Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32236 | |
Entity Registrant Name | COHEN & STEERS INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 14-1904657 | |
Entity Address, Address Line One | 280 Park Avenue | |
Entity Address, State or Province | NY | |
Entity Address, City or Town | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 832-3232 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CNS | |
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 | 47,241,185 | |
Entity Central Index Key | 0001284812 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | $ 102,109 | $ 92,733 | |
Investments ($64,910 and $136,113) | [1],[2] | 152,961 | 224,932 |
Accounts receivable | 54,362 | 50,381 | |
Due from brokers ($3,337 and $11,187) | [1] | 3,323 | 14,240 |
Property and equipment—net | 13,487 | 14,106 | |
Operating lease right-of-use assets | 43,432 | 48,488 | |
Goodwill and intangible assets—net | 19,711 | 19,751 | |
Deferred income tax asset—net | 7,178 | 7,200 | |
Other assets ($1,120 and $2,604) | [1] | 7,439 | 9,208 |
Total assets | 404,002 | 481,039 | |
Liabilities: | |||
Accrued compensation | 23,527 | 43,685 | |
Distribution and service fees payable | 6,803 | 8,493 | |
Operating lease liabilities | 48,845 | 54,304 | |
Income tax payable | 18,641 | 18,663 | |
Due to brokers ($2,403 and $4,422) | [1] | 2,403 | 5,121 |
Other liabilities and accrued expenses ($472 and $440) | [1] | 9,304 | 13,935 |
Total liabilities | 109,523 | 144,201 | |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 38,104 | 114,192 | |
Stockholders’ equity: | |||
Common stock, $0.01 par value; 500,000,000 shares authorized; 52,567,471 and 51,818,186 shares issued at June 30, 2019 and December 31, 2018, respectively | 526 | 518 | |
Additional paid-in capital | 617,726 | 602,272 | |
Accumulated deficit | (179,852) | (208,404) | |
Accumulated other comprehensive loss, net of tax | (7,223) | (7,323) | |
Less: Treasury stock, at cost, 5,329,386 and 5,050,285 shares at June 30, 2019 and December 31, 2018, respectively | (174,802) | (164,417) | |
Total stockholders’ equity | 256,375 | 222,646 | |
Total liabilities and stockholders’ equity | $ 404,002 | $ 481,039 | |
[1] | Asset and liability amounts in parentheses represent the aggregated balances at June 30, 2019 and December 31, 2018 attributable to variable interest entities consolidated by the Company. Refer to Note 4 for further discussion. | ||
[2] | Certain amounts have been recast to reflect the Company's adoption of the new leasing accounting standard on January 1, 2019. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 500,000,000 | 500,000,000 | |
Common stock, shares issued | 52,567,471 | 51,818,186 | |
Treasury stock, shares | 5,329,386 | 5,050,285 | |
Due from broker | [1] | $ 3,323 | $ 14,240 |
Other Assets | [1] | 7,439 | 9,208 |
Due to brokers | [1] | 2,403 | 5,121 |
Other liabilities and accrued expenses | [1] | 9,304 | 13,935 |
GLI SICAV, GRP-CIP, SICAV GRE and SICAV RAP [Member] | |||
Investments | 64,910 | ||
Due from broker | 3,337 | ||
Other Assets | 1,120 | ||
Due to brokers | 2,403 | ||
Other liabilities and accrued expenses | $ 472 | ||
GLI SICAV, GRP-CIP, SICAV Preferred and SICAV RAP [Member] | |||
Investments | 136,113 | ||
Due from broker | 11,187 | ||
Other Assets | 2,604 | ||
Due to brokers | 4,422 | ||
Other liabilities and accrued expenses | $ 440 | ||
[1] | Asset and liability amounts in parentheses represent the aggregated balances at June 30, 2019 and December 31, 2018 attributable to variable interest entities consolidated by the Company. Refer to Note 4 for further discussion. |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Total revenue | $ 101,792 | $ 94,410 | $ 196,018 | $ 188,874 |
Expenses: | ||||
Employee compensation and benefits | 36,846 | 32,506 | 70,561 | 63,662 |
Distribution and service fees | 14,188 | 12,440 | 26,724 | 25,282 |
General and administrative | 11,539 | 11,972 | 22,977 | 24,157 |
Depreciation and amortization | 1,115 | 1,205 | 2,217 | 2,267 |
Total expenses | 63,688 | 58,123 | 122,479 | 115,368 |
Operating income | 38,104 | 36,287 | 73,539 | 73,506 |
Non-operating income: | ||||
Interest and dividend income—net | 1,920 | 2,886 | 3,461 | 4,687 |
Gain (loss) from investments—net | 1,874 | (603) | 15,738 | (5,105) |
Foreign currency gain (loss)—net | 742 | (3,061) | 247 | (559) |
Total non-operating income (loss) | 4,536 | (778) | 19,446 | (977) |
Income before provision for income taxes | 42,640 | 35,509 | 92,985 | 72,529 |
Provision for income taxes | 9,991 | 9,940 | 20,359 | 18,036 |
Net income | 32,649 | 25,569 | 72,626 | 54,493 |
Less: Net (income) loss attributable to redeemable noncontrolling interests | (1,316) | 4,390 | (8,750) | 3,052 |
Net income attributable to common stockholders | $ 31,333 | $ 29,959 | $ 63,876 | $ 57,545 |
Earnings per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ 0.66 | $ 0.64 | $ 1.35 | $ 1.23 |
Diluted (in dollars per share) | 0.65 | 0.63 | 1.33 | 1.22 |
Dividends declared per share (in dollars per share) | $ 0.36 | $ 0.33 | $ 0.72 | $ 0.66 |
Weighted average shares outstanding: | ||||
Basic (shares) | 47,304 | 46,819 | 47,226 | 46,751 |
Diluted (shares) | 48,175 | 47,311 | 47,942 | 47,237 |
Investment advisory and administration fees | ||||
Revenue: | ||||
Total revenue | $ 91,473 | $ 84,420 | $ 176,105 | $ 168,854 |
Distribution and service fees | ||||
Revenue: | ||||
Total revenue | 7,418 | 7,257 | 14,391 | 14,657 |
Portfolio consulting and other | ||||
Revenue: | ||||
Total revenue | $ 2,901 | $ 2,733 | $ 5,522 | $ 5,363 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 32,649 | $ 25,569 | $ 72,626 | $ 54,493 |
Less: Net (income) loss attributable to redeemable noncontrolling interests | (1,316) | 4,390 | (8,750) | 3,052 |
Net income attributable to common stockholders | 31,333 | 29,959 | 63,876 | 57,545 |
Foreign currency translation income (loss) | (298) | (1,615) | 100 | (1,077) |
Total comprehensive income attributable to common stockholders | $ 31,035 | $ 28,344 | $ 63,976 | $ 56,468 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity and Redeemable Noncontrolling Interest (Unaudited) - USD ($) $ in Thousands | Total | Common stocks | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Total Stockholders' Equity | Redeemable Noncontrolling Interests |
Cumulative-effect adjustment, net of tax, due to the adoption of the new financial instruments accounting standard | $ 1,095 | $ (1,095) | ||||||
Beginning balance at Dec. 31, 2017 | $ 511 | $ 570,486 | (137,972) | (3,671) | $ (153,818) | $ 275,536 | ||
Beginning balance (redeemable noncontrolling interest) at Dec. 31, 2017 | $ 47,795 | |||||||
Dividends | (32,001) | (32,001) | ||||||
Issuance of common stock | 7 | 437 | 444 | |||||
Repurchase of common stock | (10,554) | (10,554) | ||||||
Issuance of restricted stock units | 1,434 | 1,434 | ||||||
Amortization of restricted stock units | 11,686 | 11,686 | ||||||
Forfeitures of restricted stock units | (8) | (8) | ||||||
Net income (loss) | $ 54,493 | 57,545 | 57,545 | (3,052) | ||||
Other comprehensive income (loss), net of tax | (1,077) | (1,077) | ||||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | (44,490) | 40,252 | ||||||
Ending balance at Jun. 30, 2018 | 518 | 584,035 | (111,333) | (5,843) | (164,372) | 303,005 | ||
Ending balance (redeemable noncontrolling interest) at Jun. 30, 2018 | 84,995 | |||||||
Beginning balance at Mar. 31, 2018 | 518 | 577,169 | (125,293) | (4,228) | (164,323) | 283,843 | ||
Beginning balance (redeemable noncontrolling interest) at Mar. 31, 2018 | 81,604 | |||||||
Dividends | (15,999) | (15,999) | ||||||
Issuance of common stock | 0 | 187 | 187 | |||||
Repurchase of common stock | 49 | (49) | ||||||
Issuance of restricted stock units | 701 | 701 | ||||||
Amortization of restricted stock units | 5,986 | 5,986 | ||||||
Forfeitures of restricted stock units | (8) | (8) | ||||||
Net income (loss) | 25,569 | 29,959 | 29,959 | (4,390) | ||||
Other comprehensive income (loss), net of tax | (1,615) | (1,615) | ||||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 7,781 | |||||||
Ending balance at Jun. 30, 2018 | 518 | 584,035 | (111,333) | (5,843) | (164,372) | 303,005 | ||
Ending balance (redeemable noncontrolling interest) at Jun. 30, 2018 | 84,995 | |||||||
Beginning balance at Dec. 31, 2018 | 222,646 | 518 | 602,272 | (208,404) | (7,323) | (164,417) | 222,646 | |
Beginning balance (redeemable noncontrolling interest) at Dec. 31, 2018 | 114,192 | |||||||
Forfeitures of restricted stock units | (8) | |||||||
Ending balance at Mar. 31, 2019 | 525 | 609,854 | (193,523) | (6,925) | (174,770) | 235,161 | ||
Ending balance (redeemable noncontrolling interest) at Mar. 31, 2019 | 64,354 | |||||||
Beginning balance at Dec. 31, 2018 | 222,646 | 518 | 602,272 | (208,404) | (7,323) | (164,417) | 222,646 | |
Beginning balance (redeemable noncontrolling interest) at Dec. 31, 2018 | 114,192 | |||||||
Dividends | (35,324) | (35,324) | ||||||
Issuance of common stock | 8 | 534 | 542 | |||||
Repurchase of common stock | (10,385) | (10,385) | ||||||
Issuance of restricted stock units | 1,583 | 1,583 | ||||||
Amortization of restricted stock units | 13,345 | 13,345 | ||||||
Forfeitures of restricted stock units | (8) | |||||||
Net income (loss) | 72,626 | 63,876 | 63,876 | 8,750 | ||||
Other comprehensive income (loss), net of tax | 100 | 100 | ||||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | (15,392) | (16,634) | ||||||
Net consolidation (deconsolidation) of Company-sponsored funds | (68,204) | |||||||
Ending balance at Jun. 30, 2019 | 256,375 | 526 | 617,726 | (179,852) | (7,223) | (174,802) | 256,375 | |
Ending balance (redeemable noncontrolling interest) at Jun. 30, 2019 | 38,104 | |||||||
Beginning balance at Mar. 31, 2019 | 525 | 609,854 | (193,523) | (6,925) | (174,770) | 235,161 | ||
Beginning balance (redeemable noncontrolling interest) at Mar. 31, 2019 | 64,354 | |||||||
Dividends | 17,662 | (17,662) | ||||||
Issuance of common stock | 1 | 219 | 220 | |||||
Repurchase of common stock | 32 | (32) | ||||||
Issuance of restricted stock units | 786 | 786 | ||||||
Amortization of restricted stock units | 6,875 | 6,875 | ||||||
Forfeitures of restricted stock units | (8) | |||||||
Net income (loss) | 32,649 | 31,333 | 31,333 | 1,316 | ||||
Other comprehensive income (loss), net of tax | (298) | (298) | ||||||
Net contributions (distributions) attributable to redeemable noncontrolling interests | 27,566 | |||||||
Ending balance at Jun. 30, 2019 | $ 256,375 | $ 526 | $ 617,726 | $ (179,852) | $ (7,223) | $ (174,802) | $ 256,375 | |
Ending balance (redeemable noncontrolling interest) at Jun. 30, 2019 | $ 38,104 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 72,626 | $ 54,493 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation expense | 13,766 | 12,045 |
Amortization of deferred commissions | 469 | 903 |
Depreciation and amortization | 2,217 | 2,267 |
Amortization of right-of-use assets | 5,056 | 4,326 |
Amortization (accretion) of premium (discount) on held-to-maturity investments | (301) | 0 |
(Gain) loss from investments—net | (15,738) | 5,105 |
Deferred income taxes | 34 | 1,983 |
Foreign currency (gain) losses | (158) | (769) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,823) | 4,037 |
Due from brokers | 49 | (5,006) |
Deferred commissions | (624) | (592) |
Investments within consolidated funds | 1,828 | (42,342) |
Other assets | 136 | (1,475) |
Accrued compensation | (20,158) | (20,607) |
Distribution and service fees payable | (1,690) | 130 |
Operating lease liabilities | (5,459) | (4,443) |
Due to brokers | 1,680 | 2,193 |
Income tax payable | (22) | (5,583) |
Other liabilities and accrued expenses | (3,981) | (601) |
Net cash provided by (used in) operating activities | 45,907 | 6,064 |
Cash flows from investing activities: | ||
Proceeds from redemptions of equity method investments—net | 4 | 24 |
Purchases to investments | 18,731 | 7,343 |
Proceeds from sales of investments | 44,010 | 4,890 |
Purchases of property and equipment | (1,583) | (1,753) |
Net cash provided by (used in) investing activities | 23,700 | (4,182) |
Cash flows from financing activities: | ||
Issuance of common stock | 413 | 377 |
Repurchase of common stock | (10,385) | (10,554) |
Dividends to stockholders | (34,041) | (30,893) |
Distributions to redeemable noncontrolling interest | (32,026) | (4,238) |
Contributions from redeemable noncontrolling interests | 15,392 | 44,490 |
Net cash provided by (used in) financing activities | (60,647) | (818) |
Net increase (decrease) in cash and cash equivalents | 8,960 | 1,064 |
Effect of foreign exchange rate changes on cash and cash equivalents | 416 | (787) |
Cash and cash equivalents, beginning of the period | 92,733 | 193,452 |
Cash and cash equivalents, end of the period | $ 102,109 | $ 193,729 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) (Supplemental Disclosures of Cash Flow Information) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes Paid, Net | $ 20,347,000 | $ 21,692,000 |
Restricted stock unit dividend equivalents, net of forfeitures | 1,283,000 | $ 1,108,000 |
SICAV Preferred | ||
Non-cash decrease in noncontrolling interest | 114,192,000 | |
Non-cash increase in equity investments at fair value | 15,132,000 | |
SICAV GRE | ||
Noncontrolling Interest, Period Increase (Decrease) | 45,988,000 | |
ICAV | ||
Non-cash decrease in noncontrolling interest | $ 6,411,000 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Cohen & Steers, Inc. (CNS) was organized as a Delaware corporation on March 17, 2004. CNS is the holding company for its direct and indirect subsidiaries, including Cohen & Steers Capital Management, Inc. (CSCM), Cohen & Steers Securities, LLC (CSS), Cohen & Steers Asia Limited (CSAL), Cohen & Steers UK Limited (CSUK) and Cohen & Steers Japan, LLC (collectively, the Company). The Company is a global investment manager specializing in liquid real assets, including real estate securities, listed infrastructure and natural resource equities, as well as preferred securities and other income solutions. Founded in 1986, the Company is headquartered in New York City, with offices in London, Hong Kong and Tokyo. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements set forth herein include the accounts of CNS and its direct and indirect subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements of the Company included herein are unaudited and 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). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the interim results have been made. The Company's condensed consolidated financial statements and the related notes should be read together with the consolidated financial statements and the related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . Recently Adopted Accounting Pronouncements —In February 2018, the Financial Accounting Standards Board (FASB) issued new guidance allowing entities to reclassify certain tax effects related to the enactment of the Tax Cuts and Jobs Act (the Tax Act) from accumulated other comprehensive income (AOCI) to retained earnings. Prior to the issuance of the new guidance, a portion of the previously recognized deferred tax effects recorded in AOCI was "left stranded" in AOCI as the effect of remeasuring the deferred taxes using the reduced federal corporate income tax rate was required to be recorded through income. The new guidance allows these stranded tax effects to be reclassified from AOCI to retained earnings. The new guidance became effective on January 1, 2019 and the Company adopted the standard using the prospective application. The Company's adoption of the new standard did not have a material effect on its consolidated financial statements and related disclosures. In February 2016, the FASB issued guidance introducing a new lease model which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new guidance establishes a right-of-use (ROU) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. This new guidance became effective on January 1, 2019 and the Company adopted the standard, along with certain allowable practical expedients, using the modified retrospective transition approach, which required the recasting of prior period amounts. The adoption of the new leasing standard resulted in the following changes to the Company's condensed consolidated statement of financial condition for the year ended December 31, 2018: (in thousands) Previously Reported Adjustments Due to New Leasing Standard to record ROU assets and lease liabilities Reclassification of Deferred Rent Recast Operating lease right-of-use assets $ — $ 54,304 $ (5,816 ) $ 48,488 Operating lease liabilities $ — $ 54,304 $ — $ 54,304 Deferred rent $ 5,816 $ — $ (5,816 ) $ — The adoption of the new standard had no material impact on the Company's other condensed consolidated financial statements. Refer to Note 12 for further discussion. Accounting Estimates —The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. Consolidation of Company-sponsored Funds —Investments in Company-sponsored funds and management fees are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model. In performing this analysis, all of the Company's management fees are presumed to be commensurate and at market and are therefore not considered variable interests. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (ii) the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has (i) the power to direct the activities of the VIE that most significantly affect its performance, and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Investments and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated. Investments in Company-sponsored funds that are determined to be VOEs are consolidated when the Company's ownership interest is greater than 50% of the outstanding voting interests of the fund or when the Company is the general partner of the fund and the limited partners do not have substantive kick-out or participating rights in the fund. The Company records noncontrolling interests in consolidated funds for which the Company's ownership is less than 100%. Cash and Cash Equivalents —Cash and cash equivalents are on deposit with three major financial institutions and consist of short-term, highly-liquid investments, which are readily convertible into cash and have original maturities of three months or less. Due from/to Brokers —Company-sponsored funds that are consolidated transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balance represents cash and cash equivalents balances at brokers/custodians and/or receivables and payables for unsettled securities transactions. Investments —Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. At June 30, 2019 , the Company's investments were comprised of the following: • Equity investments at fair value, which includes securities held within the affiliated funds that the Company consolidates, individual securities held directly for the purposes of establishing performance track records and seed investments in Company-sponsored open-end funds where the Company has neither control nor the ability to exercise significant influence. • Trading investments, which represent debt securities held within the affiliated funds that the Company consolidates and individual debt securities held directly for the purposes of establishing performance track records. • Held-to-maturity investments, which represent fixed income securities recorded at amortized cost. The Company periodically reviews held-to-maturity investments for other-than-temporary impairments (OTTI). If the Company believes an OTTI exists, an impairment charge will be recognized in the Company’s condensed consolidated statements of operations. • Equity method investments, which represent seed investments in which the Company owns between 20-50% of the outstanding voting interests in the affiliated fund or when it is determined that the Company is able to exercise significant influence but not control over the investments. When using the equity method, the Company recognizes its respective share of the affiliated investee fund net income or loss for the period which is recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. From time to time, the Company, including the affiliated funds consolidated by the Company, enters into derivative contracts to gain exposure to the underlying commodities markets or to hedge market and credit risks of the underlying portfolios, including options, futures and swaps contracts. Gains and losses on derivative contracts are recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. At June 30, 2019 , none of the outstanding derivative contracts were subject to a master netting agreement or other similar arrangement. Additionally, from time to time, the Company, including the affiliated funds consolidated by the Company, enters into foreign exchange contracts to hedge its currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition. Leases —The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the net present value of lease payments over the lease term. None of the Company’s lease agreements provide an implicit rate. As a result, the Company used an implied incremental borrowing rate based on the information available at lease commencement dates in determining the present value of lease payments. The operating lease ROU asset reflects any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. Goodwill and Intangible Assets —Goodwill represents the excess of the cost of the Company's investment in the net assets of an acquired company over the fair value of the underlying identifiable net assets at the date of acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are tested at least annually for impairment by comparing the fair value to their carrying amounts. Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent third-party interests in the affiliated funds that the Company consolidates. These interests are redeemable at the option of the investors and therefore are not treated as permanent equity. Redeemable noncontrolling interest is remeasured at redemption value which approximates the fair value at each reporting period. Investment Advisory and Administration Fees —The Company earns revenue by providing asset management services to institutional accounts and to Company-sponsored open-end and closed-end funds. Investment advisory fees are earned pursuant to the terms of investment management agreements and are based on a contractual fee rate applied to the average assets in the portfolio. The Company also earns administration fees from certain Company-sponsored open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. Distribution and Service Fee Revenue —Distribution and service fee revenue is based on the average daily net assets of certain share classes of the Company's sponsored open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is generally recorded gross of any third-party distribution and service fee expense for applicable share classes. Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in a Company-sponsored open-end fund. Distribution fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. For both the three and six months ended June 30, 2019 and 2018, a portion of the distribution fee revenue recognized in the period may relate to performance obligations satisfied (or partially satisfied) in prior periods. Service fee agreements include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Service fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. Portfolio Consulting and Other —The Company earns the majority of its portfolio consulting and other fees by (i) providing portfolio consulting services in connection with model-based strategy accounts, (ii) earning a licensing fee for the use of the Company's proprietary indexes and (iii) providing portfolio monitoring services related to a number of unit investment trusts. Revenue is earned pursuant to the terms of the underlying contracts and the fee schedules for these relationships vary based on the type of services the Company provides for each relationship. The majority of the Company's revenue from portfolio consulting and other is recognized over time and represents variable consideration, as fees are based on average assets under advisement which fluctuate daily. Distribution and Service Fee Expense —Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments. Distribution and service fee expense is recorded on an accrual basis. Distribution fee expense represents payments made to qualified intermediaries for (i) assistance in connection with the distribution of the Company's sponsored open-end funds' shares and (ii) for other expenses such as advertising costs and printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940 (Rule 12b-1). The Company pays distribution fee expense based on the average daily net assets under management of certain share classes of certain of the funds. Shareholder servicing fee expense represents payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. The Company pays shareholder servicing fee expense generally based on the average assets under management or the number of accounts being serviced. Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing and marketing and support of the Company's sponsored open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on the average assets under management or the number of accounts being serviced. Stock-based Compensation —The Company recognizes compensation expense for the grant-date fair value of awards of equity instruments to employees. This expense is recognized over the period during which employees are required to provide service. Forfeitures are recorded as incurred. Income Taxes —The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods represents the Company's best estimate of the effective tax rate expected to be applied to the full fiscal year. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across the Company's global operations. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations. Currency Translation and Transactions —Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. The cumulative translation adjustment was $(7,223,000) and $(7,323,000) at June 30, 2019 and December 31, 2018 , respectively. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar held by certain foreign subsidiaries are included in non-operating income (loss) in the condensed consolidated statements of operations. Gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by foreign subsidiaries are also included in non-operating income (loss) in the Company’s condensed consolidated statements of operations. Comprehensive Income —The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss), net of tax. Recently Issued Accounting Pronouncements —In January 2017, the FASB issued guidance to simplify the goodwill impairment test by removing the requirement to perform a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective on January 1, 2020. The Company does not expect the adoption of the new guidance to have a material effect on its condensed consolidated financial statements and related disclosures. |
Revenue Revenue
Revenue Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables summarize revenue recognized from contracts with customers by client domicile and by vehicle: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Client domicile: North America $ 87,267 $ 80,109 $ 167,710 $ 159,816 Japan 8,387 8,883 16,618 17,976 Asia excluding Japan 2,554 3,058 5,706 6,093 Europe, Middle East and Africa 3,584 2,360 5,984 4,989 Total $ 101,792 $ 94,410 $ 196,018 $ 188,874 Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Vehicle: Open-end funds (1) $ 52,649 $ 47,778 $ 100,117 $ 95,230 Closed-end funds 20,002 19,133 39,054 38,310 Institutional accounts 26,240 24,766 51,325 49,971 Portfolio consulting and other 2,901 2,733 5,522 5,363 Total $ 101,792 $ 94,410 $ 196,018 $ 188,874 ________________________ (1) Included distribution and service fees of $7.4 million and $7.3 million for the three months ended June 30, 2019 and 2018, respectively, and $14.4 million and $14.7 million for the six months ended June 30, 2019 and 2018, respectively. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | Investments The following table summarizes the Company's investments: (in thousands) June 30, 2019 December 31, 2018 Equity investments at fair value $ 76,809 $ 66,795 Trading 26,179 108,363 Held-to-maturity (1) 49,949 49,748 Equity method 24 26 Total investments $ 152,961 $ 224,932 _________________________ (1) Held-to-maturity investments had a fair value of approximately $50.1 million and $49.8 million at June 30, 2019 and December 31, 2018, respectively. Original maturities ranged from 6 to 24 months for both periods. The Company seeded one new fund during each of the six months ended June 30, 2019 and 2018. The following table summarizes gain (loss)—net from investments: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Net realized gains (losses) $ 4,526 $ (322 ) $ 3,759 $ (167 ) Net unrealized gains (losses) (2,652 ) (281 ) 11,979 (4,938 ) Gain (loss) from investments—net (1) $ 1,874 $ (603 ) $ 15,738 $ (5,105 ) ________________________ (1) Includes net income (loss) attributable to redeemable noncontrolling interests. At June 30, 2019 , the Company's consolidated VIEs included the Cohen & Steers SICAV Global Listed Infrastructure Fund (GLI SICAV), the Cohen & Steers Co-Investment Partnership, L.P. (GRP-CIP), SICAV GRE and the Cohen & Steers SICAV Diversified Real Assets Fund (SICAV RAP). At December 31, 2018, the Company's consolidated VIEs included GLI SICAV, GRP-CIP, SICAV Preferred and SICAV RAP. The following tables summarize the condensed consolidated statements of financial condition attributable to the Company's consolidated VIEs: June 30, 2019 (in thousands) GLI SICAV GRP-CIP SICAV GRE SICAV RAP Total Assets (1) Investments $ 6,480 $ 481 $ 47,541 $ 10,408 $ 64,910 Due from brokers 482 104 2,059 692 3,337 Other assets 117 — 781 222 1,120 Total assets $ 7,079 $ 585 $ 50,381 $ 11,322 $ 69,367 Liabilities (1) Due to brokers $ 146 $ — $ 1,951 $ 306 $ 2,403 Other liabilities and accrued expenses 91 5 211 165 472 Total liabilities $ 237 $ 5 $ 2,162 $ 471 $ 2,875 December 31, 2018 (in thousands) GLI SICAV GRP-CIP SICAV Preferred SICAV RAP Total Assets (1) Investments $ 5,704 $ 550 $ 120,930 $ 8,929 $ 136,113 Due from brokers 49 103 10,868 167 11,187 Other assets 171 — 2,136 297 2,604 Total assets $ 5,924 $ 653 $ 133,934 $ 9,393 $ 149,904 Liabilities (1) Due to brokers $ — $ — $ 4,398 $ 24 $ 4,422 Other liabilities and accrued expenses 74 5 212 149 440 Total liabilities $ 74 $ 5 $ 4,610 $ 173 $ 4,862 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Accounting Standards Codification Topic 820, Fair Value Measurement (ASC 820) specifies a hierarchy of valuation classifications based on whether the inputs to the valuation techniques used in each valuation classification are observable or unobservable. These classifications are summarized in the three broad levels listed below: • Level 1—Unadjusted quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. • Level 3—Valuations derived from valuation techniques in which significant inputs or significant value drivers are unobservable. Inputs used to measure fair value might fall in different levels of the fair value hierarchy, in which case the Company defaults to the lowest level input that is significant to the fair value measurement in its entirety. These levels are not necessarily an indication of the risk or liquidity associated with the investments. In determining the appropriate levels, the Company performed a detailed analysis of the assets and liabilities that are subject to ASC 820. The following tables present fair value measurements: June 30, 2019 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV Investments Carried at Amortized Cost Total Cash equivalents $ 92,831 $ — $ — $ — $ — $ 92,831 Equity investments at fair value Common stocks $ 73,576 $ — $ — $ — $ — $ 73,576 Company-sponsored funds 80 — — — — 80 Limited partnership interests 1,153 — — 481 — 1,634 Preferred securities 1,281 111 — — — 1,392 Other — — — 127 — 127 Total $ 76,090 $ 111 $ — $ 608 $ — $ 76,809 Trading investments Fixed income $ — $ 26,179 $ — $ — $ — $ 26,179 Total $ — $ 26,179 $ — $ — $ — $ 26,179 Held-to-maturity investments Fixed income $ — $ — $ — $ — $ 49,949 $ 49,949 Total $ — $ — $ — $ — $ 49,949 $ 49,949 Equity method investments $ — $ — $ — $ 24 $ — $ 24 Total investments $ 76,090 $ 26,290 $ — $ 632 $ 49,949 $ 152,961 Derivatives - assets Commodity futures contracts $ 343 $ — $ — $ — $ — $ 343 Commodity swap contracts — 172 — — — 172 Foreign exchange contracts — 5 — — — 5 Total $ 343 $ 177 $ — $ — $ — $ 520 Derivatives - liabilities Commodity futures contracts $ 208 $ — $ — $ — $ — $ 208 Foreign exchange contracts — 246 — — — 246 Total $ 208 $ 246 $ — $ — $ — $ 454 December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV Investments Carried at Amortized Cost Total Cash equivalents $ 78,147 $ — $ — $ — $ — $ 78,147 Equity investments at fair value Common stocks $ 21,982 $ — $ — $ — $ — $ 21,982 Company-sponsored funds 9,456 — — — — 9,456 Limited partnership interests 1,056 — — 550 — 1,606 Preferred securities 30,448 3,193 — — — 33,641 Other — — — 110 — 110 Total $ 62,942 $ 3,193 $ — $ 660 $ — $ 66,795 Trading investments Fixed income $ — $ 108,363 $ — $ — $ — $ 108,363 Total $ — $ 108,363 $ — $ — $ — $ 108,363 Held-to-maturity investments Fixed income $ — $ — $ — $ — $ 49,748 $ 49,748 Total $ — $ — $ — $ — $ 49,748 $ 49,748 Equity method investments $ — $ — $ — $ 26 $ — $ 26 Total investments $ 62,942 $ 111,556 $ — $ 686 $ 49,748 $ 224,932 Derivatives - assets Commodity futures contracts $ 486 $ — $ — $ — $ — $ 486 Commodity swap contracts — 739 — — — 739 Total $ 486 $ 739 $ — $ — $ — $ 1,225 Derivatives - liabilities Commodity futures contracts $ 2,181 $ — $ — $ — $ — $ 2,181 Foreign exchange contracts — 205 — — — 205 Total $ 2,181 $ 205 $ — $ — $ — $ 2,386 Cash equivalents were comprised of investments in actively traded U.S. Treasury money market funds measured at NAV. Equity investments at fair value classified as level 2 were comprised of certain preferred securities with predominately equity-like characteristics whose fair values are generally determined using third-party pricing services. The pricing services may utilize pricing models, and inputs into those models may include reported trades, executable bid and ask prices, broker-dealer quotations, prices or yields of similar securities, benchmark curves and other market information. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics to determine the valuation for a security. Trading investments classified as level 2 were comprised of U.S. Treasury securities held within consolidated funds carried at amortized cost, which approximates fair value, corporate debt securities, as well as certain preferred securities with predominately debt-like characteristics. The fair value amounts were generally determined using third-party pricing services. The pricing services may utilize evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information. Since these securities do not trade on a daily basis, the pricing services evaluate pricing applications and apply available information through processes such as yield curves, benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. Investments measured at NAV were comprised of certain investments measured at fair value using NAV (or its equivalent) as a practical expedient. These investments were comprised of: • Equity investments at fair value - limited partner interests in limited partnership vehicles that invest in non-registered real estate funds and the Company's co-investment in a Cayman trust invested in global listed infrastructure securities, both of which are valued based on the NAVs of the underlying investments. At June 30, 2019 and December 31, 2018, the Company did not have the ability to redeem the interests in the limited partnership vehicles; there were no contractual restrictions on the Company's ability to redeem its interest in the Cayman trust. • Equity method investments - the Company's partnership interest in a Company-sponsored limited partnership that invests in non-registered real estate funds, which approximated its fair value based on the fund's NAV. The Company's ownership in this limited partnership was approximately 0.2% at both June 30, 2019 and December 31, 2018. The Company's risk with respect to this investment is limited to its equity ownership and any uncollected management fees. At June 30, 2019 and December 31, 2018, the Company did not have the ability to redeem this investment. Held-to-maturity investments were comprised of U.S. Treasury securities, which were directly issued by the U.S. government, with original maturities of 6 to 24 months. These securities were purchased with the intent to hold to maturity and are recorded at amortized cost. Investments measured at NAV and held-to-maturity investments have not been classified in the fair value hierarchy. The amounts presented in the above tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the consolidated statement of financial position. Commodity swap contracts classified as level 2 were valued based on the underlying futures contracts. Foreign currency exchange contracts classified as level 2 were valued based on the prevailing forward exchange rate. The following table summarizes the changes in level 3 limited partnership interests in trading investments measured at fair value on a recurring basis: (in thousands) Three Months Ended Six Months Ended Balance at beginning of the period $ — $ 605 Purchases / contributions — — Sales / distributions — (598 ) Realized gains (losses) — (68 ) Unrealized gains (losses) — 61 Transfers into (out of) level 3 — — Balance at end of the period $ — $ — Realized and unrealized gains (losses) in the above table were recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Valuation Techniques In certain instances, debt, equity and preferred securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable broker-dealers or independent pricing services. In determining the value of a particular investment, independent pricing services may use information with respect to transactions in such investments, broker quotes, pricing matrices, market transactions in comparable investments and various relationships between investments. As part of its independent price verification process, the Company generally performs reviews of valuations provided by broker-dealers or independent pricing services. Investments in Company-sponsored funds are valued at their closing price or NAV (or its equivalent) as a practical expedient. Foreign exchange contracts are valued based on the prevailing forward exchange rate, which is an input that is observable in active markets. In the absence of observable market prices, the Company values its investments using valuation methodologies applied on a consistent basis. For some investments, little market activity may exist; management's determination of fair value is then based on the best information available in the circumstances, and may incorporate management's own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors. Such investments are valued on a quarterly basis, taking into consideration any changes in key inputs and changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by the Company's valuation committee which is comprised of senior members from various departments within the Company, including investment management. The valuation committee provides independent oversight of the valuation policies and procedures. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The following tables summarize the notional and fair value of the derivative financial instruments. The notional amount represents the aggregate absolute value of all outstanding derivative contracts: As of June 30, 2019 Fair Value (1) (in thousands) Notional Amount Assets Liabilities Commodity futures $ 13,569 $ 343 $ 208 Commodity swap 9,014 172 — Foreign exchange 13,189 5 246 Total $ 520 $ 454 As of December 31, 2018 Fair Value (1) (in thousands) Notional Amount Assets Liabilities Commodity futures $ 22,795 $ 486 $ 2,181 Commodity swap 8,761 739 — Foreign exchange 10,996 — 205 Total $ 1,225 $ 2,386 ________________________ (1) The fair value of the derivative financial instruments is recorded in other assets and other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. Cash included in due from brokers of approximately $150,000 and $2,002,000 , and investments of approximately $1,766,000 and $1,807,000 on the condensed consolidated statements of financial condition at June 30, 2019 and December 31, 2018 , respectively, were held as collateral for futures contracts. The following table summarizes net gains (losses) from derivative financial instruments: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Commodity futures $ (155 ) $ 27 $ 741 $ (7 ) Commodity swap 395 — (346 ) — Foreign exchange (228 ) 1,237 (36 ) 391 Total (1) $ 12 $ 1,264 $ 359 $ 384 ________________________ (1) Gains and losses on the derivative financial instruments are recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to common stockholders by the weighted average shares outstanding. Diluted earnings per share is calculated using the treasury stock method by dividing net income attributable to common stockholders by the total weighted average shares of common stock outstanding and common stock equivalents. Common stock equivalents are comprised of dilutive potential shares from restricted stock unit awards and are excluded from the computation if their effect is anti-dilutive. There were no anti-dilutive common stock equivalents for both the three months ended June 30, 2019 and 2018, as well as the six months ended June 30, 2018 . Anti-dilutive common stock equivalents of approximately 2,300 shares were excluded from the computation for the six months ended June 30, 2019 . The following table reconciles income and share data used in the basic and diluted earnings per share computations: Three Months Ended Six Months Ended (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 32,649 $ 25,569 $ 72,626 $ 54,493 Less: Net (income) loss attributable to redeemable noncontrolling interests (1,316 ) 4,390 (8,750 ) 3,052 Net income attributable to common stockholders $ 31,333 $ 29,959 $ 63,876 $ 57,545 Basic weighted average shares outstanding 47,304 46,819 47,226 46,751 Dilutive potential shares from restricted stock units 871 492 716 486 Diluted weighted average shares outstanding 48,175 47,311 47,942 47,237 Basic earnings per share attributable to common stockholders $ 0.66 $ 0.64 $ 1.35 $ 1.23 Diluted earnings per share attributable to common stockholders $ 0.65 $ 0.63 $ 1.33 $ 1.22 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes includes U.S. federal, state, local and foreign taxes. The effective tax rate for the three months ended June 30, 2019 was approximately 24.2% , compared with 24.9% for the three months ended June 30, 2018 . The effective tax rate for the three months ended June 30, 2019 differed from the U.S. federal statutory rate of 21% primarily due to state, local and foreign taxes. The effective tax rate for the three months ended June 30, 2018 differed from the U.S. federal statutory rate of 21% primarily due to state, local and foreign taxes, partially offset by a benefit related to an adjustment to the Company's transition tax liability in connection with the Tax Act. The effective tax rate for the six months ended June 30, 2019 was approximately 24.2% , compared with 23.9% for the six months ended June 30, 2018 . The effective tax rate for the six months ended June 30, 2019 differed from the U.S. federal statutory rate of 21% primarily due to state, local and foreign taxes, partially offset by tax effects related to the delivery of restricted stock units. The effective tax rate for the six months ended June 30, 2018 differed from the U.S. federal statutory rate of 21% primarily due to state, local and foreign taxes, partially offset by tax effects related to the delivery of restricted stock units and an adjustment to the Company's transition tax liability in connection with the Tax Act. Deferred income taxes represent the tax effects of the temporary differences between book and tax bases and are measured using enacted tax rates that will be in effect when such items are expected to reverse. The Company's net deferred tax asset was primarily comprised of future income tax deductions attributable to the delivery of unvested restricted stock units. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. |
Regulatory Requirements
Regulatory Requirements | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Requirements | Regulatory Requirements CSS, a registered broker-dealer in the U.S., is subject to the SEC's Uniform Net Capital Rule 15c3-1 (the Rule), which requires that broker-dealers maintain a minimum level of net capital, as prescribed by the Rule. At June 30, 2019 , CSS had net capital of approximately $4.0 million , which exceeded its requirements by approximately $3.8 million . The Rule also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital of a broker-dealer is less than the amount required under the Rule and requires prior notice to the SEC for certain withdrawals of capital. CSS does not carry customer accounts and is exempt from SEC Rule 15c3-3 pursuant to provisions (k)(1) and (k)(2)(i) of such rule. In April 2019, the Company contributed an additional $2.0 million of capital to CSS. CSAL is subject to regulation by the Hong Kong Securities and Futures Commission. At June 30, 2019 , CSAL had regulatory capital of approximately $21.3 million , which exceeded its minimum regulatory capital requirements by approximately $20.9 million . CSUK is subject to regulation by the United Kingdom Financial Conduct Authority. At June 30, 2019 , CSUK had regulatory capital of approximately $36.7 million , which exceeded its minimum regulatory capital requirements by approximately $31.5 million . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company is an investment adviser to, and has administration agreements with, affiliated funds for which certain employees are officers and/or directors. The following table summarizes the amount of revenue the Company earned from these affiliated funds: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Investment advisory and administration fees (1) $ 65,409 $ 59,590 $ 125,105 $ 118,894 Distribution and service fees 7,418 7,257 14,391 14,657 Total $ 72,827 $ 66,847 $ 139,496 $ 133,551 _________________________ (1) Investment advisory and administration fees are reflected net of fund reimbursements of $2.4 million and $1.6 million for the three months ended June 30, 2019 and 2018, respectively, and $4.8 million and $4.3 million for the six months ended June 30, 2019 and 2018, respectively. The following table summarizes sales proceeds, gross realized gains, gross realized losses and dividend income from investments in Company-sponsored funds that are not consolidated: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Proceeds from sales $ 5,399 $ 7,729 $ 26,506 $ 7,729 Gross realized gains 32 — 32 — Gross realized losses — (4,447 ) (907 ) (4,447 ) Dividend income 28 115 30 267 Included in accounts receivable at June 30, 2019 and December 31, 2018 are receivables due from Company-sponsored funds of approximately $25,301,000 and $22,560,000 , respectively. Included in accounts payable at June 30, 2019 and December 31, 2018 are payables due to Company-sponsored funds of approximately $1,080,000 and $845,000 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, the Company is involved in legal matters relating to claims arising in the ordinary course of business. There are currently no such matters pending that the Company believes could have a material adverse effect on its consolidated results of operations, cash flows or financial position. The Company periodically commits to fund a portion of the equity in certain of its sponsored investment products. The Company has committed to co-invest up to $5.1 million alongside Cohen & Steers Global Realty Partners III-TE, L.P. (GRP-TE), a portion of which is made through GRP-TE and the remainder of which is made through Cohen & Steers Co-Investment Partnership, L.P. (GRP-CIP) for up to 12 years through the life of GRP-TE. As of June 30, 2019 , the Company had funded approximately $3.8 million with respect to this commitment. The actual timing for funding the unfunded portion of this commitment is currently unknown, as the drawdown of the Company's unfunded commitment is contingent on the timing of drawdowns by the underlying funds in which GRP-TE and CRP-CIP invest. At June 30, 2019 , the unfunded commitment was not recorded on the Company's condensed consolidated statements of financial condition. |
Leases Leases
Leases Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices and certain information technology equipment. The following table summarizes the Company's lease cost included in general and administrative expense in the condensed consolidated statements of operations: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Operating lease cost $ 2,880 $ 2,878 $ 5,761 $ 5,794 Supplemental cash flow information related to operating leases is summarized below: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Cash paid for amounts included in the measurement of lease liabilities $ 3,078 $ 2,950 $ 6,166 $ 5,912 Right-of-use assets obtained in exchange for new lease liabilities — — — 614 Other information related to operating leases is summarized below: June 30, December 31, Weighted-average remaining lease term (years) 4 5 Weighted-average discount rate 2.8 % 2.8 % The following table summarizes the maturities of lease liabilities at June 30, 2019 (in thousands): Year Ending December 31, Operating Leases 2019 $ 6,193 2020 11,920 2021 11,171 2022 10,868 2023 10,841 Thereafter 961 Total remaining undiscounted lease payments 51,954 Less: imputed interest 3,109 Total remaining discounted lease payments $ 48,845 |
Concentration of Credit Risk
Concentration of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk The Company's cash and cash equivalents are principally on deposit with three major financial institutions. The Company is subject to credit risk should these financial institutions be unable to fulfill their obligations. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the condensed consolidated financial statements were issued. Other than the items described below, the Company determined that there were no additional subsequent events that require disclosure and/or adjustment. On August 1, 2019, the Company declared a quarterly dividend on its common stock in the amount of $0.36 per share. The dividend will be payable on August 22, 2019 to stockholders of record at the close of business on August 12, 2019. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements —In February 2018, the Financial Accounting Standards Board (FASB) issued new guidance allowing entities to reclassify certain tax effects related to the enactment of the Tax Cuts and Jobs Act (the Tax Act) from accumulated other comprehensive income (AOCI) to retained earnings. Prior to the issuance of the new guidance, a portion of the previously recognized deferred tax effects recorded in AOCI was "left stranded" in AOCI as the effect of remeasuring the deferred taxes using the reduced federal corporate income tax rate was required to be recorded through income. The new guidance allows these stranded tax effects to be reclassified from AOCI to retained earnings. The new guidance became effective on January 1, 2019 and the Company adopted the standard using the prospective application. The Company's adoption of the new standard did not have a material effect on its consolidated financial statements and related disclosures. In February 2016, the FASB issued guidance introducing a new lease model which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new guidance establishes a right-of-use (ROU) model that requires a lessee to recognize an ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. This new guidance became effective on January 1, 2019 and the Company adopted the standard, along with certain allowable practical expedients, using the modified retrospective transition approach, which required the recasting of prior period amounts. The adoption of the new leasing standard resulted in the following changes to the Company's condensed consolidated statement of financial condition for the year ended December 31, 2018: (in thousands) Previously Reported Adjustments Due to New Leasing Standard to record ROU assets and lease liabilities Reclassification of Deferred Rent Recast Operating lease right-of-use assets $ — $ 54,304 $ (5,816 ) $ 48,488 Operating lease liabilities $ — $ 54,304 $ — $ 54,304 Deferred rent $ 5,816 $ — $ (5,816 ) $ — The adoption of the new standard had no material impact on the Company's other condensed consolidated financial statements. Refer to Note 12 for further discussion. |
Accounting Estimates | Accounting Estimates —The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes the estimates used in preparing the condensed consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. |
Consolidation of Company-sponsored Funds | Consolidation of Company-sponsored Funds —Investments in Company-sponsored funds and management fees are evaluated at inception and thereafter, if there is a reconsideration event, in order to determine whether to apply the Variable Interest Entity (VIE) model or the Voting Interest Entity (VOE) model. In performing this analysis, all of the Company's management fees are presumed to be commensurate and at market and are therefore not considered variable interests. A VIE is an entity in which either (i) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (ii) the group of holders of the equity investment at risk lack certain characteristics of a controlling financial interest. The primary beneficiary is the entity that has (i) the power to direct the activities of the VIE that most significantly affect its performance, and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. Investments and redemptions or amendments to the governing documents of the respective entities could affect an entity's status as a VIE or the determination of the primary beneficiary. The Company assesses whether it is the primary beneficiary of any VIEs identified by evaluating its economic interests in the entity held either directly by the Company and its affiliates or indirectly through employees. VIEs for which the Company is deemed to be the primary beneficiary are consolidated. Investments in Company-sponsored funds that are determined to be VOEs are consolidated when the Company's ownership interest is greater than 50% of the outstanding voting interests of the fund or when the Company is the general partner of the fund and the limited partners do not have substantive kick-out or participating rights in the fund. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents are on deposit with three major financial institutions and consist of short-term, highly-liquid investments, which are readily convertible into cash and have original maturities of three months or less. |
Due from/to Brokers | Due from/to Brokers —Company-sponsored funds that are consolidated transact with brokers for certain investment activities. The clearing and custody operations for these investment activities are performed pursuant to contractual agreements. The due from/to brokers balance represents cash and cash equivalents balances at brokers/custodians and/or receivables and payables for unsettled securities transactions. |
Investments | Investments —Management of the Company determines the appropriate classification of its investments at the time of purchase and re-evaluates such determination no less than on a quarterly basis. At June 30, 2019 , the Company's investments were comprised of the following: • Equity investments at fair value, which includes securities held within the affiliated funds that the Company consolidates, individual securities held directly for the purposes of establishing performance track records and seed investments in Company-sponsored open-end funds where the Company has neither control nor the ability to exercise significant influence. • Trading investments, which represent debt securities held within the affiliated funds that the Company consolidates and individual debt securities held directly for the purposes of establishing performance track records. • Held-to-maturity investments, which represent fixed income securities recorded at amortized cost. The Company periodically reviews held-to-maturity investments for other-than-temporary impairments (OTTI). If the Company believes an OTTI exists, an impairment charge will be recognized in the Company’s condensed consolidated statements of operations. • Equity method investments, which represent seed investments in which the Company owns between 20-50% of the outstanding voting interests in the affiliated fund or when it is determined that the Company is able to exercise significant influence but not control over the investments. When using the equity method, the Company recognizes its respective share of the affiliated investee fund net income or loss for the period which is recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. Realized and unrealized gains and losses on equity investments at fair value, trading investments and equity method investments are recorded in gain (loss) from investments—net in the Company's condensed consolidated statements of operations. From time to time, the Company, including the affiliated funds consolidated by the Company, enters into derivative contracts to gain exposure to the underlying commodities markets or to hedge market and credit risks of the underlying portfolios, including options, futures and swaps contracts. Gains and losses on derivative contracts are recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. The fair values of these instruments are recorded in other assets or other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. At June 30, 2019 , none of the outstanding derivative contracts were subject to a master netting agreement or other similar arrangement. Additionally, from time to time, the Company, including the affiliated funds consolidated by the Company, enters into foreign exchange contracts to hedge its currency exposure. These instruments are measured at fair value based on the prevailing forward exchange rate with gains and losses recorded in foreign currency gain (loss)—net in the Company’s condensed consolidated statements of operations. The fair values of these contracts are recorded in other assets or other liabilities and accrued expenses on the Company’s condensed consolidated statements of financial condition. |
Leases | Leases —The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and operating lease liabilities on the Company’s condensed consolidated statements of financial condition. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent obligations to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the net present value of lease payments over the lease term. None of the Company’s lease agreements provide an implicit rate. As a result, the Company used an implied incremental borrowing rate based on the information available at lease commencement dates in determining the present value of lease payments. The operating lease ROU asset reflects any upfront lease payments made as well as lease incentives received. The lease terms may include options to extend or terminate the lease and these are factored into the determination of the ROU asset and lease liability at lease inception when and if it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has certain lease agreements with non-lease components such as maintenance and executory costs, which are accounted for separately and not included in ROU assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets —Goodwill represents the excess of the cost of the Company's investment in the net assets of an acquired company over the fair value of the underlying identifiable net assets at the date of acquisition. Goodwill and indefinite-lived intangible assets are not amortized but are tested at least annually for impairment by comparing the fair value to their carrying amounts. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests —Redeemable noncontrolling interests represent third-party interests in the affiliated funds that the Company consolidates. These interests are redeemable at the option of the investors and therefore are not treated as permanent equity. Redeemable noncontrolling interest is remeasured at redemption value which approximates the fair value at each reporting period. |
Investment Advisory and Administration Fees | Investment Advisory and Administration Fees —The Company earns revenue by providing asset management services to institutional accounts and to Company-sponsored open-end and closed-end funds. Investment advisory fees are earned pursuant to the terms of investment management agreements and are based on a contractual fee rate applied to the average assets in the portfolio. The Company also earns administration fees from certain Company-sponsored open-end and closed-end funds pursuant to the terms of underlying administration contracts. Administration fees are based on the average assets under management of such funds. Investment advisory and administration fee revenue is recognized when earned and is recorded net of any fund reimbursements. The investment advisory and administration contracts each include a single performance obligation as the services provided are not separately identifiable and are accounted for as a series satisfied over time using a time-based method (days elapsed). Additionally, investment advisory and administration fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. |
Distribution and Service Fee Revenue [Policy Text Block] | Distribution and Service Fee Revenue —Distribution and service fee revenue is based on the average daily net assets of certain share classes of the Company's sponsored open-end funds distributed by CSS. Distribution and service fee revenue is earned daily and is generally recorded gross of any third-party distribution and service fee expense for applicable share classes. Distribution fee agreements include a single performance obligation that is satisfied at a point in time when an investor purchases shares in a Company-sponsored open-end fund. Distribution fees represent variable consideration, as fees are based on average assets under management which fluctuate daily. For both the three and six months ended June 30, 2019 |
Portfolio Consulting and Other [Policy Text Block] | Portfolio Consulting and Other —The Company earns the majority of its portfolio consulting and other fees by (i) providing portfolio consulting services in connection with model-based strategy accounts, (ii) earning a licensing fee for the use of the Company's proprietary indexes and (iii) providing portfolio monitoring services related to a number of unit investment trusts. Revenue is earned pursuant to the terms of the underlying contracts and the fee schedules for these relationships vary based on the type of services the Company provides for each relationship. The majority of the Company's revenue from portfolio consulting and other is recognized over time and represents variable consideration, as fees are based on average assets under advisement which fluctuate daily. |
Distribution and Service Fee Expense [Policy Text Block] | Distribution and Service Fee Expense —Distribution and service fee expense includes distribution fees, shareholder servicing fees and intermediary assistance payments. Distribution and service fee expense is recorded on an accrual basis. Distribution fee expense represents payments made to qualified intermediaries for (i) assistance in connection with the distribution of the Company's sponsored open-end funds' shares and (ii) for other expenses such as advertising costs and printing and distribution of prospectuses to investors. Such amounts may also be used to pay financial intermediaries for services as specified in the terms of written agreements complying with Rule 12b-1 of the Investment Company Act of 1940 (Rule 12b-1). The Company pays distribution fee expense based on the average daily net assets under management of certain share classes of certain of the funds. Shareholder servicing fee expense represents payments made to qualified intermediaries for shareholder account service and maintenance. These services are provided pursuant to written agreements with such qualified institutions. The Company pays shareholder servicing fee expense generally based on the average assets under management or the number of accounts being serviced. Intermediary assistance payments represent payments to qualified intermediaries for activities related to distribution, shareholder servicing and marketing and support of the Company's sponsored open-end funds and are incremental to those described above. Intermediary assistance payments are generally based on the average assets under management or the number of accounts being serviced. |
Stock-based Compensation | Stock-based Compensation —The Company recognizes compensation expense for the grant-date fair value of awards of equity instruments to employees. This expense is recognized over the period during which employees are required to provide service. Forfeitures are recorded as incurred. |
Income Taxes | Income Taxes —The Company records the current and deferred tax consequences of all transactions that have been recognized in the condensed consolidated financial statements in accordance with the provisions of the enacted tax laws. Deferred tax assets are recognized for temporary differences that will result in deductible amounts in future years at tax rates that are expected to apply in those years. Deferred tax liabilities are recognized for temporary differences that will result in taxable income in future years at tax rates that are expected to apply in those years. The Company records a valuation allowance, when necessary, to reduce deferred tax assets to an amount that more likely than not will be realized. The effective tax rate for interim periods represents the Company's best estimate of the effective tax rate expected to be applied to the full fiscal year. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across the Company's global operations. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of the technical merits. The Company records potential interest and penalties related to uncertain tax positions in the provision for income taxes in the condensed consolidated statements of operations. |
Currency Translation and Transactions | Currency Translation and Transactions —Assets and liabilities of subsidiaries having non-U.S. dollar functional currencies are translated at exchange rates at the applicable condensed consolidated statement of financial condition date. Revenue and expenses of such subsidiaries are translated at average exchange rates during the period. The gains or losses resulting from translating non-U.S. dollar functional currency into U.S. dollars are included in the Company's condensed consolidated statements of comprehensive income. The cumulative translation adjustment was $(7,223,000) and $(7,323,000) at June 30, 2019 and December 31, 2018 , respectively. Gains or losses resulting from transactions denominated in currencies other than the U.S. dollar held by certain foreign subsidiaries are included in non-operating income (loss) in the condensed consolidated statements of operations. Gains and losses arising on revaluation of U.S. dollar-denominated assets and liabilities held by foreign subsidiaries are also included in non-operating income (loss) in the Company’s condensed consolidated statements of operations. |
Comprehensive Income | Comprehensive Income —The Company reports all changes in comprehensive income in the condensed consolidated statements of comprehensive income. Comprehensive income includes net income or loss attributable to common stockholders and amounts attributable to foreign currency translation gain (loss), net of tax. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements —In January 2017, the FASB issued guidance to simplify the goodwill impairment test by removing the requirement to perform a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This new guidance will be effective on January 1, 2020. The Company does not expect the adoption of the new guidance to have a material effect on its condensed consolidated financial statements and related disclosures. |
Valuation Techniques | Valuation Techniques In certain instances, debt, equity and preferred securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable broker-dealers or independent pricing services. In determining the value of a particular investment, independent pricing services may use information with respect to transactions in such investments, broker quotes, pricing matrices, market transactions in comparable investments and various relationships between investments. As part of its independent price verification process, the Company generally performs reviews of valuations provided by broker-dealers or independent pricing services. Investments in Company-sponsored funds are valued at their closing price or NAV (or its equivalent) as a practical expedient. Foreign exchange contracts are valued based on the prevailing forward exchange rate, which is an input that is observable in active markets. In the absence of observable market prices, the Company values its investments using valuation methodologies applied on a consistent basis. For some investments, little market activity may exist; management's determination of fair value is then based on the best information available in the circumstances, and may incorporate management's own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors. Such investments are valued on a quarterly basis, taking into consideration any changes in key inputs and changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by the Company's valuation committee which is comprised of senior members from various departments within the Company, including investment management. The valuation committee provides independent oversight of the valuation policies and procedures. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The adoption of the new leasing standard resulted in the following changes to the Company's condensed consolidated statement of financial condition for the year ended December 31, 2018: (in thousands) Previously Reported Adjustments Due to New Leasing Standard to record ROU assets and lease liabilities Reclassification of Deferred Rent Recast Operating lease right-of-use assets $ — $ 54,304 $ (5,816 ) $ 48,488 Operating lease liabilities $ — $ 54,304 $ — $ 54,304 Deferred rent $ 5,816 $ — $ (5,816 ) $ — |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize revenue recognized from contracts with customers by client domicile and by vehicle: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Client domicile: North America $ 87,267 $ 80,109 $ 167,710 $ 159,816 Japan 8,387 8,883 16,618 17,976 Asia excluding Japan 2,554 3,058 5,706 6,093 Europe, Middle East and Africa 3,584 2,360 5,984 4,989 Total $ 101,792 $ 94,410 $ 196,018 $ 188,874 Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Vehicle: Open-end funds (1) $ 52,649 $ 47,778 $ 100,117 $ 95,230 Closed-end funds 20,002 19,133 39,054 38,310 Institutional accounts 26,240 24,766 51,325 49,971 Portfolio consulting and other 2,901 2,733 5,522 5,363 Total $ 101,792 $ 94,410 $ 196,018 $ 188,874 ________________________ (1) Included distribution and service fees of $7.4 million and $7.3 million for the three months ended June 30, 2019 and 2018, respectively, and $14.4 million and $14.7 million for the six months ended June 30, 2019 and 2018, respectively. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Summary Investment Holdings | The following table summarizes the Company's investments: (in thousands) June 30, 2019 December 31, 2018 Equity investments at fair value $ 76,809 $ 66,795 Trading 26,179 108,363 Held-to-maturity (1) 49,949 49,748 Equity method 24 26 Total investments $ 152,961 $ 224,932 _________________________ (1) Held-to-maturity investments had a fair value of approximately $50.1 million and $49.8 million at June 30, 2019 and December 31, 2018, respectively. Original maturities ranged from 6 to 24 months for both periods. |
Gain (Loss) on Investments | The following table summarizes gain (loss)—net from investments: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Net realized gains (losses) $ 4,526 $ (322 ) $ 3,759 $ (167 ) Net unrealized gains (losses) (2,652 ) (281 ) 11,979 (4,938 ) Gain (loss) from investments—net (1) $ 1,874 $ (603 ) $ 15,738 $ (5,105 ) ________________________ (1) Includes net income (loss) attributable to redeemable noncontrolling interests. |
Schedule of Variable Interest Entities | The following tables summarize the condensed consolidated statements of financial condition attributable to the Company's consolidated VIEs: June 30, 2019 (in thousands) GLI SICAV GRP-CIP SICAV GRE SICAV RAP Total Assets (1) Investments $ 6,480 $ 481 $ 47,541 $ 10,408 $ 64,910 Due from brokers 482 104 2,059 692 3,337 Other assets 117 — 781 222 1,120 Total assets $ 7,079 $ 585 $ 50,381 $ 11,322 $ 69,367 Liabilities (1) Due to brokers $ 146 $ — $ 1,951 $ 306 $ 2,403 Other liabilities and accrued expenses 91 5 211 165 472 Total liabilities $ 237 $ 5 $ 2,162 $ 471 $ 2,875 December 31, 2018 (in thousands) GLI SICAV GRP-CIP SICAV Preferred SICAV RAP Total Assets (1) Investments $ 5,704 $ 550 $ 120,930 $ 8,929 $ 136,113 Due from brokers 49 103 10,868 167 11,187 Other assets 171 — 2,136 297 2,604 Total assets $ 5,924 $ 653 $ 133,934 $ 9,393 $ 149,904 Liabilities (1) Due to brokers $ — $ — $ 4,398 $ 24 $ 4,422 Other liabilities and accrued expenses 74 5 212 149 440 Total liabilities $ 74 $ 5 $ 4,610 $ 173 $ 4,862 _________________________ (1) The assets may only be used to settle obligations of each VIE and the liabilities are the sole obligation of each VIE, for which creditors do not have recourse to the general credit of the Company. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present fair value measurements: June 30, 2019 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV Investments Carried at Amortized Cost Total Cash equivalents $ 92,831 $ — $ — $ — $ — $ 92,831 Equity investments at fair value Common stocks $ 73,576 $ — $ — $ — $ — $ 73,576 Company-sponsored funds 80 — — — — 80 Limited partnership interests 1,153 — — 481 — 1,634 Preferred securities 1,281 111 — — — 1,392 Other — — — 127 — 127 Total $ 76,090 $ 111 $ — $ 608 $ — $ 76,809 Trading investments Fixed income $ — $ 26,179 $ — $ — $ — $ 26,179 Total $ — $ 26,179 $ — $ — $ — $ 26,179 Held-to-maturity investments Fixed income $ — $ — $ — $ — $ 49,949 $ 49,949 Total $ — $ — $ — $ — $ 49,949 $ 49,949 Equity method investments $ — $ — $ — $ 24 $ — $ 24 Total investments $ 76,090 $ 26,290 $ — $ 632 $ 49,949 $ 152,961 Derivatives - assets Commodity futures contracts $ 343 $ — $ — $ — $ — $ 343 Commodity swap contracts — 172 — — — 172 Foreign exchange contracts — 5 — — — 5 Total $ 343 $ 177 $ — $ — $ — $ 520 Derivatives - liabilities Commodity futures contracts $ 208 $ — $ — $ — $ — $ 208 Foreign exchange contracts — 246 — — — 246 Total $ 208 $ 246 $ — $ — $ — $ 454 December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Investments Measured at NAV Investments Carried at Amortized Cost Total Cash equivalents $ 78,147 $ — $ — $ — $ — $ 78,147 Equity investments at fair value Common stocks $ 21,982 $ — $ — $ — $ — $ 21,982 Company-sponsored funds 9,456 — — — — 9,456 Limited partnership interests 1,056 — — 550 — 1,606 Preferred securities 30,448 3,193 — — — 33,641 Other — — — 110 — 110 Total $ 62,942 $ 3,193 $ — $ 660 $ — $ 66,795 Trading investments Fixed income $ — $ 108,363 $ — $ — $ — $ 108,363 Total $ — $ 108,363 $ — $ — $ — $ 108,363 Held-to-maturity investments Fixed income $ — $ — $ — $ — $ 49,748 $ 49,748 Total $ — $ — $ — $ — $ 49,748 $ 49,748 Equity method investments $ — $ — $ — $ 26 $ — $ 26 Total investments $ 62,942 $ 111,556 $ — $ 686 $ 49,748 $ 224,932 Derivatives - assets Commodity futures contracts $ 486 $ — $ — $ — $ — $ 486 Commodity swap contracts — 739 — — — 739 Total $ 486 $ 739 $ — $ — $ — $ 1,225 Derivatives - liabilities Commodity futures contracts $ 2,181 $ — $ — $ — $ — $ 2,181 Foreign exchange contracts — 205 — — — 205 Total $ 2,181 $ 205 $ — $ — $ — $ 2,386 |
Fair Value, Valuation Technique, Unobservable Inputs | The following table summarizes the changes in level 3 limited partnership interests in trading investments measured at fair value on a recurring basis: (in thousands) Three Months Ended Six Months Ended Balance at beginning of the period $ — $ 605 Purchases / contributions — — Sales / distributions — (598 ) Realized gains (losses) — (68 ) Unrealized gains (losses) — 61 Transfers into (out of) level 3 — — Balance at end of the period $ — $ — |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize the notional and fair value of the derivative financial instruments. The notional amount represents the aggregate absolute value of all outstanding derivative contracts: As of June 30, 2019 Fair Value (1) (in thousands) Notional Amount Assets Liabilities Commodity futures $ 13,569 $ 343 $ 208 Commodity swap 9,014 172 — Foreign exchange 13,189 5 246 Total $ 520 $ 454 As of December 31, 2018 Fair Value (1) (in thousands) Notional Amount Assets Liabilities Commodity futures $ 22,795 $ 486 $ 2,181 Commodity swap 8,761 739 — Foreign exchange 10,996 — 205 Total $ 1,225 $ 2,386 ________________________ (1) The fair value of the derivative financial instruments is recorded in other assets and other liabilities and accrued expenses on the Company's condensed consolidated statements of financial condition. |
Gains (losses) on Derivatives | The following table summarizes net gains (losses) from derivative financial instruments: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Commodity futures $ (155 ) $ 27 $ 741 $ (7 ) Commodity swap 395 — (346 ) — Foreign exchange (228 ) 1,237 (36 ) 391 Total (1) $ 12 $ 1,264 $ 359 $ 384 ________________________ (1) Gains and losses on the derivative financial instruments are recorded as gain (loss) from investments—net in the Company's condensed consolidated statements of operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles income and share data used in the basic and diluted earnings per share computations: Three Months Ended Six Months Ended (in thousands, except per share data) 2019 2018 2019 2018 Net income $ 32,649 $ 25,569 $ 72,626 $ 54,493 Less: Net (income) loss attributable to redeemable noncontrolling interests (1,316 ) 4,390 (8,750 ) 3,052 Net income attributable to common stockholders $ 31,333 $ 29,959 $ 63,876 $ 57,545 Basic weighted average shares outstanding 47,304 46,819 47,226 46,751 Dilutive potential shares from restricted stock units 871 492 716 486 Diluted weighted average shares outstanding 48,175 47,311 47,942 47,237 Basic earnings per share attributable to common stockholders $ 0.66 $ 0.64 $ 1.35 $ 1.23 Diluted earnings per share attributable to common stockholders $ 0.65 $ 0.63 $ 1.33 $ 1.22 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the amount of revenue the Company earned from these affiliated funds: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Investment advisory and administration fees (1) $ 65,409 $ 59,590 $ 125,105 $ 118,894 Distribution and service fees 7,418 7,257 14,391 14,657 Total $ 72,827 $ 66,847 $ 139,496 $ 133,551 _________________________ (1) Investment advisory and administration fees are reflected net of fund reimbursements of $2.4 million and $1.6 million for the three months ended June 30, 2019 and 2018, respectively, and $4.8 million and $4.3 million for the six months ended June 30, 2019 and 2018, respectively. The following table summarizes sales proceeds, gross realized gains, gross realized losses and dividend income from investments in Company-sponsored funds that are not consolidated: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Proceeds from sales $ 5,399 $ 7,729 $ 26,506 $ 7,729 Gross realized gains 32 — 32 — Gross realized losses — (4,447 ) (907 ) (4,447 ) Dividend income 28 115 30 267 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table summarizes the Company's lease cost included in general and administrative expense in the condensed consolidated statements of operations: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Operating lease cost $ 2,880 $ 2,878 $ 5,761 $ 5,794 Supplemental cash flow information related to operating leases is summarized below: Three Months Ended Six Months Ended (in thousands) 2019 2018 2019 2018 Cash paid for amounts included in the measurement of lease liabilities $ 3,078 $ 2,950 $ 6,166 $ 5,912 Right-of-use assets obtained in exchange for new lease liabilities — — — 614 Other information related to operating leases is summarized below: June 30, December 31, Weighted-average remaining lease term (years) 4 5 Weighted-average discount rate 2.8 % 2.8 % |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes the maturities of lease liabilities at June 30, 2019 (in thousands): Year Ending December 31, Operating Leases 2019 $ 6,193 2020 11,920 2021 11,171 2022 10,868 2023 10,841 Thereafter 961 Total remaining undiscounted lease payments 51,954 Less: imputed interest 3,109 Total remaining discounted lease payments $ 48,845 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 43,432 | $ 48,488 | |
Deferred rent | (5,816) | $ (5,816) | |
Operating lease liabilities | $ 48,845 | $ 54,304 | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 54,304 | ||
Operating lease liabilities | $ 54,304 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies Currency Translation and Transactions (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Cumulative Translation Adjustments balance [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (7,223,000) | $ (7,323,000) |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 101,792 | $ 94,410 | $ 196,018 | $ 188,874 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 87,267 | 80,109 | 167,710 | 159,816 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 8,387 | 8,883 | 16,618 | 17,976 |
Asia, excluding Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 2,554 | 3,058 | 5,706 | 6,093 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 3,584 | 2,360 | 5,984 | 4,989 |
Open-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 52,649 | 47,778 | 100,117 | 95,230 |
Closed-end funds | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 20,002 | 19,133 | 39,054 | 38,310 |
Institutional accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 26,240 | 24,766 | 51,325 | 49,971 |
Portfolio consulting and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 2,901 | $ 2,733 | $ 5,522 | $ 5,363 |
Investments Trading and Equity
Investments Trading and Equity Investments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)new_funds_seeded | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Trading Securities and Other Trading Assets [Line Items] | ||||||
Debt Securities, Held-to-maturity, Fair Value | $ 50,100 | $ 50,100 | $ 49,800 | |||
Number of new funds seeded | new_funds_seeded | 1 | |||||
Equity investments at fair value | 76,809 | $ 76,809 | 66,795 | |||
Equity method investments | 24 | 24 | 26 | |||
Trading | 26,179 | 26,179 | 108,363 | |||
Held-to-maturity | 49,949 | 49,949 | 49,748 | |||
Investments | [1],[2] | 152,961 | 152,961 | $ 224,932 | ||
Gain (Loss) on Investments [Abstract] | ||||||
Net realized gains (losses) | 4,526 | $ (322) | 3,759 | $ (167) | ||
Net unrealized gains (losses) | (2,652) | (281) | 11,979 | (4,938) | ||
Gain (loss) from investments—net | $ 1,874 | $ (603) | $ 15,738 | $ (5,105) | ||
[1] | Asset and liability amounts in parentheses represent the aggregated balances at June 30, 2019 and December 31, 2018 attributable to variable interest entities consolidated by the Company. Refer to Note 4 for further discussion. | |||||
[2] | Certain amounts have been recast to reflect the Company's adoption of the new leasing accounting standard on January 1, 2019. |
Investments Variable Interest E
Investments Variable Interest Entity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Investments | [1],[2] | $ 152,961 | $ 224,932 |
Due from broker | [1] | 3,323 | 14,240 |
Other Assets | [1] | 7,439 | 9,208 |
Assets | 404,002 | 481,039 | |
Due to brokers | [1] | 2,403 | 5,121 |
Other liabilities and accrued expenses | [1] | 9,304 | 13,935 |
Liabilities | 109,523 | 144,201 | |
GLI SICAV | |||
Variable Interest Entity [Line Items] | |||
Investments | 6,480 | 5,704 | |
Due from broker | 482 | 49 | |
Other Assets | 117 | 171 | |
Assets | 7,079 | 5,924 | |
Due to brokers | 146 | 0 | |
Other liabilities and accrued expenses | 91 | 74 | |
Liabilities | 237 | 74 | |
GRP-CIP | |||
Variable Interest Entity [Line Items] | |||
Investments | 481 | 550 | |
Due from broker | 104 | 103 | |
Other Assets | 0 | 0 | |
Assets | 585 | 653 | |
Due to brokers | 0 | 0 | |
Other liabilities and accrued expenses | 5 | 5 | |
Liabilities | 5 | 5 | |
SICAV Preferred | |||
Variable Interest Entity [Line Items] | |||
Investments | 120,930 | ||
Due from broker | 10,868 | ||
Other Assets | 2,136 | ||
Assets | 133,934 | ||
Due to brokers | 4,398 | ||
Other liabilities and accrued expenses | 212 | ||
Liabilities | 4,610 | ||
SICAV GRE | |||
Variable Interest Entity [Line Items] | |||
Investments | 47,541 | ||
Due from broker | 2,059 | ||
Other Assets | 781 | ||
Assets | 50,381 | ||
Due to brokers | 1,951 | ||
Other liabilities and accrued expenses | 211 | ||
Liabilities | 2,162 | ||
SICAV RAP | |||
Variable Interest Entity [Line Items] | |||
Investments | 10,408 | 8,929 | |
Due from broker | 692 | 167 | |
Other Assets | 222 | 297 | |
Assets | 11,322 | 9,393 | |
Due to brokers | 306 | 24 | |
Other liabilities and accrued expenses | 165 | 149 | |
Liabilities | 471 | 173 | |
GLI SICAV, GRP-CIP, SICAV GRE and SICAV RAP [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments | 64,910 | ||
Due from broker | 3,337 | ||
Other Assets | 1,120 | ||
Assets | 69,367 | ||
Due to brokers | 2,403 | ||
Other liabilities and accrued expenses | 472 | ||
Liabilities | $ 2,875 | ||
GLI SICAV, GRP-CIP, SICAV Preferred and SICAV RAP [Member] | |||
Variable Interest Entity [Line Items] | |||
Investments | 136,113 | ||
Due from broker | 11,187 | ||
Other Assets | 2,604 | ||
Assets | 149,904 | ||
Due to brokers | 4,422 | ||
Other liabilities and accrued expenses | 440 | ||
Liabilities | $ 4,862 | ||
[1] | Asset and liability amounts in parentheses represent the aggregated balances at June 30, 2019 and December 31, 2018 attributable to variable interest entities consolidated by the Company. Refer to Note 4 for further discussion. | ||
[2] | Certain amounts have been recast to reflect the Company's adoption of the new leasing accounting standard on January 1, 2019. |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | $ 26,179 | $ 108,363 | |
Held-to-maturity | 49,949 | 49,748 | |
Equity investments at fair value | 76,809 | 66,795 | |
Equity method investments | 24 | 26 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 92,831 | 78,147 | |
Trading | 26,179 | 108,363 | |
Equity investments at fair value | 76,809 | 66,795 | |
Total investments | 152,961 | 224,932 | |
Derivative - assets | 520 | 1,225 | |
Derivative - liabilities | 454 | 2,386 | |
Fair Value, Measurements, Recurring | Commodity swap contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 172 | 739 | |
Fair Value, Measurements, Recurring | Commodity futures contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 343 | 486 | |
Derivative - liabilities | 208 | 2,181 | |
Fair Value, Measurements, Recurring | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 5 | ||
Derivative - liabilities | 246 | 205 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash equivalents | 92,831 | 78,147 | |
Trading | 0 | ||
Equity investments at fair value | 76,090 | 62,942 | |
Total investments | 76,090 | 62,942 | |
Derivative - assets | 343 | 486 | |
Derivative - liabilities | 208 | 2,181 | |
Fair Value, Measurements, Recurring | Level 1 | Commodity futures contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 343 | 486 | |
Derivative - liabilities | 208 | 2,181 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 26,179 | 108,363 | |
Equity investments at fair value | 111 | 3,193 | |
Total investments | 26,290 | 111,556 | |
Derivative - assets | 177 | 739 | |
Derivative - liabilities | 246 | 205 | |
Fair Value, Measurements, Recurring | Level 2 | Commodity swap contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 172 | 739 | |
Fair Value, Measurements, Recurring | Level 2 | Commodity futures contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 5 | ||
Derivative - liabilities | 246 | 205 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Equity investments at fair value | 0 | ||
Total investments | 0 | ||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Commodity futures contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Level 3 | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 0 | |
Equity investments at fair value | 608 | 660 | |
Total investments | 632 | 686 | |
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Investments Measured at NAV | Commodity swap contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Fair Value, Measurements, Recurring | Investments Measured at NAV | Commodity futures contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Fair Value, Measurements, Recurring | Investments Measured at NAV | Foreign Exchange Contract [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative - assets | 0 | ||
Derivative - liabilities | 0 | ||
Preferred Stock [Member] | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,392 | 33,641 | |
Preferred Stock [Member] | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,281 | 30,448 | |
Preferred Stock [Member] | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 111 | 3,193 | |
Preferred Stock [Member] | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Preferred Stock [Member] | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,634 | 1,606 | |
Limited partnership interests | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 1,153 | 1,056 | |
Limited partnership interests | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of period | $ 605 | ||
Purchases / contributions | 0 | ||
Sales / distributions | (598) | ||
Realized gains (losses) | (68) | ||
Unrealized gains (losses) | 61 | ||
Transfers into (out of) level 3 | 0 | ||
Balance at end of period | $ 0 | ||
Limited partnership interests | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 481 | 550 | |
Fixed income | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 26,179 | 108,363 | |
Total investments | 49,949 | 49,748 | |
Fixed income | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Fixed income | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 26,179 | 108,363 | |
Fixed income | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | ||
Fixed income | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading | 0 | 0 | |
Common stocks | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 73,576 | 21,982 | |
Common stocks | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 73,576 | 21,982 | |
Common stocks | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Common stocks | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Common stocks | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 127 | 110 | |
Other | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Other | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 127 | 110 | |
Company-sponsored funds | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 80 | 9,456 | |
Company-sponsored funds | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 80 | 9,456 | |
Company-sponsored funds | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Company-sponsored funds | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Company-sponsored funds | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity investments at fair value | 0 | ||
Held-to-maturity investments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity | 49,949 | 49,748 | |
Held-to-maturity investments | Fixed income | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Held-to-maturity | 49,949 | 49,748 | |
Equity Method Investments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | 24 | 26 | |
Equity Method Investments | Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | 0 | ||
Equity Method Investments | Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | 0 | 0 | |
Equity Method Investments | Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | 0 | ||
Equity Method Investments | Fair Value, Measurements, Recurring | Investments Measured at NAV | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity method investments | $ 24 | $ 26 |
Derivatives (Details)
Derivatives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Derivative Assets, Fair Value | $ 520,000 | $ 520,000 | $ 1,225,000 | ||
Derivative Liabilities, Fair Value | 454,000 | 454,000 | 2,386,000 | ||
Trading investments and pledged as collateral | 1,766,000 | 1,766,000 | 1,807,000 | ||
Derivative, Gains (Losses) on derivative, net | 12,000 | $ 1,264,000 | 359,000 | $ 384,000 | |
Foreign exchange contracts | |||||
Derivative [Line Items] | |||||
Notional Amount | 13,189,000 | 13,189,000 | 10,996,000 | ||
Derivative Assets, Fair Value | 5,000 | 5,000 | |||
Derivative Liabilities, Fair Value | 246,000 | 246,000 | 205,000 | ||
Derivative, Gains (Losses) on derivative, net | (228,000) | 1,237,000 | (36,000) | 391,000 | |
Commodity futures contracts | |||||
Derivative [Line Items] | |||||
Notional Amount | 13,569,000 | 13,569,000 | 22,795,000 | ||
Derivative Assets, Fair Value | 343,000 | 343,000 | 486,000 | ||
Derivative Liabilities, Fair Value | 208,000 | 208,000 | 2,181,000 | ||
Derivative, Gains (Losses) on derivative, net | (155,000) | 27,000 | 741,000 | (7,000) | |
Commodity swap contracts | |||||
Derivative [Line Items] | |||||
Notional Amount | 9,014,000 | 9,014,000 | 8,761,000 | ||
Derivative Assets, Fair Value | 172,000 | 172,000 | 739,000 | ||
Derivative Liabilities, Fair Value | 0 | 0 | |||
Derivative, Gains (Losses) on derivative, net | 395,000 | $ 0 | (346,000) | $ 0 | |
Due From Broker [Member] | |||||
Derivative [Line Items] | |||||
Trading investments and pledged as collateral | $ 150,000 | $ 150,000 | $ 2,002,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive common stock equivalents excluded from computation (in shares) | 2,300 | |||
Net income | $ 32,649 | $ 25,569 | $ 72,626 | $ 54,493 |
Less: Net (income) loss attributable to redeemable noncontrolling interests | (1,316) | 4,390 | (8,750) | 3,052 |
Net income attributable to common stockholders | $ 31,333 | $ 29,959 | $ 63,876 | $ 57,545 |
Basic weighted average shares outstanding (shares) | 47,304,000 | 46,819,000 | 47,226,000 | 46,751,000 |
Dilutive potential shares from restricted stock units (shares) | 871,000 | 492,000 | 716,000 | 486,000 |
Diluted weighted average shares outstanding (shares) | 48,175,000 | 47,311,000 | 47,942,000 | 47,237,000 |
Basic earnings per share attributable to common stockholders (in dollars per share) | $ 0.66 | $ 0.64 | $ 1.35 | $ 1.23 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.65 | $ 0.63 | $ 1.33 | $ 1.22 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% |
U.S. Federal, State, Local and Foreign Taxes | ||||
Income Tax Contingency [Line Items] | ||||
Effective income tax rate reconciliation, percent | 24.20% | 24.90% | 24.20% | 23.90% |
Regulatory Requirements (Detail
Regulatory Requirements (Details) $ in Millions | Jun. 30, 2019USD ($) |
Securities Registered Domestically | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Net Capital | $ 4 |
Excess Capital | 3.8 |
Securities Regulated By Foreign Entities - Asia [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Net Capital | 21.3 |
Excess Capital | 20.9 |
Securities Regulated By Foreign Entities | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Net Capital | 36.7 |
Excess Capital | $ 31.5 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Funds - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Related Party Transactions, Revenue [Abstract] | |||||
Investment advisory and administrative fees | $ 65,409,000 | $ 59,590,000 | $ 125,105,000 | $ 118,894,000 | |
Distribution and service fees | 7,418,000 | 7,257,000 | 14,391,000 | 14,657,000 | |
Total | 72,827,000 | 66,847,000 | 139,496,000 | 133,551,000 | |
Related Party Transaction, Expenses from Transactions with Related Party | 2,400,000 | 1,600,000 | 4,800,000 | 4,300,000 | |
Proceeds from sales | 5,399,000 | 7,729,000 | 26,506,000 | 7,729,000 | |
Gross realized gains | 32,000 | 0 | 32,000 | 0 | |
Gross realized losses | 0 | (4,447,000) | (907,000) | (4,447,000) | |
Dividend income | 28,000 | $ 115,000 | 30,000 | $ 267,000 | |
Receivables due from company-sponsored mutual funds | 25,301,000 | 25,301,000 | $ 22,560,000 | ||
Payables due to company-sponsored mutual funds | $ 1,080,000 | $ 1,080,000 | $ 845,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Commitments | |
Contingencies [Line Items] | |
Long-term purchase commitment, time period | 12 years |
Commitment to invest | |
Contingencies [Line Items] | |
Long-term purchase commitment | $ 5.1 |
Long-term committment, funded amount | $ 3.8 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Leases [Abstract] | |||||
Operating lease cost | $ 2,880 | $ 2,878 | $ 5,761 | $ 5,794 | |
Supplemental cash flow information related to operating leases is as follows: | |||||
Cash paid for amounts included in the measurement of lease liabilities | 3,078 | 2,950 | 6,166 | 5,912 | |
Right-of-use assets obtained in exchange for new lease liabilities | $ 0 | $ 0 | $ 0 | $ 614 | |
Weighted-average remaining lease term and discount rate for operating leases are as follows: | |||||
Weighted-average remaining lease term (in years) | 4 years | 4 years | 5 years | ||
Weighted-average discount rate | 2.80% | 2.80% | 2.80% |
Leases Lessee, Operating Lease,
Leases Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2019 | $ 6,193 | |
2020 | 11,920 | |
2021 | 11,171 | |
2022 | 10,868 | |
2023 | 10,841 | |
Thereafter | 961 | |
Total remaining undiscounted lease payments | 51,954 | |
Less: imputed interest | 3,109 | |
Total remaining discounted lease payments | $ 48,845 | $ 54,304 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Aug. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||||
Dividends, Common Stock, Cash | $ 0.36 | $ 0.33 | $ 0.72 | $ 0.66 | |
Dividend Declared | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends, Common Stock, Cash | $ 0.36 |