shares held at June 30, 2021, and December 31, 2020, respectively | (67.6) | (107.3) |
Accumulated other comprehensive loss, net of tax | (318.2) | (324) |
Retained earnings | 1,009.7 | 1,062.1 |
Total shareholders' equity | 4,626 | 4,716.4 |
Nonredeemable noncontrolling interests | 15.6 | 17.4 |
Total equity | 4,641.6 | 4,733.8 |
Total liabilities, redeemable noncontrolling interests and equity | 6,630.5 | 6,690.8 |
Consolidated excluding VIEs | ||
Current assets: | ||
Cash and cash equivalents | 966.9 | 1,099.7 |
Investment securities | 270.2 | 268.1 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 222.2 | 232.1 |
Consolidated VIEs | ||
Current assets: | ||
Cash and cash equivalents | 10.4 | 8.4 |
Investment securities | 216.8 | 214.6 |
Other current assets | 1.7 | 3.5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 4.2 | $ 3.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||
Par value | $ 1.50 | $ 1.50 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 172,349,989 | 180,403,176 |
Common stock, shares outstanding | 172,349,989 | 180,403,176 |
Treasury shares (in shares) | 1,406,401 | 2,548,063 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 738.4 | $ 518 | $ 1,382.4 | $ 1,072.9 |
Operating expenses: | ||||
Employee compensation and benefits | 192.4 | 145.8 | 367 | 301.4 |
Long-term incentive plans | 49.8 | 49.1 | 103.3 | 82.7 |
Distribution expenses | 134.8 | 104.7 | 262.2 | 216.9 |
Investment administration | 13.1 | 12.6 | 25.7 | 24.3 |
Marketing | 6.7 | 3.7 | 12.9 | 10.4 |
General, administrative and occupancy | 65.7 | 58 | 128.7 | 123.2 |
Impairment of goodwill and intangible assets | 40.8 | 26.4 | 44.4 | 513.7 |
Depreciation and amortization | 10.1 | 11 | 20.7 | 26 |
Total operating expenses | 513.4 | 411.3 | 964.9 | 1,298.6 |
Operating income (loss) | 225 | 106.7 | 417.5 | (225.7) |
Interest expense | (3.2) | (3.2) | (6.4) | (6.5) |
Investment gains (losses), net | 1.8 | 50.3 | 3.4 | (0.2) |
Other non-operating income (expenses), net | (2.7) | 8.6 | (2.8) | 40.8 |
Income (loss) before taxes | 220.9 | 162.4 | 411.7 | (191.6) |
Income tax benefit (provision) | (79.7) | (30.1) | (122.8) | 38.7 |
Net income (loss) | 141.2 | 132.3 | 288.9 | (152.9) |
Net loss (income) attributable to noncontrolling interests | (3.9) | (29.4) | 3.9 | 8.8 |
Net income (loss) attributable to JHG | $ 137.3 | $ 102.9 | $ 292.8 | $ (144.1) |
Earnings (loss) per share attributable to JHG common shareholders: | ||||
Basic | $ 0.80 | $ 0.55 | $ 1.68 | $ (0.79) |
Diluted | $ 0.79 | $ 0.55 | $ 1.67 | $ (0.79) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation gains (losses) | $ 3.2 | $ 10.6 | $ 6.5 | $ (138.5) |
Actuarial gains | 0.2 | 0.1 | 0.3 | 0.2 |
Other comprehensive income (loss), net of tax | 3.4 | 10.7 | 6.8 | (138.3) |
Other comprehensive loss (income) attributable to noncontrolling interests | (0.2) | (1.4) | (1) | 3.7 |
Other comprehensive income (loss) attributable to JHG | 3.2 | 9.3 | 5.8 | (134.6) |
Total comprehensive income (loss) | 144.6 | 143 | 295.7 | (291.2) |
Total comprehensive loss (income) attributable to noncontrolling interests | (4.1) | (30.8) | 2.9 | 12.5 |
Total comprehensive income (loss) attributable to JHG | 140.5 | 112.2 | 298.6 | (278.7) |
Management fees | ||||
Revenue: | ||||
Total revenue | 544.1 | 407.7 | 1,059 | 847.3 |
Performance fees | ||||
Revenue: | ||||
Total revenue | 77.4 | 17.2 | 94.4 | 31.8 |
Shareowner servicing fees | ||||
Revenue: | ||||
Total revenue | 64 | 47.3 | 124.8 | 97.6 |
Other revenue | ||||
Revenue: | ||||
Total revenue | $ 52.9 | $ 45.8 | $ 104.2 | $ 96.2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities: | ||
Net income (loss) | $ 288.9 | $ (152.9) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 20.7 | 26 |
Impairment of goodwill and intangible assets | 44.4 | 513.7 |
Deferred income taxes | 22.8 | (117.7) |
Stock-based compensation plan expense | 34.7 | 34.1 |
Gain on sale of Geneva | (16.2) | |
Investment (gains) losses, net | (3.4) | 0.2 |
Contributions to pension plans in excess of costs recognized | (0.5) | (0.2) |
Contingent consideration fair value adjustment | (7.1) | |
Other, net | (5.9) | (22.2) |
Changes in operating assets and liabilities: | ||
OEIC and unit trust receivables and payables | (2.9) | 16.5 |
Other assets | (33.5) | 60.4 |
Other accruals and liabilities | (70.5) | (92.1) |
Net operating activities | 294.8 | 242.5 |
Sales (purchases) of: | ||
Investment securities, net | (1.5) | 77.5 |
Property, equipment and software | (1.1) | (12.4) |
Investment securities by consolidated seeded investment products, net | (37.5) | (237.4) |
Cash received (paid) on settled seed capital hedges, net | (8) | 6 |
Dividends received from equity-method investments | 1.1 | 0.5 |
Receipt of contingent consideration payments from sale of Volantis | 0.7 | 2.2 |
Receipt of contingent consideration payments from sale of Geneva | 3.4 | |
Proceeds from sale of Geneva | 38.6 | |
Net investing activities | (42.9) | (125) |
Financing activities: | ||
Proceeds from stock-based compensation plans | 5.5 | |
Purchase of common stock for stock-based compensation plans | (72) | (45.7) |
Purchase of common stock from Dai-ichi Life and share buyback program | (230.2) | (53.2) |
Dividends paid to shareholders | (126.7) | (132.3) |
Payment of contingent consideration | (13.8) | |
Distributions to noncontrolling interests | (0.3) | (0.5) |
Third-party sales in consolidated seeded investment products, net | 39.5 | 237.4 |
Principal payments under capital lease obligations | (0.3) | (0.5) |
Net financing activities | (384.5) | (8.6) |
Cash and cash equivalents: | ||
Effect of foreign exchange rate changes | 1.8 | (25) |
Net change | (130.8) | 83.9 |
At beginning of period | 1,108.1 | 796.5 |
At end of period | 977.3 | 880.4 |
Supplemental cash flow information: | ||
Cash paid for interest | 7.3 | 7.3 |
Cash paid for income taxes, net of refunds | 113.1 | 32.9 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 977.3 | 880.4 |
Consolidated VIEs | ||
Cash and cash equivalents: | ||
At end of period | 10.4 | 43.8 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 10.4 | 43.8 |
Consolidated excluding VIEs | ||
Cash and cash equivalents: | ||
At end of period | 966.9 | 836.6 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | $ 966.9 | $ 836.6 |
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, 2019 | $ 280.5 | $ 3,828.5 | $ (139.5) | $ (367.1) | $ 1,284.1 | $ 19.7 | $ 4,906.2 |
Balance (in shares) at Dec. 31, 2019 | 187,000,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (144.1) | (1.1) | (145.2) | ||||
Other comprehensive income | (134.6) | (134.6) | |||||
Dividends paid to shareholders | 0.1 | (132.7) | (132.6) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (4.7) | (48.5) | (53.2) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (3,100,000) | ||||||
Distributions to noncontrolling interests | (0.5) | (0.5) | |||||
Fair value adjustments to redeemable noncontrolling interests | 0.4 | 0.4 | |||||
Purchase of common stock for stock-based compensation plans | (42.8) | (2.9) | (45.7) | ||||
Vesting of stock-based compensation plans | (27.8) | 27.8 | |||||
Stock-based compensation plan expense | 34.1 | 34.1 | |||||
Balance at Jun. 30, 2020 | $ 275.8 | 3,792.1 | (114.6) | (501.7) | 959.2 | 18.1 | 4,428.9 |
Balance (in shares) at Jun. 30, 2020 | 183,900,000 | ||||||
Balance at Mar. 31, 2020 | $ 277.4 | 3,803.7 | (137.9) | (511) | 942.8 | 18.4 | 4,393.4 |
Balance (in shares) at Mar. 31, 2020 | 184,900,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 102.9 | 0.1 | 103 | ||||
Other comprehensive income | 9.3 | 9.3 | |||||
Dividends paid to shareholders | 0.1 | (66.5) | (66.4) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (1.6) | (20.4) | (22) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (1,000,000) | ||||||
Distributions to noncontrolling interests | (0.4) | (0.4) | |||||
Fair value adjustments to redeemable noncontrolling interests | 0.4 | 0.4 | |||||
Purchase of common stock for stock-based compensation plans | (5.8) | (0.1) | (5.9) | ||||
Vesting of stock-based compensation plans | (23.4) | 23.4 | |||||
Stock-based compensation plan expense | 17.5 | 17.5 | |||||
Balance at Jun. 30, 2020 | $ 275.8 | 3,792.1 | (114.6) | (501.7) | 959.2 | 18.1 | 4,428.9 |
Balance (in shares) at Jun. 30, 2020 | 183,900,000 | ||||||
Balance at Dec. 31, 2020 | $ 270.6 | 3,815 | (107.3) | (324) | 1,062.1 | 17.4 | $ 4,733.8 |
Balance (in shares) at Dec. 31, 2020 | 180,400,000 | 180,403,176 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 292.8 | (1.5) | $ 291.3 | ||||
Other comprehensive income | 5.8 | 5.8 | |||||
Dividends paid to shareholders | 0.1 | (126.8) | (126.7) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (12.1) | (218.1) | (230.2) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (8,100,000) | ||||||
Distributions to noncontrolling interests | (0.3) | (0.3) | |||||
Fair value adjustments to redeemable noncontrolling interests | (0.3) | (0.3) | |||||
Purchase of common stock for stock-based compensation plans | (71.4) | (0.6) | (72) | ||||
Vesting of stock-based compensation plans | (40.3) | 40.3 | |||||
Stock-based compensation plan expense | 34.7 | 34.7 | |||||
Proceeds from stock-based compensation plans | 5.5 | 5.5 | |||||
Balance at Jun. 30, 2021 | $ 258.5 | 3,743.6 | (67.6) | (318.2) | 1,009.7 | 15.6 | $ 4,641.6 |
Balance (in shares) at Jun. 30, 2021 | 172,300,000 | 172,349,989 | |||||
Balance at Mar. 31, 2021 | $ 258.5 | 3,769 | (104.4) | (321.4) | 937.7 | 15.8 | $ 4,555.2 |
Balance (in shares) at Mar. 31, 2021 | 172,300,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 137.3 | 137.3 | |||||
Other comprehensive income | 3.2 | 3.2 | |||||
Dividends paid to shareholders | 0.1 | (65.1) | (65) | ||||
Distributions to noncontrolling interests | (0.2) | (0.2) | |||||
Fair value adjustments to redeemable noncontrolling interests | (0.2) | (0.2) | |||||
Purchase of common stock for stock-based compensation plans | (10.2) | (0.3) | (10.5) | ||||
Vesting of stock-based compensation plans | (37.1) | 37.1 | |||||
Stock-based compensation plan expense | 17.1 | 17.1 | |||||
Proceeds from stock-based compensation plans | 4.7 | 4.7 | |||||
Balance at Jun. 30, 2021 | $ 258.5 | $ 3,743.6 | $ (67.6) | $ (318.2) | $ 1,009.7 | $ 15.6 | $ 4,641.6 |
Balance (in shares) at Jun. 30, 2021 | 172,300,000 | 172,349,989 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) | ||||
Dividends paid (per share) | $ 0.38 | $ 0.36 | $ 0.74 | $ 0.64 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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,” “the Company,” “we,” “us,” “our” and similar terms), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state our financial position, results of operations and cash flows 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 annual financial statements prepared in accordance with GAAP are not required for interim reporting purposes and 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. Recent Accounting Pronouncements Adopted Income Taxes In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. We adopted the ASU, which was effective as of January 1, 2021. The adoption of this ASU did not have a material impact on our results of operations or financial position. |
Consolidation
Consolidation | 6 Months Ended |
Jun. 30, 2021 | |
Consolidation | |
Consolidation | Note 2 — Consolidation Variable Interest Entities Consolidated Variable Interest Entities Our consolidated variable interest entities (“VIEs”) as of June 30, 2021, and December 31, 2020, include certain consolidated seeded investment products in which we have an investment and act as the investment manager. The assets of these VIEs are not available to us or our creditors. We may not, under any circumstances, access cash, cash equivalents or other assets held by consolidated VIEs to use in our operating activities or otherwise. In addition, the investors in these VIEs have no recourse to the credit of JHG. Unconsolidated Variable Interest Entities The following table presents the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs (in millions): June 30, December 31, 2021 2020 Unconsolidated VIEs $ 101.6 $ 9.6 Our total exposure to unconsolidated VIEs represents the value of our 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 our Condensed Consolidated Balance Sheets, including our net interest in these products (in millions): June 30, December 31, 2021 2020 Investment securities $ 34.9 $ 29.3 Cash and cash equivalents 2.2 2.8 Other current assets 0.4 0.4 Accounts payable and accrued liabilities (0.3) (0.1) Total $ 37.2 $ 32.4 Redeemable noncontrolling interests in consolidated VREs (1.9) — JHG's net interest in consolidated VREs $ 35.3 $ 32.4 Our total exposure to consolidated VREs represents the value of our economic ownership interest in these seeded investment products. Unconsolidated Voting Rights Entities The following table presents the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs (in millions): June 30, December 31, 2021 2020 Unconsolidated VREs $ 21.8 $ 63.6 Our total exposure to unconsolidated VREs represents the value of our economic ownership interest in the investment securities. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities. | |
Investment Securities | Note 3 — Investment Securities Our investment securities as of June 30, 2021, and December 31, 2020, are summarized as follows (in millions): June 30, December 31, 2021 2020 Seeded investment products: Consolidated VIEs $ 216.8 $ 214.6 Consolidated VREs 34.9 29.3 Unconsolidated VIEs and VREs 123.4 73.2 Separate accounts 54.5 63.5 Pooled investment funds 0.1 0.1 Total seeded investment products 429.7 380.7 Investments related to deferred compensation plans 51.9 96.5 Other investments 5.4 5.5 Total investment securities $ 487.0 $ 482.7 Trading Securities Net unrealized gains (losses) on investment securities held as of the three and six months ended June 30, 2021 and 2020, are summarized as follows (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Unrealized gains (losses) on investment securities held at period end $ 1.8 $ 48.1 $ 3.4 $ 8.6 Investment Gains (Losses), Net Investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income (Loss) included the following for the three and six months ended June 30, 2021 and 2020 (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Seeded investment products and hedges, net $ (2.6) $ 11.1 $ 3.0 $ 6.0 Third-party ownership interests in seeded investment products 3.9 29.0 (4.1) (9.4) Long Tail Alpha equity method investment (0.2) 4.4 1.9 5.7 Deferred equity plan 0.2 4.7 2.1 (2.6) Other 0.5 1.1 0.5 0.1 Investment gains (losses), net $ 1.8 $ 50.3 $ 3.4 $ (0.2) Cash Flows Cash flows related to investment securities for the six months ended June 30, 2021 and 2020, are summarized as follows (in millions): Six months ended June 30, 2021 2020 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ (45.4) $ 7.9 $ (239.6) $ 2.2 Investment securities (101.6) 100.1 (53.7) 131.2 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments | |
Derivative Instruments | Note 4 — Derivative Instruments Derivative Instruments Used to Hedge Seeded Investment Products We maintain 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 our seeded investment products are also hedged by using foreign currency forward contracts and swaps. We were party to the following derivative instruments as of June 30, 2021, and December 31, 2020 (in millions): Notional value June 30, 2021 December 31, 2020 Futures $ 216.7 $ 164.5 Credit default swaps 95.2 166.2 Total return swaps 36.6 35.6 Foreign currency forward contracts and swaps 334.8 205.0 The derivative instruments are not designated as hedges for accounting purposes. Changes in fair value of the derivatives are recognized in investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income (Loss). Derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. The derivative assets and liabilities as of June 30, 2021, and December 31, 2020, are summarized as follows (in millions): Fair value June 30, 2021 December 31, 2020 Derivative assets $ 0.8 $ 9.1 Derivative liabilities 7.6 10.8 In addition to using derivative instruments to mitigate against market volatility of certain seeded investments, we also engage in short sales of securities to hedge seed investments. As of June 30, 2021, and December 31, 2020, the fair value of securities sold but not yet purchased were $0.9 million and $7.9 million, respectively. The cash received from the short sale and the obligation to repurchase the shares are classified in other current assets and accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets, respectively. Fair value adjustments are recognized in investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income (Loss). Derivative Instruments in Consolidated Seeded Investment Products Certain of our 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 our Condensed Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income (Loss). Our consolidated seeded investment products were party to the following derivative instruments as of June 30, 2021, and December 31, 2020 (in millions): Notional value June 30, 2021 December 31, 2020 Futures $ 55.1 $ 57.0 Credit default swaps 7.3 1.5 Interest rate swaps 4.1 75.0 Options 0.1 0.5 Foreign currency forward contracts and swaps 41.6 56.1 Derivative Instruments — Used in Foreign Currency Hedging Program In January 2021, we implemented a balance sheet foreign currency hedging program (the “Program”) to take reasonable measures to minimize the effects of foreign currency remeasurement of monetary balance sheet accounts. The Program is not designed to eliminate all impacts of foreign currency risk; rather it is designed to reduce income statement volatility. The Program utilizes foreign currency forward contracts and swaps to achieve its objectives and it is considered an economic hedge for accounting purposes. The notional value of the foreign currency forward contracts and swaps was $135.9 million at June 30, 2021. The derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. The derivative assets and liabilities as of June 30, 2021, are summarized as follows (in millions): Fair value June 30, 2021 Derivative assets $ 0.2 Derivative liabilities 1.8 Changes in fair value of the derivatives are recognized in other non-operating income (expenses), net on our Condensed Consolidated Statements of Comprehensive Income (Loss), and we recognized a gain of $0.7 million and $1.3 million during the three and six months ended June 30, 2021, respectively. Foreign currency remeasurement is also recognized in other non-operating income (expenses), net on our Condensed Consolidated Statement of Comprehensive Income (Loss). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 — Fair Value Measurements The following table presents assets and liabilities reflected in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of June 30, 2021 (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 $ 539.5 $ — $ — $ 539.5 Investment securities: Consolidated VIEs 162.4 44.1 10.3 216.8 Other investment securities 242.6 27.6 — 270.2 Total investment securities 405.0 71.7 10.3 487.0 Seed hedge derivatives — 0.8 — 0.8 Derivatives in consolidated seeded investment products — 0.1 — 0.1 Derivatives used in foreign currency hedging program — 0.2 — 0.2 Volantis contingent consideration — — 2.2 2.2 Geneva contingent consideration — — 14.0 14.0 Total assets $ 944.5 $ 72.8 $ 26.5 $ 1,043.8 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.8 $ — $ 0.8 Derivatives used in foreign currency hedging program — 1.8 — 1.8 Securities sold, not yet purchased 0.9 — — 0.9 Seed hedge derivatives — 7.6 — 7.6 Long-term debt (1) — 340.2 — 340.2 Deferred bonuses — — 35.6 35.6 Total liabilities $ 0.9 $ 350.4 $ 35.6 $ 386.9 (1) Carried at amortized cost and disclosed at fair value. The following table presents assets and liabilities reflected in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2020 (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 $ 525.0 $ — $ — $ 525.0 Investment securities: Consolidated VIEs 125.7 77.7 11.2 214.6 Other investment securities 230.9 37.2 — 268.1 Total investment securities 356.6 114.9 11.2 482.7 Seed hedge derivatives — 9.1 — 9.1 Derivatives in consolidated seeded investment products — 0.9 — 0.9 Volantis contingent consideration — — 2.8 2.8 Geneva contingent consideration — — 17.4 17.4 Total assets $ 881.6 $ 124.9 $ 31.4 $ 1,037.9 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.2 $ — $ 0.2 Securities sold, not yet purchased 7.9 — — 7.9 Seed hedge derivatives — 10.8 — 10.8 Long-term debt (1) — 348.4 — 348.4 Deferred bonuses — — 65.2 65.2 Total liabilities $ 7.9 $ 359.4 $ 65.2 $ 432.5 (1) Carried at amortized cost and disclosed at fair value. Level 1 Fair Value Measurements Our Level 1 fair value measurements consist mostly of investments held by 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 investments held by seeded investment products is determined by the underlying securities of the product. The fair value level of unconsolidated investments held in seeded investment products is determined by the net asset value (“NAV”), which is considered a quoted price in an active market. Level 2 Fair Value Measurements Our Level 2 fair value measurements consist mostly of consolidated seeded investment products, derivative instruments and our long-term debt. The fair value of consolidated seeded investment products is determined by the underlying securities of the product. The fair value of our long-term debt is determined using broker quotes and recent trading activity, which are considered Level 2 inputs. Level 3 Fair Value Measurements Investment Securities As of June 30, 2021, and December 31, 2020, certain securities within consolidated VIEs were valued using significant unobservable inputs, resulting in Level 3 classification. In addition, we have an investment in a private equity vehicle where the significant valuation inputs are unobservable. Geneva Contingent Consideration On December 3, 2019, Henderson Global Investors (North America), Inc. (“HGINA”), a subsidiary of the Company, entered into an agreement to sell its 100% ownership interest in Geneva Capital Management LLC (“Geneva”) to GCM Purchaser, LLC. The sale closed on March 17, 2020. Consideration included aggregate cash consideration of $38.4 million and contingent consideration (the “Earnout”) based on future revenue. Payments under the Earnout are to be made quarterly over a five-year term, with minimum aggregate payments of $20.5 million and maximum aggregate payments of $35.0 million. During the three and six months ended June 30, 2021, we received a $1.8 million and $3.4 million contingent consideration payment, respectively. Volantis Contingent Consideration On April 1, 2017, we 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 (excluding one particular fund) for a period of three years following the sale. In addition, consideration for the sale included 50% of the first £12 million of performance fees generated by the excluded fund referenced above. As of June 30, 2021, the fund has not reached the £12 million performance fee threshold. As a result, this fee sharing arrangement will remain in effect until the performance threshold is reached. As of June 30, 2021, and December 31, 2020, the fair value of the Volantis contingent consideration was $2.2 million and $2.8 million, respectively. Deferred Bonuses Deferred bonuses represent liabilities to employees over the vesting period that will be settled by investments in our products. The significant unobservable inputs used to value the liabilities are investment designations and vesting periods. Changes in Fair Value Changes in fair value of our Level 3 assets for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Beginning of period fair value $ 27.2 $ 30.8 $ 31.4 $ 12.8 Contingent consideration from sale of Geneva — (0.2) — 20.3 Settlements (1.8) (2.2) (4.0) (2.2) Fair value adjustments 1.4 — (2.5) (0.3) Purchases of securities 0.4 0.8 2.7 — Sales of securities (0.7) — (1.1) (1.4) End of period fair value $ 26.5 $ 29.2 $ 26.5 $ 29.2 Changes in fair value of our individual Level 3 liabilities for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Deferred Deferred bonuses bonuses Beginning of period fair value $ 73.6 $ 74.3 Fair value adjustments 2.0 3.8 Vesting of deferred bonuses (48.2) (44.4) Amortization of deferred bonuses 8.1 8.8 Foreign currency translation 0.1 0.4 End of period fair value $ 35.6 $ 42.9 Six months ended June 30, 2021 2020 Deferred Contingent Deferred bonuses consideration bonuses Beginning of period fair value $ 65.2 $ 21.2 $ 76.6 Fair value adjustments 4.3 (7.1) (1.1) Vesting of deferred bonuses (50.7) — (46.7) Amortization of deferred bonuses 16.1 — 18.6 Unrealized gains (losses) — 0.3 — Distributions — (13.8) — Foreign currency translation 0.7 (0.6) (4.5) End of period fair value $ 35.6 $ — $ 42.9 Nonrecurring Fair Value Measurements Nonrecurring Level 3 fair value measurements include goodwill and intangible assets. We measure the fair value of goodwill and intangible assets on initial recognition using discounted cash flow (“DCF”) 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 | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets The following tables present movements in our intangible assets and goodwill during the six months ended June 30, 2021 and 2020 (in millions): December 31, Foreign June 30, 2020 Amortization Disposal Impairment translation 2021 Indefinite-lived intangible assets: Investment management agreements $ 2,242.9 $ — $ — $ (40.8) $ (0.1) $ 2,202.0 Trademarks 373.2 — — (3.6) — 369.6 Definite-lived intangible assets: Client relationships 170.9 — — — (0.6) 170.3 Accumulated amortization (100.7) (3.9) — — — (104.6) Net intangible assets $ 2,686.3 $ (3.9) $ — $ (44.4) $ (0.7) $ 2,637.3 Goodwill $ 1,383.9 $ — $ — $ — $ 6.0 $ 1,389.9 December 31, Foreign June 30, 2019 Amortization Disposal Impairment translation 2020 Indefinite-lived intangible assets: Investment management agreements $ 2,490.3 $ — $ — $ (263.5) $ (32.5) $ 2,194.3 Trademarks 380.8 — — (7.7) (0.2) 372.9 Definite-lived intangible assets: Client relationships 364.7 — (79.3) (119.0) (3.3) 163.1 Accumulated amortization (147.2) (8.6) 61.4 — 2.7 (91.7) Net intangible assets $ 3,088.6 $ (8.6) $ (17.9) $ (390.2) $ (33.3) $ 2,638.6 Goodwill $ 1,504.3 $ — $ (23.5) $ (123.5) $ (46.9) $ 1,310.4 Interim Impairment Assessment During the second quarter of 2021, we performed an interim impairment assessment on a certain indefinite-lived intangible asset due to a significant decrease in assets under management (“AUM”) and unfavorable changes in the forecast on these specific assets. A discounted cash flow (“DCF”) model was used to determine the estimated fair value of the investment management agreements. Some of the inputs used in the DCF model required significant management judgment, including the discount rate, terminal growth rate, forecasted financial results and market returns. The results of the DCF model revealed a fair value of nil and we therefore impaired the entire $40.8 million balance of the intangible asset. The impairment charge is included in the table above and recorded in goodwill and intangible asset impairment charges on the Condensed Consolidated Statements of Comprehensive Income (Loss). Perkins Trademark During the first quarter of 2021, as part of our ongoing strategic initiatives and looking globally at delivering excellent service to our clients and positioning our business for success, we completed a review of Perkins Investment Management (“Perkins”). To right-size our product portfolio and better align with the changing needs of clients, certain strategies were closed and the funds were liquidated during the second quarter of 2021. The majority of the Perkins value equity strategies are unaffected by this reorganization and they will continue under the Janus Henderson brand. The Perkins brand will be discontinued and future marketing efforts for value equity strategies will be incorporated under the Janus Henderson brand. During the first quarter 2021, we impaired the entire balance of the intangible asset associated with the Perkins trademark. The impairment charge of $3.6 million is included in the table above and recorded in goodwill and intangible asset impairment charges on the Condensed Consolidated Statements of Comprehensive Income (Loss). Sale of Geneva On December 3, 2019, HGINA, a subsidiary of JHG, entered into an agreement to sell its 100% ownership interest in Geneva to GCM Purchaser, LLC. The sale closed on March 17, 2020. The transaction included $17.9 million of net intangible assets and goodwill of $23.5 million, as disclosed in the disposal column above. 2020 Goodwill and Intangible Asset Impairments In March 2020, the World Health Organization declared COVID-19 a pandemic, and global financial markets declined. This drove a sudden and severe decline in our AUM, which was a triggering event for performing an interim impairment assessment of our goodwill and intangible assets. Our interim impairment assessment revealed the carrying value of certain investment management agreements, trademarks, client relationships and goodwill exceeded their estimated fair value, and we recognized impairments of $263.5 million, $7.7 million, $92.6 million and $123.5 million, respectively, during the three months ended March 31, 2020. The results of the March 2020 interim assessment are included in the table above. The impairment charges were recorded in goodwill and intangible asset impairment charges on the Condensed Consolidated Statements of Comprehensive Income (Loss). Future Amortization Expected future amortization expense related to client relationships is summarized below (in millions): Future amortization Amount 2021 (remainder of year) $ 3.9 2022 7.7 2023 7.4 2024 6.0 2025 6.0 Thereafter 34.7 Total $ 65.7 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Debt | Note 7 — Debt Our debt as of June 30, 2021, and December 31, 2020, consisted of the following (in millions): June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 311.9 $ 340.2 $ 313.3 $ 348.4 4.875% Senior Notes Due 2025 The 4.875% Senior Notes due 2025 (“2025 Senior Notes”) have a principal value of $300.0 million, pay interest at 4.875% semiannually on February 1 and August 1 of each year, and mature on August 1, 2025. The 2025 Senior Notes include unamortized debt premium, net at June 30, 2021, of $11.9 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 our 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 June 30, 2021, we had a $200 million, unsecured, revolving credit facility (“Credit Facility”). JHG and its subsidiaries may 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 our long-term credit rating and the London Interbank Offered Rate (“LIBOR”); the Euro Interbank Offered Rate (“EURIBOR”) in relation to any loan in euro (“EUR”); or in relation to any loan in Australian dollar (“AUD”), the benchmark rate for that currency. As LIBOR is scheduled to be phased out at the end of 2021, we are working with our banking syndicate to find a suitable replacement. We are required to pay a quarterly commitment fee on any unused portion of the Credit Facility, which is also based on our long-term credit rating. Under the Credit Facility, our financing leverage ratio cannot exceed 3.00x EBITDA. At June 30, 2021, we were in compliance with all covenants contained in, and there were no outstanding borrowings under, the Credit Facility. The maturity date of the Credit Facility is February 16, 2024. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | Note 8 — Income Taxes Our effective tax rates for the three and six months ended June 30, 2021 and 2020, were as follows: Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Effective tax rate 36.1 % 18.5 % 29.8 % 20.2 % The effective tax rate for the three months ended June 30, 2021, compared to the three months ended June 30, 2020, was impacted by the enactment of Finance Act 2021 during the second quarter of 2021, which increased the United Kingdom (“UK”) corporation tax rate from 19% to 25% beginning in April 2023. As a result, the UK deferred tax assets and liabilities expected to be settled after 2023 were revalued from 19% to 25%, creating a non-cash deferred tax expense of $31.0 million. In addition, an intangible asset impairment charge was recognized in the three months ended June 30, 2021 which impacted pre-tax income. The impairment charge was related to temporary differences, which adjusted deferred income taxes and did not have a direct impact on the effective tax rate. The effective tax rate for the six months ended June 30, 2021, compared to the six months ended June 30, 2020, was impacted by the enactment of Finance Act 2021 and impairment charges, as discussed above, which is off-set by the tax windfall related to equity compensation plans. In addition, there were significant impairments of intangible assets and goodwill in the first quarter of 2020, which contributed to a pre-tax book loss for the six months ended June 30, 2020. The majority of the impairment charges were related to temporary differences, which adjusted deferred income taxes and did not have a direct impact on the effective tax rate. As of June 30, 2021, and December 31, 2020, we had $15.3 million and $15.8 million of unrecognized tax benefits held for uncertain tax positions. We estimate that the existing liability for uncertain tax positions could decrease by up to $1.1 million within the next 12 months, without giving effect to changes in foreign currency translation. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 9 — Noncontrolling Interests Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of June 30, 2021, and December 31, 2020, consisted of the following (in millions): June 30, December 31, 2021 2020 Consolidated seeded investment products $ 109.2 $ 70.6 Intech: Employee appreciation rights 12.5 12.3 Founding member ownership interests 3.2 2.9 Total redeemable noncontrolling interests $ 124.9 $ 85.8 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 our relative ownership, changes in the amount of third-party investment in seeded products and volatility in the market value of the underlying securities included in the portfolios of seeded products. Redemptions of investments by third parties in any particular seeded product are redeemed from the net assets of such seeded product and cannot be redeemed from the assets of our other seeded products or from our other assets. The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three and six months ended June 30, 2021 and 2020 (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Opening balance $ 83.7 $ 448.7 $ 70.6 $ 662.8 Changes in market value 3.9 29.0 (2.4) (7.9) Changes in ownership 21.5 (25.3) 40.1 (196.9) Foreign currency translation 0.1 1.3 0.9 (4.3) Closing balance $ 109.2 $ 453.7 $ 109.2 $ 453.7 Intech Intech Investment Management LLC (“Intech”) ownership interests held by a founding member had an estimated fair value of $3.2 million as of June 30, 2021, representing an approximate 1.1% ownership of Intech. This founding member is entitled to retain his remaining Intech interests for the remainder of his life and has the option to require us to purchase his ownership interests in Intech at fair value. Intech employee appreciation rights are amortized using a graded vesting method over the respective vesting period. The appreciation rights are exercisable upon termination of employment from Intech to the extent vested. Upon exercise, the appreciation rights are settled in Intech equity. Nonredeemable Noncontrolling Interests Nonredeemable noncontrolling interests as of June 30, 2021, and December 31, 2020, were as follows (in millions): June 30, December 31, 2021 2020 Nonredeemable noncontrolling interests in: Seed capital investments $ 2.9 $ 4.6 Intech 12.7 12.8 Total nonredeemable noncontrolling interests $ 15.6 $ 17.4 |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Long-Term Incentive Compensation | |
Long-Term Incentive Compensation | Note 10 — Long-Term Incentive and Employee Compensation The following table presents restricted stock and mutual fund awards granted during the three and six months ended June 30, 2021 (in millions): Three months ended Six months ended June 30, June 30, 2021 2021 Restricted stock $ 3.6 $ 68.5 Mutual fund awards 7.8 75.4 Total $ 11.4 $ 143.9 Restricted stock and mutual fund awards generally vest and will be recognized using a graded vesting method over a three |
Retirement Benefit Plans
Retirement Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefit Plans | |
Retirement Benefit Plans | Note 11 — Retirement Benefit Plans We operate defined contribution retirement benefit plans and defined benefit pension plans. Our primary defined benefit pension plan is the defined benefit section of the Janus Henderson Group UK Pension Scheme (“JHGPS”). Net Periodic Benefit Credit The components of net periodic benefit credit in respect of defined benefit plans for the three and six months ended June 30, 2021 and 2020, include the following (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Service cost $ (0.3) $ (0.2) $ (0.5) $ (0.4) Interest cost (2.8) (4.3) (5.6) (8.6) Amortization of prior service cost (0.1) (0.1) (0.2) (0.2) Expected return on plan assets 3.4 4.6 6.7 9.2 Net periodic benefit credit $ 0.2 $ — $ 0.4 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2021 | |
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 and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (311.1) $ (10.3) $ (321.4) $ (530.2) $ 19.2 $ (511.0) Other comprehensive income (loss) 3.2 0.1 3.3 12.0 0.1 12.1 Amounts reclassified from accumulated other comprehensive loss — 0.1 0.1 (1.4) — (1.4) Total other comprehensive income (loss) 3.2 0.2 3.4 10.6 0.1 10.7 Less: other comprehensive loss (income) attributable to noncontrolling interests (0.2) — (0.2) (1.4) — (1.4) Ending balance $ (308.1) $ (10.1) $ (318.2) $ (521.0) $ 19.3 $ (501.7) Six months ended June 30, 2021 2020 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (313.6) $ (10.4) $ (324.0) $ (386.2) $ 19.1 $ (367.1) Other comprehensive income (loss) 10.7 0.1 10.8 (137.1) 0.2 (136.9) Amounts reclassified from accumulated other comprehensive loss (4.2) 0.2 (4.0) (1.4) — (1.4) Total other comprehensive income (loss) 6.5 0.3 6.8 (138.5) 0.2 (138.3) Less: other comprehensive loss (income) attributable to noncontrolling interests (1.0) — (1.0) 3.7 — 3.7 Ending balance $ (308.1) $ (10.1) $ (318.2) $ (521.0) $ 19.3 $ (501.7) The components of other comprehensive income (loss), net of tax for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Pre-tax Tax Net Pre-tax Tax Net amount impact amount amount impact amount Foreign currency translation adjustments $ 2.6 $ 0.6 $ 3.2 $ 12.1 $ (0.1) $ 12.0 Retirement benefit asset, net — 0.1 0.1 0.1 — 0.1 Reclassifications to net income 0.1 — 0.1 (1.4) — (1.4) Total other comprehensive income (loss) $ 2.7 $ 0.7 $ 3.4 $ 10.8 $ (0.1) $ 10.7 Six months ended June 30, 2021 2020 Pre-tax Tax Net Pre-tax Tax Net amount impact Amount amount impact Amount Foreign currency translation adjustments $ 9.7 $ 1.0 $ 10.7 $ (139.2) $ 2.1 $ (137.1) Retirement benefit asset, net — 0.1 0.1 0.2 — 0.2 Reclassifications to net income (4.0) — (4.0) (1.4) — (1.4) Total other comprehensive income (loss) $ 5.7 $ 1.1 $ 6.8 $ (140.4) $ 2.1 $ (138.3) |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings and Dividends Per Share | |
Earnings (Loss) and Dividends Per Share | Note 13 — Earnings (Loss) and Dividends Per Share Earnings (Loss) Per Share The following is a summary of the earnings (loss) per share calculation for the three and six months ended June 30, 2021 and 2020 (in millions, except per share data): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Net income (loss) attributable to JHG $ 137.3 $ 102.9 $ 292.8 $ (144.1) Allocation of earnings to participating stock-based awards (3.9) (3.0) (8.6) — Net income (loss) attributable to JHG common shareholders $ 133.4 $ 99.9 $ 284.2 $ (144.1) Weighted-average common shares outstanding — basic 167.6 181.8 169.5 181.4 Dilutive effect of nonparticipating stock-based awards 0.5 0.3 0.5 — Weighted-average common shares outstanding — diluted 168.1 182.1 170.0 181.4 Earnings (loss) per share: Basic (two class) $ 0.80 $ 0.55 $ 1.68 $ (0.79) Diluted (two class) $ 0.79 $ 0.55 $ 1.67 $ (0.79) The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Unvested nonparticipating stock awards 0.6 0.9 0.6 1.6 Dividends Per Share The payment of cash dividends is within the discretion of our Board of Directors and depends on many factors, including, but not limited to, our results of operations, financial condition, capital requirements, legal requirements and general business conditions. The following is a summary of cash dividends paid during the six months ended June 30, 2021: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 3, 2021 $ 61.7 March 3, 2021 $ 0.38 April 28, 2021 $ 65.0 May 27, 2021 On July 28, 2021, our Board of Directors declared a cash dividend of $0.38 per share. The quarterly dividend will be paid on August 25, 2021, to shareholders of record at the close of business on August 9, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 — Commitments and Contingencies Commitments and contingencies may arise in the normal course of business. As of June 30, 2021, there were no material changes in the commitments and contingencies as reported in our Annual Report on Form 10-K for the year ended December 31, 2020. Related Party Transactions On February 4, 2021, Dai-ichi Life Holdings, Inc. (“Dai-ichi Life”) announced its intention to sell all 30,668,922 shares of JHG common stock it owned by means of a registered secondary public offering. On February 9, 2021, Dai-ichi Life completed the secondary offering, and as part of the offering, we repurchased 8,048,360 shares of common stock from Dai-ichi Life for approximately $230.0 million through Goldman Sachs & Co. LLC (“as underwriter”) at the price at which the shares of common stock were sold to the public in the secondary offering, less the underwriting discount. As a result of the completion of the secondary offering, Dai-ichi Life no longer owns any shares of JHG common stock. We did not receive any proceeds from Dai-ichi Life’s sale of common stock in the secondary offering. Litigation and Other Regulatory Matters We are periodically involved in various legal proceedings and other regulatory matters. Eisenberg v. Credit Suisse AG and Janus Indices and Qiu v. Credit Suisse AG and Janus Indices On March 15, 2018, a class action lawsuit was filed in the U.S. District Court for the Southern District of New York (“SDNY”) against a subsidiary of JHG, Janus Index & Calculation Services LLC, which, effective January 1, 2019, was renamed Janus Henderson Indices LLC (“Janus Indices”), 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 On May 4, 2018, an additional class action lawsuit was filed on behalf of investors who purchased XIV between January 29, 2018, and February 5, 2018, against Janus Indices and Credit Suisse in the SDNY ( Qiu v. Credit Suisse AG and Janus Indices Qiu Eisenberg On August 20, 2018, an amended complaint was filed in the Eisenberg Qiu Set Capital LLC, et al. v. Credit Suisse AG, et al. Set Capital |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation In the opinion of management of Janus Henderson Group plc (“JHG,” “the Company,” “we,” “us,” “our” and similar terms), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state our financial position, results of operations and cash flows 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 annual financial statements prepared in accordance with GAAP are not required for interim reporting purposes and 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 our Annual Report on Form 10-K for the year ended December 31, 2020. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted Income Taxes In December 2019, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. We adopted the ASU, which was effective as of January 1, 2021. The adoption of this ASU did not have a material impact on our results of operations or financial position. |
Consolidation (Tables)
Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Consolidation | |
Schedule of unconsolidated variable interest entities (VIEs) | The following table presents the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs (in millions): June 30, December 31, 2021 2020 Unconsolidated VIEs $ 101.6 $ 9.6 |
Schedule of consolidated voting right entities (VREs) | The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on our Condensed Consolidated Balance Sheets, including our net interest in these products (in millions): June 30, December 31, 2021 2020 Investment securities $ 34.9 $ 29.3 Cash and cash equivalents 2.2 2.8 Other current assets 0.4 0.4 Accounts payable and accrued liabilities (0.3) (0.1) Total $ 37.2 $ 32.4 Redeemable noncontrolling interests in consolidated VREs (1.9) — JHG's net interest in consolidated VREs $ 35.3 $ 32.4 |
Schedule of unconsolidated voting right entities (VREs) | The following table presents the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs (in millions): June 30, December 31, 2021 2020 Unconsolidated VREs $ 21.8 $ 63.6 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment Securities. | |
Summary of investment securities | Our investment securities as of June 30, 2021, and December 31, 2020, are summarized as follows (in millions): June 30, December 31, 2021 2020 Seeded investment products: Consolidated VIEs $ 216.8 $ 214.6 Consolidated VREs 34.9 29.3 Unconsolidated VIEs and VREs 123.4 73.2 Separate accounts 54.5 63.5 Pooled investment funds 0.1 0.1 Total seeded investment products 429.7 380.7 Investments related to deferred compensation plans 51.9 96.5 Other investments 5.4 5.5 Total investment securities $ 487.0 $ 482.7 |
Schedule of net unrealized gains on trading securities | Net unrealized gains (losses) on investment securities held as of the three and six months ended June 30, 2021 and 2020, are summarized as follows (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Unrealized gains (losses) on investment securities held at period end $ 1.8 $ 48.1 $ 3.4 $ 8.6 |
Schedule of investment gains (losses), net in Consolidated Statements of Comprehensive Income | Investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income (Loss) included the following for the three and six months ended June 30, 2021 and 2020 (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Seeded investment products and hedges, net $ (2.6) $ 11.1 $ 3.0 $ 6.0 Third-party ownership interests in seeded investment products 3.9 29.0 (4.1) (9.4) Long Tail Alpha equity method investment (0.2) 4.4 1.9 5.7 Deferred equity plan 0.2 4.7 2.1 (2.6) Other 0.5 1.1 0.5 0.1 Investment gains (losses), net $ 1.8 $ 50.3 $ 3.4 $ (0.2) |
Cash flows related to investment securities | Cash flows related to investment securities for the six months ended June 30, 2021 and 2020, are summarized as follows (in millions): Six months ended June 30, 2021 2020 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ (45.4) $ 7.9 $ (239.6) $ 2.2 Investment securities (101.6) 100.1 (53.7) 131.2 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Seeded investment products | |
Schedule of derivative instruments | Our consolidated seeded investment products were party to the following derivative instruments as of June 30, 2021, and December 31, 2020 (in millions): Notional value June 30, 2021 December 31, 2020 Futures $ 55.1 $ 57.0 Credit default swaps 7.3 1.5 Interest rate swaps 4.1 75.0 Options 0.1 0.5 Foreign currency forward contracts and swaps 41.6 56.1 |
Forward foreign exchange contracts and swaps | |
Schedule of Derivative assets and liabilities | Fair value June 30, 2021 Derivative assets $ 0.2 Derivative liabilities 1.8 |
Not Designated as Hedging Instrument | |
Schedule of derivative instruments | We were party to the following derivative instruments as of June 30, 2021, and December 31, 2020 (in millions): Notional value June 30, 2021 December 31, 2020 Futures $ 216.7 $ 164.5 Credit default swaps 95.2 166.2 Total return swaps 36.6 35.6 Foreign currency forward contracts and swaps 334.8 205.0 |
Not Designated as Hedging Instrument | |
Schedule of Derivative assets and liabilities | Fair value June 30, 2021 December 31, 2020 Derivative assets $ 0.8 $ 9.1 Derivative liabilities 7.6 10.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurements | |
Schedule of assets and liabilities 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 and liabilities reflected in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of June 30, 2021 (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 $ 539.5 $ — $ — $ 539.5 Investment securities: Consolidated VIEs 162.4 44.1 10.3 216.8 Other investment securities 242.6 27.6 — 270.2 Total investment securities 405.0 71.7 10.3 487.0 Seed hedge derivatives — 0.8 — 0.8 Derivatives in consolidated seeded investment products — 0.1 — 0.1 Derivatives used in foreign currency hedging program — 0.2 — 0.2 Volantis contingent consideration — — 2.2 2.2 Geneva contingent consideration — — 14.0 14.0 Total assets $ 944.5 $ 72.8 $ 26.5 $ 1,043.8 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.8 $ — $ 0.8 Derivatives used in foreign currency hedging program — 1.8 — 1.8 Securities sold, not yet purchased 0.9 — — 0.9 Seed hedge derivatives — 7.6 — 7.6 Long-term debt (1) — 340.2 — 340.2 Deferred bonuses — — 35.6 35.6 Total liabilities $ 0.9 $ 350.4 $ 35.6 $ 386.9 (1) Carried at amortized cost and disclosed at fair value. The following table presents assets and liabilities reflected in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2020 (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 $ 525.0 $ — $ — $ 525.0 Investment securities: Consolidated VIEs 125.7 77.7 11.2 214.6 Other investment securities 230.9 37.2 — 268.1 Total investment securities 356.6 114.9 11.2 482.7 Seed hedge derivatives — 9.1 — 9.1 Derivatives in consolidated seeded investment products — 0.9 — 0.9 Volantis contingent consideration — — 2.8 2.8 Geneva contingent consideration — — 17.4 17.4 Total assets $ 881.6 $ 124.9 $ 31.4 $ 1,037.9 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.2 $ — $ 0.2 Securities sold, not yet purchased 7.9 — — 7.9 Seed hedge derivatives — 10.8 — 10.8 Long-term debt (1) — 348.4 — 348.4 Deferred bonuses — — 65.2 65.2 Total liabilities $ 7.9 $ 359.4 $ 65.2 $ 432.5 (1) Carried at amortized cost and disclosed at fair value. |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for collective items | Changes in fair value of our Level 3 assets for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Beginning of period fair value $ 27.2 $ 30.8 $ 31.4 $ 12.8 Contingent consideration from sale of Geneva — (0.2) — 20.3 Settlements (1.8) (2.2) (4.0) (2.2) Fair value adjustments 1.4 — (2.5) (0.3) Purchases of securities 0.4 0.8 2.7 — Sales of securities (0.7) — (1.1) (1.4) End of period fair value $ 26.5 $ 29.2 $ 26.5 $ 29.2 |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for individual items | Changes in fair value of our individual Level 3 liabilities for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Deferred Deferred bonuses bonuses Beginning of period fair value $ 73.6 $ 74.3 Fair value adjustments 2.0 3.8 Vesting of deferred bonuses (48.2) (44.4) Amortization of deferred bonuses 8.1 8.8 Foreign currency translation 0.1 0.4 End of period fair value $ 35.6 $ 42.9 Six months ended June 30, 2021 2020 Deferred Contingent Deferred bonuses consideration bonuses Beginning of period fair value $ 65.2 $ 21.2 $ 76.6 Fair value adjustments 4.3 (7.1) (1.1) Vesting of deferred bonuses (50.7) — (46.7) Amortization of deferred bonuses 16.1 — 18.6 Unrealized gains (losses) — 0.3 — Distributions — (13.8) — Foreign currency translation 0.7 (0.6) (4.5) End of period fair value $ 35.6 $ — $ 42.9 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets | |
Summary of goodwill and intangible assets | The following tables present movements in our intangible assets and goodwill during the six months ended June 30, 2021 and 2020 (in millions): December 31, Foreign June 30, 2020 Amortization Disposal Impairment translation 2021 Indefinite-lived intangible assets: Investment management agreements $ 2,242.9 $ — $ — $ (40.8) $ (0.1) $ 2,202.0 Trademarks 373.2 — — (3.6) — 369.6 Definite-lived intangible assets: Client relationships 170.9 — — — (0.6) 170.3 Accumulated amortization (100.7) (3.9) — — — (104.6) Net intangible assets $ 2,686.3 $ (3.9) $ — $ (44.4) $ (0.7) $ 2,637.3 Goodwill $ 1,383.9 $ — $ — $ — $ 6.0 $ 1,389.9 December 31, Foreign June 30, 2019 Amortization Disposal Impairment translation 2020 Indefinite-lived intangible assets: Investment management agreements $ 2,490.3 $ — $ — $ (263.5) $ (32.5) $ 2,194.3 Trademarks 380.8 — — (7.7) (0.2) 372.9 Definite-lived intangible assets: Client relationships 364.7 — (79.3) (119.0) (3.3) 163.1 Accumulated amortization (147.2) (8.6) 61.4 — 2.7 (91.7) Net intangible assets $ 3,088.6 $ (8.6) $ (17.9) $ (390.2) $ (33.3) $ 2,638.6 Goodwill $ 1,504.3 $ — $ (23.5) $ (123.5) $ (46.9) $ 1,310.4 |
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 2021 (remainder of year) $ 3.9 2022 7.7 2023 7.4 2024 6.0 2025 6.0 Thereafter 34.7 Total $ 65.7 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Components of debt | Our debt as of June 30, 2021, and December 31, 2020, consisted of the following (in millions): June 30, 2021 December 31, 2020 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 311.9 $ 340.2 $ 313.3 $ 348.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Schedule of effective income tax rates | Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Effective tax rate 36.1 % 18.5 % 29.8 % 20.2 % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interests | |
Summary of redeemable noncontrolling interests | Redeemable noncontrolling interests as of June 30, 2021, and December 31, 2020, consisted of the following (in millions): June 30, December 31, 2021 2020 Consolidated seeded investment products $ 109.2 $ 70.6 Intech: Employee appreciation rights 12.5 12.3 Founding member ownership interests 3.2 2.9 Total redeemable noncontrolling interests $ 124.9 $ 85.8 |
Schedule of movement in redeemable noncontrolling interests in consolidated seeded investment products | The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three and six months ended June 30, 2021 and 2020 (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Opening balance $ 83.7 $ 448.7 $ 70.6 $ 662.8 Changes in market value 3.9 29.0 (2.4) (7.9) Changes in ownership 21.5 (25.3) 40.1 (196.9) Foreign currency translation 0.1 1.3 0.9 (4.3) Closing balance $ 109.2 $ 453.7 $ 109.2 $ 453.7 |
Summary of nonredeemable noncontrolling interests | Nonredeemable noncontrolling interests as of June 30, 2021, and December 31, 2020, were as follows (in millions): June 30, December 31, 2021 2020 Nonredeemable noncontrolling interests in: Seed capital investments $ 2.9 $ 4.6 Intech 12.7 12.8 Total nonredeemable noncontrolling interests $ 15.6 $ 17.4 |
Long-Term Incentive Compensat_2
Long-Term Incentive Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Long-Term Incentive Compensation | |
Schedule of presents restricted stock and mutual fund awards granted | The following table presents restricted stock and mutual fund awards granted during the three and six months ended June 30, 2021 (in millions): Three months ended Six months ended June 30, June 30, 2021 2021 Restricted stock $ 3.6 $ 68.5 Mutual fund awards 7.8 75.4 Total $ 11.4 $ 143.9 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefit Plans | |
Schedule of components of net periodic benefit credit | The components of net periodic benefit credit in respect of defined benefit plans for the three and six months ended June 30, 2021 and 2020, include the following (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Service cost $ (0.3) $ (0.2) $ (0.5) $ (0.4) Interest cost (2.8) (4.3) (5.6) (8.6) Amortization of prior service cost (0.1) (0.1) (0.2) (0.2) Expected return on plan assets 3.4 4.6 6.7 9.2 Net periodic benefit credit $ 0.2 $ — $ 0.4 $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Loss. | |
Schedule of the changes in accumulated other comprehensive loss, net of tax | Changes in accumulated other comprehensive loss, net of tax for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (311.1) $ (10.3) $ (321.4) $ (530.2) $ 19.2 $ (511.0) Other comprehensive income (loss) 3.2 0.1 3.3 12.0 0.1 12.1 Amounts reclassified from accumulated other comprehensive loss — 0.1 0.1 (1.4) — (1.4) Total other comprehensive income (loss) 3.2 0.2 3.4 10.6 0.1 10.7 Less: other comprehensive loss (income) attributable to noncontrolling interests (0.2) — (0.2) (1.4) — (1.4) Ending balance $ (308.1) $ (10.1) $ (318.2) $ (521.0) $ 19.3 $ (501.7) Six months ended June 30, 2021 2020 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (313.6) $ (10.4) $ (324.0) $ (386.2) $ 19.1 $ (367.1) Other comprehensive income (loss) 10.7 0.1 10.8 (137.1) 0.2 (136.9) Amounts reclassified from accumulated other comprehensive loss (4.2) 0.2 (4.0) (1.4) — (1.4) Total other comprehensive income (loss) 6.5 0.3 6.8 (138.5) 0.2 (138.3) Less: other comprehensive loss (income) attributable to noncontrolling interests (1.0) — (1.0) 3.7 — 3.7 Ending balance $ (308.1) $ (10.1) $ (318.2) $ (521.0) $ 19.3 $ (501.7) |
Components of other comprehensive income (loss), net of tax | The components of other comprehensive income (loss), net of tax for the three and six months ended June 30, 2021 and 2020, were as follows (in millions): Three months ended June 30, 2021 2020 Pre-tax Tax Net Pre-tax Tax Net amount impact amount amount impact amount Foreign currency translation adjustments $ 2.6 $ 0.6 $ 3.2 $ 12.1 $ (0.1) $ 12.0 Retirement benefit asset, net — 0.1 0.1 0.1 — 0.1 Reclassifications to net income 0.1 — 0.1 (1.4) — (1.4) Total other comprehensive income (loss) $ 2.7 $ 0.7 $ 3.4 $ 10.8 $ (0.1) $ 10.7 Six months ended June 30, 2021 2020 Pre-tax Tax Net Pre-tax Tax Net amount impact Amount amount impact Amount Foreign currency translation adjustments $ 9.7 $ 1.0 $ 10.7 $ (139.2) $ 2.1 $ (137.1) Retirement benefit asset, net — 0.1 0.1 0.2 — 0.2 Reclassifications to net income (4.0) — (4.0) (1.4) — (1.4) Total other comprehensive income (loss) $ 5.7 $ 1.1 $ 6.8 $ (140.4) $ 2.1 $ (138.3) |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings and Dividends Per Share | |
Summary of earnings (loss) per share calculation | The following is a summary of the earnings (loss) per share calculation for the three and six months ended June 30, 2021 and 2020 (in millions, except per share data): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Net income (loss) attributable to JHG $ 137.3 $ 102.9 $ 292.8 $ (144.1) Allocation of earnings to participating stock-based awards (3.9) (3.0) (8.6) — Net income (loss) attributable to JHG common shareholders $ 133.4 $ 99.9 $ 284.2 $ (144.1) Weighted-average common shares outstanding — basic 167.6 181.8 169.5 181.4 Dilutive effect of nonparticipating stock-based awards 0.5 0.3 0.5 — Weighted-average common shares outstanding — diluted 168.1 182.1 170.0 181.4 Earnings (loss) per share: Basic (two class) $ 0.80 $ 0.55 $ 1.68 $ (0.79) Diluted (two class) $ 0.79 $ 0.55 $ 1.67 $ (0.79) |
Schedule of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended Six months ended June 30, June 30, 2021 2020 2021 2020 Unvested nonparticipating stock awards 0.6 0.9 0.6 1.6 |
Schedule of cash dividends declared and paid | The following is a summary of cash dividends paid during the six months ended June 30, 2021: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 3, 2021 $ 61.7 March 3, 2021 $ 0.38 April 28, 2021 $ 65.0 May 27, 2021 |
Consolidation - VIEs (Details)
Consolidation - VIEs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated VIEs | ||
Investment securities | $ 216.8 | $ 214.6 |
Unconsolidated VIEs | ||
Investment securities | $ 101.6 | $ 9.6 |
Consolidation - VREs (Details)
Consolidation - VREs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other current assets | $ 107.1 | $ 111.1 |
Consolidated VREs | ||
Investment securities | 34.9 | 29.3 |
Cash and cash equivalents | 2.2 | 2.8 |
Other current assets | 0.4 | 0.4 |
Accounts payable and accrued liabilities | (0.3) | (0.1) |
Total | 37.2 | 32.4 |
Redeemable noncontrolling interests in consolidated VREs | (1.9) | |
JHG's net interest in consolidated VREs | 35.3 | 32.4 |
Unconsolidated VREs | ||
Investment securities | $ 21.8 | $ 63.6 |
Investment Securities - General
Investment Securities - General Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Short-term investments: | |||||
Estimated Fair Value | $ 487 | $ 487 | $ 482.7 | ||
Unrealized gains (losses) on investment securities held at period end | 1.8 | $ 48.1 | 3.4 | $ 8.6 | |
Seeded investment products | |||||
Short-term investments: | |||||
Seeded investment products | 429.7 | 429.7 | 380.7 | ||
Investment securities | Separate accounts | |||||
Short-term investments: | |||||
Seeded investment products | 54.5 | 54.5 | 63.5 | ||
Investment securities | Pooled investment funds | |||||
Short-term investments: | |||||
Seeded investment products | 0.1 | 0.1 | 0.1 | ||
Investment securities | Investments related to deferred compensation plans | |||||
Short-term investments: | |||||
Estimated Fair Value | 51.9 | 51.9 | 96.5 | ||
Investment securities | Other investments | |||||
Short-term investments: | |||||
Estimated Fair Value | 5.4 | 5.4 | 5.5 | ||
Consolidated VIEs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | 216.8 | 216.8 | 214.6 | ||
Consolidated VREs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | 34.9 | 34.9 | 29.3 | ||
Unconsolidated VIEs and VREs | Investment securities | |||||
Short-term investments: | |||||
Seeded investment products | $ 123.4 | $ 123.4 | $ 73.2 |
Investment Securities - Offsett
Investment Securities - Offsetting Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | $ 1.8 | $ 50.3 | $ 3.4 | $ (0.2) |
Cash flows related to investment securities | ||||
Purchases and settlements | (1.5) | 77.5 | ||
Seeded investment products and derivatives | ||||
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | (2.6) | 11.1 | 3 | 6 |
Third-party ownership interests in seeded investment products | ||||
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | 3.9 | 29 | (4.1) | (9.4) |
Long Tail Alpha equity method investment | ||||
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | (0.2) | 4.4 | 1.9 | 5.7 |
Deferred Equity Plan | ||||
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | 0.2 | 4.7 | 2.1 | (2.6) |
Other investments | ||||
Derivative Instrument Denominated in Foreign Currency | ||||
Investment gains (losses), net | $ 0.5 | $ 1.1 | 0.5 | 0.1 |
Investment securities | ||||
Cash flows related to investment securities | ||||
Purchases and settlements | (101.6) | (53.7) | ||
Sales, settlements and maturities | 100.1 | 131.2 | ||
Investment securities | Seeded investment products | Consolidated | ||||
Cash flows related to investment securities | ||||
Purchases and settlements | (45.4) | (239.6) | ||
Sales, settlements and maturities | $ 7.9 | $ 2.2 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Derivatives | |||
Derivative assets | $ 0.2 | $ 0.2 | |
Derivative liabilities | 1.8 | 1.8 | |
Net gains (losses) in net income related to: | |||
Securities sold, not yet purchased | 0.9 | 0.9 | $ 7.9 |
Not Designated as Hedging Instrument | |||
Derivatives | |||
Derivative assets | 0.8 | 0.8 | 9.1 |
Derivative liabilities | 7.6 | 7.6 | 10.8 |
Futures | Seeded investment products | |||
Derivatives | |||
Notional value of derivative | 55.1 | 55.1 | 57 |
Futures | Derivative Instruments | Not Designated as Hedging Instrument | |||
Derivatives | |||
Notional value of derivative | 216.7 | 216.7 | 164.5 |
Credit default swaps | Seeded investment products | |||
Derivatives | |||
Notional value of derivative | 7.3 | 7.3 | 1.5 |
Credit default swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Derivatives | |||
Notional value of derivative | 95.2 | 95.2 | 166.2 |
Interest rate swaps | Seeded investment products | |||
Derivatives | |||
Notional value of derivative | 4.1 | 4.1 | 75 |
Total return swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Derivatives | |||
Notional value of derivative | 36.6 | 36.6 | 35.6 |
Options | Seeded investment products | |||
Derivatives | |||
Notional value of derivative | 0.1 | 0.1 | 0.5 |
Forward foreign exchange contracts and swaps | |||
Derivatives | |||
Notional value of derivative | 135.9 | 135.9 | |
Forward foreign exchange contracts and swaps | Seeded investment products | |||
Derivatives | |||
Notional value of derivative | 41.6 | 41.6 | 56.1 |
Forward foreign exchange contracts and swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Derivatives | |||
Notional value of derivative | 334.8 | 334.8 | $ 205 |
Forward foreign exchange contracts and swaps | Other non-operating income (expenses), net | |||
Net gains (losses) in net income related to: | |||
Gain on change in fair value of derivatives | $ 0.7 | $ 1.3 |
Fair Value Measurements - Level
Fair Value Measurements - Level of Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||||||
Derivative assets | $ 0.2 | |||||
Liabilities | ||||||
Derivative liabilities | 1.8 | |||||
Securities sold, not yet purchased | 0.9 | $ 7.9 | ||||
Total redeemable noncontrolling interests | 124.9 | 85.8 | ||||
Seeded investment products | ||||||
Liabilities | ||||||
Total redeemable noncontrolling interests | 109.2 | $ 83.7 | 70.6 | $ 453.7 | $ 448.7 | $ 662.8 |
Intech Founders | ||||||
Liabilities | ||||||
Total redeemable noncontrolling interests | 3.2 | 2.9 | ||||
Consolidated | Seeded investment products | ||||||
Liabilities | ||||||
Total redeemable noncontrolling interests | 109.2 | 70.6 | ||||
Consolidated VIEs | ||||||
Assets | ||||||
Total investment securities | 216.8 | 214.6 | ||||
Unconsolidated VIEs | ||||||
Assets | ||||||
Total investment securities | 101.6 | 9.6 | ||||
Fair value measurements, recurring | ||||||
Assets | ||||||
Cash equivalents | 539.5 | 525 | ||||
Total assets | 1,043.8 | 1,037.9 | ||||
Liabilities | ||||||
Securities sold, not yet purchased | 0.9 | 7.9 | ||||
Long-term debt | 340.2 | 348.4 | ||||
Total liabilities | 386.9 | 432.5 | ||||
Fair value measurements, recurring | Deferred bonuses | ||||||
Liabilities | ||||||
Derivative liabilities | 35.6 | |||||
Current portion of long-term debt | 65.2 | |||||
Fair value measurements, recurring | Forward foreign exchange contracts and swaps | ||||||
Assets | ||||||
Derivative assets | 0.2 | |||||
Liabilities | ||||||
Derivative liabilities | 1.8 | |||||
Fair value measurements, recurring | Volantis | ||||||
Assets | ||||||
Contingent consideration | 2.2 | 2.8 | ||||
Fair value measurements, recurring | Geneva | ||||||
Assets | ||||||
Contingent consideration | 14 | 17.4 | ||||
Fair value measurements, recurring | Investment securities | ||||||
Assets | ||||||
Total investment securities | 487 | 482.7 | ||||
Fair value measurements, recurring | Seed hedge derivatives | ||||||
Assets | ||||||
Derivative assets | 0.8 | 9.1 | ||||
Liabilities | ||||||
Derivative liabilities | 7.6 | 10.8 | ||||
Fair value measurements, recurring | Level 1 | ||||||
Assets | ||||||
Cash equivalents | 539.5 | 525 | ||||
Total assets | 944.5 | 881.6 | ||||
Liabilities | ||||||
Securities sold, not yet purchased | 0.9 | 7.9 | ||||
Total liabilities | 0.9 | 7.9 | ||||
Fair value measurements, recurring | Level 1 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 405 | 356.6 | ||||
Fair value measurements, recurring | Level 2 | ||||||
Assets | ||||||
Total assets | 72.8 | 124.9 | ||||
Liabilities | ||||||
Long-term debt | 340.2 | 348.4 | ||||
Total liabilities | 350.4 | 359.4 | ||||
Fair value measurements, recurring | Level 2 | Forward foreign exchange contracts and swaps | ||||||
Assets | ||||||
Derivative assets | 0.2 | |||||
Liabilities | ||||||
Derivative liabilities | 1.8 | |||||
Fair value measurements, recurring | Level 2 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 71.7 | 114.9 | ||||
Fair value measurements, recurring | Level 2 | Seed hedge derivatives | ||||||
Assets | ||||||
Derivative assets | 0.8 | 9.1 | ||||
Liabilities | ||||||
Derivative liabilities | 7.6 | 10.8 | ||||
Fair value measurements, recurring | Level 3 | ||||||
Assets | ||||||
Total assets | 26.5 | 31.4 | ||||
Liabilities | ||||||
Total liabilities | 35.6 | 65.2 | ||||
Fair value measurements, recurring | Level 3 | Deferred bonuses | ||||||
Liabilities | ||||||
Derivative liabilities | 35.6 | |||||
Current portion of long-term debt | 65.2 | |||||
Fair value measurements, recurring | Level 3 | Volantis | ||||||
Assets | ||||||
Contingent consideration | 2.2 | 2.8 | ||||
Fair value measurements, recurring | Level 3 | Geneva | ||||||
Assets | ||||||
Contingent consideration | 14 | 17.4 | ||||
Fair value measurements, recurring | Level 3 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 10.3 | 11.2 | ||||
Fair value measurements, recurring | Consolidated | Seeded investment products | ||||||
Assets | ||||||
Derivative assets | 0.1 | 0.9 | ||||
Liabilities | ||||||
Derivative liabilities | 0.8 | 0.2 | ||||
Fair value measurements, recurring | Consolidated | Level 2 | Seeded investment products | ||||||
Assets | ||||||
Derivative assets | 0.1 | 0.9 | ||||
Liabilities | ||||||
Derivative liabilities | 0.8 | 0.2 | ||||
Fair value measurements, recurring | Consolidated VIEs | Investment securities | ||||||
Assets | ||||||
Total investment securities | 216.8 | 214.6 | ||||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 162.4 | 125.7 | ||||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 44.1 | 77.7 | ||||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 10.3 | 11.2 | ||||
Fair value measurements, recurring | Unconsolidated VIEs | Investment securities | ||||||
Assets | ||||||
Total investment securities | 270.2 | 268.1 | ||||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | Investment securities | ||||||
Assets | ||||||
Total investment securities | 242.6 | 230.9 | ||||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | Investment securities | ||||||
Assets | ||||||
Total investment securities | $ 27.6 | $ 37.2 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation techniques and significant unobservable inputs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Consolidated VIEs | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | $ 216.8 | $ 214.6 |
Fair Value Measurements - Genev
Fair Value Measurements - Geneva Contingent Consideration (Details) - USD ($) $ in Millions | Mar. 17, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 03, 2019 |
Dispositions | |||||
Period of time for earnout payments | 5 years | ||||
Gain on the sale of Geneva | $ 16.2 | ||||
Receipt of contingent consideration payments from sale of Geneva | $ 3.4 | ||||
Geneva | |||||
Dispositions | |||||
Ownership sold (as a percent) | 100.00% | 100.00% | |||
Consideration received | $ 38.4 | ||||
Receipt of contingent consideration payments from sale of Geneva | $ 1.8 | $ 3.4 | |||
Geneva | Minimum | |||||
Dispositions | |||||
Contingent consideration | 20.5 | ||||
Geneva | Maximum | |||||
Dispositions | |||||
Contingent consideration | $ 35 |
Fair Value Measurements - Volan
Fair Value Measurements - Volantis Contingent Consideration (Details) £ in Millions, $ in Millions | Mar. 17, 2020 | Apr. 01, 2017GBP (£) | Jun. 30, 2021GBP (£) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Dispositions | |||||
Period of performance of investee for recognizing consideration | 5 years | ||||
Discontinued Operations, Disposed of by Sale | |||||
Dispositions | |||||
Fair value of contingent consideration | $ 2.2 | ||||
Business Combination, Contingent Consideration, Asset | $ 2.2 | ||||
Volantis | Discontinued Operations, Disposed of by Sale | |||||
Dispositions | |||||
Percentage of share for consideration of sale | 10.00% | ||||
Period of performance of investee for recognizing consideration | 3 years | ||||
Fair value of contingent consideration | $ 2.8 | ||||
Business Combination, Contingent Consideration, Asset | $ 2.8 | ||||
Certain fund | |||||
Dispositions | |||||
Percentage of share for consideration of sale | 50.00% | ||||
Performance fee threshold | £ | £ 12 | £ 12 |
Fair Value Measurements - Lev_2
Fair Value Measurements - Level 3 Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Change in fair value of Level 3 assets | |||||
Balance at the beginning of period, Asset value | $ 27.2 | $ 30.8 | $ 31.4 | $ 12.8 | |
Geneva contingent consideration | (0.2) | 20.3 | |||
Settlements | (1.8) | (2.2) | (4) | (2.2) | |
Purchases of securities | 0.4 | 0.8 | 2.7 | ||
Sales of securities | (0.7) | (1.1) | (1.4) | ||
Fair value adjustments | 1.4 | (2.5) | (0.3) | ||
Balance at the end of period, Asset value | 26.5 | 29.2 | 26.5 | 29.2 | |
Consolidated VIEs | |||||
Changes in fair value | |||||
Investment securities | 216.8 | 216.8 | $ 214.6 | ||
Level 3 | Fair value measurements, recurring | Contingent consideration | |||||
Changes in fair value | |||||
Balance at the beginning of period, Liability Value | 21.2 | ||||
Fair value adjustments | (7.1) | ||||
Unrealized gains (losses) | 0.3 | ||||
Distributions | (13.8) | ||||
Foreign currency translation | (0.6) | ||||
Level 3 | Fair value measurements, recurring | Deferred bonuses | |||||
Changes in fair value | |||||
Balance at the beginning of period, Liability Value | 73.6 | 74.3 | 65.2 | 76.6 | |
Fair value adjustments | 2 | 3.8 | 4.3 | (1.1) | |
Vesting of deferred bonuses | (48.2) | (44.4) | (50.7) | (46.7) | |
Amortization of deferred bonuses | 8.1 | 8.8 | 16.1 | 18.6 | |
Foreign currency translation | 0.1 | 0.4 | 0.7 | (4.5) | |
Balance at the end of period, Liability Value | $ 35.6 | $ 42.9 | $ 35.6 | $ 42.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 17, 2020 | Dec. 03, 2019 | |
Indefinite-lived intangible assets: | |||||||
Disposal | $ 17.9 | $ 17.9 | |||||
Definite-lived intangible assets: | |||||||
Disposal | 17.9 | 17.9 | |||||
Foreign currency translation | (3.3) | ||||||
Accumulated amortization, balance at the beginning of the period | $ (147.2) | $ (100.7) | (147.2) | ||||
Amortization | (3.9) | (8.6) | |||||
Disposal | 61.4 | ||||||
Foreign currency translation | 2.7 | ||||||
Accumulated amortization, balance at the end of the period | $ (104.6) | (91.7) | (104.6) | (91.7) | |||
Net intangible assets | |||||||
Net intangible assets, balance at the beginning of the period | 3,088.6 | 2,686.3 | 3,088.6 | ||||
Amortization | (3.9) | (8.6) | |||||
Impairment | (44.4) | (390.2) | |||||
Foreign currency translation | (0.7) | (33.3) | |||||
Net intangible assets, balance at the end of the period | 2,637.3 | 2,638.6 | 2,637.3 | 2,638.6 | |||
Goodwill | |||||||
Goodwill, balance at the beginning of the period | 1,504.3 | 1,383.9 | 1,504.3 | ||||
Disposal | (23.5) | (23.5) | |||||
Impairment | 123.5 | 123.5 | |||||
Foreign currency translation | 6 | (46.9) | |||||
Goodwill, balance at the end of the period | 1,389.9 | 1,310.4 | 1,389.9 | 1,310.4 | |||
Goodwill and intangible assets impairment | 40.8 | 26.4 | 44.4 | 513.7 | |||
Sale | |||||||
Intangible assets, net | 2,637.3 | 2,638.6 | 2,637.3 | 2,638.6 | |||
Allocated goodwill | 23.5 | 23.5 | |||||
Future Amortization: | |||||||
2021 (remainder of year) | 3.9 | 3.9 | |||||
2022 | 7.7 | 7.7 | |||||
2023 | 7.4 | 7.4 | |||||
2024 | 6 | 6 | |||||
2025 | 6 | 6 | |||||
Thereafter | 34.7 | 34.7 | |||||
Total | 65.7 | 65.7 | |||||
Geneva | |||||||
Goodwill | |||||||
Disposal | $ (23.5) | ||||||
Sale | |||||||
Ownership sold (as a percent) | 100.00% | 100.00% | |||||
Intangible assets, net | $ 17.9 | ||||||
Allocated goodwill | 23.5 | ||||||
Consideration received | $ 38.4 | ||||||
Client relationships | |||||||
Indefinite-lived intangible assets: | |||||||
Disposal | 79.3 | 79.3 | |||||
Definite-lived intangible assets: | |||||||
Balance at the beginning of the period | 364.7 | 170.9 | 364.7 | ||||
Disposal | 79.3 | 79.3 | |||||
Impairment | 92.6 | 119 | |||||
Foreign currency translation | (0.6) | ||||||
Balance at the end of the period | 170.3 | 163.1 | 170.3 | 163.1 | |||
Investment management agreements | |||||||
Indefinite-lived intangible assets: | |||||||
Balance at the beginning of the period | 2,490.3 | 2,242.9 | 2,490.3 | ||||
Impairment | (263.5) | (40.8) | |||||
Foreign currency translation | (0.1) | (32.5) | |||||
Balance at the end of the period | 2,202 | 2,194.3 | 2,202 | 2,194.3 | |||
Indefinite-Lived Intangible Assets | 2,202 | 2,194.3 | 2,202 | 2,194.3 | |||
Net intangible assets | |||||||
Impairment | (263.5) | ||||||
Certain indefinite-lived Intangible Assets | |||||||
Indefinite-lived intangible assets: | |||||||
Impairment | 40.8 | ||||||
Balance at the end of the period | 0 | 0 | |||||
Indefinite-Lived Intangible Assets | 0 | 0 | |||||
Trademarks | |||||||
Indefinite-lived intangible assets: | |||||||
Balance at the beginning of the period | 380.8 | 373.2 | 380.8 | ||||
Impairment | $ (7.7) | (3.6) | (7.7) | ||||
Foreign currency translation | (0.2) | ||||||
Balance at the end of the period | 369.6 | 372.9 | 369.6 | 372.9 | |||
Indefinite-Lived Intangible Assets | $ 369.6 | $ 372.9 | 369.6 | $ 372.9 | |||
Perkins Trademark | |||||||
Indefinite-lived intangible assets: | |||||||
Impairment | $ 3.6 |
Debt (Details)
Debt (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
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 | 311.9 | $ 313.3 |
4.875% Senior Notes due 2025 | Fair value | ||
Components of debt | ||
Total debt | 340.2 | $ 348.4 |
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 | $ 11.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income taxes | |||||
Effective tax rate (as a percent) | 36.10% | 18.50% | 29.80% | 20.20% | |
Unrecognized tax benefits | $ 15.3 | $ 15.3 | $ 15.8 | ||
Anticipated decrease in income tax benefits in the next 12 months | $ 1.1 | $ 1.1 | |||
UK | |||||
Income taxes | |||||
Statutory corporation tax rate (as a percentage) | 19.00% | ||||
Enacted tax rate scheduled for April 2023 (as a percent) | 25.00% | ||||
Adjustment to deferred tax assets and liabilities | $ 31 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Redeemable Noncontrolling Interests | |||||
Total redeemable noncontrolling interests | $ 124.9 | $ 124.9 | $ 85.8 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||||
Opening balance | 85.8 | ||||
Closing balance | 124.9 | 124.9 | 85.8 | ||
Seeded investment products | |||||
Redeemable Noncontrolling Interests | |||||
Total redeemable noncontrolling interests | 109.2 | $ 453.7 | 109.2 | $ 453.7 | 70.6 |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||||
Opening balance | 83.7 | 448.7 | 70.6 | 662.8 | 662.8 |
Changes in market value | 3.9 | 29 | (2.4) | (7.9) | |
Changes in ownership | 21.5 | (25.3) | 40.1 | (196.9) | |
Foreign currency translation | 0.1 | 1.3 | 0.9 | (4.3) | |
Closing balance | 109.2 | $ 453.7 | 109.2 | $ 453.7 | 70.6 |
Intech Founders | |||||
Redeemable Noncontrolling Interests | |||||
Total redeemable noncontrolling interests | 3.2 | 3.2 | 2.9 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||||
Opening balance | 2.9 | ||||
Closing balance | $ 3.2 | $ 3.2 | 2.9 | ||
Remaining interest (as a percent) | 1.10% | 1.10% | |||
Consolidated | Seeded investment products | |||||
Redeemable Noncontrolling Interests | |||||
Total redeemable noncontrolling interests | $ 109.2 | $ 109.2 | 70.6 | ||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||||
Opening balance | 70.6 | ||||
Closing balance | 109.2 | 109.2 | 70.6 | ||
Intech | Intech | |||||
Redeemable Noncontrolling Interests | |||||
INTECH employee appreciation rights | 12.5 | $ 12.3 | |||
Intech Founders | |||||
Redeemable Noncontrolling Interests | |||||
Total redeemable noncontrolling interests | 3.2 | 3.2 | |||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||||
Closing balance | $ 3.2 | $ 3.2 |
Noncontrolling Interests - Nonr
Noncontrolling Interests - Nonredeemable (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 15.6 | $ 17.4 |
Seeded investment products | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | 2.9 | 4.6 |
Intech | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 12.7 | $ 12.8 |
Long-Term Incentive and Employe
Long-Term Incentive and Employee Compensation (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Long-Term Incentive and Employee Compensation | ||
Units granted | 11.4 | 143.9 |
Minimum | ||
Long-Term Incentive and Employee Compensation | ||
Vesting period | 3 years | |
Maximum | ||
Long-Term Incentive and Employee Compensation | ||
Vesting period | 4 years | |
Restricted Stock Awards | ||
Long-Term Incentive and Employee Compensation | ||
Units granted | 3.6 | 68.5 |
Mutual Fund Share Awards | ||
Long-Term Incentive and Employee Compensation | ||
Units granted | 7.8 | 75.4 |
Retirement benefit plans - Actu
Retirement benefit plans - Actuarial gains(losses), benefit cost, cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of net periodic benefit cost | ||||
Service cost | $ (0.3) | $ (0.2) | $ (0.5) | $ (0.4) |
Interest cost | (2.8) | (4.3) | (5.6) | (8.6) |
Amortization of prior service cost | (0.1) | (0.1) | (0.2) | (0.2) |
Expected return on plan assets | 3.4 | $ 4.6 | 6.7 | $ 9.2 |
Net periodic benefit credit | $ 0.2 | $ 0.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in accumulated other comprehensive loss, net of tax | ||||
Beginning balance | $ 4,716.4 | |||
Other comprehensive income (loss), net of tax | $ 3.4 | $ 10.7 | 6.8 | $ (138.3) |
Less: other comprehensive loss (income) attributable to noncontrolling interests | (0.2) | (1.4) | (1) | 3.7 |
Ending balance | 4,626 | 4,626 | ||
Accumulated other comprehensive loss | ||||
Changes in accumulated other comprehensive loss, net of tax | ||||
Beginning balance | (321.4) | (511) | (324) | (367.1) |
Other comprehensive income (loss) | 3.3 | 12.1 | 10.8 | (136.9) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | (1.4) | (4) | (1.4) |
Other comprehensive income (loss), net of tax | 3.4 | 10.7 | 6.8 | (138.3) |
Less: other comprehensive loss (income) attributable to noncontrolling interests | (0.2) | (1.4) | (1) | 3.7 |
Ending balance | (318.2) | (501.7) | (318.2) | (501.7) |
Foreign currency translation adjustments | ||||
Changes in accumulated other comprehensive loss, net of tax | ||||
Beginning balance | (311.1) | (530.2) | (313.6) | (386.2) |
Other comprehensive income (loss) | 3.2 | 12 | 10.7 | (137.1) |
Amounts reclassified from accumulated other comprehensive income (loss) | (1.4) | (4.2) | (1.4) | |
Other comprehensive income (loss), net of tax | 3.2 | 10.6 | 6.5 | (138.5) |
Less: other comprehensive loss (income) attributable to noncontrolling interests | (0.2) | (1.4) | (1) | 3.7 |
Ending balance | (308.1) | (521) | (308.1) | (521) |
Retirement benefit asset, net | ||||
Changes in accumulated other comprehensive loss, net of tax | ||||
Beginning balance | (10.3) | 19.2 | (10.4) | 19.1 |
Other comprehensive income (loss) | 0.1 | 0.1 | 0.1 | 0.2 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | 0.2 | ||
Other comprehensive income (loss), net of tax | 0.2 | 0.1 | 0.3 | 0.2 |
Ending balance | $ (10.1) | $ 19.3 | $ (10.1) | $ 19.3 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated other comprehensive loss | ||||
Other comprehensive income, net of tax | ||||
Pre-tax amount | $ 2.7 | $ 10.8 | $ 5.7 | $ (140.4) |
Tax impact | 0.7 | (0.1) | 1.1 | 2.1 |
Net amount | 3.4 | 10.7 | 6.8 | (138.3) |
Foreign currency translation adjustments | ||||
Other comprehensive income, net of tax | ||||
Pre-tax amount | 2.6 | 12.1 | 9.7 | (139.2) |
Tax impact | 0.6 | (0.1) | 1 | 2.1 |
Net amount | 3.2 | 12 | 10.7 | (137.1) |
Retirement benefit asset, net | ||||
Other comprehensive income, net of tax | ||||
Pre-tax amount | 0.1 | 0.2 | ||
Tax impact | 0.1 | 0.1 | ||
Net amount | 0.1 | 0.1 | 0.1 | 0.2 |
Reclassification to net income | ||||
Other comprehensive income, net of tax | ||||
Pre-tax amount | 0.1 | (1.4) | (4) | (1.4) |
Net amount | $ 0.1 | $ (1.4) | $ (4) | $ (1.4) |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 28, 2021 | May 27, 2021 | Apr. 28, 2021 | Mar. 03, 2021 | Feb. 03, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Earnings (loss) per share | |||||||||
Net income (loss) attributable to JHG | $ 137.3 | $ 102.9 | $ 292.8 | $ (144.1) | |||||
Allocation of earnings to participating stock-based awards | (3.9) | (3) | (8.6) | ||||||
Net income (loss) attributable to JHG common shareholders | $ 133.4 | $ 99.9 | $ 284.2 | $ (144.1) | |||||
Weighted-average common shares outstanding - basic | 167.6 | 181.8 | 169.5 | 181.4 | |||||
Dilutive effect of non-participating stock-based awards | 0.5 | 0.3 | 0.5 | ||||||
Weighted-average common shares outstanding - diluted | 168.1 | 182.1 | 170 | 181.4 | |||||
Earnings per share: | |||||||||
Basic (two class) | $ 0.80 | $ 0.55 | $ 1.68 | $ (0.79) | |||||
Diluted (two class) | 0.79 | 0.55 | 1.67 | (0.79) | |||||
Dividends Per Share | |||||||||
Dividends paid (per share) | $ 0.38 | $ 0.36 | $ 0.74 | $ 0.64 | |||||
Cash dividend declared (in dollars per share) | $ 0.38 | $ 0.36 | |||||||
Cash dividends paid | $ 65 | $ 61.7 | $ 126.7 | $ 132.3 | |||||
Forecast | |||||||||
Dividends Per Share | |||||||||
Cash dividend declared (in dollars per share) | $ 0.38 | ||||||||
Unvested nonparticipating stock awards | |||||||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | |||||||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 0.6 | 0.9 | 0.6 | 1.6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 09, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transactions | ||||
Shares repurchased amount | $ 22 | $ 230.2 | $ 53.2 | |
Dai-ichi Life | Secondary Offering | ||||
Related Party Transactions | ||||
Shares issued | 30,668,922 | |||
Shares repurchased (shares) | 8,048,360 | |||
Shares repurchased amount | $ 230 |