Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2013 | |
Document Information [Line Items] | |
Document Type | S-1/A |
Amendment Flag | FALSE |
Document Period End Date | 30-Jun-13 |
Trading Symbol | APAM |
Entity Registrant Name | ARTISAN PARTNERS ASSET MANAGEMENT INC. |
Entity Central Index Key | 1517302 |
Entity Filer Category | Non-accelerated Filer |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and cash equivalents | $257,404 | $141,159 | $126,956 |
Cash and cash equivalents of Launch Equity | 16,068 | 10,180 | 5,142 |
Accounts receivable | 53,843 | 46,022 | 39,417 |
Accounts receivable of Launch Equity | 1 | 10,595 | 37 |
Investment securities | 22,239 | 15,241 | 17,262 |
Investment securities of Launch Equity | 60,066 | 46,237 | 24,265 |
Prepaid expenses | 3,890 | 3,280 | |
Property and equipment, net | 8,731 | 8,807 | 5,572 |
Restricted cash | 1,185 | 1,040 | |
Deferred tax assets | 64,476 | 0 | |
Other | 4,244 | 1,880 | |
Prepaid expenses and other assets | 8,133 | 9,319 | |
Total assets | 490,961 | 287,560 | 224,851 |
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Accounts payable, accrued expenses and other liabilities | 17,373 | 9,274 | |
Accounts payable, accrued expenses, and other | 50,324 | 50,266 | |
Accrued incentive compensation | 70,065 | 7,254 | 3,920 |
Deferred lease obligations | 3,636 | 2,340 | |
Interest rate swap | 1,066 | ||
Borrowings | 200,000 | 290,000 | 324,789 |
Class B liability awards | 0 | 225,249 | 146,175 |
Class B redemptions payable | 27,561 | 29,257 | 14,909 |
Amounts payable under tax receivable agreements | 53,618 | 0 | |
Contingent value rights | 22,020 | 0 | |
Payables of Launch Equity | 64 | 10,726 | |
Securities sold, not yet purchased of Launch Equity | 32,652 | 19,586 | 6,276 |
Total liabilities | 428,743 | 603,081 | 508,749 |
Commitments and Contingencies | |||
Redeemable preferred units | 0 | 357,194 | 357,194 |
Additional paid-in capital | -34,826 | 0 | 0 |
Retained earnings | 8,748 | 0 | 0 |
Accumulated other comprehensive income (loss) | 748 | 0 | 0 |
Total stockholders' equity | 50,091 | 0 | 0 |
Noncontrolling interest - Artisan Partners Holdings | -31,291 | -709,414 | -664,259 |
Noncontrolling interest - Launch Equity | 43,418 | 36,699 | 23,167 |
Total equity (deficit) | 62,218 | -672,715 | -641,092 |
Total liabilities, redeemable preferred units and equity (deficit) | 490,961 | 287,560 | 224,851 |
Class A Common Stock | |||
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Common stock | 127 | 0 | |
Class B Common Stock | |||
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Common stock | 258 | 0 | |
Class C Common Stock | |||
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Common stock | 288 | 0 | |
Convertible preferred stock | |||
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
Convertible preferred stock ($0.01 par value per share, 15,000,000 shares authorized and 2,565,463 outstanding at June 30, 2013) | $74,748 | $0 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Jun. 30, 2013 |
Class A Common Stock | |
Common stock, par value per share | $0.01 |
Common stock, shares authorized | 500,000,000 |
Common stock, shares outstanding | 12,712,279 |
Class B Common Stock | |
Common stock, par value per share | $0.01 |
Common stock, shares authorized | 200,000,000 |
Common stock, shares outstanding | 25,839,002 |
Class C Common Stock | |
Common stock, par value per share | $0.01 |
Common stock, shares authorized | 400,000,000 |
Common stock, shares outstanding | 28,834,161 |
Convertible preferred stock | |
Convertible preferred stock, par value per share | $0.01 |
Convertible preferred stock, shares authorized | 15,000,000 |
Convertible preferred stock, shares outstanding | 2,565,463 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Revenues | ||||||||
Management fees | $161,916 | $120,770 | $310,130 | $240,147 | $503,954 | $450,949 | $379,350 | |
Performance fees | 17 | 16 | 26 | 312 | 1,624 | 4,145 | 2,936 | |
Total revenues | 161,933 | 120,786 | 310,156 | 240,459 | 505,578 | 455,094 | 382,286 | |
Compensation and benefits | ||||||||
Salaries, incentive compensation and benefits | 69,251 | 53,561 | 141,931 | 109,254 | 227,258 | 198,601 | 166,629 | |
Pre-offering related compensation - share-based awards | 23,851 | -4,931 | 357,082 | 29,884 | 101,682 | -21,082 | 79,071 | |
Pre-offering related compensation - other | 0 | 13,747 | 143,035 | 21,895 | 54,153 | 55,714 | 17,578 | |
Total compensation and benefits | 93,102 | 62,377 | 642,048 | 161,033 | 383,093 | 233,233 | 263,278 | |
Distribution and marketing | 8,847 | 7,111 | 17,023 | 14,208 | 28,990 | 26,174 | 23,022 | |
Occupancy | 2,556 | 2,207 | 5,172 | 4,515 | 9,251 | 8,962 | 8,105 | |
Communication and technology | 3,515 | 3,499 | 6,845 | 6,419 | 13,240 | 10,605 | 9,876 | |
General and administrative | 5,529 | 4,085 | 11,998 | 8,412 | 23,917 | 21,825 | 12,807 | |
Total operating expenses | 113,549 | 79,279 | 683,086 | 194,587 | 458,491 | 300,799 | 317,088 | |
Total operating income (loss) | 48,384 | 41,507 | -372,930 | 45,872 | 47,087 | 154,295 | 65,198 | |
Non-operating income (loss) | ||||||||
Interest expense | -2,891 | -2,552 | -6,101 | -5,232 | -11,442 | -18,386 | -22,961 | |
Net gains (losses) of Launch Equity | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||
Gain (loss) on interest rate swap | 0 | 250 | 0 | -52 | -69 | -1,933 | 866 | |
Net gain on the valuation of contingent value rights | 8,620 | 0 | 33,420 | 0 | ||||
Loss on debt extinguishment | -827 | |||||||
Other non-operating gains | 58 | 260 | 705 | |||||
Total non-operating income (loss) | 4,519 | -3,257 | 30,888 | -3,745 | -3,463 | -23,161 | -21,390 | |
Income (loss) before income taxes | 52,903 | 38,250 | -342,042 | 42,127 | 43,624 | 131,134 | 43,808 | |
Provision for income taxes | 5,873 | 247 | 10,322 | 579 | 1,047 | 1,162 | 1,281 | |
Net income (loss) before noncontrolling interests | 47,030 | 38,003 | 81,978 | -352,364 | 41,548 | 42,577 | 129,972 | 42,527 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | 42,442 | 38,958 | -364,681 | 40,009 | 33,760 | 133,073 | 42,527 | |
Less: Net income (loss) attributable to noncontrolling interest-Launch Equity | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,101 | ||
Net income attributable to Artisan Partners Asset Management Inc. | $5,798 | $0 | $8,748 | $8,748 | $0 | $0 | $0 | |
Earnings per share | ||||||||
Basic | $0.38 | $0.57 | $0 | |||||
Diluted | $0.38 | $0.57 | ||||||
Weighted average number of common shares | ||||||||
Basic | 12,728,949 | 12,728,949 | ||||||
Diluted | 15,294,412 | 15,294,412 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net income (loss) before noncontrolling interests | $47,030 | $38,003 | ($352,364) | $41,548 | $42,577 | $129,972 | $42,527 |
Unrealized gain (loss) on investment securities: | |||||||
Unrealized holding gains (losses) on investment securities, net of tax | 97 | -797 | 1,951 | 1,238 | 2,335 | -4 | 212 |
Less: reclassification adjustment for gains (losses) included in net income | 0 | 0 | 0 | 0 | -497 | -58 | -673 |
Net unrealized holding gains (losses) on investment securities | 97 | -797 | 1,951 | 1,238 | 1,838 | -62 | -461 |
Unrealized gain on interest rate swap: | |||||||
Unrealized holding gain (loss) on interest rate swap | -2,383 | 1,036 | |||||
Less: reclassification adjustment for net losses included in net income | 8,817 | 14,277 | |||||
Net unrealized gain on interest rate swaps | 6,434 | 15,313 | |||||
Foreign currency translation gain (loss) | 4 | -62 | -318 | 29 | 133 | -18 | -57 |
Total other comprehensive income (loss) | 101 | -859 | 1,633 | 1,267 | 1,971 | 6,354 | 14,795 |
Comprehensive income (loss) | 47,131 | 37,144 | -350,731 | 42,815 | 44,548 | 136,326 | 57,322 |
Comprehensive income (loss) attributable to non-controlling interests-Artisan Partners Holdings | 42,527 | 38,099 | -363,135 | 41,276 | 35,731 | 139,427 | 57,322 |
Comprehensive income (loss) attributable to non-controlling interests-Launch Equity | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,101 | |
Comprehensive income attributable to Artisan Partners Asset Management Inc. | $5,814 | $0 | $8,835 | $0 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Tax on unrealized gains on investment securities | $8 | $0 | $47 | $0 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Noncontrolling Interest | Redeemable Preferred Units |
In Thousands | Launch Equity | ||||||||
Balance at beginning of period at Dec. 31, 2009 | ($757,156) | ($757,156) | |||||||
Redeemable preferred units, beginning of period at Dec. 31, 2009 | 357,194 | ||||||||
Net income (loss) | 42,527 | 42,527 | |||||||
Other comprehensive income | 14,795 | 14,795 | |||||||
Total comprehensive income (loss) | 57,322 | 57,322 | |||||||
Partnership distributions | -36,760 | -36,760 | |||||||
Capital contribution | 16 | 16 | |||||||
Balance at end of period at Dec. 31, 2010 | -736,578 | -736,578 | |||||||
Redeemable preferred units, end of period at Dec. 31, 2010 | 357,194 | ||||||||
Net income (loss) | 129,972 | 133,073 | -3,101 | ||||||
Other comprehensive income | 6,354 | 6,354 | |||||||
Total comprehensive income (loss) | 136,326 | 139,427 | -3,101 | ||||||
Change in noncontrolling interest- Launch Equity, net | 26,268 | 26,268 | |||||||
Partnership distributions | -67,108 | -67,108 | |||||||
Balance at end of period at Dec. 31, 2011 | -641,092 | -664,259 | 23,167 | ||||||
Redeemable preferred units, end of period at Dec. 31, 2011 | 357,194 | 357,194 | |||||||
Net income (loss) | 42,577 | 33,760 | 8,817 | ||||||
Other comprehensive income | 1,971 | 1,971 | |||||||
Total comprehensive income (loss) | 44,548 | 35,731 | 8,817 | ||||||
Change in noncontrolling interest- Launch Equity, net | 4,715 | 4,715 | |||||||
Partnership distributions | -80,886 | -80,886 | |||||||
Balance at end of period at Dec. 31, 2012 | -672,715 | 0 | 0 | 0 | 0 | 0 | -709,414 | 36,699 | |
Redeemable preferred units, end of period at Dec. 31, 2012 | 357,194 | 357,194 | |||||||
Redemptions | -16 | -16 | |||||||
Net income (loss) | -434,342 | -434,342 | |||||||
Other comprehensive income | 1,065 | 1,065 | |||||||
Partnership distributions | -100,514 | -100,514 | |||||||
Modification of equity award and other pre-offering related compensation | 572,471 | 572,471 | |||||||
Modification of redeemable preferred units | 357,194 | 357,194 | -357,194 | ||||||
Initial establishment of contingent value right liability | -55,440 | -55,440 | |||||||
Balance at end of period at Mar. 12, 2013 | -332,297 | 0 | 0 | 0 | 0 | 0 | -368,996 | 36,699 | |
Redeemable preferred units, end of period at Mar. 12, 2013 | 0 | ||||||||
IPO proceeds | 353,414 | 353,414 | |||||||
Attribution of noncontrolling interest | 674 | 74,748 | -58,365 | 662 | -17,719 | ||||
Redemptions | -76,319 | -76,319 | |||||||
Establishment of deferred tax assets, net of amounts payable under tax receivable agreements | 16,953 | 16,953 | |||||||
Net income (loss) | 81,978 | 8,748 | 69,661 | 3,569 | 0 | ||||
Other comprehensive income | 568 | 86 | 482 | ||||||
Change in noncontrolling interest- Launch Equity, net | 3,150 | 3,150 | |||||||
Amortization of equity-based compensation | 28,348 | 6,585 | 21,763 | ||||||
Forfeitures | 0 | -1 | 1 | ||||||
Partnership distributions | -13,577 | -13,577 | |||||||
Balance at end of period at Jun. 30, 2013 | 62,218 | 673 | 74,748 | -34,826 | 8,748 | 748 | -31,291 | 43,418 | |
Redeemable preferred units, end of period at Jun. 30, 2013 | $0 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities | |||||
Net income (loss) | ($352,364) | $41,548 | $42,577 | $129,972 | $42,527 |
Adjustments to reconcile net income before noncontrolling interests to net cash provided by operating activities: | |||||
Depreciation and amortization | 1,463 | 1,060 | 2,401 | 2,360 | 2,287 |
Reinvested dividends | -188 | -190 | |||
Deferred income taxes | 6,046 | 0 | |||
Capital gains on sale of investments, net | -551 | -58 | -665 | ||
Net gain on the valuation of contingent value rights | -33,420 | 0 | |||
(Gains) losses of Launch Equity, net | -3,569 | -1,539 | -8,817 | 3,102 | |
Purchase of investments by Launch Equity | -48,741 | -20,235 | -59,763 | -18,899 | |
Proceeds from sale of investments by Launch Equity | 51,754 | 17,598 | 60,025 | 17,188 | |
Loss on disposal of property and equipment | 6 | 0 | 51 | 11 | 11 |
(Gain) loss on interest rate swaps | 0 | 52 | 69 | 1,933 | -866 |
Loss on debt extinguishment | 827 | ||||
Amortization of debt issuance costs | 224 | 363 | 631 | 726 | 548 |
Share-based compensation | 600,820 | 0 | |||
Change in assets and liabilities resulting in an increase (decrease) in cash: | |||||
Net change in operating assets and liabilities of Launch Equity | -5,956 | -1,362 | -4,870 | -5,204 | |
Accounts receivable | -7,821 | -3,662 | -6,605 | -2,685 | -5,081 |
Prepaid expenses | -697 | -410 | 161 | ||
Prepaid expenses and other assets | 418 | -539 | |||
Other assets | -1,148 | 1,691 | -2,350 | ||
Accounts payable and accrued expenses | 64,520 | 49,617 | 11,396 | -1,991 | 1,572 |
Class B liability awards | -226,946 | 26,160 | 93,422 | -24,936 | 78,218 |
Deferred lease obligations | 76 | 655 | 1,296 | 627 | -382 |
Net cash provided by operating activities | 46,510 | 109,716 | 130,056 | 103,237 | 115,980 |
Cash flows from investing activities | |||||
Acquisition of property and equipment | -940 | -1,110 | -2,744 | -1,614 | -1,148 |
Leasehold improvements | -432 | -586 | -2,721 | -1,122 | -313 |
Proceeds from sale of property and equipment | 27 | ||||
Proceeds from sale of investment securities | 4,598 | 4,101 | 2,204 | ||
Purchase of investment securities | -5,000 | 0 | -20,000 | -1,025 | |
Change in restricted cash | -145 | -1,040 | |||
Net cash used in investing activities | -6,372 | -1,696 | -1,012 | -19,648 | -282 |
Cash flows from financing activities | |||||
Partnership distributions | -114,107 | -31,612 | -80,886 | -67,108 | -36,760 |
Settlement of interest rate swap | -1,135 | ||||
Change in other liabilities | -31 | 137 | -173 | -214 | -218 |
Payment of debt issuance costs | -2,573 | -1,593 | |||
Proceeds from draw on revolving credit facility | 90,000 | ||||
Proceeds from issuance of notes payable | 200,000 | ||||
Principal payments on note payable | 0 | -35,417 | -324,789 | -55,211 | -20,000 |
Capital contribution | 16 | ||||
Repayment under revolving credit facility | -90,000 | 0 | |||
Net proceeds from issuance of common stock | 356,579 | 0 | |||
Payment of costs directly associated with the issuance of Class A common stock | -3,165 | 0 | |||
Purchase of Class A common units | -76,319 | 0 | |||
Capital invested into Launch Equity | 3,150 | 4,000 | 5,000 | 6,913 | |
Capital distributed by Launch Equity | -105,301 | -285 | |||
Net cash provided by (used in) financing activities | 76,107 | -62,892 | -114,841 | -115,620 | -58,555 |
Net increase (decrease) in cash and cash equivalents | 116,245 | 45,128 | 14,203 | -32,031 | 57,143 |
Cash and cash equivalents | |||||
Beginning of period | 141,159 | 126,956 | 126,956 | 158,987 | 101,844 |
End of period | 257,404 | 172,084 | 141,159 | 126,956 | 158,987 |
Cash paid for: | |||||
Income taxes | 541 | 2,475 | |||
Noncash activity: | |||||
Initial establishment of deferred tax assets | 70,862 | 0 | |||
Initial establishment of amounts payable under tax receivable agreements | 53,449 | 0 | |||
Initial establishment of contingent value rights | 55,440 | 0 | |||
Contribution of securities in-kind into Launch Equity | -19,355 | ||||
Capital invested into Launch Equity | 19,355 | ||||
Borrowings | |||||
Cash paid for: | |||||
Interest | 6,593 | 12,420 | 7,324 | ||
Interest Rate Swap | |||||
Cash paid for: | |||||
Interest | 985 | 9,794 | 14,926 | ||
Other obligations | |||||
Cash paid for: | |||||
Interest | 1 | 71 | |||
Preferred Stock | |||||
Noncash activity: | |||||
Issuance of preferred stock | $74,748 | $0 |
Organization_and_nature_of_bus
Organization and nature of business | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||
Organization and nature of business | Note 1. | Organization and nature of business | 1 | Organization and nature of business | |||||||||||
Organization | Organization | ||||||||||||||
On March 12, 2013, Artisan Partners Asset Management Inc. (“APAM”) completed an initial public offering of 12,712,279 Class A common shares (the “IPO”). APAM was formed in 2011 as a subsidiary of Artisan Partners Holdings LP (“Artisan Partners Holdings” or “Holdings”). APAM was formed for the purpose of becoming the general partner of Holdings in connection with the IPO. The reorganization established the necessary corporate structure to complete the IPO while at the same time preserving the ability of the firm to conduct operations through Holdings and its subsidiaries. See Note 2, “Reorganization and IPO” for more information on the reorganization and IPO. | On March 12, 2013, Artisan Partners Asset Management Inc. (“APAM”) completed an initial public offering of 12,712,279 Class A common shares (the “IPO”). APAM was formed in 2011 as a subsidiary of Artisan Partners Holdings LP (“Artisan Partners Holdings” or “Holdings” or the “Partnership”). APAM was formed for the purpose of becoming the general partner of Holdings in connection with the IPO. The reorganization established the necessary corporate structure to complete the IPO while at the same time preserving the ability of the firm to conduct operations through Holdings and its subsidiaries. | ||||||||||||||
As part of the reorganization, APAM became the sole general partner of Holdings. As the sole general partner, APAM controls the business and affairs of Holdings. As a result, APAM consolidates Holdings’ financial statements and records a noncontrolling interest for the economic interests in Holdings held by the limited partners of Holdings. At June 30, 2013, APAM’s total economic interest in Holdings approximated 22% of Holdings’ economics. | As part of the reorganization, APAM became the sole general partner of Holdings. As the sole general partner, APAM controls the business and affairs of Holdings. As a result, APAM consolidates Holdings’ financial statements and records a noncontrolling interest for the economic interests in Holdings held by the limited partners of Holdings. Because APAM and Holdings were under common control at the time of the reorganization, APAM’s acquisition of control of Holdings was accounted for as a transaction among entities under common control. The consolidated financial statements of APAM have been retroactively adjusted to reflect the following: | ||||||||||||||
APAM has been allocated a part of Holdings’ net income since March 12, 2013, when it became Holdings’ general partner. | • | Statements of Financial Condition—The assets, liabilities and equity of Holdings and of APAM have been carried forward at their historical carrying values. The historical partners’ deficit of Holdings is reflected as a noncontrolling interest. | |||||||||||||
Nature of Business | • | Statements of Operations, Comprehensive Income and Cash Flows—The historical consolidated statements of Holdings have been consolidated with the statements of operations, comprehensive income and cash flows of APAM. | |||||||||||||
Artisan is an independent investment management firm focused on providing high-value added, active investment strategies to sophisticated clients globally. Artisan’s operations are conducted through Artisan Partners Holdings and its subsidiaries. | Artisan Partners Asset Management has been allocated a part of Artisan Partners Holdings’ net income since March 12, 2013, when it became Artisan Partners Holdings’ general partner. Artisan Partners Holdings LP is a holding company for the investment management business conducted under the name “Artisan Partners”. The partnership interests in Artisan Partners Holdings consist of general partner units, Class A and Class B common units and preferred units (formerly redeemable Class C interests). The Class A and Class B common units and the preferred units are limited partner interests. Initial outside investors hold the Class A common units. Artisan employees hold the Class B common units. Non-employee investors hold the preferred units. The general partner units are held by Artisan Investment Corporation (“AIC”), all of the outstanding voting stock of which is owned by ZFIC, Inc. | ||||||||||||||
Artisan has five autonomous investment teams that oversee thirteen distinct U.S., non-U.S. and global investment strategies. | Artisan Partners Holdings is a limited partnership organized in the State of Delaware on December 9, 1994, which commenced operations on January 1, 1995. Artisan Partners Holdings, together with its wholly-owned subsidiary, Artisan Investments GP LLC (“AIGP”), controls a 100% interest in Artisan Partners Limited Partnership (“APLP”), a multi-product investment management firm that is the principal operating subsidiary of Artisan Partners Holdings. APLP is registered as an investment adviser with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940. APLP provides investment advisory services to separate accounts and pooled investment vehicles, including Artisan Partners Funds, Inc. (“Artisan Funds” or the “Funds”), known as Artisan Funds, Inc. until July 2011. Artisan Funds is a series of twelve open-end, diversified mutual funds registered under the Investment Company Act of 1940, as amended, that are distributed to both institutional and retail investors on a no-load basis and to which APLP also provides certain administrative services. | ||||||||||||||
Each strategy is offered through multiple investment vehicles to accommodate a broad range of client mandates. Artisan offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. | Investment management operations are also conducted through Artisan Partners UK LLP (“Artisan UK”), a limited liability partnership organized under the laws of England and Wales that is controlled by its founder member, Artisan Partners Limited (“UKCo”), a private limited company incorporated under the laws of England and Wales, which is wholly-owned by Artisan Partners Holdings. Artisan UK is registered as an investment adviser with the U.S. Securities and Exchange Commission under the Investment Advisers Act of 1940 and is authorized by the United Kingdom Financial Services Authority. Artisan UK provides investment sub-advisory services to APLP, including to Artisan Partners Global Equity Fund, a series of Artisan Funds. | ||||||||||||||
APLP has an agreement to serve as the investment manager of Artisan Partners Launch Equity Fund LP (“Launch Equity”), which is a private investment partnership in which the investors are certain partners and employees (or entities beneficially owned by such persons) of Artisan Partners Holdings. Artisan Partners Alternative Investments GP LLC (“Artisan Alternatives”), a wholly-owned subsidiary of Artisan Partners Holdings, is the general partner of Launch Equity. Launch Equity commenced operations on July 25, 2011. | |||||||||||||||
Artisan Partners Distributors LLC (“ADLLC”) is a wholly-owned subsidiary of Artisan Partners Holdings. ADLLC is a limited purpose broker/dealer registered with the Financial Industry Regulatory Authority that serves solely as principal distributor of the shares of Artisan Funds and does not execute trades on behalf of clients. | |||||||||||||||
The consolidated financial statements include the accounts of APAM and all of its majority owned and controlled subsidiaries. APAM and its subsidiaries are hereafter referred to collectively as “Artisan”. | |||||||||||||||
Nature of Business | |||||||||||||||
Artisan is an independent investment management firm focused on providing high-value added, active investment strategies to sophisticated clients globally. Artisan’s operations are conducted through Artisan Partners Holdings and its subsidiaries. | |||||||||||||||
Artisan has five autonomous investment teams that oversee twelve distinct U.S., non-U.S. and global investment strategies. | |||||||||||||||
Each strategy is offered through multiple investment vehicles to accommodate a broad range of client mandates. Artisan offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. | |||||||||||||||
2009 reorganization | |||||||||||||||
In June 2009, Artisan Partners Holdings (then named Artisan Partners Limited Partnership) reorganized into a holding company/operating company structure. Artisan Partners Holdings established (i) APLP as a new limited partnership subsidiary to serve as the U.S. operating company in Artisan’s organizational structure, and (ii) AIGP, a new limited liability company to serve as the general partner of APLP. Artisan Partners Holdings owns all of the limited partner interests of APLP and all of the membership interests of AIGP. In June 2009, certain of Holdings’ assets and liabilities were contributed to APLP via a Contribution Agreement by and among Artisan Partners Holdings, APLP and AIGP. Concurrent with the execution of the Contribution Agreement, Artisan Partners Holdings’ name was changed from Artisan Partners Limited Partnership to Artisan Partners Holdings LP, and the new operating company and its general partner were given their current names, Artisan Partners Limited Partnership and Artisan Investments GP LLC, respectively. During a transition period that extended through mid-2010, both Artisan Partners Holdings and APLP were registered with the U.S. Securities and Exchange Commission as investment advisers and provided investment management services to clients. The transition of Artisan Partners Holdings’ investment management business to APLP was completed and the registration of Artisan Partners Holdings as an investment adviser was terminated in August 2010. | |||||||||||||||
2006 recapitalization | |||||||||||||||
On July 3, 2006, Artisan Partners Holdings (then operating as Artisan Partners Limited Partnership) and its partners entered into the following series of transactions (the “Recapitalization Transactions”): (i) a $400 million borrowing by Artisan Partners Holdings, (ii) redemption by Artisan Partners Holdings of Class A, Class B and general partner interests from certain partners with the proceeds from the borrowing, and (iii) the purchase of Class A, Class B, and general partner interests by private equity funds (the “H&F Funds”) controlled directly or indirectly by Hellman & Friedman LLC, and the conversion of those purchased interests to Class C limited partnership interests. | |||||||||||||||
The borrowing by Artisan Partners Holdings was recorded as a liability incurred based on the principal amount of the borrowing; the subsequent redemption of a portion of the general and limited partnership interests of certain partners by Artisan Partners Holdings was recorded as a partnership interest repurchase (akin to a treasury stock repurchase) and a reduction of equity. The conversion to Class C interests of the Class A, Class B and general partner interests acquired by the H&F Funds was recorded as a contribution of capital and partnership interest repurchase (akin to a treasury stock repurchase). The initial measurement of the capital contribution from the H&F Funds was the amount of the consideration paid to our partners, which was negotiated between our partners and the H&F Funds taking into account the rights of the Class C interests. The Class C interests were recorded in temporary equity pursuant to ASC 480 as they were redeemable in 2016 at the option of the holder. | |||||||||||||||
Equity interests in Artisan Partners Holdings | |||||||||||||||
Prior to July 15, 2012, Artisan Partners Holdings had outstanding general partner interests and Class A, Class B and Class C limited partner interests. All interests in Artisan Partners Holdings shared ratably in the net income of Artisan Partners Holdings. | |||||||||||||||
On July 15, 2012, the limited partnership agreement of Artisan Partners Holdings (the “Partnership Agreement”) was amended and restated to reclassify the general partner interests and Class A, Class B, and Class C limited partner interests as general partner units, Class A common units, Class B common units, and preferred units, respectively. The holders of Partnership units are generally entitled to pro rata allocations of profits and losses and other items and distributions of cash and other property and the preferred units have a preference on full or partial liquidation of the partnership. | |||||||||||||||
The percentages of units outstanding represented by each class at December 31, 2012, and of the interests in the Partnership’s profits at December 31, 2011 and 2010, were approximately as follows: | |||||||||||||||
At December 31, | |||||||||||||||
2012 | 2011 | 2010 | |||||||||||||
General Partner units/interests | 15.99 | % | 17.78 | % | 18.72 | % | |||||||||
Class A common units/interests | 22.82 | % | 24.46 | % | 25.76 | % | |||||||||
Class B common units/interests | 43.99 | % | 40.94 | % | 37.8 | % | |||||||||
Preferred units/Class C interests | 17.2 | % | 16.82 | % | 17.72 | % | |||||||||
100 | % | 100 | % | 100 | % | ||||||||||
Class B units were granted as Class B interests under the terms of the Partnership Agreement and pursuant to written grant agreements to certain employees of APLP and other subsidiaries of Artisan Partners Holdings. During the years ended December 31, 2012 and December 31, 2011, Class B interests reclassified as Class B common units representing 13.06% and 5.35%, respectively, of the interests in the profits of Artisan Partners Holdings were granted at no cost to Class B limited partners. | |||||||||||||||
The preferred units enjoy certain preferential rights to distributions upon the full or partial liquidation of Artisan Partners Holdings, including following any Partial Capital Event (as defined in the Partnership Agreement). The holders of preferred units also have the right to cause Artisan Partners Holdings to redeem those units in 2016 for cash for an aggregate amount of $357,194. |
Reorganization_and_IPO
Reorganization and IPO | 6 Months Ended | ||||
Jun. 30, 2013 | |||||
Reorganization and IPO | Note 2. | Reorganization and IPO | |||
Reorganization | |||||
In connection with the IPO, APAM and Holdings entered into a series of transactions in order to reorganize their capital structures and complete the IPO. The reorganization transactions included, among others, the following: | |||||
• | Appointment of APAM as the sole general partner of Holdings. | ||||
• | Modification of APAM’s capital structure into three classes of common stock and a series of convertible preferred stock. Shares of Class B common stock, Class C common stock and convertible preferred stock were issued to pre-IPO partners of Holdings. A description of these shares is included in Note 10, “Stockholders’ Equity”. | ||||
• | Merger (the “H&F Corp Merger”) into APAM of a corporation (“H&F Corp”) that at the time of the merger was a holder of preferred units and contingent value rights (“Partnership CVRs”) issued by Holdings and Class C common stock of APAM. As consideration for the merger, the shareholder of H&F Corp received shares of APAM’s convertible preferred stock, contingent value rights (“APAM CVRs”) issued by APAM, and the right to receive an amount of cash equal to H&F Corp’s share of the post-IPO distribution of Holdings pre-IPO retained profits. | ||||
• | Entry by APAM into two tax receivable agreements, one with the pre-merger shareholder of H&F Corp and the other with each limited partner of Holdings. Pursuant to the first, APAM will pay to the counterparty a portion of certain tax benefits realized by APAM as a result of the H&F Corp Merger. Pursuant to the second TRA, APAM will pay to the counterparties a portion of certain tax benefits realized by APAM as a result of the purchase of Class A common units in connection with the IPO and future redemptions or exchanges of limited partner units of Holdings for APAM Class A common stock. The tax receivable agreements are further described in Note 3, “Summary of Significant Accounting Policies—Tax Receivable Agreements”. | ||||
Because APAM and Holdings were under common control at the time of the reorganization, APAM’s acquisition of control of Holdings was accounted for as a transaction among entities under common control. The consolidated financial statements of APAM reflect the following: | |||||
• | Statements of Financial Condition—The assets, liabilities and equity of Holdings and of APAM have been carried forward at their historical carrying values. The historical partners’ deficit of Holdings is reflected as a noncontrolling interest. | ||||
• | Statements of Operations, Comprehensive Income and Cash Flows—The historical consolidated statements of Holdings have been consolidated with the statements of operations, comprehensive income and cash flows of APAM. | ||||
Modification of Artisan Partners Holdings’ Units | |||||
As part of the reorganization, the limited partner units of Holdings were modified. In addition to modification to the voting and other rights with respect to each class of units, the following modifications were made to the Class B common units and the preferred units: | |||||
• | The Class B common units of Holdings, which are held by employee-partners, were modified to eliminate a cash redemption feature. Prior to the reorganization, the terms of the Class B unit award agreements required Holdings to redeem the units from a holder whose employment by Artisan had been terminated. As a result of the redemption feature, Artisan was required to account for the Class B units as liability awards. At the time of the IPO, the amount of the liability was increased to $551,951 to reflect the value implied by the IPO valuation. Thereafter, as a result of the elimination of the redemption feature, Artisan reclassified the entire liability to equity. Any Class B awards that were unvested at the time of the reorganization will be reflected as “Pre-offering related compensation—share-based awards” over the remaining vesting period (see Note 11, “Compensation and Benefits”). | ||||
• | The preferred units of Holdings were modified to eliminate the associated put right. In exchange for the elimination of the put right, Holdings issued Partnership CVRs to the holders of the preferred units. The CVRs were classified as liabilities and the preferred units were reclassified to permanent equity after the modification. As discussed above, in conjunction with the H&F Corp Merger, Artisan Partners Asset Management received the modified preferred units and partnership CVRs and issued to the H&F holders convertible preferred stock and APAM CVRs. For each outstanding APAM CVR, APAM holds one Partnership CVR. The convertible preferred stock and APAM CVRs issued are recorded at the carryover basis of the preferred units and Partnership CVRs originally held by the H&F holders. | ||||
IPO and Use of Proceeds | |||||
The net proceeds from the IPO were $353,414. In connection with the IPO, Artisan used cash on hand to make cash incentive payments aggregating $56,788 to certain of its portfolio managers. Artisan used a portion of the IPO net proceeds, combined with remaining cash on hand, for the following: | |||||
Retained profits distributions to pre-IPO partners | $ | 105,301 | |||
Repayment of principal amounts under the revolving credit agreement (see Note 6, “Borrowings”) | 90,000 | ||||
Purchase of 2,720,823 Class A common units from certain investors | 76,319 | ||||
Total | $ | 271,620 | |||
Artisan is using the remaining proceeds for general corporate purposes. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||
Summary of Significant Accounting Policies | Note 3. | Summary of Significant Accounting Policies | ||||||||||||||||||||
Basis of presentation | ||||||||||||||||||||||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such consolidated financial statements have been included. Such interim results are not necessarily indicative of full year results. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and accordingly they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2012 of Holdings included in APAM’s prospectus dated March 6, 2013, filed with the SEC in accordance with Rule 424(b) of the Securities Act of 1933 on March 7, 2013, which is accessible on the SEC’s website at www.sec.gov. | 2 | Summary of significant accounting policies | ||||||||||||||||||||
The accompanying financial statements were prepared in accordance with U.S. GAAP and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. | Basis of presentation | |||||||||||||||||||||
Principles of consolidation | The accompanying Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the Consolidated Financial Statements. Actual results could differ from these estimates or assumptions. | |||||||||||||||||||||
Artisan’s policy is to consolidate all subsidiaries in which it has a controlling financial interest and variable interest entities (“VIEs”) of which Artisan is deemed to be the primary beneficiary. The primary beneficiary is deemed to be the entity that has the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities. The Consolidated Financial Statements include the accounts of APAM, all subsidiaries in which APAM has a direct or indirect controlling financial interest and VIEs of which Artisan is deemed to be the primary beneficiary. All material intercompany balances have been eliminated in consolidation. | Principles of consolidation | |||||||||||||||||||||
At June 30, 2013 and December 31, 2012, Artisan’s wholly-owned subsidiary, Artisan Partners Alternative Investments GP LLC, was the general partner of Artisan Partners Launch Equity LP (“Launch Equity”), a private investment partnership that is considered a VIE. Launch Equity is considered an investment company and therefore accounted for under Accounting Standard Codification Topic 946, “Financial Services—Investment Companies”. Artisan has retained the specialized industry accounting principles of this investment company in its Consolidated Financial Statements. See Note 9, “Variable and Voting Interest Entities” for additional details. | The Consolidated Financial Statements include the accounts of APAM and its subsidiaries. All material intercompany balances have been eliminated in consolidation. | |||||||||||||||||||||
Artisan’s policy is to consolidate all subsidiaries in which it has a controlling financial interest, which is usually demonstrated when it owns a majority of the voting interest in an entity, and variable interest entities (“VIEs”) where Artisan is deemed to be the primary beneficiary. The primary beneficiary is deemed to be the entity that has the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities. | ||||||||||||||||||||||
Tax Receivable Agreements (“TRAs”) | At December 31, 2012 and 2011 our wholly-owned subsidiary, Artisan Alternatives, was the general partner of Launch Equity, a private investment partnership that is considered a VIE where Artisan is deemed to be the primary beneficiary. Launch Equity is an investment company and therefore accounted for under Accounting Standard Codification Topic 946, “Financial Services—Investment Companies.” Artisan has retained the specialized industry accounting principles of this investment product in its Consolidated Financial Statements. See Note 7, “Consolidated Investment Products” for additional details. At December 31, 2010, Artisan did not have any VIEs. | |||||||||||||||||||||
In connection with the IPO, APAM entered into two tax receivable agreements. Under the first TRA, APAM generally is required to pay to the holders of convertible preferred stock issued as consideration for the H&F Corp Merger (or Class A common stock issued upon conversion of that convertible preferred stock) 85% of the applicable cash savings, if any, in U.S. federal and state income tax that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) the tax attributes of the preferred units APAM acquired in the merger, (ii) net operating losses available as a result of the merger and (iii) tax benefits related to imputed interest. | Artisan Funds and Artisan Partner Global Funds Public Limited Company (“Artisan Global Funds”), a family of Ireland based UCITS, are corporate entities the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain all voting rights, including the right to elect and reelect members of their respective boards of directors. While we hold, in limited cases, direct investments in a fund (which are made on the same terms as are available to other investors and do not represent a majority voting interest in any fund), we do not have a controlling financial interest or a majority voting interest and, as such, Artisan does not consolidate these entities. | |||||||||||||||||||||
Under the second TRA, APAM generally is required to pay to the holders of limited partnership units of Holdings (or Class A common stock or convertible preferred stock issued upon exchange of limited partnership units) 85% of the applicable cash savings, if any, in U.S. federal and state income tax that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of their units sold to APAM or exchanged (for shares of Class A common stock or convertible preferred stock) and that are created as a result of the sales or exchanges and payments under the TRAs and (ii) tax benefits related to imputed interest. Under both agreements, APAM generally will retain the benefit of the remaining 15% of the applicable tax savings. | Operating segments | |||||||||||||||||||||
For purposes of the TRAs, cash savings in tax are calculated by comparing APAM’s actual income tax liability to the amount it would have been required to pay had it not been able to utilize any of the tax benefits subject to the TRAs, unless certain assumptions apply. The TRAs will continue in effect until all such tax benefits have been utilized or expired, unless APAM exercises its right to terminate the agreements or payments under the agreements are accelerated in the event that APAM materially breaches any of its material obligations under the agreements. The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of exchanges by the holders of limited partnership units, the price of the Class A common stock or the value of the convertible preferred stock, as the case may be, at the time of the exchange, whether such exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest. | Artisan operates in one segment, the investment management industry. Artisan provides investment management services to separate accounts and mutual funds and other pooled investment vehicles. Management assesses the financial performance of these vehicles on a combined basis. | |||||||||||||||||||||
Payments under the TRAs, if any, will be made pro rata among all TRA counterparties entitled to payments on an annual basis to the extent APAM has sufficient taxable income to utilize the increased depreciation and amortization charges. We expect to make payments under the TRAs, to the extent they are required, within 125 days after APAM’s federal income tax return is filed for each fiscal year. Interest on such payments will begin to accrue at a rate equal to one-year LIBOR plus 100 basis points from the due date (without extension) of such tax return. | Cash and cash equivalents | |||||||||||||||||||||
Comprehensive income (loss) | Artisan defines cash and cash equivalents as money market funds and other highly liquid investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions. At December 31, 2012, all non-interest bearing accounts were fully insured by the Federal Deposit Insurance Company (“FDIC”). Unlimited FDIC insurance expired on January 1, 2013. | |||||||||||||||||||||
Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of the change in unrealized gains (losses) on available-for-sale investments and foreign currency translation, net of related tax effects. The tax effects of components of other comprehensive income (loss) is calculated on the portion of comprehensive income (loss) attributable to APAM. | Cash and cash equivalents of Launch Equity | |||||||||||||||||||||
Cash and cash equivalents of Launch Equity represent cash and equivalents of Launch Equity, a private investment partnership that is considered a VIE. Launch Equity defines cash and cash equivalents as highly liquid investments which have original maturities of 60 days or less. Cash and cash equivalents of consolidated investment products are stated at cost, which approximates fair value. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Unaudited Condensed Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | Foreign currency translation | |||||||||||||||||||||
Assets and liabilities of foreign operations whose functional currency is not the U.S. dollar are translated at prevailing year-end exchange rates. Revenue and expenses of such foreign operations are translated at average exchange rates during the year. The net effect of the translation adjustment for foreign operations is included in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income (Loss) and Noncontrolling interest—Artisan Partners Holdings on the Consolidated Statements of Changes in Stockholders’ Equity. | ||||||||||||||||||||||
Accounts receivable | ||||||||||||||||||||||
As of June 30, | As of December 31, | Accounts receivable primarily reflects investment management fees receivable from clients other than Artisan Funds, the fees from which are received on the last business day of each month. Artisan’s accounts receivable balances do not include any allowance for doubtful accounts nor has any bad debt expense attributable to accounts receivable been recorded for the years ended December 31, 2012, 2011 and 2010. Artisan believes all accounts receivable balances are fully collectible. | ||||||||||||||||||||
2013 | 2012 | Accounts receivable of Launch Equity | ||||||||||||||||||||
Unrealized gain on investments | $ | 805 | $ | — | Accounts receivable of Launch Equity represents the value of securities sold by Launch Equity but not yet settled. See Note 7, “Consolidated investment products,” for additional details. | |||||||||||||||||
Foreign currency translation | (57 | ) | — | Investment securities | ||||||||||||||||||
Investment securities consist of investments in equity mutual funds for which Artisan is the investment adviser and are classified as available-for-sale. These securities primarily represent securities held in connection with an incentive compensation plan established during 2011. This incentive compensation plan provides certain portfolio managers with additional cash compensation over a three-year period based on the then-current value of the investment securities, which are shares of mutual funds managed by such portfolio managers. Artisan is not required to purchase additional securities as part of this plan. Investments provide exposure to various risks, including price risk (the risk of a potential future decline in value of the investment) and foreign currency risk. Investments in registered mutual funds are carried at fair value at their respective net asset values as of the valuation date. Fair value is defined as the price that Artisan would expect to have received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 748 | $ | — | Unrealized gains (losses) on available-for-sale securities are recorded as a component of Total comprehensive income (loss). Dividend income from these investments is recognized when earned and is included in Other non-operating gains in the Consolidated Statements of Operations. Realized gains (losses) are computed on a specific identification basis and are recorded in Other non-operating gains in the Consolidated Statements of Operations. | |||||||||||||||||
Investment securities of Launch Equity | ||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests—Artisan Partners Holdings on the Unaudited Consolidated Statements of Comprehensive Income (Loss) represents the portion of comprehensive income (loss) attributable to the economic interests in Holdings held by the limited partners of Holdings. For periods prior to the IPO, all comprehensive income (loss) is entirely attributable to noncontrolling interests. | Investment securities of Launch Equity represent investments held by Launch Equity. The carrying value of Launch Equity’s investments is also their fair value. Long and short positions in equity securities are valued based upon closing market prices of the security on the principal exchange on which the security is traded. See Note 7, “Consolidated investment products,” for additional details. | |||||||||||||||||||||
Recent accounting pronouncements | Property and equipment | |||||||||||||||||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities. The ASU requires an entity to disclose information about offsetting and related arrangements for financial and derivative instruments to provide information on the effect of those arrangements on its financial position. In January 2013, the FASB also issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of ASU 2011-11 to specify the disclosures apply to derivatives accounted for in accordance with ASC Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. These amendments are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of ASU 2011-11 and ASU 2013-01 did not have an impact on our financial statements. | Property and equipment are carried at cost, less accumulated depreciation. Depreciation for office furniture is recognized over the applicable life of the asset class, typically seven years. Depreciation for computer hardware and equipment is recognized over the applicable life of the asset class, typically five years. Depreciation for leasehold improvements is recognized over the applicable life of the asset class, typically the lesser of the economic useful life of the improvement or the remaining term of the lease. Depreciation for computer software is recognized over the applicable life of the asset class, typically three years. | |||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU also requires presentation, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. However, such disclosure is only required if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity should cross-reference to other disclosures that provide additional detail about those amounts. For public entities, the ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have an impact on our financial statements. | Restricted cash | |||||||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The ASU clarifies the interaction between ASC 810-10, Consolidation—Overall, and ASC 830-30, Foreign Currency Matters—Translation of Financial Statements, when releasing the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not currently expect the adoption of this ASU to have an impact on our financial statements. | Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation at December 31, 2012 and 2011. | |||||||||||||||||||||
In June 2013, the FASB issued ASU 2013-08, Investment Companies (Topic 946). The ASU changes the approach to the investment company assessment in Topic 946, clarifying the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. This update would also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting and to include additional disclosures. The ASU is effective for reporting periods beginning after December 15, 2013. We are currently evaluating the impact of this ASU on Launch Equity for 2014. | Derivative instruments | |||||||||||||||||||||
Artisan attempted to manage its exposure to changes in market rates of interest on its term loan through the use of derivative instruments. Artisan’s use of derivative instruments was limited to interest rate swaps used to manage the interest rate exposure related to its variable rate term loan. As of and for the year ended December 31, 2010, Artisan designated its interest rate swaps as a hedge of the benchmark interest rate on future interest payments to remove the exposure to variations in cash flows related to interest expense. Artisan monitored its position and the credit rating of the counterparties and did not anticipate non-performance by any party to the interest rate swaps. | ||||||||||||||||||||||
The interest rate swaps were carried at fair value. For the year ended December 31, 2010 the change in fair value that related to the effective portion of the cash flow hedge were recorded as a component of Total comprehensive income (loss) and the ineffective portion recorded as Gain (loss) on interest rate swap. During the year ended December 31, 2011, Artisan discontinued the hedge accounting relationship related to the cash flow hedge. As such, cumulative amounts recorded in Total comprehensive income (loss) were reclassified to current earnings as Gain (loss) on interest rate swap. Changes in fair value occurring after the date of discontinuance were recorded as Gain (loss) on interest rate swap. | ||||||||||||||||||||||
During the year ended December 31, 2012, Artisan terminated the interest rate swap contract in connection with the repayment of all of the then-outstanding principal amount of our term loan. Final settlement of the swap contract was $1,135. See Note 6, “Derivative instruments,” for additional details. | ||||||||||||||||||||||
Payables of Launch Equity | ||||||||||||||||||||||
Payables of Launch Equity represent payables for securities purchased by Launch Equity but not yet settled. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity | ||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity represent securities sold short, at fair value, held by Launch Equity. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Revenue recognition | ||||||||||||||||||||||
Investment management fees are generally computed as a percentage of assets under management and recognized as earned. Fees for providing investment advisory services are computed and billed in accordance with the provisions of the applicable investment management agreements. The investment management agreements for a small number of accounts provide for performance-based fees. Performance-based fees, if earned, are recognized on the contractually determined measurement date. Performance-based fees generally are not subject to claw back as a result of performance declines subsequent to the most recent measurement date. | ||||||||||||||||||||||
Unit-based compensation | ||||||||||||||||||||||
In accordance with the provisions of the Partnership Agreement and the terms of the corresponding grant agreements, Class B interests reclassified as Class B common units granted to the Class B limited partners of Holdings are generally entitled to pro rata allocations of profits and losses and other items and distributions of cash and other property. Class B common units vest ratably over a five-year vesting period, beginning on the date of grant. Vesting is accelerated upon the occurrence of certain events, including a change in control as defined in the grant agreements. | ||||||||||||||||||||||
Vested Class B common units are classified as share-based liability awards. Vested Class B common units of a terminated partner are redeemed in cash, generally in annual installments over the five years following termination of employment. The Partnership redeems the vested Class B common units at a value determined in accordance with the terms of the grant agreement pursuant to which the common units were granted, which includes a premium in the case of employment terminated by reason of death, disability or retirement. The redemption value of Class B common units has been calculated assuming a holder’s termination of employment was the result of resignation or involuntary termination by Artisan and has been recorded as Class B liability award on the Consolidated Statements of Financial Condition. For individuals who have given notice of retirement in accordance with their grant agreements and such notice has been accepted by Artisan, the redemption value of the Class B common units has been calculated using the retirement valuation as of the notice date. Prior to April 6, 2011, compensation cost was measured at the grant date based on the intrinsic value of the common units granted. Intrinsic value was determined using the redemption value of the Class B awards. Effective April 6, 2011, compensation cost is measured at the grant date based on the fair value of the common units granted. Compensation cost is recognized as expense over the requisite service period for vesting, typically five years. Compensation cost is re-measured each period with any incremental changes in value subsequent to the grant date expensed over the remaining vesting period. Changes in value that occur after the end of the vesting period are recorded as compensation cost in the period in which the changes occur through settlement of the common units. | ||||||||||||||||||||||
Distributions of the Partnership’s net income associated with Class B common units are recorded to Compensation and benefits expense. | ||||||||||||||||||||||
Distribution fees | ||||||||||||||||||||||
Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other authorized agents, and in some cases, other organizations designated by an authorized agent (with their designees, collectively “authorized agents”) to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the Funds’ behalf. Many authorized agents charge a fee for accounting and shareholder services provided to Fund shareholders on the Fund’s behalf. Those services typically include recordkeeping, transaction processing for shareholders’ accounts, and other services. The fee is either based on the number of accounts to which the intermediary provides such services or a percentage of the average daily value of Fund shares held in such accounts. The Funds pay a portion of such fees, which are intended to compensate the authorized agent for its provision of services of the type that would be provided by the Fund’s transfer agent or other service providers if the shares were registered directly on the books of the Fund’s transfer agent. Artisan pays the balance of those fees which includes compensation to the authorized agent for its distribution and marketing of Artisan Funds shares. | ||||||||||||||||||||||
Distribution fees paid to authorized agents were as follows: | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||
Total authorized agent fees incurred | $ | 88,818 | $ | 86,166 | $ | 74,929 | ||||||||||||||||
Less: fees incurred by Artisan Funds | 62,736 | 61,431 | 52,843 | |||||||||||||||||||
Fees incurred by Artisan | 26,082 | 24,735 | 22,086 | |||||||||||||||||||
Other marketing expenses | 2,908 | 1,439 | 936 | |||||||||||||||||||
Total distribution and marketing | $ | 28,990 | $ | 26,174 | $ | 23,022 | ||||||||||||||||
Accrued fees to authorized agents as of December 31, 2012 and 2011 were $3,592 and $3,075, respectively, and are included in Accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||
Leases | ||||||||||||||||||||||
Rent under non-cancelable operating leases with scheduled rent increases is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. Allowances and other lease incentives provided by Artisan’s landlords are amortized on a straight-line basis as a reduction of rent expense. The difference between straight-line rent expense and rent paid and the unamortized deferred lease costs and build-out allowances are recorded as Deferred lease obligations in the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||||
Artisan considers the assessment of loss contingencies as a significant accounting policy because of the significant uncertainty relating to the outcome of any potential legal actions and other claims and the difficulty of predicting the likelihood and range of the potential liability involved, coupled with the material impact on our results of operations that could result from legal actions or other claims and assessments. Artisan recognizes estimated costs to defend as incurred. Potential loss contingencies are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on Artisan’s results of operations, financial position, or cash flows. Recoveries of losses are recognized in the Consolidated Statements of Operations when receipt is deemed probable. No loss contingencies were recorded at December 31, 2012, 2011, and 2010. There is currently no litigation in process or outstanding. | ||||||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||
Under the terms of the Partnership Agreement, the preferred units entitle their holders to preferential distributions upon the occurrence of certain events and a right to require the Partnership to redeem the preferred units for an aggregate amount of $357,194 on July 3, 2016 under certain circumstances. | ||||||||||||||||||||||
Income taxes | ||||||||||||||||||||||
Artisan Partners Holdings is organized as a limited partnership and is taxed as a partnership for United States income tax purposes and therefore files federal and state flow through income tax returns. As a result, no U.S. current or deferred income tax assets or liabilities are reflected in these financial statements. Each of Artisan Partners Holdings’ partners is obligated to report that partner’s proportionate share of Artisan Partners Holdings’ taxable income or loss. The income tax provision consists of foreign income taxes of UKCo. UKCo is the founder member of Artisan UK. UKCo is a private limited corporation and pays corporate tax in the United Kingdom. UKCo records a tax liability for corporation tax at the current rates on the excess of taxable income over allowable expenses. During the years ended December 31, 2012, 2011 and 2010, UKCo incurred $1,047, $1,162 and $1,281 in UK corporate tax, respectively. | ||||||||||||||||||||||
As a result of the IPO, APAM became subject to U.S. C-corporation federal and state income tax on its allocable portion of the income of Artisan Partners Holdings. During the years ended December 31, 2012, 2011 and 2010, APAM was not allocated any of Holdings’ income and therefore did not incur any U.S. income tax provision. | ||||||||||||||||||||||
Artisan accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Artisan believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position. Interest and penalties relating to tax liabilities are recognized on actual tax liabilities and exposure items. Interest is accrued according to the provisions of the relevant tax law and is reported as Interest expense in the Consolidated Statements of Operations. Penalties are accrued when Artisan expects to take the related position in its tax return and are reported as Other income (loss) within the Non-operating income (loss) section of the Consolidated Statements of Operations. | ||||||||||||||||||||||
Comprehensive income (loss) | ||||||||||||||||||||||
Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of the change in unrealized gains (losses) on available-for-sale investments and foreign currency translation, net of related tax effects. Comprehensive income (loss) attributable to noncontrolling interests - Artisan Partners Holdings on the Consolidated Statements of Comprehensive Income (Loss) represents the portion of comprehensive income (loss) attributable to the economic interests in Holdings held by the limited partners of Holdings. For periods prior to the IPO, all comprehensive income (loss) is entirely attributable to noncontrolling interests. | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) is included in Noncontrolling interest—Artisan Partners Holdings in the accompanying Consolidated Statements of Changes in Stockholders’ Equity, and consists of the following: | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||
Unrealized gain on investments | $ | 1,906 | $ | 68 | $ | 130 | ||||||||||||||||
Unrealized loss on interest rate swap | — | — | (6,434 | ) | ||||||||||||||||||
Foreign currency translation | 58 | (75 | ) | (57 | ) | |||||||||||||||||
$ | 1,964 | $ | (7 | ) | $ | (6,361 | ) | |||||||||||||||
Partnership distributions | ||||||||||||||||||||||
Artisan makes distributions of its net income to its partners for income taxes as required under the terms of the Partnership Agreement. Tax distributions are calculated utilizing the highest combined individual federal, state and local income tax rate among the various locations in which the partners, as a result of owning their interests in the Partnership, are subject to tax, assuming maximum applicability of the phase-out of itemized deductions contained in the Internal Revenue Code, multiplied by each partner’s share of taxable income. Artisan also makes distributions of its net income under the terms of the Partnership Agreement. Distributions are recorded in the financial statements on the declaration date. Partnership distributions totaled $135,039, $122,822 and $54,338 for the years ended December 31, 2012, 2011 and 2010, respectively, and are reported as Pre-offering related compensation—other within the Consolidated Statements of Operations and Partnership distributions within the Consolidated Statements of Changes in Stockholders’ Equity (Deficit). | ||||||||||||||||||||||
Earnings per Share | ||||||||||||||||||||||
Basic earnings per share is computed by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Income available to Class A common stockholders is computed by deducting from net income attributable to APAM, dividends declared or paid to convertible preferred stockholders during the period and allocating undistributed earnings to the Class A common shares and participating securities, according to their respective rights to participate in those earnings. The IPO and related reorganization closed on March 12, 2013. All income for the period prior to that date was entirely allocable to noncontrolling interest. As a result, APAM earnings per share was $0 for the three years in the period ended December 31, 2012. | ||||||||||||||||||||||
Recent accounting pronouncements | ||||||||||||||||||||||
In June 2011, the Financial Accounting Standards Board (“FASB”) issued ASU 2011-05 which amends the Presentation of Comprehensive Income Topic, or Topic 220, of the FASB Accounting Standards Codification (“ASC”). This update, which was further amended by ASU 2011-12, eliminates the option to present other comprehensive income in the Statement of Changes in Stockholders’ Equity (Deficit) and Accumulated Other Comprehensive Income (Loss). Two alternatives are provided; an entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. Artisan adopted the amendments to this Topic and they are accordingly reflected in the new financial statement, “Consolidated Statements of Comprehensive Income (Loss)”. | ||||||||||||||||||||||
In May 2011, the FASB issued ASU 2011-04, which updates the disclosure guidance in the Fair Value Measurements and Disclosures Topic, or ASU Topic 820. This update clarifies the application of existing fair value measurement requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurements. Required disclosures are expanded under the new guidance, particularly for fair value measurements that are categorized within Level 3 of the fair value hierarchy, for which quantitative information about the unobservable inputs used and a narrative description of the valuation processes in place will be required. ASU 2011-04 is effective in interim and annual periods beginning after December 15, 2011 and is to be applied prospectively. Artisan has adopted this Topic and this did not impact the Consolidated Financial Statements. | ||||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, which updates the presentation of information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income in one place. Currently, this information is presented in different places throughout the financial statements. ASU 2013-02 is effective prospectively in interim and annual periods beginning after December 15, 2012. |
Investment_Securities
Investment Securities | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Investment Securities | Note 4. | Investment Securities | 3 | Investment securities | ||||||||||||||||||||||||||||||
The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are described in Note 9, “Variable and Voting Interest Entities”. | The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are detailed in Note 7, “Consolidated Investment Products.” | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||||
At June 30, 2013 | At December 31, 2012: | |||||||||||||||||||||||||||||||||
Equity mutual funds | $ | 18,335 | $ | 3,937 | $ | (33 | ) | $ | 22,239 | Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 | ||||||||||||||||
At December 31, 2012 | At December 31, 2011: | |||||||||||||||||||||||||||||||||
Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 | Equity mutual funds | $ | 17,194 | $ | 68 | $ | — | $ | 17,262 | |||||||||||||||||
Artisan’s investments in equity mutual funds consist of investments in shares of Artisan Partners Funds, Inc. and Artisan Partners Global Funds plc and are considered to be available-for-sale securities. As a result, unrealized gains (losses) are recorded to Accumulated other comprehensive income (loss). | Artisan’s investments in equity mutual funds consist of Artisan Funds and are considered to be available-for-sale securities. As a result, unrealized gains (losses) are recorded as a component of other comprehensive income (loss). | |||||||||||||||||||||||||||||||||
Artisan held one security as of June 30, 2013 in an unrealized loss position. The duration of the loss is less than one month and is attributable to market conditions. Based on the limited severity and duration of the unrealized loss, this investment is not considered to be other-than-temporarily impaired. | As of December 31, 2012 and 2011, Artisan held no available-for-sale securities in an unrealized loss position. | |||||||||||||||||||||||||||||||||
As of December 31, 2012, Artisan held no available-for-sale securities in an unrealized loss position. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 5. | Fair Value Measurements | 4 | Fair value measurements | ||||||||||||||||||||||||||||||
The table below presents information about Artisan’s assets and liabilities that are measured at fair value and the valuation techniques we utilized to determine such fair value. The fair value of financial instruments held by Launch Equity is presented in Note 9, “Variable and Voting Interest Entities”. The fair value of the Company’s borrowings is presented in Note 6, “Borrowings”. | The fair value of Artisan’s financial instruments is presented in the table below. The fair value of financial instruments held by Launch Equity is presented in Note 7, “Consolidated Investment Products.” | |||||||||||||||||||||||||||||||||
In accordance with ASC 820, fair value is defined as the price that Artisan would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value: | In accordance with ASC 820, fair value is defined as the price that Artisan would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market of the investment. The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value: Level 1—observable inputs such as quoted prices in active markets for identical securities; Level 2—other significant observable inputs (including but not limited to quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.); Level 3—significant unobservable inputs (including Artisan’s own assumptions in determining the fair value of investments). For investments recorded at fair value, Artisan measures fair value using quoted market prices for identical assets. For interest rate swaps, notes payable, and the revolving credit arrangement, Artisan measures fair value using a calculation of the expected cash flows under the terms of each specific contract discounted to a present value. The calculation may include numerical procedures such as interpolation of LIBOR yield curves when input values do not directly correspond to the observable market data. | |||||||||||||||||||||||||||||||||
The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments at December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||||
• | Level 1—Observable inputs such as quoted (unadjusted) market prices in active markets for identical securities. | |||||||||||||||||||||||||||||||||
• | Level 2—Other significant observable inputs (including but not limited to quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, etc.). | Assets and Liabilities at Fair Value: | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
• | Level 3—Significant unobservable inputs (including Artisan’s own assumptions in determining fair value). | December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of June 30, 2013 and December 31, 2012: | Equity mutual funds | $ | 15,241 | $ | 15,241 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value | Borrowings | $ | 293,434 | $ | — | $ | 293,434 | $ | — | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||
June 30, 2013 | December 31, 2011 | |||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 257,404 | $ | 257,404 | $ | — | $ | — | Equity mutual funds | $ | 17,262 | $ | 17,262 | $ | — | $ | — | |||||||||||||||||
Equity mutual funds | 22,239 | 22,239 | — | — | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||
Liabilities | Interest rate swaps | $ | 1,066 | $ | — | $ | 1,066 | $ | — | |||||||||||||||||||||||||
Contingent value rights | 22,020 | — | — | 22,020 | Borrowings | 324,268 | — | 324,268 | — | |||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2012 and 2011. There were no Level 3 investments held during the years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 141,159 | $ | 141,159 | $ | — | $ | — | ||||||||||||||||||||||||||
Equity mutual funds | 15,241 | 15,241 | — | — | ||||||||||||||||||||||||||||||
Fair values determined based on Level 1 inputs utilize quoted market prices for identical assets. Our Level 1 assets generally consist of marketable open-end mutual funds or UCITS. Our only Level 3 liabilities are the CVRs, which are discussed below. There were no Level 3 assets or liabilities as of December 31, 2012. | ||||||||||||||||||||||||||||||||||
Our policy is to recognize transfers in and transfers out of the valuation levels as of the beginning of the reporting period. There were no transfers between Level 1, Level 2 or Level 3 securities during the three and six months ended June 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||
Contingent Value Rights (“CVRs”) | ||||||||||||||||||||||||||||||||||
As part of the IPO-related reorganization, Holdings issued Partnership CVRs and APAM issued APAM CVRs in order to provide holders of Holdings preferred units and APAM convertible preferred stock with economic rights following the reorganization and IPO that, collectively, are similar (although not identical) to the economic rights they possessed with respect to Holdings prior to the reorganization and IPO. APAM holds one Partnership CVR for each outstanding APAM CVR. The holders of the preferred units and convertible preferred stock did not pay any cash consideration for the CVRs. The CVRs are classified as liabilities and are accounted for under ASC 815 as derivatives. | ||||||||||||||||||||||||||||||||||
The CVRs may require Artisan to make a cash payment to the holders thereof on July 11, 2016, or, if earlier, five business days after the effective date of a change in control of Artisan. The amount of any required payment will depend on the average of the daily volume weighted average price, or VWAP, of APAM Class A common stock over the 60 consecutive trading days prior to July 3, 2016 or the effective date of an earlier change of control and any proceeds realized by the CVR holders with respect to their equity interest in Artisan, subject to a maximum aggregate payment of $100,000 for all CVRs. The CVRs will be terminated without a payment if the average of the daily VWAP of APAM Class A common stock over any period of 60 consecutive trading days, beginning no earlier than June 12, 2014, is at least $43.11 divided by the then-applicable conversion rate applicable to the convertible preferred stock. | ||||||||||||||||||||||||||||||||||
Because the CVRs are not traded and therefore there is no market price for them, the fair value of the CVR liability is determined using a Monte Carlo pricing model. Monte Carlo simulation is often used to value complex derivative instruments by simulating various path-dependent conditions. The observable and unobservable assumptions used in the pricing model are included in the table below. Artisan’s nonperformance or credit risk is embodied within the Monte Carlo pricing model through the discount rate assumption. For the three and six months ended June 30, 2013, there were no changes in credit risk that would have an adverse impact on the CVR valuation. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of Artisan’s management. | ||||||||||||||||||||||||||||||||||
Significant unobservable inputs include expected stock prices, expected volatility, dividend yield rate, and discount rate. Significant increases in the expected stock prices, discount rate and expected volatility would result in a significantly lower fair value measurement. Significant increases in the dividend yield rate would result in a significantly higher fair value measurement. | ||||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||||
Observable assumptions: | ||||||||||||||||||||||||||||||||||
Price per share of Class A common stock | $ | 49.91 | ||||||||||||||||||||||||||||||||
Remaining term of CVRs | 3.03 years | |||||||||||||||||||||||||||||||||
Unobservable assumptions: | ||||||||||||||||||||||||||||||||||
Expected price volatility of Class A common stock | 37 | % | ||||||||||||||||||||||||||||||||
Dividend yield rate | 4.4 | % | ||||||||||||||||||||||||||||||||
Discount rate | 5 | % | ||||||||||||||||||||||||||||||||
The unobservable assumptions were derived as follows: | ||||||||||||||||||||||||||||||||||
• | Expected price volatility of Class A common stock - based on the average historical 3.03-year volatility of a peer group of public companies selected by management. | |||||||||||||||||||||||||||||||||
• | Dividend yield rate - based on management’s assumptions of future dividends on Class A common stock and the price per share of Class A common stock. | |||||||||||||||||||||||||||||||||
• | Discount rate - based on the average of Artisan’s borrowing rate and similar rates observed among a peer group of public companies selected by management. | |||||||||||||||||||||||||||||||||
As of June 30, 2013, a fair value of $22,020 has been recorded as a liability for the CVRs. For the three and six months ended June 30, 2013, gains of $8,620 and $33,420, respectively, were recorded in other non-operating gains (losses) to reflect a decrease in the estimated fair value of the CVR liability. | ||||||||||||||||||||||||||||||||||
The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2013: | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | ||||||||||||||||||||||||||||||||
Issuance of contingent value rights | 55,440 | |||||||||||||||||||||||||||||||||
(Gains) losses included in earnings | (33,420 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 22,020 | ||||||||||||||||||||||||||||||||
Borrowings
Borrowings | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Borrowings | Note 6. | Borrowings | 5 | Borrowings | ||||||||||||||||||||||
Artisan’s borrowings consist of the following: | On July 3, 2006, Artisan Partners Holdings entered into an unsecured $400,000 five-year term loan agreement with a syndicate of lenders (the “Term Loan agreement” or “Term Loan”). | |||||||||||||||||||||||||
In November 2010, Artisan amended the Term Loan agreement. The aggregate outstanding principal amount of the loan was reduced to $380,000. The maturity date of the loan was extended to July 1, 2013 for $363,000 of the loan outstanding. The remaining $17,000 of the loan matured on July 1, 2011. Under the amended agreement, the Term Loan generally bore interest at a rate equal to, at Artisan’s election, (i) LIBOR plus an applicable margin depending on Artisan Partners Holdings’ leverage ratio or (ii) an alternate base rate plus an applicable margin depending on Artisan Partners Holdings’ leverage ratio. As of December 31, 2011, the interest rate on the note payable was 2.77%. | ||||||||||||||||||||||||||
On August 16, 2012, Artisan issued $200,000 in unsecured notes and entered into a $100,000 five-year revolving credit arrangement, the proceeds of which were used to prepay all of the then-outstanding principal amount of the Term Loan. The debt refinance resulted in expense of $1,509, including $827 of debt extinguishment loss and $682 of other non-operating expense. | ||||||||||||||||||||||||||
Maturity | June 30, 2013 | December 31, 2012 | The $200,000 in unsecured notes are comprised of three series, each with a balloon payment at maturity. The Series A notes, in an aggregate principal amount of $60,000, bear interest at a rate equal to 4.98% per annum and are due August 16, 2017. The Series B notes, in an aggregate principal amount of $50,000, bear interest at a rate equal to 5.32% per annum and are due August 16, 2019. The Series C notes, in an aggregate principal amount of $90,000, bear interest at a rate equal to 5.82% per annum and are due August 16, 2022. The interest rate on each series of notes is subject to a 1.00% increase in the event Artisan Partners Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received. | |||||||||||||||||||||||
Outstanding | Interest Rate | Outstanding | Interest Rate | The $90,000 outstanding loans under the revolving credit agreement bear interest at a rate equal to, at our election, (i) LIBOR adjusted by a statutory reserve percentage plus an applicable margin ranging from 1.50% to 3.00%, depending on Artisan Partners Holdings’ leverage ratio (as defined in the agreement) or (ii) an alternate base rate equal to the highest of prime rate plus 0.50% and the daily one-month LIBOR adjusted by a statutory reserve percentage plus 1.00%, plus an applicable margin ranging from 0.50% to 2.00%, depending on Artisan Partners Holdings’ leverage ratio. Unused commitments under the revolving credit agreement bear interest at a rate that ranges from 0.175% to 0.625%, depending on Artisan Partners Holdings’ leverage ratio. As of December 31, 2012, the interest rates on the outstanding loans under the revolving credit agreement and the unused commitment were 1.96% and 0.20%, respectively. | ||||||||||||||||||||||
Balance | Per Annum | Balance | Per Annum | Interest expense incurred on the term loan, notes payable and revolving credit arrangement was $10,123, $10,645 and $8,086 for the years ended December 31, 2012, 2011 and 2010, respectively. | ||||||||||||||||||||||
Revolving credit agreement | August 2017 | — | NA | 90,000 | 1.96 | %(1) | The note purchase and revolving credit agreements require Artisan Partners Holdings to maintain the following financial ratios: | |||||||||||||||||||
Senior notes | ||||||||||||||||||||||||||
Series A | Aug-17 | 60,000 | 4.98 | % | 60,000 | 4.98 | % | • | leverage ratio (calculated as the ratio of consolidated total indebtedness on any date to consolidated EBITDA for the period of four consecutive quarters ended on or prior to such date) cannot exceed 3.00 to 1.00 (Artisan Partners Holdings’ leverage ratio was 1.37 to 1.00 and 1.64 to 1.00 as of December 31, 2012 and December 31, 2011, respectively); and | |||||||||||||||||
Series B | Aug-19 | 50,000 | 5.32 | % | 50,000 | 5.32 | % | |||||||||||||||||||
Series C | Aug-22 | 90,000 | 5.82 | % | 90,000 | 5.82 | % | • | interest coverage ratio (calculated as the ratio of consolidated EBITDA for any period of four consecutive fiscal quarters to consolidated interest expense for such period) cannot be less than 4.00 to 1.00 for such period (Artisan Partners Holdings’ interest coverage ratio was 19.57 to 1.00 and 11.24 to 1.00 as of December 31, 2012 and December 31, 2011, respectively). | |||||||||||||||||
The aggregate scheduled maturities of the Partnership’s borrowings are as follows at December 31, 2012: | ||||||||||||||||||||||||||
Total borrowings | $ | 200,000 | $ | 290,000 | ||||||||||||||||||||||
2013 | $ | — | ||||||||||||||||||||||||
(1) | Interest rate under revolving credit agreement represents LIBOR plus the applicable margin as of December 31, 2012. | 2014 | — | |||||||||||||||||||||||
The fair value of borrowings was approximately $197,744 as of June 30, 2013. Fair value was determined based on future cash flows, discounted to present value using current market interest rates. The inputs are categorized as Level 2 in the fair value hierarchy, as defined in Note 5, “Fair Value Measurements”. | 2015 | — | ||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
Term Loan—On July 3, 2006, Holdings entered into an unsecured five-year term loan agreement with a syndicate of lenders (the “Term Loan”) in the principal amount of $400,000. In November 2010, the Term Loan agreement was amended and the aggregate outstanding principal amount was reduced to $380,000. The maturity date of the loan was extended to July 1, 2013, for $363,000 of the loan outstanding. The remaining $17,000 of the loan matured on July 1, 2011. The amended Term Loan generally bore interest at a rate equal to, at our election, (i) LIBOR plus an applicable margin depending on Holdings’ leverage ratio (as defined in the Term Loan agreement) or (ii) an alternate base rate plus an applicable margin depending on Holdings’ leverage ratio. | Thereafter | 290,000 | ||||||||||||||||||||||||
On August 16, 2012, Holdings issued $200,000 in senior unsecured notes and entered into a $100,000 five-year revolving credit agreement and repaid all of the then-outstanding principal under the Term Loan. | ||||||||||||||||||||||||||
Revolving credit agreement—Any loans outstanding under the revolving credit agreement bear interest at a rate equal to, at our election, (i) LIBOR adjusted by a statutory reserve percentage plus an applicable margin ranging from 1.50% to 3.00%, depending on Holdings’ leverage ratio (as defined in the revolving credit agreement) or (ii) an alternate base rate equal to the highest of (a) prime rate plus 0.50%, (b) the federal funds effective rate plus 0.50%, and (c) the daily one-month LIBOR adjusted by a statutory reserve percentage plus 1.00%, plus, in each case, an applicable margin ranging from 0.50% to 2.00%, depending on Holdings’ leverage ratio. Unused commitments under the revolving credit agreement bear interest at a rate that ranges from 0.175% to 0.625%, depending on Holdings’ leverage ratio. | $ | 290,000 | ||||||||||||||||||||||||
In connection with the closing of the IPO, we paid all of the then-outstanding principal amount of loans under the revolving credit agreement. As of June 30, 2013, there were no borrowings outstanding under the revolving credit agreement and the interest rate on the unused commitment was 0.175%. | ||||||||||||||||||||||||||
Senior notes—The fixed interest rate on each series of unsecured notes is subject to a 1.00% increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received. The unsecured notes and the revolving credit agreement contain certain restrictive financial covenants including a limitation on the leverage ratio of Holdings and a minimum interest coverage ratio. | ||||||||||||||||||||||||||
Interest expense incurred on the term loan, unsecured notes and revolving credit agreement was $2,769 and $2,072 for the three months ended June 30, 2013 and 2012, respectively, and $5,862 and $4,318 for the six months ended June 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
As of June 30, 2013, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: | ||||||||||||||||||||||||||
2013 | $ | — | ||||||||||||||||||||||||
2014 | — | |||||||||||||||||||||||||
2015 | — | |||||||||||||||||||||||||
2016 | — | |||||||||||||||||||||||||
Thereafter | 200,000 | |||||||||||||||||||||||||
$ | 200,000 | |||||||||||||||||||||||||
Derivative_instruments
Derivative instruments | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||
Derivative instruments | Note 7. | Derivative Instruments | 6 | Derivative instruments | ||||||||||||||||||||||||||||||||||
Prior to August 16, 2012, Holdings was a party to a forward starting interest rate swap with a counterparty that had a total notional value of $200,000 upon issuance, a start date of July 1, 2011, and a final maturity date of July 1, 2013. Holdings entered into that agreement on November 22, 2010. The counter-party under this forward starting interest rate swap contract paid Holdings variable interest at the three-month LIBOR rate, and Holdings paid the counterparty a fixed interest rate of 1.04%. This forward starting interest rate swap effectively converted the amended Term Loan into fixed rate debt to the extent of the notional value of the swap contract, in order to manage interest rate risk on the amended Term Loan. On December 14, 2011, Holdings discontinued the hedge accounting treatment of the swap because the hedged forecasted transaction was no longer probable of occurring. All prospective fair value changes of the derivative were recognized in earnings. On August 16, 2012, Holdings terminated the swap in connection with the repayment of the entire then-outstanding principal amount of the Term Loan and made a required final swap settlement payment of $1,135. Net interest expense incurred on the interest rate swap was $282 and $520 for the three and six months ended June 30, 2012, respectively. | Effective July 7, 2006, Artisan Partners Holdings executed 5-year amortizing interest rate swap contracts with two counterparties that had a combined total notional value of $400,000 upon issuance. The total notional value of these swap contracts amortized to $350,000 on April 7, 2008, to $300,000 on April 7, 2009, to $250,000 on April 7, 2010, and to $200,000 on April 7, 2011. These interest rate swaps matured on July 1, 2011. The counterparties under these interest rate swap contracts paid Artisan Partners Holdings variable interest at the three-month LIBOR rate, and Artisan Partners Holdings paid the counterparties a fixed interest rate of 5.689%. | |||||||||||||||||||||||||||||||||||||
See Note 5, “Fair Value Measurements” for information regarding the contingent value rights. | Effective November 22, 2010, Artisan Partners Holdings executed a forward starting interest rate swap with a counterparty that had a total notional value of $200,000 upon issuance, a start date of July 1, 2011, and a final maturity date of July 1, 2013. The counterparty under this forward starting interest rate swap contract paid Artisan Partners Holdings variable interest at the three-month LIBOR rate, and Artisan Partners Holdings paid the counterparty a fixed interest rate of 1.04%. This forward starting interest rate swap was entered into to convert the amended Term Loan into fixed rate debt to the extent of the notional value of the swap contract to manage interest rate risk on the amended Term Loan. | |||||||||||||||||||||||||||||||||||||
The following table presents gains (losses) recognized on derivative instruments for the three and six months ended June 30, 2013 and 2012: | ||||||||||||||||||||||||||||||||||||||
On December 14, 2011, Artisan discontinued the hedge accounting relationship related to its $200,000 notional interest rate swap as the hedged forecasted transaction was no longer probable of occurring. During the year ended December 31, 2011, the net impact of the discontinued hedge accounting relationship was an increase of $1,933 to Loss on interest rate swap, inclusive of a $2,264 cumulative unrealized loss that was reclassified from Noncontrolling interest – Artisan Partners Holdings into current earnings. Artisan continued to hold the derivative instrument as it generally provided an economic hedge of the benchmark interest rate, enabling Artisan to convert the amended Term Loan into fixed rate debt to the extent of the notional value of the swap contract to manage interest rate risk on the amended Term Loan. | ||||||||||||||||||||||||||||||||||||||
On August 16, 2012, Artisan Partners Holdings terminated the $200,000 notional interest rate swap contract in connection with the repayment of all of the then-outstanding principal amount of its term loan. Final settlement of the swap contract was $1,135. There were no derivatives outstanding as of December 31, 2012. | ||||||||||||||||||||||||||||||||||||||
Income Statement | Three months ended June 30, | Net interest expense incurred on the interest rate swaps was $671, $6,884 and $14,277 for the years ended December 31, 2012, 2011 and 2010, respectively. | ||||||||||||||||||||||||||||||||||||
Classification | 2013 | 2012 | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 8,620 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Interest rate swap | Gain (loss) on interest rate swap | — | — | 250 | — | Liability | ||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815-20 (a) | Balance Sheet | Fair Value | ||||||||||||||||||||||||||||||||||||
Total | $ | 8,620 | $ | — | $ | 250 | $ | — | Location | |||||||||||||||||||||||||||||
As of December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | $ | 1,066 | |||||||||||||||||||||||||||||||||||
Income Statement | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||
Classification | 2013 | 2012 | Total derivatives not designated as hedges | $ | 1,066 | |||||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 33,420 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Interest rate swap | Gain (loss) on interest rate swap | — | — | — | (52 | ) | (a) | Refer to disclosures within this footnote for additional information on Artisan’s purpose for holding derivative instruments not designated as hedging instruments under FASB ASC 815-20. | ||||||||||||||||||||||||||||||
Total | $ | 33,420 | $ | — | $ | — | $ | (52 | ) | The Effect of Derivative Instruments on the Statements of Operations | ||||||||||||||||||||||||||||
Derivatives in Subtopic | Amount of | Location of Gain | Amount of | Location of Gain | Amount of | |||||||||||||||||||||||||||||||||
815-20 Cash Flow | Gain or (Loss) | or (Loss) | Gain or (Loss) | or (Loss) | Gain or | |||||||||||||||||||||||||||||||||
Hedging Relationships | Recognized in | Reclassified from | Reclassified | Recognized in | (Loss) | |||||||||||||||||||||||||||||||||
Noncontrolling | Noncontrolling | from | Income on | Recognized | ||||||||||||||||||||||||||||||||||
interest – Artisan | interest – Artisan | Noncontrolling | Derivative | in Income | ||||||||||||||||||||||||||||||||||
Partners | Partners Holdings | interest – Artisan | (Ineffective | on | ||||||||||||||||||||||||||||||||||
Holdings | into Income | Partners | Portion) | Derivative | ||||||||||||||||||||||||||||||||||
(Effective | (Effective Portion) | Holdings into | (Ineffective | |||||||||||||||||||||||||||||||||||
Portion) | Income | Portion) | ||||||||||||||||||||||||||||||||||||
(Effective | ||||||||||||||||||||||||||||||||||||||
Portion) | ||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap (a) | $ | — | Interest Expense | $ | — | Gain (loss) on | $ | (69 | ) | |||||||||||||||||||||||||||||
swap fair value | ||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | (69 | ) | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 6,130 | Interest Expense | $ | (6,139 | ) | $ | — | ||||||||||||||||||||||||||||||
Interest rate swap (a) | 304 | Interest Expense | (745 | ) | Gain (loss) on | (1,933 | ) | |||||||||||||||||||||||||||||||
swap fair value | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,434 | $ | (6,884 | ) | $ | (1,933 | ) | ||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 15,617 | Interest Expense | $ | (14,277 | ) | $ | — | ||||||||||||||||||||||||||||||
Forward starting interest rate swap | (304 | ) | Interest Expense | — | Gain (loss) on | 866 | ||||||||||||||||||||||||||||||||
swap fair value | ||||||||||||||||||||||||||||||||||||||
Total | $ | 15,313 | $ | (14,277 | ) | $ | 866 | |||||||||||||||||||||||||||||||
(a) | On December 14, 2011 Artisan discontinued the hedge accounting relationship under FASB ASC 815-20 for the interest rate swap with a start date of July 1, 2011. |
Noncontrolling_interestHolding
Noncontrolling interest-Holdings | 6 Months Ended | |
Jun. 30, 2013 | ||
Noncontrolling interest-Holdings | Note 8. | Noncontrolling interest—Holdings |
Holdings is the predecessor of APAM for accounting purposes, and its consolidated financial statements are our historical financial statements for periods prior to March 12, 2013, the date on which APAM became the general partner of Holdings. As of June 30, 2013, APAM held approximately 22% of the economic interests in Holdings. “Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings” on the Unaudited Consolidated Statements of Operations represents the portion of earnings or loss attributable to the economic interests in Holdings held by the limited partners of Holdings. All income for the period prior to March 12, 2013, is entirely attributable to noncontrolling interests. |
Variable_and_Voting_Interest_E
Variable and Voting Interest Entities | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable and Voting Interest Entities | Note 9. | Variable and Voting Interest Entities | 7 | Consolidated investment products | ||||||||||||||||||||||||||||||||||||||||||||||
Artisan Funds and Artisan Global Funds | Launch Equity commenced operations on July 25, 2011. Artisan’s variable interest represents its equity interest in the fund. Artisan receives management and incentive fees for the services it provides as investment advisor to Launch Equity. These fees are considered variable interests. In the ordinary course of business, Artisan may choose to waive certain fees or assume operating expenses of the fund. | |||||||||||||||||||||||||||||||||||||||||||||||||
We serve as the investment adviser for Artisan Partners Funds, Inc. (“Artisan Funds”), a family of mutual funds registered with the SEC under the Investment Company Act of 1940, and Artisan Partners Global Funds plc (“Artisan Global Funds”), a family of Ireland-based UCITS. Artisan Funds and Artisan Global Funds are corporate entities the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain all voting rights, including the right to elect and reelect members of their respective boards of directors. As a result, each of these entities is a voting interest entity (“VOE”). While we hold, in limited cases, direct investments in a fund (which are made on the same terms as are available to other investors and do not represent a majority voting interest in any fund), we do not have a controlling financial interest or a majority voting interest and, as such, we do not consolidate these entities. | In determining whether it is the primary beneficiary of Launch Equity, Artisan considered both qualitative and quantitative factors such as voting rights of the equity holders, economic participation of all parties, including how fees are earned by Artisan, related party ownership and the level of involvement Artisan had in the design of the VIE. Artisan concluded it was the primary beneficiary of Launch Equity since, although it holds a minimal equity interest in the fund, it retains all control in the management and affairs of the fund and the fund was designed to attract third party investors to provide an economic benefit to Artisan. | |||||||||||||||||||||||||||||||||||||||||||||||||
Artisan Partners Launch Equity LP | Artisan’s risk with respect to investments in consolidated investment products is limited to its equity ownership of $1. Therefore, the gains or losses of consolidated investment products have not had a significant impact on Artisan’s results of operations, liquidity or capital resources. Artisan has no right to the benefits from, nor does it bear the risks associated with, these investments, beyond Artisan’s minimal direct investments in the investment products. If Artisan were to liquidate, these investments (other than our direct investment of $1) would not be available to Artisan’s general creditors, and as a result, Artisan does not consider investments held by consolidated investment products to be Artisan’s assets. | |||||||||||||||||||||||||||||||||||||||||||||||||
We serve as the investment adviser for Launch Equity, a private investment partnership which seeks to achieve returns primarily through capital appreciation, while also mitigating market risk through the use of hedging strategies. We receive management fees as compensation for services provided as the investment adviser. We also maintain, through Artisan Partners Alternative Investments GP LLC, a direct equity investment in the fund and receive an allocation of profits based upon Launch Equity’s net capital appreciation during a fiscal year. Each of these represents a variable interest in the fund. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The limited partners of Launch Equity are certain of our employees and are considered related parties to us. We have determined that Launch Equity is a variable interest entity (“VIE”) as (a) the voting rights of the limited partners are not proportional to their obligations to absorb expected losses and rights to receive expected residual returns and (b) substantially all of Launch Equity’s activities either involve or are conducted on behalf of the limited partners (the investors that have disproportionately few voting rights) and their related parties (including us). | The following tables reflect the impact of consolidation of investment products into the Consolidated Statements of Financial Condition and Consolidated Statements of Operations as of and for the year ended December 31, 2012 and 2011. The Condensed Consolidated Statement of Operations for the year ended December 31, 2011 considers the operating activity of Launch Equity from the date operations commenced, July 25, 2011, through December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||
Launch Equity qualifies for deferral of the current consolidation guidance for VIEs; therefore the consolidation assessment is based on previous consolidation guidance. This guidance requires an analysis of which party, through holding interests directly or indirectly in the entity or contractually through other variable interests, such as management and incentive fees, would absorb a majority of the expected variability of the entity. In determining whether we are the primary beneficiary of Launch Equity, we considered both qualitative and quantitative factors such as voting rights of the equity holders, economic participation of all parties, including how fees are earned by us, related party ownership and the level of involvement we had in the design of the VIE. We concluded we were the primary beneficiary as the related party group absorbs a majority of the variability associated with Launch Equity and we are the member within the related party group that is most closely associated with the VIE. Although we have only a minimal equity investment in Launch Equity, as the general partner, we control Launch Equity’s management and affairs. In addition, the fund was designed to attract third party investors to provide an economic benefit to us in the form of quarterly management fees and an annual incentive fee based upon the net capital appreciation of the fund. Also, in the ordinary course of business, we may choose to waive certain fees or assume operating expenses of the fund. As a result, we concluded we were the primary beneficiary of Launch Equity and its results are included in our consolidated financial statements. | Condensed Consolidating Statements of Financial Condition | |||||||||||||||||||||||||||||||||||||||||||||||||
Our maximum exposure to loss from our involvement with Launch Equity is limited to our equity investment of $1 while our potential benefit is limited to the management and incentive fees we receive as investment adviser. Therefore, the gains or losses of Launch Equity have not had a significant impact on our results of operations, liquidity or capital resources. We have no right to the benefits from, nor do we bear the risks associated with, Launch Equity’s investments, beyond our minimal direct investment in Launch Equity. If we were to liquidate, the assets of Launch Equity would not be available to our general creditors and as a result, we do not consider investments held by Launch Equity to be our assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables reflect the impact of consolidating Launch Equity’s assets and liabilities into the Consolidated Statement of Financial Condition as of June 30, 2013 and December 31, 2012 and results into the Consolidated Statement of Operations for the three and six months ended June 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | Consolidation | |||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 141,159 | $ | — | $ | — | $ | 141,159 | ||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013 | As of December 31, 2012 | Cash and cash equivalents of Launch Equity | — | 10,180 | — | 10,180 | ||||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | Accounts receivable | 46,022 | — | — | 46,022 | ||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | Accounts receivable of Launch Equity | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 257,404 | $ | — | $ | — | $ | 257,404 | $ | 141,159 | $ | — | $ | — | $ | 141,159 | Investment securities of Launch Equity | 1 | 46,237 | (1 | ) | 46,237 | ||||||||||||||||||||||||||||
Cash and cash equivalents of consolidated investment products | — | 16,068 | — | 16,068 | — | 10,180 | — | 10,180 | Other assets | 33,367 | — | — | 33,367 | |||||||||||||||||||||||||||||||||||||
Accounts receivable | 53,843 | — | — | 53,843 | 46,022 | — | — | 46,022 | ||||||||||||||||||||||||||||||||||||||||||
Accounts receivable of consolidated investment products | — | 1 | — | 1 | — | 10,595 | — | 10,595 | Total assets | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | ||||||||||||||||||||||||||||||||
Investment securities of consolidated investment products | 1 | 60,066 | (1 | ) | 60,066 | 1 | 46,237 | (1 | ) | 46,237 | ||||||||||||||||||||||||||||||||||||||||
Other assets | 103,579 | — | — | 103,579 | 33,367 | — | — | 33,367 | Payables of Launch Equity | $ | — | $ | 10,726 | $ | — | $ | 10,726 | |||||||||||||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 19,586 | — | 19,586 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 414,827 | $ | 76,135 | $ | (1 | ) | $ | 490,961 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | Other liabilities | 572,769 | — | — | 572,769 | |||||||||||||||||||||||||||
Payables of consolidated investment products | $ | — | $ | 64 | $ | — | $ | 64 | $ | — | $ | 10,726 | $ | — | $ | 10,726 | Total liabilities | 572,769 | 30,312 | — | 603,081 | |||||||||||||||||||||||||||||
Securities sold, not yet purchased of consolidated investment products | — | 32,652 | — | 32,652 | — | 19,586 | — | 19,586 | Redeemable preferred units | 357,194 | — | — | 357,194 | |||||||||||||||||||||||||||||||||||||
Other liabilities | 396,027 | — | — | 396,027 | 572,769 | — | — | 572,769 | Equity attributable to non-controlling interest—Artisan Partners Holdings | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | ||||||||||||||||||||||||||||||||||
Non-controlling interest—Launch Equity | — | 36,699 | — | 36,699 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 396,027 | 32,716 | — | 428,743 | 572,769 | 30,312 | — | 603,081 | ||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred units | — | — | — | — | 357,194 | — | — | 357,194 | Total equity (deficit) | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | ||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 50,091 | — | — | 50,091 | — | — | — | — | Total liabilities, redeemable preferred units and equity (deficit) | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | ||||||||||||||||||||||||||||||||
Noncontrolling interest—Artisan Partners Holdings | (31,291 | ) | 1 | (1 | ) | (31,291 | ) | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest—Launch Equity | — | 43,418 | — | 43,418 | — | 36,699 | — | 36,699 | ||||||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | 18,800 | 43,419 | (1 | ) | 62,218 | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 414,827 | $ | 76,135 | $ | (1 | ) | $ | 490,961 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | Consolidation | Equity | ||||||||||||||||||||||||||||||
As of December 31, 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | Cash and cash equivalents | $ | 126,956 | $ | — | $ | — | $ | 126,956 | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents of Launch Equity | — | 5,142 | — | 5,142 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 39,417 | — | — | 39,417 | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Accounts receivable of Launch Equity | — | 37 | — | 37 | |||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | Investment securities of Launch Equity | 1 | 24,265 | (1 | ) | 24,265 | |||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | Other assets | 29,034 | — | — | 29,034 | ||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 162,042 | $ | — | $ | (109 | ) | $ | 161,933 | $ | 120,858 | $ | — | $ | (72 | ) | $ | 120,786 | Total assets | $ | 195,408 | $ | 29,444 | $ | (1 | ) | $ | 224,851 | ||||||||||||||||||||||
Total operating expenses | 113,658 | — | (109 | ) | 113,549 | 79,351 | — | (72 | ) | 79,279 | ||||||||||||||||||||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity | $ | — | $ | 6,276 | $ | — | $ | 6,276 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | 48,384 | — | — | 48,384 | 41,507 | — | — | 41,507 | Other liabilities | 502,473 | — | — | 502,473 | |||||||||||||||||||||||||||||||||||||
Non-operating income (loss) | 5,729 | — | — | 5,729 | (2,302 | ) | — | — | (2,302 | ) | Total liabilities | 502,473 | 6,276 | — | 508,749 | |||||||||||||||||||||||||||||||||||
Net losses of consolidated investment products | — | (1,210 | ) | — | (1,210 | ) | — | (955 | ) | — | (955 | ) | ||||||||||||||||||||||||||||||||||||||
Redeemable preferred units | 357,194 | — | — | 357,194 | ||||||||||||||||||||||||||||||||||||||||||||||
Total non-operating income (loss) | 5,729 | (1,210 | ) | — | 4,519 | (2,302 | ) | (955 | ) | — | (3,257 | ) | Equity attributable to non-controlling interest—Artisan Partners Holdings | (664,259 | ) | 1 | (1 | ) | (664,259 | ) | ||||||||||||||||||||||||||||||
Non-controlling interest—Launch Equity | — | 23,167 | — | 23,167 | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 54,113 | (1,210 | ) | — | 52,903 | 39,205 | (955 | ) | — | 38,250 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 5,873 | — | — | 5,873 | 247 | — | — | 247 | Total equity (deficit) | (664,259 | ) | 23,168 | (1 | ) | (641,092 | ) | ||||||||||||||||||||||||||||||||||
Total liabilities, redeemable preferred units and equity (deficit) | $ | 195,408 | $ | 29,444 | $ | (1 | ) | $ | 224,851 | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 48,240 | (1,210 | ) | — | 47,030 | 38,958 | (955 | ) | — | 38,003 | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests—Artisan Partners Holdings | 42,442 | — | — | 42,442 | 38,958 | — | — | 38,958 | ||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests—Launch Equity | — | (1,210 | ) | — | (1,210 | ) | — | (955 | ) | — | (955 | ) | ||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 5,798 | $ | — | $ | — | $ | 5,798 | $ | — | $ | — | $ | — | $ | — | Consolidation | Equity | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 506,982 | $ | — | $ | (1,404 | ) | $ | 505,578 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 459,895 | — | (1,404 | ) | 458,491 | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | Operating income | 47,087 | — | — | 47,087 | ||||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | Non-operating expenses | (12,280 | ) | — | — | (12,280 | ) | ||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | Net gains of Launch Equity | — | 8,817 | — | 8,817 | ||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 310,369 | $ | — | $ | (213 | ) | $ | 310,156 | $ | 240,598 | $ | — | $ | (139 | ) | $ | 240,459 | ||||||||||||||||||||||||||||||||
Total operating expenses | 683,299 | — | (213 | ) | 683,086 | 194,726 | — | (139 | ) | 194,587 | Total non-operating income (loss) | (12,280 | ) | 8,817 | — | (3,463 | ) | |||||||||||||||||||||||||||||||||
Income before income taxes | 34,807 | 8,817 | — | 43,624 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | (372,930 | ) | — | — | (372,930 | ) | 45,872 | — | — | 45,872 | Provision for income taxes | 1,047 | — | — | 1,047 | |||||||||||||||||||||||||||||||||||
Non-operating income (loss) | 27,319 | — | — | 27,319 | (5,284 | ) | — | — | (5,284 | ) | ||||||||||||||||||||||||||||||||||||||||
Net gains of consolidated investment products | — | 3,569 | — | 3,569 | — | 1,539 | — | 1,539 | Net income before noncontrolling interests | 33,760 | 8,817 | — | 42,577 | |||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest—Artisan Partners Holdings | 33,760 | — | — | 33,760 | ||||||||||||||||||||||||||||||||||||||||||||||
Total non-operating income (loss) | 27,319 | 3,569 | — | 30,888 | (5,284 | ) | 1,539 | — | (3,745 | ) | Less: Net income attributable to non-controlling interests—Launch Equity | — | 8,817 | — | 8,817 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (345,611 | ) | 3,569 | — | (342,042 | ) | 40,588 | 1,539 | — | 42,127 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 10,322 | — | — | 10,322 | 579 | — | — | 579 | Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Net income (loss) | (355,933 | ) | 3,569 | — | (352,364 | ) | 40,009 | 1,539 | — | 41,548 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | (364,681 | ) | — | — | (364,681 | ) | 40,009 | — | — | 40,009 | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests—Launch Equity | — | 3,569 | — | 3,569 | — | 1,539 | — | 1,539 | Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 8,748 | $ | — | $ | — | $ | 8,748 | $ | — | $ | — | $ | — | $ | — | Year Ended December 31, 2011: | |||||||||||||||||||||||||||||||||
Total revenues | $ | 455,191 | $ | — | $ | (97 | ) | $ | 455,094 | |||||||||||||||||||||||||||||||||||||||||
The carrying value of Launch Equity’s consolidated investments is also their fair value. Short and long positions on equity securities are valued based upon closing market prices of the security on the principal exchange on which they are traded. The following table presents the fair value hierarchy levels of investments and liabilities held by Launch Equity which are measured at fair value as of June 30, 2013 and December 31, 2012: | Total operating expenses | 300,896 | — | (97 | ) | 300,799 | ||||||||||||||||||||||||||||||||||||||||||||
Operating income | 154,295 | — | — | 154,295 | ||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | Non-operating expenses | (20,059 | ) | — | — | (20,059 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Net losses of Launch Equity | — | (3,102 | ) | — | (3,102 | ) | ||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Total non-operating loss | (20,059 | ) | (3,102 | ) | — | (23,161 | ) | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 16,068 | $ | 16,068 | $ | — | $ | — | Income (loss) before income taxes | 134,236 | (3,102 | ) | — | 131,134 | ||||||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 60,066 | $ | 60,066 | $ | — | $ | — | Provision for income taxes | 1,162 | — | — | 1,162 | |||||||||||||||||||||||||||||||||||||
Liabilities | Net income (loss) before noncontrolling interests | 133,074 | (3,102 | ) | — | 129,972 | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 32,652 | $ | 32,652 | $ | — | $ | — | Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 133,074 | (1 | ) | — | 133,073 | ||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interests—Launch Equity | — | (3,101 | ) | — | (3,101 | ) | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,180 | $ | 10,180 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
The carrying value of Launch Equity’s investments is also their fair value. Short and long positions in equity securities are valued based upon closing market prices of the security on the principal exchange on which the security is traded. The following table presents the fair value hierarchy levels of investments and liabilities held by Launch Equity which are measured at fair value as of December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 24,265 | $ | 24,265 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 6,276 | $ | 6,276 | $ | — | $ | — |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||||||
Jun. 30, 2013 | |||||||||||||
Stockholders' Equity | Note 10. | Stockholders’ Equity | |||||||||||
Artisan Partners Holdings—Partners’ Deficit | |||||||||||||
Prior to the reorganization described in Note 2, “Reorganization and IPO”, Holdings was a private company. Holdings had several outstanding classes of partnership units held by investors. | |||||||||||||
Holdings historically made, and will continue to make, distributions of its net income to the holders of its partnership units for income taxes as required under the terms of the partnership agreement and also made, and will continue to make, additional distributions of its net income under the terms of the partnership agreement. The distributions were recorded in the financial statements on the declaration date, or on the payment date in lieu of a declaration date. | |||||||||||||
Partnership distributions totaled $20,379 and $33,699 for the three months ended June 30, 2013 and 2012, respectively, and $186,620 and $53,507 for the six months ended June 30, 2013 and 2012, respectively. The portion of these distributions made prior to the IPO to the holders of Class B common units (which were classified as liability awards prior to the IPO) are reflected as compensation and benefits expense within the Consolidated Statements of Operations. The portion of these distributions made, prior to the IPO, to the other holders of common units and, after the IPO, to all unitholders impact total stockholders’ equity, with the exception of the portion of distributions made to APAM, the general partner of Holdings. | |||||||||||||
The pre-IPO partners of Holdings received APAM shares in connection with the reorganization and IPO, as described below. | |||||||||||||
APAM—Stockholders’ Equity | |||||||||||||
As of June 30, 2013, APAM had the following authorized and outstanding equity: | |||||||||||||
Shares at June 30, 2013 | |||||||||||||
Authorized | Outstanding | Voting Rights | Economic Rights | ||||||||||
Common shares | |||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 12,712,279 | 1 vote per share | Proportionate (2) | |||||||||
Class B, par value $0.01 per share | 200,000,000 | 25,839,002 | 5 votes per share (1) | None (2) | |||||||||
Class C, par value $0.01 per share | 400,000,000 | 28,834,161 | 1 vote per share (1) | None (2) | |||||||||
Preferred shares | |||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 2,565,463 | 1 vote per share | Proportionate (2) | |||||||||
(1) | In connection with the IPO-related reorganization, each of our employee-partners and Artisan Investment Corporation granted an irrevocable voting proxy with respect to all shares of our common stock they held at such time or acquire from us in the future to a Stockholders Committee. As of June 30, 2013, our employee-partners held all 25,839,002 outstanding shares of Class B common stock and AIC held 9,627,644 outstanding shares of Class C common stock. | ||||||||||||
(2) | The holders of preferred units of Holdings are entitled to preferential distributions in the case of a partial capital event or upon dissolution of Holdings. In the case of any distributions on the preferred units, prior to declaring or paying any dividends on the Class A common stock, APAM must pay the holders of convertible preferred stock a dividend equal to the distribution APAM received in respect of the preferred units it holds, net of taxes, if any. | ||||||||||||
APAM is dependent on cash generated by Holdings to fund any dividends. Generally, Holdings will distribute its profits to all of its partners, including APAM, based on the proportionate ownership each holds in Holdings. APAM will fund dividends to its stockholders from its proportionate share of those distributions after provision for its taxes and other obligations. | |||||||||||||
In connection with the reorganization and IPO described in Note 2, “Reorganization and IPO”, APAM issued the following shares during the six months ended June 30, 2013: | |||||||||||||
Class A Common Stock | |||||||||||||
APAM issued 12,712,279 shares of Class A common stock in the IPO. APAM also granted a total of 16,670 restricted stock units with respect to Class A common stock to non-employee directors in connection with the IPO. Following the first anniversary of the IPO (absent an earlier waiver by APAM), subject to certain conditions and restrictions, each Class A, Class B, Class D and Class E unit of Holdings (together with the corresponding share of Class B or Class C common stock) will be exchangeable for one share of Class A common stock. The preferred units of Holdings (together with the corresponding shares of Class C common stock) will also be exchangeable for Class A common stock, though in certain circumstances on less than a one-for-one basis. Our convertible preferred stock is convertible into Class A common stock generally on a one-for-one basis, though in certain circumstances on a less than one-for-one basis. | |||||||||||||
Class B Common Stock | |||||||||||||
APAM issued 26,271,120 shares of Class B common stock to employee-partners in amounts equal to the number of Class B common units those individuals held in Holdings. Upon termination of employment with Artisan, an employee-partner’s vested Class B common units are automatically exchanged for Class E common units; unvested Class B common units are forfeited. The employee-partner’s shares of Class B common stock are canceled and APAM issues the former employee-partner a number of shares of Class C common stock equal to the former employee-partner’s number of Class E common units. The former employee-partner’s Class E common units are exchangeable for Class A common stock subject to the same restrictions and limitations on exchange applicable to the other common units of Holdings. During the three and six months ended June 30, 2013, 432,118 shares of Class B common stock were canceled as a result of the termination of employment of employee-partners. | |||||||||||||
Class C Common Stock | |||||||||||||
APAM issued 28,442,643 shares of Class C common stock to certain investors in Holdings. The number of shares issued was equal to the number of units the investors held in Holdings. During the three and six months ended June 30, 2013, 391,518 shares of Class C common stock were issued to former employee-partners in connection with the termination of their employment as described above. | |||||||||||||
Convertible Preferred Stock | |||||||||||||
APAM issued 2,565,463 shares of convertible preferred stock in connection with the H&F Corp Merger as described in Note 2, “Reorganization and IPO”. Shares of APAM convertible preferred stock are convertible into Class A common stock generally on a one-for-one basis, though in certain circumstances on a less than one-for-one basis. When the holders of APAM convertible preferred stock are no longer entitled to preferential distributions, all shares of convertible preferred stock will automatically convert into shares of Class A common stock at the conversion rate plus cash in lieu of fractional shares. |
Compensation_and_Benefits
Compensation and Benefits | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||
Compensation and Benefits | Note 11. | Compensation and Benefits | 8 | Compensation and benefits | ||||||||||||||||||||||||||
Compensation and benefits expense is comprised of the following: | ||||||||||||||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | For the year ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2011 | 2010 | ||||||||||||||||||||||||
Salaries, incentive compensation and benefits | $ | 69,251 | $ | 53,561 | $ | 141,931 | $ | 109,254 | Salaries, incentive compensation, and benefits | $ | 227,258 | $ | 198,601 | $ | 166,629 | |||||||||||||||
Pre-offering related compensation—share-based awards | 23,851 | (4,931 | ) | 357,082 | 29,884 | Pre-offering related compensation—share-based awards | 101,682 | (21,082 | ) | 79,071 | ||||||||||||||||||||
Pre-offering related compensation—other | — | 13,747 | 143,035 | 21,895 | Pre-offering related compensation—other | 54,153 | 55,714 | 17,578 | ||||||||||||||||||||||
Total compensation and benefits | $ | 93,102 | $ | 62,377 | $ | 642,048 | $ | 161,033 | Total compensation and benefits expense | $ | 383,093 | $ | 233,233 | $ | 263,278 | |||||||||||||||
Incentive compensation paid to members of our portfolio management teams and members of our marketing and client service teams is based on a formula that is tied directly to revenues. These payments are made in the quarter following the quarter in which the incentive compensation was earned with the exception of fourth quarter payments which are paid in the fourth quarter of the year. Incentive compensation paid to other employees is discretionary and subjectively determined based on individual performance and our overall results during the applicable year and is paid in the fourth quarter of the year. | ||||||||||||||||||||||||||||||
Incentive compensation | Class B liability awards are granted to certain employees of APLP and certain members of Artisan UK at the discretion of Artisan Partners Holdings’ general partner. All vested Class B liability awards are subject to mandatory redemption on termination of employment for any reason; unvested Class B liability awards are forfeited on termination of employment. Vested Class B liability awards of a terminated employee are redeemed in cash in annual installments generally over the five years following termination of employment. | |||||||||||||||||||||||||||||
Incentive compensation paid to members of our portfolio management teams and members of our marketing and client service teams is based on a formula that is tied directly to revenues. These payments are made in the quarter following the quarter in which the incentive was earned with the exception of fourth quarter payments which are paid in the fourth quarter of the year. Incentive compensation paid to most other employees is discretionary and subjectively determined based on individual performance and our overall results during the applicable year and is generally paid in the fourth quarter of the year. | Prior to April 6, 2011, Class B liability awards were classified as share-based liability awards with measurement at intrinsic value under ASC 718. Intrinsic value was determined using the redemption value of the Class B awards. Under the terms of the grant agreements, the redemption value of Class B awards was determined upon the termination of the holder’s employment and varied depending on the circumstances of the holder’s termination. As described later in this note, the redemption value of Class B awards was calculated assuming a holder’s termination of employment was the result of resignation or involuntary termination by Artisan. For individuals who had given notice of retirement in accordance with the terms of their grant agreements, the redemption value of the Class B liability awards was calculated using the retirement valuation. | |||||||||||||||||||||||||||||
Pre-offering related compensation consists of the following: | ||||||||||||||||||||||||||||||
Effective April 6, 2011, the Class B awards were reflected as liabilities measured at fair value, which is a significant estimate. As part of the calculation to estimate the fair value of each Class B award, Artisan first determined the value of the business based on the probability weighted expected return method. This approach considers the value of the business, calculated using a discounted cash flow analysis and a market approach using earnings multiples of comparable entities, under various scenarios. Significant inputs included historical revenues and expenses, future revenue and expense projections, discount rates and market prices of comparable entities. The value of the business as determined is then adjusted to take into account working capital, debt and noncurrent liabilities associated with Class B partner redemptions and allocated to individual partnership interests based on their respective terms. | ||||||||||||||||||||||||||||||
Prior to July 15, 2012, the redemption value of Class B liability awards was based on the partners’ equity balances which was determined using a formula based on then-current EBITDA (excluding equity-based compensation charges) multiplied by a stated multiple, adjusted to take into account working capital, debt and noncurrent liabilities associated with Class B partner redemptions. Subsequent to July 15, 2012, the Partnership Agreement was amended such that the redemption value of Class B common units was based on the fair market value of the firm by reference to earnings projections and the value of other asset management firms with publicly-traded equity securities. | ||||||||||||||||||||||||||||||
For the Three Months | For the Six Months | The use of the discounted cash flow and market approaches to derive the fair value of the liability at a point in time can result in volatility to the financial statements as Artisan’s current and projected financial results, and the results and earnings multiples of comparable entities, will change over time. The process for determining fair value has significant subjective elements and involves a high degree of management judgment and assumptions. These assumptions may have a significant effect on Artisan’s estimates of fair value, and the use of different assumptions as well as changes in market conditions could have a material effect on Artisan’s results of operations or financial condition. The aggregate fair value and liabilities of this obligation are as follows: | ||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Change in value of Class B liability awards | $ | — | $ | (4,931 | ) | $ | 41,942 | $ | 29,884 | As of December 31, | ||||||||||||||||||||
Class B award modification expense | — | — | 287,292 | — | 2012 | 2011 | ||||||||||||||||||||||||
Amortization expense on pre-offering Class B awards | 23,851 | — | 27,848 | — | Fair value: | |||||||||||||||||||||||||
Vested Class B liability awards | $ | 225,249 | $ | 146,175 | ||||||||||||||||||||||||||
Pre-offering related compensation—share-based awards | 23,851 | (4,931 | ) | 357,082 | 29,884 | Unvested Class B liability awards | 103,052 | 31,825 | ||||||||||||||||||||||
Pre-offering related cash incentive compensation | — | — | 56,788 | — | Purchased Class B liability awards | 2,811 | 2,328 | |||||||||||||||||||||||
Pre-offering related bonus make-whole compensation | — | — | 20,520 | — | ||||||||||||||||||||||||||
Distributions on Class B liability awards | — | 13,747 | 65,727 | 21,895 | Aggregate fair value | $ | 331,112 | $ | 180,328 | |||||||||||||||||||||
Pre-offering related compensation—other | — | 13,747 | 143,035 | 21,895 | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Total pre-offering related compensation | $ | 23,851 | $ | 8,816 | $ | 500,117 | $ | 51,779 | Class B liability awards | $ | 225,249 | $ | 146,175 | |||||||||||||||||
Redeemed Class B liability awards | $ | 29,257 | $ | 14,909 | ||||||||||||||||||||||||||
Pre-offering related compensation—share-based awards | At December 31, 2012 and 2011, the aggregate fair value of unrecognized compensation cost for the unvested Class B interests was $103,052 and $31,825, respectively, with weighted average recognition periods of 3.30 and 2.38 years remaining, respectively. | |||||||||||||||||||||||||||||
Historical Class B share-based awards | The Partnership redeems the Class B awards of partners whose employment by the Partnership terminates at a value determined in accordance with the terms of the grant agreement pursuant to which the award was granted, which includes a premium in the case of employment terminated by reason of death, disability or retirement. Termination of employment by reason of death or disability is not probable and therefore, the premium is not included in the redemption value. In order for a termination of employment to qualify as a retirement, the retiring employee must have 10 years or more of service as of the date of retirement and must have given Artisan written notice of the intention to retire at least three years prior to the date of retirement, subject to Artisan’s right, at its discretion, to accept a period of notice that is shorter, but not less than one year. However, in the event the employee is terminated for any reason during the additional period of employment, the retirement premium is no longer applicable. As a result of the terms described above, the redemption value of the Class B awards classified as liabilities does not reflect the premium until Artisan has accepted the individual’s retirement notification and effectively becomes obligated to pay the premium. Prior to that event, the redemption value of Class B awards has been calculated assuming a holder’s termination of employment was the result of resignation or involuntary termination by Artisan and has been recorded as Class B liability award on the Consolidated Statements of Financial Condition. For individuals who have given notice of retirement in accordance with their grant agreements and such notification has been accepted by Artisan, the redemption value of the Class B awards has been calculated using the retirement valuation as of the notice date. | |||||||||||||||||||||||||||||
Holdings historically granted Class B share-based awards to certain employees. These awards vested over a period of five years. Prior to the IPO, all vested Class B awards were subject to mandatory redemption on termination of employment for any reason and were reflected as liabilities measured at fair value; unvested Class B awards were forfeited on termination of employment. The vested Class B liability awards of a terminated employee were historically redeemed in cash in annual installments, generally over the five years following termination of employment. The change in value of Class B liability awards and distributions to Class B limited partners were treated as compensation expense. | As of December 31, 2012, three partners had given notice of their intention to retire pursuant to the terms of their grant agreements. The Class B awards of partners whose services to the Partnership terminated on or before December 31, 2012, will be redeemed for payments totaling $29,257. | |||||||||||||||||||||||||||||
Historical redemption of Class B awards | In connection with the three retirement notices as described above and in accordance with the Partnership Agreement and each Class B Partner’s grant agreement, the redemption value of the Class B awards was increased to reflect the premium associated with the anticipated redemptions by reason of retirement. Since this premium applies only upon retirement in accordance with the terms of the grant agreement and notice, the increase in redemption value is treated as a modification of a liability award as of the date Artisan received the notice of intended retirement and effectively became obligated to pay the premium on redemption. The premium for those partners giving notice of retirement resulted in a $7,851 and $7,621 cumulative increase in the award liability as of December 31, 2012 and December 31, 2011, respectively. The Class B awards continued to be carried at fair value, reflecting the retirement premium, from the date of Artisan’s acceptance of the retirement notification through the date of the individual’s retirement and the payment obligation is fixed. Assuming all Class B holders’ redemption values were determined by retirement, the redemption value of Class B awards would have been $434,797 and $276,517 at December 31, 2012 and December 31, 2011, respectively. | |||||||||||||||||||||||||||||
Holdings historically redeemed the Class B awards of partners whose employment was terminated. The redemption value of the awards was determined in accordance with the terms of the grant agreement pursuant to which the award was granted. Prior to July 15, 2012, the redemption value of a Class B award was based on the partner’s equity balance which was determined for this purpose using a formula based on then-current EBITDA (excluding share-based compensation charges) multiplied by a stated multiple, adjusted to take into account working capital, debt and noncurrent liabilities associated with Class B partner redemptions. From July 15, 2012 through completion of the IPO-related reorganization, the redemption value of a Class B common unit held by a terminated employee-partner was based on the fair market value of the firm by reference to the value of asset management firms with publicly-traded equity securities. We estimated the aggregate fair value of all outstanding Class B awards in connection with preparation of our financial statements by first determining the value of the business based on the probability weighted expected return method. This approach considered the value of the business, calculated using a discounted cash flow analysis and a market approach using earnings multiples of comparable entities, under various scenarios. Significant inputs included historical revenues and expenses, future revenue and expense projections, discount rates and market prices of comparable entities. The value of the business as determined was then adjusted to take into account working capital, debt and noncurrent liabilities associated with Class B partner redemptions and allocated to individual partnership interests based on their respective terms. | ||||||||||||||||||||||||||||||
Prior to the IPO-related reorganization and IPO, the redemption value of Class B awards held by an employee-partner whose employment was terminated included a premium in the case of employment terminated by reason of death, disability or retirement. A qualifying retirement required the employee to have had 10 years or more of service as of the date of retirement and to have given Artisan written notice of the intention to retire at least three years prior to the date of retirement, subject to Artisan’s right, at its discretion, to accept a period of notice that was shorter, but not less than one year. Acceptance of an individual’s retirement notification obligated Holdings to pay the premium. However, in the event the employee was terminated for any reason during the additional period of employment, the retirement premium was no longer applicable. We considered termination of employment by reason of death or disability to be not probable and therefore, unless Holdings had accepted a partner’s retirement notification, the premium was not included in calculating the redemption value of that partner’s individual Class B award. Unless a retirement notification had been accepted, the redemption value of Class B awards was calculated assuming a holder’s termination of employment was the result of resignation or involuntary termination by Artisan and had been recorded as Class B liability award on the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||||||||||
As of December 31, 2012, three partners had given notice of retirement. Holdings had accepted those notices of retirement and the redemption value of the related Class B interests was increased to reflect the premium associated with the anticipated redemptions by reason of retirement. Since this premium applied only upon retirement in accordance with the terms of the grant agreement and notice, the increase in redemption value was treated as a modification of a liability award as of the date Artisan accepted the notice of retirement and effectively became obligated to pay the premium on redemption. As of December 31, 2012, the premium for those partners giving notice of retirement resulted in a $7,851 cumulative increase in the award liability. The Class B interests were carried at fair value, reflecting the retirement premium, from the date of Artisan’s acceptance of the retirement notification through the date of the individual’s retirement and the payment obligation was fixed. | ||||||||||||||||||||||||||||||
The Class B awards of partners whose services to Holdings terminated prior to the IPO will be redeemed for payments totaling $27,561 and $29,257 as of June 30, 2013 and December 31, 2012, respectively. Payments of $769 and $4,228 were made for the three and six months ended June 30, 2013, respectively. Additionally, the partner redemption liability was increased $2,532 for a partner whose employment terminated in the first quarter prior to the IPO. | ||||||||||||||||||||||||||||||
The aggregate redemption values and liabilities of the Class B obligation were as follows: | ||||||||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||
Redemption value: | ||||||||||||||||||||||||||||||
Vested Class B share-based awards | $ | — | $ | 225,249 | ||||||||||||||||||||||||||
Unvested Class B share-based awards | — | 103,052 | ||||||||||||||||||||||||||||
Purchased Class B share-based awards | — | 2,811 | ||||||||||||||||||||||||||||
Aggregate fair value | $ | — | $ | 331,112 | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Class B share-based awards | $ | — | $ | 225,249 | ||||||||||||||||||||||||||
Redeemed Class B share-based awards | 27,561 | 29,257 | ||||||||||||||||||||||||||||
At December 31, 2012, the aggregate fair value of unrecognized compensation expense for the unvested Class B awards was $103,052 with a weighted average recognition period of 3.30 years remaining. | ||||||||||||||||||||||||||||||
Modification of Class B share-based awards | ||||||||||||||||||||||||||||||
As a part of the IPO-related reorganization, the Class B grant agreements were amended to eliminate the cash redemption feature. The amendment is considered a modification under ASC 718 and the Class B awards have been classified as equity awards since such modification. As a result of the modification, we recognized a non-recurring expense of $287,292 based on the elimination of the redemption feature associated with the Class B awards recorded as the difference between the fair value and carrying value of the liability associated with the vested Class B common units immediately prior to the IPO. For any unvested Class B awards, we will recognize recurring non-cash compensation charges over the remaining vesting period. No additional awards were granted during the six months ended June 30, 2013. | ||||||||||||||||||||||||||||||
The following table summarizes the activity related to unvested Class B awards during the period March 12, 2013 to June 30, 2013: | ||||||||||||||||||||||||||||||
March 12, 2013 to June 30, 2013 | ||||||||||||||||||||||||||||||
Weighted- | Number of | |||||||||||||||||||||||||||||
Average Grant | Class B Awards | |||||||||||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||||||||||
Unvested Class B awards at March 12 | $ | 30 | 7,624,004 | |||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (22,381 | ) | |||||||||||||||||||||||||||
Vested | — | (928,294 | ) | |||||||||||||||||||||||||||
Unvested at June 30 | $ | 30 | 6,673,329 | |||||||||||||||||||||||||||
The unrecognized compensation expense for the unvested Class B awards as of June 30, 2013 was $200,200 with a weighted average recognition period of 3.01 years remaining. | ||||||||||||||||||||||||||||||
Upon termination of employment with Artisan, an employee-partner’s vested Class B common units are automatically exchanged for Class E common units; unvested Class B common units are forfeited. The employee-partner’s shares of Class B common stock are canceled and APAM issues the former employee-partner a number of shares of Class C common stock equal to the former employee-partner’s number of Class E common units. The former employee-partner’s Class E common units are exchangeable for Class A common stock subject to the same restrictions and limitations on exchange applicable to the other common units of Holdings. | ||||||||||||||||||||||||||||||
Pre-offering related compensation—other | ||||||||||||||||||||||||||||||
In addition to the modification of Class B share-based awards, we also incurred pre-offering related compensation charges of $56,788 to pay cash incentive compensation to certain portfolio managers and $20,520 representing profits after the IPO otherwise allocable and distributable, in the aggregate, to Holdings’ pre-IPO non-employee partners that instead has been allocated and will be distributed to certain employee-partners. For the current year period prior to the IPO, profits distributions totaling $65,727 were made to Class B partners. |
Income_taxes
Income taxes | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | ||||||||||||||||||
Income taxes | Note 12. | Income Taxes and Related Payments | 14 | Income taxes | |||||||||||||||
APAM is subject to U.S. federal and state income taxation on APAM’s allocable portion of the income of Holdings. APAM’s effective income tax rate is dependent on many factors, including a rate benefit attributable to the fact that approximately 78% of Holdings’ earnings are not subject to corporate level taxes. This favorable impact is partially offset by the impact of certain permanent items, primarily attributable to certain compensation related expenses that are not deductible for tax purposes. | As a limited partnership, Artisan Partners Holdings has not made a provision for income taxes because it is not subject to Federal or state income tax. It is the responsibility of Artisan Partners Holdings’ partners to separately report their proportionate share of Artisan Partners Holdings’ taxable income or loss. | ||||||||||||||||||
The H&F Corp Merger described in Note 2, “Reorganization and IPO” resulted in an increase in tax basis which we expect will reduce future U.S. federal and state income taxes and create a liability under the TRA between APAM and the former shareholder of H&F Corp. The purchase by APAM of Class A common units in connection with the IPO also resulted in an increase in tax basis which we expect will reduce future U.S. federal and state income taxes and create a liability under the TRA between APAM and the limited partners of Holdings. The TRAs require APAM to pay to the relevant counterparty an amount equal to 85% of the cash tax savings (if any) resulting from the increased tax benefits from the transaction giving rise to the tax benefit and for APAM to retain 15% of such benefits. Accordingly, balances of deferred tax assets, amounts payable under TRA and additional paid-in capital were $62,044, $53,618 and $9,462, respectively, as of June 30, 2013. See Note 3, “Summary of Significant Accounting Policies” for further information. No amounts were paid under the TRAs for the six months ended June 30, 2013. | As a result of the IPO, APAM became subject to U.S. C-corporation federal and state income tax on its allocable portion of the income of Artisan Partners Holdings. During the years ended December 31, 2012, 2011 and 2010, APAM was not allocated any of Holdings’ income and therefore did not incur any U.S. income tax provision. | ||||||||||||||||||
Components of the provision for income taxes consist of the following: | Accounting standards establish a minimum threshold for recognizing, and a system for measuring, the benefits of income tax return positions in financial statements. The impact of recognizing expense related to uncertain tax positions was immaterial to the consolidated financial statements. | ||||||||||||||||||
Artisan files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Artisan has open tax years for which the company could be subject to income tax examination by U.S. federal and state tax authorities for years 2008 through 2012, depending on the jurisdiction. In addition, Artisan has open tax years in its primary foreign jurisdiction for years 2010 through 2012. | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Current: | |||||||||||||||||||
Federal | $ | 1,962 | $ | — | $ | 3,139 | $ | — | |||||||||||
State and local | 372 | — | 917 | — | |||||||||||||||
Foreign | 138 | 247 | 220 | 579 | |||||||||||||||
Total | 2,472 | 247 | 4,276 | 579 | |||||||||||||||
Deferred: | |||||||||||||||||||
Federal | 3,308 | — | 5,896 | — | |||||||||||||||
State and local | 93 | — | 150 | — | |||||||||||||||
Total | 3,401 | — | 6,046 | — | |||||||||||||||
Income tax expense | $ | 5,873 | $ | 247 | $ | 10,322 | $ | 579 | |||||||||||
Net deferred tax assets comprise the following: | |||||||||||||||||||
As of | As of | ||||||||||||||||||
June 30, 2013 | December 31, | ||||||||||||||||||
2012 | |||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||
Step-up of tax basis (1) | $ | 62,044 | $ | — | |||||||||||||||
Contingent value rights (2) | 1,549 | — | |||||||||||||||||
Other (3) | 883 | — | |||||||||||||||||
Total deferred tax assets | 64,476 | — | |||||||||||||||||
Less: valuation allowance (4) | — | — | |||||||||||||||||
Net deferred tax assets | $ | 64,476 | $ | — | |||||||||||||||
(1) | Represents the step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units by APAM. | ||||||||||||||||||
(2) | The initial establishment of the CVR liability at the time of the IPO was recorded through equity. For tax purposes, this liability will result in a tax benefit when the CVRs are settled. | ||||||||||||||||||
(3) | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | ||||||||||||||||||
(4) | We assessed whether the deferred tax assets would be realizable and determined based on our history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. | ||||||||||||||||||
Accounting standards establish a minimum threshold for recognizing, and a system for measuring, the benefits of income tax return positions in financial statements. There were no uncertain tax positions recorded as of June 30, 2013 and December 31, 2012. | |||||||||||||||||||
In the normal course of business, we are subject to examination by federal and certain state, local and foreign tax regulators. As of June 30, 2013, our U.S. federal income tax returns for the years 2010 through 2012 are open and therefore subject to examination. State and local tax returns are generally subject to audit from 2009 to 2012. Foreign tax returns are generally subject to audit from 2010 to 2012. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Earnings per Share | Note 13. | Earnings per Share | |||||||
Basic earnings per share is computed by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Income available to Class A common stockholders is computed by deducting from net income attributable to APAM, dividends declared or paid to convertible preferred stockholders during the period and allocating undistributed earnings to the Class A common shares and participating securities, according to their respective rights to participate in those earnings. The IPO and related reorganization closed on March 12, 2013. All income for the period prior to that date was entirely allocable to noncontrolling interest. As a result, only net income allocable to APAM from the period subsequent to the IPO is included in net income (loss) available to Class A common stockholders for the period ended June 30, 2013. | |||||||||
Diluted earnings per share is computed by increasing the denominator by the amount of additional Class A common shares that would have been outstanding if all potential Class A common shares had been issued. Dilutive potential Class A common shares consist of the Class A common shares issuable upon (1) exchange of Holdings’ limited partnership units (together with the corresponding shares of APAM Class B or C common stock) for APAM Class A common stock and (2) conversion of APAM convertible preferred stock into APAM Class A common stock. The dilutive effect of outstanding convertible preferred stock is reflected in diluted earnings per share by application of the if-converted method. | |||||||||
At June 30, 2013, there were 54,673,163 limited partnership units of Holdings outstanding which, subject to certain restrictions and conditions, will be exchangeable for up to 54,673,163 shares of the Company’s Class A common stock beginning on March 12, 2014, unless we were to allow earlier exchanges. Such units/shares were not included in the calculation of diluted net income (loss) per common share because the effect would have been anti-dilutive. | |||||||||
The computation of weighted average common shares outstanding considers the outstanding shares of Class A common stock from March 12, 2013, through June 30, 2013. The Class B and Class C common shares do not share in profits of APAM and therefore are not reflected. | |||||||||
The computation of basic and diluted earnings per share for the three months ended June 30, 2013 and the period March 12, 2013 through June 30, 2013 were as follows (in thousands, except for per share amounts): | |||||||||
For the three | For the Period from | ||||||||
months ended | March 12, 2013 | ||||||||
June 30, 2013 | through June 30, | ||||||||
2013 | |||||||||
Numerator: | |||||||||
Net income (loss) allocable to APAM—diluted | $ | 5,798 | $ | 8,748 | |||||
Convertible preferred stock dividends | — | — | |||||||
Net income allocated to participating securities | (973 | ) | (1,467 | ) | |||||
Net income (loss) allocable to common shareholders | $ | 4,825 | $ | 7,281 | |||||
Denominator: | |||||||||
Weighted average shares outstanding— basic | 12,728,949 | 12,728,949 | |||||||
Effect of dilutive securities | 2,565,463 | 2,565,463 | |||||||
Weighted average shares outstanding— diluted | 15,294,412 | 15,294,412 | |||||||
Earnings per share—basic | $ | 0.38 | $ | 0.57 | |||||
Earnings per share—diluted | $ | 0.38 | $ | 0.57 | |||||
Indemnifications
Indemnifications | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Dec. 31, 2012 | |||
Indemnifications | Note 14. | Indemnifications | 10 | Indemnifications |
In the normal course of business, we enter into agreements that include indemnities in favor of third parties. Holdings has also agreed to indemnify APAM as its general partner, AIC as its former general partner, the directors and officers of APAM and AIC, the members of its former Advisory Committee, and its partners, employees and agents. Holdings’ subsidiaries may also have similar agreements to indemnify their respective general partner(s), directors and officers of their general partner(s), partners, members, employees, and agents. Our maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against us that have not yet occurred. We maintain insurance policies that may provide coverage against certain claims under these indemnities. | In the normal course of business, Artisan enters into agreements that include indemnities in favor of third parties. Artisan Partners Holdings has agreed to indemnify its general partner, the directors and officers of its general partner, its partners, employees and agents, and the members of Artisan Partners Holdings’ Advisory Committee in certain cases. Artisan Partners Holdings’ subsidiaries may also have similar agreements to indemnify their respective general partner(s), directors and officers of their general partner(s), partners, members, employees, and agents. Artisan’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against Artisan that have not yet occurred. Artisan maintains insurance policies that may provide coverage against certain claims under these indemnities. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||
Related Party Transactions | Note 15. | Related Party Transactions | 13 | Related party transactions | ||||||||||||||||||||||||||
Artisan engages in transactions with its affiliates in the ordinary course of business. | Artisan engages in transactions with its affiliates in the ordinary course of business. | |||||||||||||||||||||||||||||
Affiliate transactions—Artisan Funds | Affiliate transactions—Artisan Funds | |||||||||||||||||||||||||||||
We have agreements to serve as the investment manager of Artisan Funds, with which certain of our employees are affiliated. Under the terms of these agreements, which are generally reviewed and continued by the board of directors of Artisan Funds annually, we receive a fee based on an annual percentage of the average daily net assets of each Artisan Fund ranging from 0.64% to 1.25%. We generally collect revenues related to these services on the last business day of each month and record them in Management fees in the Consolidated Statement of Operations. We have contractually agreed to waive our management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain of the Artisan Funds to not more than 1.50% of average daily net assets through February 1, 2014. In addition, we may voluntarily waive fees or reimburse any of the Artisan Funds for other expenses. The officers and a director of Artisan Funds who are affiliated with us receive no compensation from the funds. At June 30, 2013 and December 31, 2012, respectively, accounts receivable included $0 and $81 due from Artisan Funds. | Artisan has agreements to serve as the investment adviser to Artisan Funds, with which certain Artisan employees are affiliated. Under the terms of the agreements with the Funds, which are generally reviewed and continued by the Funds’ board of directors at least annually, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each Fund ranging from 0.64% to 1.25%. Revenues related to these services are generally collected by Artisan on the last business day of each month and are recorded in Management fees in the Consolidated Statement of Operations. Artisan has contractually agreed to waive its management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by Artisan Emerging Markets Fund, Artisan Global Value Fund, Artisan Global Opportunities Fund and Artisan Global Equity Fund to not more than 1.50% of average daily net assets through February 1, 2014. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Funds for other expenses. The officers and a director of Artisan Funds who are affiliated with Artisan receive no compensation from the Funds. At December 31, 2012 and December 31, 2011, respectively, accounts receivable included $81 and $195 due from the Funds. | |||||||||||||||||||||||||||||
Fees for managing the Artisan Funds and amounts waived or reimbursed by us for fees and expenses (including management fees) are as follows: | Fees for managing the Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: | |||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||
For the Three Months | For the Six Months | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | Investment management fees: | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Artisan Funds | $ | 333,218 | $ | 303,919 | $ | 261,535 | ||||||||||||||||||||
Investment management fees: | Fee waiver / expense reimbursement: | |||||||||||||||||||||||||||||
Artisan Funds | $ | 107,533 | $ | 80,220 | $ | 205,613 | $ | 159,082 | Artisan Funds | $ | 171 | $ | 374 | $ | 441 | |||||||||||||||
Fee waiver / expense reimbursement: | Affiliate transactions—Artisan Global Funds | |||||||||||||||||||||||||||||
Artisan Funds | $ | 1 | $ | 49 | $ | 122 | $ | 115 | Artisan has agreements to serve as the investment manager and promoter of Artisan Global Funds with which certain Artisan employees are affiliated. Artisan Global Funds is an open-ended investment company with variable capital and segregated liability between its sub-funds, organized under the laws of Ireland. Artisan Global Funds is authorized by the Central Bank of Ireland as a UCITS and offers shares to non-U.S. investors. Under the terms of the agreements with Artisan Global Funds, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each fund ranging from 0.85% to 0.95%. Artisan reimburses each sub-fund of Artisan Global Funds to the extent that sub-fund’s expenses, not including Artisan’s fee, exceed certain levels, which are not more than 0.20% for the Emerging Markets Fund and not more than 0.35% for the Global Value Fund, Value Fund, Global Equity Fund, and Global Opportunities Fund. The directors of Artisan Global Funds who are affiliated with Artisan receive no compensation from Artisan Global Funds. At December 31, 2012 and December 31, 2011, respectively, accounts receivable included $728 and $709 due from Artisan Global Funds. | |||||||||||||||||||||
Affiliate transactions—Artisan Global Funds | Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: | |||||||||||||||||||||||||||||
We have agreements to serve as the investment manager and promoter of Artisan Global Funds, with which certain of our employees are affiliated. Under the terms of these agreements, we receive a fee based on an annual percentage of the average daily net assets of each fund ranging from 0.75% to 1.80%. We reimburse each sub-fund of Artisan Global Funds to the extent that sub-fund’s expenses, not including our fee, exceed certain levels, which range from 0.10% to 0.20%. At June 30, 2013 and December 31, 2012, respectively, accounts receivable included $851 and $728 due from Artisan Global Funds. | ||||||||||||||||||||||||||||||
Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by us are as follows: | For the years ended December 31, | |||||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||||||
Investment management fees: | ||||||||||||||||||||||||||||||
For the Three | For the Six Months | Artisan Global Funds | $ | 3,020 | $ | 1,255 | $ | — | ||||||||||||||||||||||
Months Ended | Ended June 30, | Fee waiver / expense reimbursement: | ||||||||||||||||||||||||||||
June 30, | Artisan Global Funds | $ | 653 | $ | 660 | $ | — | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Affiliate transactions—Launch Equity | ||||||||||||||||||||||||||
Investment management fees: | APLP has an agreement to serve as the investment manager of Launch Equity. Under the terms of APLP’s agreement with Launch Equity, Artisan earns a quarterly fee based on the value of the closing capital account of each limited partner for the quarter, at the rate of 1.00% (annualized). At Artisan’s discretion, the fee may be waived and certain expenses reimbursed to the extent they exceed a certain level. Artisan expects to waive 100% of Artisan’s quarterly fee and reimburse Launch Equity for all operating expenses, and Artisan may waive other expenses at Artisan’s discretion. Artisan Alternatives is entitled to receive an allocation of profits from Launch Equity equal to 20% of Launch Equity’s net capital appreciation (“incentive fee”) as determined at the conclusion of its fiscal year, which also may be waived at Artisan’s discretion. Artisan waived all incentive fees in 2012. Expense reimbursements totaled $141 and $150 for the year ended December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
Artisan Funds | $ | 2,109 | $ | 633 | $ | 3,548 | $ | 1,217 | Affiliate transactions—AIC | |||||||||||||||||||||
Fee waiver / expense reimbursement: | Artisan Partners Holdings has cost sharing arrangements with its current general partner, AIC, as well as AIC’s beneficial owners, Andrew A. Ziegler and Carlene M. Ziegler, who is an employee of APLP, pursuant to which Artisan Partners Holdings and certain of its employees provide certain administrative services to AIC and its owners, and AIC and its owners reimburse Artisan Partners Holdings for the costs related to such services. In addition, Artisan Partners Holdings has obtained and paid for insurance policies covering potential liability AIC may incur as general partner of Artisan Partners Holdings. At December 31, 2012 and 2011, accounts receivable included $231 and $189 due from AIC, respectively. | |||||||||||||||||||||||||||||
Artisan Funds | $ | 301 | $ | 47 | $ | 427 | $ | 379 | ||||||||||||||||||||||
Affiliate transactions—Launch Equity | ||||||||||||||||||||||||||||||
We have an agreement to serve as the investment manager of Launch Equity. Under the terms of the agreement we earn a quarterly fee based on the value of the closing capital account of each limited partner for the quarter, at the rate of 1.00% (annualized). At our discretion, the fee may be waived and certain expenses reimbursed to the extent they exceed a certain level. We expect to waive 100% of our quarterly fee and reimburse Launch Equity for all operating expenses, and we may waive other expenses as well. We are entitled to receive an allocation of profits from Launch Equity equal to 20% of Launch Equity’s net capital appreciation as determined at the conclusion of its fiscal year, which also may be waived at our discretion and which we expect to waive in the future. Expense reimbursements totaled $47 and $44 for the three months ended June 30, 2013 and 2012, respectively and $87 and $81 for the six months ended June 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||
Affiliate transactions—AIC | ||||||||||||||||||||||||||||||
We have cost sharing arrangements with AIC, as well as AIC’s beneficial owners, Andrew A. Ziegler (an Artisan employee and our Executive Chairman) and Carlene M. Ziegler (also an Artisan employee), pursuant to which we and certain of our employees provide certain administrative services to AIC and its owners, and AIC and its owners reimburse us for the costs related to such services. At June 30, 2013 and December 31, 2012, accounts receivable included $28 and $231 due from AIC, respectively. |
Subsequent_Events
Subsequent Events | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||
Subsequent events | Note 16. | Subsequent Events | 17 | Subsequent events | ||
2013 Omnibus Incentive Compensation Plan | Artisan evaluated subsequent events through October 15, 2013, the issuance date of its financial statements, and determined that no subsequent events had occurred that would require additional disclosures, other than the IPO and related reorganization disclosed in Note 1 and as described below. | |||||
On July 17, 2013, the board of directors of APAM approved the issuance of 1,575,157 restricted shares of Class A common stock to employees of the Company and its subsidiaries pursuant to the Company’s 2013 Omnibus Incentive Compensation Plan. In general, these awards will vest pro rata in the third fiscal quarter of each of the next five years. Compensation expense associated with these awards is expected to be approximately $79,200, which will be recognized over the five-year vesting period. | In January 2013, Artisan’s relationship with a former portfolio co-manager of its Global Equity strategy was terminated. Under the terms of the termination package, the incremental expense to be recorded in January 2013 will be $5,987. | |||||
Distributions and dividends | In connection with the March 12, 2013 IPO, APAM and Holdings entered into a series of transactions in order to reorganize their capital structures and complete the IPO. The reorganization transactions included, among others, the following: | |||||
On July 17, 2013, the board of directors of APAM declared a distribution by Artisan Partners Holdings of $19,080 to holders of Artisan Partners Holdings partnership units, including APAM. On the same date, the board declared a $0.43 per share dividend with respect to APAM’s Class A common stock. The APAM dividend is payable on August 26, 2013, to shareholders of record as of August 12, 2013. | • | Appointment of APAM as the sole general partner of Holdings. | ||||
• | Modification of APAM’s capital structure into three classes of common stock and a series of convertible preferred stock. Shares of Class B common stock, Class C common stock and convertible preferred stock were issued to pre-IPO partners of Holdings. | |||||
• | Merger (the “H&F Corp Merger”) into APAM of a corporation (“H&F Corp”) that at the time of the merger was a holder of preferred units and contingent value rights (“Partnership CVRs”) issued by Holdings and Class C common stock of APAM. As consideration for the merger, the shareholder of H&F Corp received shares of APAM’s convertible preferred stock, contingent value rights (“APAM CVRs”) issued by APAM, and the right to receive an amount of cash equal to H&F Corp’s share of the post-IPO distribution of Holdings pre-IPO retained profits. | |||||
• | Entry by APAM into two tax receivable agreements (“TRAs”), one with the pre-merger shareholder of H&F Corp and the other with each limited partner of Holdings. Pursuant to the first TRA, APAM will pay to the counterparty a portion of certain tax benefits realized by APAM as a result of the H&F Corp Merger. Pursuant to the second TRA, APAM will pay to the counterparties a portion of certain tax benefits realized by APAM as a result of the purchase of Class A common units in connection with the IPO and future redemptions or exchanges of limited partner units of Holdings for APAM Class A common stock. | |||||
On July 17, 2013, the board of directors of APAM approved the issuance of 1,575,157 restricted shares of Class A common stock to employees of the Company and its subsidiaries pursuant to the Company’s 2013 Omnibus Incentive Compensation Plan. In general, these awards will vest pro rata in the third fiscal quarter of each of the next five years. Compensation expense associated with these awards is expected to be approximately $79.2 million, which will be recognized over the five-year vesting period. | ||||||
On July 17, 2013, the board of directors declared a $0.43 per share dividend with respect to APAM’s Class A common stock. The dividend was paid on August 26, 2013, to shareholders of record as of August 12, 2013. | ||||||
Including the distributions made in connection with the IPO, Artisan Partners Holdings distributed $245.1 million from January 1, 2013 through October 15, 2013 to holders of Artisan Partners Holdings partnership units, including APAM |
Benefit_plans
Benefit plans | 12 Months Ended | |
Dec. 31, 2012 | ||
Benefit plans | 9 | Benefit plans |
Artisan has a 401(k) plan for its employees, under which it provides a matching contribution on employees’ pre-tax contributions. Expenses related to Artisan’s match for 2012, 2011 and 2010 were $3,789, $3,367 and $3,001, respectively, and are included in Compensation and benefits in the Consolidated Statements of Operations. | ||
Artisan has an Equity Incentive Plan, which enables eligible employees to participate in Artisan’s financial growth and success. Designated employees receive an annual award of units that vest on the third anniversary of the award date. The appreciation of the units, if any, is based upon a stated formula and paid to vested participants after vesting. Expenses related to this plan for 2012, 2011 and 2010 were $617, $645 and $220, respectively, and are included in Compensation and benefits in the Consolidated Statements of Operations. The accrual at December 31, 2012 and 2011 for this plan was $1,206 and $865, respectively. |
Property_and_equipment
Property and equipment | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Property and equipment | 11 | Property and equipment | |||||||
The composition of property and equipment at December 31, 2012 and 2011 are as follows: | |||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
Computers and equipment | $ | 5,320 | $ | 4,831 | |||||
Computer software | 4,617 | 4,255 | |||||||
Furniture and fixtures | 3,637 | 2,500 | |||||||
Leasehold improvements | 10,585 | 7,949 | |||||||
Total cost | 24,159 | 19,535 | |||||||
Less: Accumulated depreciation | (15,352 | ) | (13,963 | ) | |||||
Property and equipment, net of accumulated depreciation | $ | 8,807 | $ | 5,572 | |||||
Depreciation expense for the years ended December 31, 2012, 2011 and 2010 amounted to $2,384, $2,350 and $2,281, respectively. |
Lease_commitments
Lease commitments | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Lease commitments | 12 | Lease commitments | |||
Artisan has lease commitments for office space, furniture, and equipment, which are accounted for as operating leases. Certain lease agreements provide for scheduled rent increases over the lease term. Artisan records rent expense for operating leases with scheduled rent increases on a straight-line basis over the term of the respective agreement. In addition, Artisan has received certain lease incentives, which are amortized on a straight-line basis over the term of the lease agreement. Rental expense for the years ended December 31, 2012, 2011 and 2010 was $7,800, $7,476 and $7,090, respectively. | |||||
At December 31, 2012, the aggregate future minimum payments for leases for each of the following five years and thereafter are as follows: | |||||
2013 | $ | 8,398 | |||
2014 | 6,387 | ||||
2015 | 4,859 | ||||
2016 | 3,918 | ||||
Thereafter | 13,715 | ||||
Total | $ | 37,277 | |||
Litigation_matters
Litigation matters | 12 Months Ended | |
Dec. 31, 2012 | ||
Litigation matters | 15 | Litigation matters |
In the normal course of business, Artisan may be subject to various legal proceedings from time to time. In August 2012, a lawsuit challenging the investment advisory fees APLP charged to certain Artisan Funds managed by it was resolved and dismissed with prejudice without a material adverse effect on Artisan’s financial position or results of operations (Reso v. Artisan Partners Limited Partnership, (E.D. Wis. Case No. 2:11-cv-873-JPS)). Artisan maintains an insurance policy providing coverage for certain claims first made while the policy is in force. That policy provides coverage for Costs of Defense, as defined in the policy, incurred by Artisan in excess of a retention of $1,000, which retention amount was reached during 2011. Costs of Defense are paid by Artisan and recorded as expenses as incurred on the Statement of Operations as General and administrative expense. As reimbursement for Costs of Defense exceeded the retention amount, Artisan recorded a receivable on the Statement of Financial Condition in Accounts receivable to reflect the offsetting recovery. All reimbursements were collected as of December 31, 2012. |
Quarterly_information_unaudite
Quarterly information (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Quarterly information (unaudited) | 16 | Quarterly information (unaudited) | |||||||||||||||
The following table presents unaudited quarterly results of operations for 2012 and 2011. These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results. Revenues and net income can vary significantly from quarter to quarter due to the nature of Artisan’s business activities. | |||||||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2011 | June 30, 2011 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||||||||
Total revenues | $ | 112,945 | $ | 120,210 | $ | 110,284 | $ | 111,655 | |||||||||
Operating income (loss) | $ | 17,150 | $ | 39,988 | $ | 70,462 | $ | 26,695 | |||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | $ | 10,115 | $ | 34,068 | $ | 67,141 | $ | 21,749 | |||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2012 | June 30, 2012 | Sept. 30, 2012 | Dec. 31, 2012 | ||||||||||||||
Total revenues | $ | 119,673 | $ | 120,787 | $ | 128,082 | $ | 137,036 | |||||||||
Operating income (loss) | $ | 4,365 | $ | 41,508 | $ | (38,219 | ) | $ | 39,433 | ||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | $ | 1,051 | $ | 38,959 | $ | (42,902 | ) | $ | 36,652 | ||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||
Basis of presentation | Basis of presentation | Basis of presentation | ||||||||||||||||||||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such consolidated financial statements have been included. Such interim results are not necessarily indicative of full year results. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and accordingly they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2012 of Holdings included in APAM’s prospectus dated March 6, 2013, filed with the SEC in accordance with Rule 424(b) of the Securities Act of 1933 on March 7, 2013, which is accessible on the SEC’s website at www.sec.gov. | The accompanying Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the Consolidated Financial Statements. Actual results could differ from these estimates or assumptions. | |||||||||||||||||||||
The accompanying financial statements were prepared in accordance with U.S. GAAP and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. | ||||||||||||||||||||||
Principles of consolidation | Principles of consolidation | Principles of consolidation | ||||||||||||||||||||
Artisan’s policy is to consolidate all subsidiaries in which it has a controlling financial interest and variable interest entities (“VIEs”) of which Artisan is deemed to be the primary beneficiary. The primary beneficiary is deemed to be the entity that has the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities. The Consolidated Financial Statements include the accounts of APAM, all subsidiaries in which APAM has a direct or indirect controlling financial interest and VIEs of which Artisan is deemed to be the primary beneficiary. All material intercompany balances have been eliminated in consolidation. | The Consolidated Financial Statements include the accounts of APAM and its subsidiaries. All material intercompany balances have been eliminated in consolidation. | |||||||||||||||||||||
At June 30, 2013 and December 31, 2012, Artisan’s wholly-owned subsidiary, Artisan Partners Alternative Investments GP LLC, was the general partner of Artisan Partners Launch Equity LP (“Launch Equity”), a private investment partnership that is considered a VIE. Launch Equity is considered an investment company and therefore accounted for under Accounting Standard Codification Topic 946, “Financial Services—Investment Companies”. Artisan has retained the specialized industry accounting principles of this investment company in its Consolidated Financial Statements. See Note 9, “Variable and Voting Interest Entities” for additional details. | Artisan’s policy is to consolidate all subsidiaries in which it has a controlling financial interest, which is usually demonstrated when it owns a majority of the voting interest in an entity, and variable interest entities (“VIEs”) where Artisan is deemed to be the primary beneficiary. The primary beneficiary is deemed to be the entity that has the power to govern the financial and operating policies of the subsidiary so as to obtain benefits from its activities. | |||||||||||||||||||||
At December 31, 2012 and 2011 our wholly-owned subsidiary, Artisan Alternatives, was the general partner of Launch Equity, a private investment partnership that is considered a VIE where Artisan is deemed to be the primary beneficiary. Launch Equity is an investment company and therefore accounted for under Accounting Standard Codification Topic 946, “Financial Services—Investment Companies.” Artisan has retained the specialized industry accounting principles of this investment product in its Consolidated Financial Statements. See Note 7, “Consolidated Investment Products” for additional details. At December 31, 2010, Artisan did not have any VIEs. | ||||||||||||||||||||||
Artisan Funds and Artisan Partner Global Funds Public Limited Company (“Artisan Global Funds”), a family of Ireland based UCITS, are corporate entities the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain all voting rights, including the right to elect and reelect members of their respective boards of directors. While we hold, in limited cases, direct investments in a fund (which are made on the same terms as are available to other investors and do not represent a majority voting interest in any fund), we do not have a controlling financial interest or a majority voting interest and, as such, Artisan does not consolidate these entities. | ||||||||||||||||||||||
Tax Receivable Agreements ("TRAs") | Tax Receivable Agreements (“TRAs”) | |||||||||||||||||||||
In connection with the IPO, APAM entered into two tax receivable agreements. Under the first TRA, APAM generally is required to pay to the holders of convertible preferred stock issued as consideration for the H&F Corp Merger (or Class A common stock issued upon conversion of that convertible preferred stock) 85% of the applicable cash savings, if any, in U.S. federal and state income tax that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) the tax attributes of the preferred units APAM acquired in the merger, (ii) net operating losses available as a result of the merger and (iii) tax benefits related to imputed interest. | ||||||||||||||||||||||
Under the second TRA, APAM generally is required to pay to the holders of limited partnership units of Holdings (or Class A common stock or convertible preferred stock issued upon exchange of limited partnership units) 85% of the applicable cash savings, if any, in U.S. federal and state income tax that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of their units sold to APAM or exchanged (for shares of Class A common stock or convertible preferred stock) and that are created as a result of the sales or exchanges and payments under the TRAs and (ii) tax benefits related to imputed interest. Under both agreements, APAM generally will retain the benefit of the remaining 15% of the applicable tax savings. | ||||||||||||||||||||||
For purposes of the TRAs, cash savings in tax are calculated by comparing APAM’s actual income tax liability to the amount it would have been required to pay had it not been able to utilize any of the tax benefits subject to the TRAs, unless certain assumptions apply. The TRAs will continue in effect until all such tax benefits have been utilized or expired, unless APAM exercises its right to terminate the agreements or payments under the agreements are accelerated in the event that APAM materially breaches any of its material obligations under the agreements. The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of exchanges by the holders of limited partnership units, the price of the Class A common stock or the value of the convertible preferred stock, as the case may be, at the time of the exchange, whether such exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest. | ||||||||||||||||||||||
Payments under the TRAs, if any, will be made pro rata among all TRA counterparties entitled to payments on an annual basis to the extent APAM has sufficient taxable income to utilize the increased depreciation and amortization charges. We expect to make payments under the TRAs, to the extent they are required, within 125 days after APAM’s federal income tax return is filed for each fiscal year. Interest on such payments will begin to accrue at a rate equal to one-year LIBOR plus 100 basis points from the due date (without extension) of such tax return. | ||||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) | Comprehensive income (loss) | ||||||||||||||||||||
Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of the change in unrealized gains (losses) on available-for-sale investments and foreign currency translation, net of related tax effects. The tax effects of components of other comprehensive income (loss) is calculated on the portion of comprehensive income (loss) attributable to APAM. | Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of the change in unrealized gains (losses) on available-for-sale investments and foreign currency translation, net of related tax effects. Comprehensive income (loss) attributable to noncontrolling interests - Artisan Partners Holdings on the Consolidated Statements of Comprehensive Income (Loss) represents the portion of comprehensive income (loss) attributable to the economic interests in Holdings held by the limited partners of Holdings. For periods prior to the IPO, all comprehensive income (loss) is entirely attributable to noncontrolling interests. | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) is included in Noncontrolling interest—Artisan Partners Holdings in the accompanying Consolidated Statements of Changes in Stockholders’ Equity, and consists of the following: | ||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Unaudited Condensed Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
As of June 30, | As of December 31, | 2012 | 2011 | 2010 | ||||||||||||||||||
2013 | 2012 | Unrealized gain on investments | $ | 1,906 | $ | 68 | $ | 130 | ||||||||||||||
Unrealized gain on investments | $ | 805 | $ | — | Unrealized loss on interest rate swap | — | — | (6,434 | ) | |||||||||||||
Foreign currency translation | (57 | ) | — | Foreign currency translation | 58 | (75 | ) | (57 | ) | |||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 748 | $ | — | $ | 1,964 | $ | (7 | ) | $ | (6,361 | ) | ||||||||||
Comprehensive income (loss) attributable to noncontrolling interests—Artisan Partners Holdings on the Unaudited Consolidated Statements of Comprehensive Income (Loss) represents the portion of comprehensive income (loss) attributable to the economic interests in Holdings held by the limited partners of Holdings. For periods prior to the IPO, all comprehensive income (loss) is entirely attributable to noncontrolling interests. | ||||||||||||||||||||||
Recent Accounting Pronouncements | Recent accounting pronouncements | Recent accounting pronouncements | ||||||||||||||||||||
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, Disclosures about Offsetting Assets and Liabilities. The ASU requires an entity to disclose information about offsetting and related arrangements for financial and derivative instruments to provide information on the effect of those arrangements on its financial position. In January 2013, the FASB also issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies the scope of ASU 2011-11 to specify the disclosures apply to derivatives accounted for in accordance with ASC Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. These amendments are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of ASU 2011-11 and ASU 2013-01 did not have an impact on our financial statements. | In June 2011, the Financial Accounting Standards Board (“FASB”) issued ASU 2011-05 which amends the Presentation of Comprehensive Income Topic, or Topic 220, of the FASB Accounting Standards Codification (“ASC”). This update, which was further amended by ASU 2011-12, eliminates the option to present other comprehensive income in the Statement of Changes in Stockholders’ Equity (Deficit) and Accumulated Other Comprehensive Income (Loss). Two alternatives are provided; an entity can elect to present items of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. Artisan adopted the amendments to this Topic and they are accordingly reflected in the new financial statement, “Consolidated Statements of Comprehensive Income (Loss)”. | |||||||||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The ASU also requires presentation, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. However, such disclosure is only required if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required to be reclassified in their entirety to net income, an entity should cross-reference to other disclosures that provide additional detail about those amounts. For public entities, the ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have an impact on our financial statements. | In May 2011, the FASB issued ASU 2011-04, which updates the disclosure guidance in the Fair Value Measurements and Disclosures Topic, or ASU Topic 820. This update clarifies the application of existing fair value measurement requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurements. Required disclosures are expanded under the new guidance, particularly for fair value measurements that are categorized within Level 3 of the fair value hierarchy, for which quantitative information about the unobservable inputs used and a narrative description of the valuation processes in place will be required. ASU 2011-04 is effective in interim and annual periods beginning after December 15, 2011 and is to be applied prospectively. Artisan has adopted this Topic and this did not impact the Consolidated Financial Statements. | |||||||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The ASU clarifies the interaction between ASC 810-10, Consolidation—Overall, and ASC 830-30, Foreign Currency Matters—Translation of Financial Statements, when releasing the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not currently expect the adoption of this ASU to have an impact on our financial statements. | In February 2013, the FASB issued ASU 2013-02, which updates the presentation of information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income in one place. Currently, this information is presented in different places throughout the financial statements. ASU 2013-02 is effective prospectively in interim and annual periods beginning after December 15, 2012. | |||||||||||||||||||||
In June 2013, the FASB issued ASU 2013-08, Investment Companies (Topic 946). The ASU changes the approach to the investment company assessment in Topic 946, clarifying the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. This update would also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting and to include additional disclosures. The ASU is effective for reporting periods beginning after December 15, 2013. We are currently evaluating the impact of this ASU on Launch Equity for 2014. | ||||||||||||||||||||||
Operating Segments | Operating segments | |||||||||||||||||||||
Artisan operates in one segment, the investment management industry. Artisan provides investment management services to separate accounts and mutual funds and other pooled investment vehicles. Management assesses the financial performance of these vehicles on a combined basis. | ||||||||||||||||||||||
Cash and Cash Equivalents | Cash and cash equivalents | |||||||||||||||||||||
Artisan defines cash and cash equivalents as money market funds and other highly liquid investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions. At December 31, 2012, all non-interest bearing accounts were fully insured by the Federal Deposit Insurance Company (“FDIC”). Unlimited FDIC insurance expired on January 1, 2013. | ||||||||||||||||||||||
Foreign Currency Translation | Foreign currency translation | |||||||||||||||||||||
Assets and liabilities of foreign operations whose functional currency is not the U.S. dollar are translated at prevailing year-end exchange rates. Revenue and expenses of such foreign operations are translated at average exchange rates during the year. The net effect of the translation adjustment for foreign operations is included in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income (Loss) and Noncontrolling interest—Artisan Partners Holdings on the Consolidated Statements of Changes in Stockholders’ Equity. | ||||||||||||||||||||||
Accounts Receivable | Accounts receivable | |||||||||||||||||||||
Accounts receivable primarily reflects investment management fees receivable from clients other than Artisan Funds, the fees from which are received on the last business day of each month. Artisan’s accounts receivable balances do not include any allowance for doubtful accounts nor has any bad debt expense attributable to accounts receivable been recorded for the years ended December 31, 2012, 2011 and 2010. Artisan believes all accounts receivable balances are fully collectible. | ||||||||||||||||||||||
Investment Securities | Investment securities | |||||||||||||||||||||
Investment securities consist of investments in equity mutual funds for which Artisan is the investment adviser and are classified as available-for-sale. These securities primarily represent securities held in connection with an incentive compensation plan established during 2011. This incentive compensation plan provides certain portfolio managers with additional cash compensation over a three-year period based on the then-current value of the investment securities, which are shares of mutual funds managed by such portfolio managers. Artisan is not required to purchase additional securities as part of this plan. Investments provide exposure to various risks, including price risk (the risk of a potential future decline in value of the investment) and foreign currency risk. Investments in registered mutual funds are carried at fair value at their respective net asset values as of the valuation date. Fair value is defined as the price that Artisan would expect to have received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||
Unrealized gains (losses) on available-for-sale securities are recorded as a component of Total comprehensive income (loss). Dividend income from these investments is recognized when earned and is included in Other non-operating gains in the Consolidated Statements of Operations. Realized gains (losses) are computed on a specific identification basis and are recorded in Other non-operating gains in the Consolidated Statements of Operations. | ||||||||||||||||||||||
Property and Equipment | Property and equipment | |||||||||||||||||||||
Property and equipment are carried at cost, less accumulated depreciation. Depreciation for office furniture is recognized over the applicable life of the asset class, typically seven years. Depreciation for computer hardware and equipment is recognized over the applicable life of the asset class, typically five years. Depreciation for leasehold improvements is recognized over the applicable life of the asset class, typically the lesser of the economic useful life of the improvement or the remaining term of the lease. Depreciation for computer software is recognized over the applicable life of the asset class, typically three years. | ||||||||||||||||||||||
Restricted Cash | Restricted cash | |||||||||||||||||||||
Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation at December 31, 2012 and 2011. | ||||||||||||||||||||||
Derivative Instruments | Derivative instruments | |||||||||||||||||||||
Artisan attempted to manage its exposure to changes in market rates of interest on its term loan through the use of derivative instruments. Artisan’s use of derivative instruments was limited to interest rate swaps used to manage the interest rate exposure related to its variable rate term loan. As of and for the year ended December 31, 2010, Artisan designated its interest rate swaps as a hedge of the benchmark interest rate on future interest payments to remove the exposure to variations in cash flows related to interest expense. Artisan monitored its position and the credit rating of the counterparties and did not anticipate non-performance by any party to the interest rate swaps. | ||||||||||||||||||||||
The interest rate swaps were carried at fair value. For the year ended December 31, 2010 the change in fair value that related to the effective portion of the cash flow hedge were recorded as a component of Total comprehensive income (loss) and the ineffective portion recorded as Gain (loss) on interest rate swap. During the year ended December 31, 2011, Artisan discontinued the hedge accounting relationship related to the cash flow hedge. As such, cumulative amounts recorded in Total comprehensive income (loss) were reclassified to current earnings as Gain (loss) on interest rate swap. Changes in fair value occurring after the date of discontinuance were recorded as Gain (loss) on interest rate swap. | ||||||||||||||||||||||
During the year ended December 31, 2012, Artisan terminated the interest rate swap contract in connection with the repayment of all of the then-outstanding principal amount of our term loan. Final settlement of the swap contract was $1,135. See Note 6, “Derivative instruments,” for additional details. | ||||||||||||||||||||||
Payables of Launch Equity | Payables of Launch Equity | |||||||||||||||||||||
Payables of Launch Equity represent payables for securities purchased by Launch Equity but not yet settled. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Revenue Recognition | Revenue recognition | |||||||||||||||||||||
Investment management fees are generally computed as a percentage of assets under management and recognized as earned. Fees for providing investment advisory services are computed and billed in accordance with the provisions of the applicable investment management agreements. The investment management agreements for a small number of accounts provide for performance-based fees. Performance-based fees, if earned, are recognized on the contractually determined measurement date. Performance-based fees generally are not subject to claw back as a result of performance declines subsequent to the most recent measurement date. | ||||||||||||||||||||||
Unit-Based Compensation | Unit-based compensation | |||||||||||||||||||||
In accordance with the provisions of the Partnership Agreement and the terms of the corresponding grant agreements, Class B interests reclassified as Class B common units granted to the Class B limited partners of Holdings are generally entitled to pro rata allocations of profits and losses and other items and distributions of cash and other property. Class B common units vest ratably over a five-year vesting period, beginning on the date of grant. Vesting is accelerated upon the occurrence of certain events, including a change in control as defined in the grant agreements. | ||||||||||||||||||||||
Vested Class B common units are classified as share-based liability awards. Vested Class B common units of a terminated partner are redeemed in cash, generally in annual installments over the five years following termination of employment. The Partnership redeems the vested Class B common units at a value determined in accordance with the terms of the grant agreement pursuant to which the common units were granted, which includes a premium in the case of employment terminated by reason of death, disability or retirement. The redemption value of Class B common units has been calculated assuming a holder’s termination of employment was the result of resignation or involuntary termination by Artisan and has been recorded as Class B liability award on the Consolidated Statements of Financial Condition. For individuals who have given notice of retirement in accordance with their grant agreements and such notice has been accepted by Artisan, the redemption value of the Class B common units has been calculated using the retirement valuation as of the notice date. Prior to April 6, 2011, compensation cost was measured at the grant date based on the intrinsic value of the common units granted. Intrinsic value was determined using the redemption value of the Class B awards. Effective April 6, 2011, compensation cost is measured at the grant date based on the fair value of the common units granted. Compensation cost is recognized as expense over the requisite service period for vesting, typically five years. Compensation cost is re-measured each period with any incremental changes in value subsequent to the grant date expensed over the remaining vesting period. Changes in value that occur after the end of the vesting period are recorded as compensation cost in the period in which the changes occur through settlement of the common units. | ||||||||||||||||||||||
Distributions of the Partnership’s net income associated with Class B common units are recorded to Compensation and benefits expense. | ||||||||||||||||||||||
Distribution Fees | Distribution fees | |||||||||||||||||||||
Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other authorized agents, and in some cases, other organizations designated by an authorized agent (with their designees, collectively “authorized agents”) to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the Funds’ behalf. Many authorized agents charge a fee for accounting and shareholder services provided to Fund shareholders on the Fund’s behalf. Those services typically include recordkeeping, transaction processing for shareholders’ accounts, and other services. The fee is either based on the number of accounts to which the intermediary provides such services or a percentage of the average daily value of Fund shares held in such accounts. The Funds pay a portion of such fees, which are intended to compensate the authorized agent for its provision of services of the type that would be provided by the Fund’s transfer agent or other service providers if the shares were registered directly on the books of the Fund’s transfer agent. Artisan pays the balance of those fees which includes compensation to the authorized agent for its distribution and marketing of Artisan Funds shares. | ||||||||||||||||||||||
Distribution fees paid to authorized agents were as follows: | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||
Total authorized agent fees incurred | $ | 88,818 | $ | 86,166 | $ | 74,929 | ||||||||||||||||
Less: fees incurred by Artisan Funds | 62,736 | 61,431 | 52,843 | |||||||||||||||||||
Fees incurred by Artisan | 26,082 | 24,735 | 22,086 | |||||||||||||||||||
Other marketing expenses | 2,908 | 1,439 | 936 | |||||||||||||||||||
Total distribution and marketing | $ | 28,990 | $ | 26,174 | $ | 23,022 | ||||||||||||||||
Accrued fees to authorized agents as of December 31, 2012 and 2011 were $3,592 and $3,075, respectively, and are included in Accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||
Leases | Leases | |||||||||||||||||||||
Rent under non-cancelable operating leases with scheduled rent increases is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. Allowances and other lease incentives provided by Artisan’s landlords are amortized on a straight-line basis as a reduction of rent expense. The difference between straight-line rent expense and rent paid and the unamortized deferred lease costs and build-out allowances are recorded as Deferred lease obligations in the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||
Loss Contingencies | Loss contingencies | |||||||||||||||||||||
Artisan considers the assessment of loss contingencies as a significant accounting policy because of the significant uncertainty relating to the outcome of any potential legal actions and other claims and the difficulty of predicting the likelihood and range of the potential liability involved, coupled with the material impact on our results of operations that could result from legal actions or other claims and assessments. Artisan recognizes estimated costs to defend as incurred. Potential loss contingencies are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on Artisan’s results of operations, financial position, or cash flows. Recoveries of losses are recognized in the Consolidated Statements of Operations when receipt is deemed probable. No loss contingencies were recorded at December 31, 2012, 2011, and 2010. There is currently no litigation in process or outstanding. | ||||||||||||||||||||||
Commitments and Contingencies | Commitments and contingencies | |||||||||||||||||||||
Under the terms of the Partnership Agreement, the preferred units entitle their holders to preferential distributions upon the occurrence of certain events and a right to require the Partnership to redeem the preferred units for an aggregate amount of $357,194 on July 3, 2016 under certain circumstances. | ||||||||||||||||||||||
Income Taxes | Income taxes | |||||||||||||||||||||
Artisan Partners Holdings is organized as a limited partnership and is taxed as a partnership for United States income tax purposes and therefore files federal and state flow through income tax returns. As a result, no U.S. current or deferred income tax assets or liabilities are reflected in these financial statements. Each of Artisan Partners Holdings’ partners is obligated to report that partner’s proportionate share of Artisan Partners Holdings’ taxable income or loss. The income tax provision consists of foreign income taxes of UKCo. UKCo is the founder member of Artisan UK. UKCo is a private limited corporation and pays corporate tax in the United Kingdom. UKCo records a tax liability for corporation tax at the current rates on the excess of taxable income over allowable expenses. During the years ended December 31, 2012, 2011 and 2010, UKCo incurred $1,047, $1,162 and $1,281 in UK corporate tax, respectively. | ||||||||||||||||||||||
As a result of the IPO, APAM became subject to U.S. C-corporation federal and state income tax on its allocable portion of the income of Artisan Partners Holdings. During the years ended December 31, 2012, 2011 and 2010, APAM was not allocated any of Holdings’ income and therefore did not incur any U.S. income tax provision. | ||||||||||||||||||||||
Artisan accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Artisan believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position. Interest and penalties relating to tax liabilities are recognized on actual tax liabilities and exposure items. Interest is accrued according to the provisions of the relevant tax law and is reported as Interest expense in the Consolidated Statements of Operations. Penalties are accrued when Artisan expects to take the related position in its tax return and are reported as Other income (loss) within the Non-operating income (loss) section of the Consolidated Statements of Operations. | ||||||||||||||||||||||
Partnership Distributions | Partnership distributions | |||||||||||||||||||||
Artisan makes distributions of its net income to its partners for income taxes as required under the terms of the Partnership Agreement. Tax distributions are calculated utilizing the highest combined individual federal, state and local income tax rate among the various locations in which the partners, as a result of owning their interests in the Partnership, are subject to tax, assuming maximum applicability of the phase-out of itemized deductions contained in the Internal Revenue Code, multiplied by each partner’s share of taxable income. Artisan also makes distributions of its net income under the terms of the Partnership Agreement. Distributions are recorded in the financial statements on the declaration date. Partnership distributions totaled $135,039, $122,822 and $54,338 for the years ended December 31, 2012, 2011 and 2010, respectively, and are reported as Pre-offering related compensation—other within the Consolidated Statements of Operations and Partnership distributions within the Consolidated Statements of Changes in Stockholders’ Equity (Deficit). | ||||||||||||||||||||||
Earnings Per Share | Earnings per Share | |||||||||||||||||||||
Basic earnings per share is computed by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Income available to Class A common stockholders is computed by deducting from net income attributable to APAM, dividends declared or paid to convertible preferred stockholders during the period and allocating undistributed earnings to the Class A common shares and participating securities, according to their respective rights to participate in those earnings. The IPO and related reorganization closed on March 12, 2013. All income for the period prior to that date was entirely allocable to noncontrolling interest. As a result, APAM earnings per share was $0 for the three years in the period ended December 31, 2012. | ||||||||||||||||||||||
Launch Equity | ||||||||||||||||||||||
Cash and Cash Equivalents | Cash and cash equivalents of Launch Equity | |||||||||||||||||||||
Cash and cash equivalents of Launch Equity represent cash and equivalents of Launch Equity, a private investment partnership that is considered a VIE. Launch Equity defines cash and cash equivalents as highly liquid investments which have original maturities of 60 days or less. Cash and cash equivalents of consolidated investment products are stated at cost, which approximates fair value. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Accounts Receivable | Accounts receivable of Launch Equity | |||||||||||||||||||||
Accounts receivable of Launch Equity represents the value of securities sold by Launch Equity but not yet settled. See Note 7, “Consolidated investment products,” for additional details. | ||||||||||||||||||||||
Investment Securities | Investment securities of Launch Equity | |||||||||||||||||||||
Investment securities of Launch Equity represent investments held by Launch Equity. The carrying value of Launch Equity’s investments is also their fair value. Long and short positions in equity securities are valued based upon closing market prices of the security on the principal exchange on which the security is traded. See Note 7, “Consolidated investment products,” for additional details. |
Reorganization_and_IPO_Tables
Reorganization and IPO (Tables) | 6 Months Ended | ||||
Jun. 30, 2013 | |||||
Use of IPO proceeds | The net proceeds from the IPO were $353,414. In connection with the IPO, Artisan used cash on hand to make cash incentive payments aggregating $56,788 to certain of its portfolio managers. Artisan used a portion of the IPO net proceeds, combined with remaining cash on hand, for the following: | ||||
Retained profits distributions to pre-IPO partners | $ | 105,301 | |||
Repayment of principal amounts under the revolving credit agreement (see Note 6, “Borrowings”) | 90,000 | ||||
Purchase of 2,720,823 Class A common units from certain investors | 76,319 | ||||
Total | $ | 271,620 | |||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Unaudited Condensed Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | Accumulated Other Comprehensive Income (Loss) is included in Noncontrolling interest—Artisan Partners Holdings in the accompanying Consolidated Statements of Changes in Stockholders’ Equity, and consists of the following: | ||||||||||||||||||||
As of June 30, | As of December 31, | For the years ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | 2010 | ||||||||||||||||||
Unrealized gain on investments | $ | 805 | $ | — | Unrealized gain on investments | $ | 1,906 | $ | 68 | $ | 130 | |||||||||||
Foreign currency translation | (57 | ) | — | Unrealized loss on interest rate swap | — | — | (6,434 | ) | ||||||||||||||
Foreign currency translation | 58 | (75 | ) | (57 | ) | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 748 | $ | — | ||||||||||||||||||
$ | 1,964 | $ | (7 | ) | $ | (6,361 | ) | |||||||||||||||
Distribution Fees Paid to Authorized Agents | Distribution fees paid to authorized agents were as follows: | |||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||
Total authorized agent fees incurred | $ | 88,818 | $ | 86,166 | $ | 74,929 | ||||||||||||||||
Less: fees incurred by Artisan Funds | 62,736 | 61,431 | 52,843 | |||||||||||||||||||
Fees incurred by Artisan | 26,082 | 24,735 | 22,086 | |||||||||||||||||||
Other marketing expenses | 2,908 | 1,439 | 936 | |||||||||||||||||||
Total distribution and marketing | $ | 28,990 | $ | 26,174 | $ | 23,022 | ||||||||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Schedule of available-for-sale securities | The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are described in Note 9, “Variable and Voting Interest Entities”. | The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are detailed in Note 7, “Consolidated Investment Products.” | ||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||
Gains | Losses | Value | Gains | Losses | Value | |||||||||||||||||||||||||||||
At June 30, 2013 | At December 31, 2012: | |||||||||||||||||||||||||||||||||
Equity mutual funds | $ | 18,335 | $ | 3,937 | $ | (33 | ) | $ | 22,239 | Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 | ||||||||||||||||
At December 31, 2012 | At December 31, 2011: | |||||||||||||||||||||||||||||||||
Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 | Equity mutual funds | $ | 17,194 | $ | 68 | $ | — | $ | 17,262 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Fair value hierarchy of assets and liabilities | The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of June 30, 2013 and December 31, 2012: | The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments at December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value | Assets and Liabilities at Fair Value: | |||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 257,404 | $ | 257,404 | $ | — | $ | — | Equity mutual funds | $ | 15,241 | $ | 15,241 | $ | — | $ | — | |||||||||||||||||
Equity mutual funds | 22,239 | 22,239 | — | — | ||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||
Liabilities | Borrowings | $ | 293,434 | $ | — | $ | 293,434 | $ | — | |||||||||||||||||||||||||
Contingent value rights | 22,020 | — | — | 22,020 | ||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||||
December 31, 2012 | Assets | |||||||||||||||||||||||||||||||||
Assets | Equity mutual funds | $ | 17,262 | $ | 17,262 | $ | — | $ | — | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 141,159 | $ | 141,159 | $ | — | $ | — | ||||||||||||||||||||||||||
Equity mutual funds | 15,241 | 15,241 | — | — | Liabilities | |||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,066 | $ | — | $ | 1,066 | $ | — | ||||||||||||||||||||||||||
Borrowings | 324,268 | — | 324,268 | — | ||||||||||||||||||||||||||||||
Inputs used to derive fair value | Significant increases in the dividend yield rate would result in a significantly higher fair value measurement. | |||||||||||||||||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||||||||||
Observable assumptions: | ||||||||||||||||||||||||||||||||||
Price per share of Class A common stock | $ | 49.91 | ||||||||||||||||||||||||||||||||
Remaining term of CVRs | 3.03 years | |||||||||||||||||||||||||||||||||
Unobservable assumptions: | ||||||||||||||||||||||||||||||||||
Expected price volatility of Class A common stock | 37 | % | ||||||||||||||||||||||||||||||||
Dividend yield rate | 4.4 | % | ||||||||||||||||||||||||||||||||
Discount rate | 5 | % | ||||||||||||||||||||||||||||||||
Level 3 liabilities rollforward | The following table is a reconciliation of the beginning and ending balance of the liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2013: | |||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | — | ||||||||||||||||||||||||||||||||
Issuance of contingent value rights | 55,440 | |||||||||||||||||||||||||||||||||
(Gains) losses included in earnings | (33,420 | ) | ||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 22,020 | ||||||||||||||||||||||||||||||||
Borrowings_Tables
Borrowings (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||
Schedule of borrowings | Artisan’s borrowings consist of the following: | |||||||||||||||||||||||||
Maturity | June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Outstanding | Interest Rate | Outstanding | Interest Rate | |||||||||||||||||||||||
Balance | Per Annum | Balance | Per Annum | |||||||||||||||||||||||
Revolving credit agreement | August 2017 | — | NA | 90,000 | 1.96 | %(1) | ||||||||||||||||||||
Senior notes | ||||||||||||||||||||||||||
Series A | Aug-17 | 60,000 | 4.98 | % | 60,000 | 4.98 | % | |||||||||||||||||||
Series B | Aug-19 | 50,000 | 5.32 | % | 50,000 | 5.32 | % | |||||||||||||||||||
Series C | Aug-22 | 90,000 | 5.82 | % | 90,000 | 5.82 | % | |||||||||||||||||||
Total borrowings | $ | 200,000 | $ | 290,000 | ||||||||||||||||||||||
(1) | Interest rate under revolving credit agreement represents LIBOR plus the applicable margin as of December 31, 2012. | |||||||||||||||||||||||||
Aggregate maturities of debt obligations | As of June 30, 2013, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: | The aggregate scheduled maturities of the Partnership’s borrowings are as follows at December 31, 2012: | ||||||||||||||||||||||||
2013 | $ | — | 2013 | $ | — | |||||||||||||||||||||
2014 | — | 2014 | — | |||||||||||||||||||||||
2015 | — | 2015 | — | |||||||||||||||||||||||
2016 | — | 2016 | — | |||||||||||||||||||||||
Thereafter | 200,000 | Thereafter | 290,000 | |||||||||||||||||||||||
$ | 200,000 | $ | 290,000 | |||||||||||||||||||||||
Derivative_instruments_Tables
Derivative instruments (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||
Gains (losses) recognized on derivative instrument | The following table presents gains (losses) recognized on derivative instruments for the three and six months ended June 30, 2013 and 2012: | The Effect of Derivative Instruments on the Statements of Operations | ||||||||||||||||||||||||||||||||||||
Income Statement | Three months ended June 30, | Derivatives in Subtopic | Amount of | Location of Gain | Amount of | Location of Gain | Amount of | |||||||||||||||||||||||||||||||
Classification | 2013 | 2012 | 815-20 Cash Flow | Gain or (Loss) | or (Loss) | Gain or (Loss) | or (Loss) | Gain or | ||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | Hedging Relationships | Recognized in | Reclassified from | Reclassified | Recognized in | (Loss) | |||||||||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 8,620 | $ | — | $ | — | $ | — | Noncontrolling | Noncontrolling | from | Income on | Recognized | ||||||||||||||||||||||||
Interest rate swap | Gain (loss) on interest rate swap | — | — | 250 | — | interest – Artisan | interest – Artisan | Noncontrolling | Derivative | in Income | ||||||||||||||||||||||||||||
Partners | Partners Holdings | interest – Artisan | (Ineffective | on | ||||||||||||||||||||||||||||||||||
Total | $ | 8,620 | $ | — | $ | 250 | $ | — | Holdings | into Income | Partners | Portion) | Derivative | |||||||||||||||||||||||||
(Effective | (Effective Portion) | Holdings into | (Ineffective | |||||||||||||||||||||||||||||||||||
Portion) | Income | Portion) | ||||||||||||||||||||||||||||||||||||
Income Statement | Six months ended June 30, | (Effective | ||||||||||||||||||||||||||||||||||||
Classification | 2013 | 2012 | Portion) | |||||||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | For the Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 33,420 | $ | — | $ | — | $ | — | Interest rate swap (a) | $ | — | Interest Expense | $ | — | Gain (loss) on | $ | (69 | ) | |||||||||||||||||||
Interest rate swap | Gain (loss) on interest rate swap | — | — | — | (52 | ) | swap fair value | |||||||||||||||||||||||||||||||
Total | $ | 33,420 | $ | — | $ | — | $ | (52 | ) | Total | $ | — | $ | — | $ | (69 | ) | |||||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 6,130 | Interest Expense | $ | (6,139 | ) | $ | — | ||||||||||||||||||||||||||||||
Interest rate swap (a) | 304 | Interest Expense | (745 | ) | Gain (loss) on | (1,933 | ) | |||||||||||||||||||||||||||||||
swap fair value | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,434 | $ | (6,884 | ) | $ | (1,933 | ) | ||||||||||||||||||||||||||||||
For the Year Ended December 31, 2010 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 15,617 | Interest Expense | $ | (14,277 | ) | $ | — | ||||||||||||||||||||||||||||||
Forward starting interest rate swap | (304 | ) | Interest Expense | — | Gain (loss) on | 866 | ||||||||||||||||||||||||||||||||
swap fair value | ||||||||||||||||||||||||||||||||||||||
Total | $ | 15,313 | $ | (14,277 | ) | $ | 866 | |||||||||||||||||||||||||||||||
(a) | On December 14, 2011 Artisan discontinued the hedge accounting relationship under FASB ASC 815-20 for the interest rate swap with a start date of July 1, 2011. | |||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||
Liability | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under FASB ASC 815-20 (a) | Balance Sheet | Fair Value | ||||||||||||||||||||||||||||||||||||
Location | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap | Interest rate swap | $ | 1,066 | |||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedges | $ | 1,066 | ||||||||||||||||||||||||||||||||||||
(a) | Refer to disclosures within this footnote for additional information on Artisan’s purpose for holding derivative instruments not designated as hedging instruments under FASB ASC 815-20. |
Variable_and_Voting_Interest_E1
Variable and Voting Interest Entities (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | Condensed Consolidating Statements of Financial Condition | |||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | |||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | |||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 257,404 | $ | — | $ | — | $ | 257,404 | $ | 141,159 | $ | — | $ | — | $ | 141,159 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents of consolidated investment products | — | 16,068 | — | 16,068 | — | 10,180 | — | 10,180 | ||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 53,843 | — | — | 53,843 | 46,022 | — | — | 46,022 | ||||||||||||||||||||||||||||||||||||||||||
Accounts receivable of consolidated investment products | — | 1 | — | 1 | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities of consolidated investment products | 1 | 60,066 | (1 | ) | 60,066 | 1 | 46,237 | (1 | ) | 46,237 | ||||||||||||||||||||||||||||||||||||||||
Other assets | 103,579 | — | — | 103,579 | 33,367 | — | — | 33,367 | ||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 414,827 | $ | 76,135 | $ | (1 | ) | $ | 490,961 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | ||||||||||||||||||||||||||||||||
Payables of consolidated investment products | $ | — | $ | 64 | $ | — | $ | 64 | $ | — | $ | 10,726 | $ | — | $ | 10,726 | ||||||||||||||||||||||||||||||||||
Securities sold, not yet purchased of consolidated investment products | — | 32,652 | — | 32,652 | — | 19,586 | — | 19,586 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 396,027 | — | — | 396,027 | 572,769 | — | — | 572,769 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 396,027 | 32,716 | — | 428,743 | 572,769 | 30,312 | — | 603,081 | ||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred units | — | — | — | — | 357,194 | — | — | 357,194 | ||||||||||||||||||||||||||||||||||||||||||
Total stockholders’ equity | 50,091 | — | — | 50,091 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest—Artisan Partners Holdings | (31,291 | ) | 1 | (1 | ) | (31,291 | ) | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | ||||||||||||||||||||||||||||||||||||
Noncontrolling interest—Launch Equity | — | 43,418 | — | 43,418 | — | 36,699 | — | 36,699 | ||||||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | 18,800 | 43,419 | (1 | ) | 62,218 | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | ||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 414,827 | $ | 76,135 | $ | (1 | ) | $ | 490,961 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | |||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 162,042 | $ | — | $ | (109 | ) | $ | 161,933 | $ | 120,858 | $ | — | $ | (72 | ) | $ | 120,786 | ||||||||||||||||||||||||||||||||
Total operating expenses | 113,658 | — | (109 | ) | 113,549 | 79,351 | — | (72 | ) | 79,279 | ||||||||||||||||||||||||||||||||||||||||
Operating income | 48,384 | — | — | 48,384 | 41,507 | — | — | 41,507 | ||||||||||||||||||||||||||||||||||||||||||
Non-operating income (loss) | 5,729 | — | — | 5,729 | (2,302 | ) | — | — | (2,302 | ) | ||||||||||||||||||||||||||||||||||||||||
Net losses of consolidated investment products | — | (1,210 | ) | — | (1,210 | ) | — | (955 | ) | — | (955 | ) | ||||||||||||||||||||||||||||||||||||||
Total non-operating income (loss) | 5,729 | (1,210 | ) | — | 4,519 | (2,302 | ) | (955 | ) | — | (3,257 | ) | ||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 54,113 | (1,210 | ) | — | 52,903 | 39,205 | (955 | ) | — | 38,250 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 5,873 | — | — | 5,873 | 247 | — | — | 247 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 48,240 | (1,210 | ) | — | 47,030 | 38,958 | (955 | ) | — | 38,003 | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests—Artisan Partners Holdings | 42,442 | — | — | 42,442 | 38,958 | — | — | 38,958 | ||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests—Launch Equity | — | (1,210 | ) | — | (1,210 | ) | — | (955 | ) | — | (955 | ) | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 5,798 | $ | — | $ | — | $ | 5,798 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As | Before | Launch | Eliminations | As | |||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | Reported | Consolidation | Equity | Reported | |||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 310,369 | $ | — | $ | (213 | ) | $ | 310,156 | $ | 240,598 | $ | — | $ | (139 | ) | $ | 240,459 | ||||||||||||||||||||||||||||||||
Total operating expenses | 683,299 | — | (213 | ) | 683,086 | 194,726 | — | (139 | ) | 194,587 | ||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | (372,930 | ) | — | — | (372,930 | ) | 45,872 | — | — | 45,872 | ||||||||||||||||||||||||||||||||||||||||
Non-operating income (loss) | 27,319 | — | — | 27,319 | (5,284 | ) | — | — | (5,284 | ) | ||||||||||||||||||||||||||||||||||||||||
Net gains of consolidated investment products | — | 3,569 | — | 3,569 | — | 1,539 | — | 1,539 | ||||||||||||||||||||||||||||||||||||||||||
Total non-operating income (loss) | 27,319 | 3,569 | — | 30,888 | (5,284 | ) | 1,539 | — | (3,745 | ) | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (345,611 | ) | 3,569 | — | (342,042 | ) | 40,588 | 1,539 | — | 42,127 | ||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 10,322 | — | — | 10,322 | 579 | — | — | 579 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (355,933 | ) | 3,569 | — | (352,364 | ) | 40,009 | 1,539 | — | 41,548 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | (364,681 | ) | — | — | (364,681 | ) | 40,009 | — | — | 40,009 | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests—Launch Equity | — | 3,569 | — | 3,569 | — | 1,539 | — | 1,539 | ||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 8,748 | $ | — | $ | — | $ | 8,748 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Impact of Consolidation of Investment Products Into Consolidated Statements of Financial Condition and Consolidated Statements of Operations | The following tables reflect the impact of consolidation of investment products into the Consolidated Statements of Financial Condition and Consolidated Statements of Operations as of and for the year ended December 31, 2012 and 2011. The Condensed Consolidated Statement of Operations for the year ended December 31, 2011 considers the operating activity of Launch Equity from the date operations commenced, July 25, 2011, through December 31, 2011. | |||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | ||||||||||||||||||||||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 141,159 | $ | — | $ | — | $ | 141,159 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents of Launch Equity | — | 10,180 | — | 10,180 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 46,022 | — | — | 46,022 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable of Launch Equity | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 46,237 | (1 | ) | 46,237 | |||||||||||||||||||||||||||||||||||||||||||||
Other assets | 33,367 | — | — | 33,367 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||||||||||||||||||||||||||||
Payables of Launch Equity | $ | — | $ | 10,726 | $ | — | $ | 10,726 | ||||||||||||||||||||||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 19,586 | — | 19,586 | ||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 572,769 | — | — | 572,769 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 572,769 | 30,312 | — | 603,081 | ||||||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred units | 357,194 | — | — | 357,194 | ||||||||||||||||||||||||||||||||||||||||||||||
Equity attributable to non-controlling interest—Artisan Partners Holdings | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | |||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest—Launch Equity | — | 36,699 | — | 36,699 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities, redeemable preferred units and equity (deficit) | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 126,956 | $ | — | $ | — | $ | 126,956 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents of Launch Equity | — | 5,142 | — | 5,142 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | 39,417 | — | — | 39,417 | ||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable of Launch Equity | — | 37 | — | 37 | ||||||||||||||||||||||||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 24,265 | (1 | ) | 24,265 | |||||||||||||||||||||||||||||||||||||||||||||
Other assets | 29,034 | — | — | 29,034 | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 195,408 | $ | 29,444 | $ | (1 | ) | $ | 224,851 | |||||||||||||||||||||||||||||||||||||||||
Securities sold, not yet purchased of Launch Equity | $ | — | $ | 6,276 | $ | — | $ | 6,276 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 502,473 | — | — | 502,473 | ||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 502,473 | 6,276 | — | 508,749 | ||||||||||||||||||||||||||||||||||||||||||||||
Redeemable preferred units | 357,194 | — | — | 357,194 | ||||||||||||||||||||||||||||||||||||||||||||||
Equity attributable to non-controlling interest—Artisan Partners Holdings | (664,259 | ) | 1 | (1 | ) | (664,259 | ) | |||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest—Launch Equity | — | 23,167 | — | 23,167 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity (deficit) | (664,259 | ) | 23,168 | (1 | ) | (641,092 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities, redeemable preferred units and equity (deficit) | $ | 195,408 | $ | 29,444 | $ | (1 | ) | $ | 224,851 | |||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2012: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 506,982 | $ | — | $ | (1,404 | ) | $ | 505,578 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 459,895 | — | (1,404 | ) | 458,491 | |||||||||||||||||||||||||||||||||||||||||||||
Operating income | 47,087 | — | — | 47,087 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expenses | (12,280 | ) | — | — | (12,280 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net gains of Launch Equity | — | 8,817 | — | 8,817 | ||||||||||||||||||||||||||||||||||||||||||||||
Total non-operating income (loss) | (12,280 | ) | 8,817 | — | (3,463 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 34,807 | 8,817 | — | 43,624 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,047 | — | — | 1,047 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income before noncontrolling interests | 33,760 | 8,817 | — | 42,577 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest—Artisan Partners Holdings | 33,760 | — | — | 33,760 | ||||||||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interests—Launch Equity | — | 8,817 | — | 8,817 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 455,191 | $ | — | $ | (97 | ) | $ | 455,094 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 300,896 | — | (97 | ) | 300,799 | |||||||||||||||||||||||||||||||||||||||||||||
Operating income | 154,295 | — | — | 154,295 | ||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expenses | (20,059 | ) | — | — | (20,059 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net losses of Launch Equity | — | (3,102 | ) | — | (3,102 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total non-operating loss | (20,059 | ) | (3,102 | ) | — | (23,161 | ) | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 134,236 | (3,102 | ) | — | 131,134 | |||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | 1,162 | — | — | 1,162 | ||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) before noncontrolling interests | 133,074 | (3,102 | ) | — | 129,972 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 133,074 | (1 | ) | — | 133,073 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Net loss attributable to non-controlling interests—Launch Equity | — | (3,101 | ) | — | (3,101 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Launch Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hierarchy of assets and liabilities | The following table presents the fair value hierarchy levels of investments and liabilities held by Launch Equity which are measured at fair value as of June 30, 2013 and December 31, 2012: | The carrying value of Launch Equity’s investments is also their fair value. Short and long positions in equity securities are valued based upon closing market prices of the security on the principal exchange on which the security is traded. The following table presents the fair value hierarchy levels of investments and liabilities held by Launch Equity which are measured at fair value as of December 31, 2012 and 2011: | ||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | Assets and Liabilities at Fair Value: | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||
June 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 16,068 | $ | 16,068 | $ | — | $ | — | Equity securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 60,066 | $ | 60,066 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Equity securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 32,652 | $ | 32,652 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Equity securities—long position | $ | 24,265 | $ | 24,265 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,180 | $ | 10,180 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Equity securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | Liabilities | |||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 6,276 | $ | 6,276 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2013 | |||||||||||||
Authorized and outstanding equity | As of June 30, 2013, APAM had the following authorized and outstanding equity: | ||||||||||||
Shares at June 30, 2013 | |||||||||||||
Authorized | Outstanding | Voting Rights | Economic Rights | ||||||||||
Common shares | |||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 12,712,279 | 1 vote per share | Proportionate (2) | |||||||||
Class B, par value $0.01 per share | 200,000,000 | 25,839,002 | 5 votes per share (1) | None (2) | |||||||||
Class C, par value $0.01 per share | 400,000,000 | 28,834,161 | 1 vote per share (1) | None (2) | |||||||||
Preferred shares | |||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 2,565,463 | 1 vote per share | Proportionate (2) | |||||||||
(1) | In connection with the IPO-related reorganization, each of our employee-partners and Artisan Investment Corporation granted an irrevocable voting proxy with respect to all shares of our common stock they held at such time or acquire from us in the future to a Stockholders Committee. As of June 30, 2013, our employee-partners held all 25,839,002 outstanding shares of Class B common stock and AIC held 9,627,644 outstanding shares of Class C common stock. | ||||||||||||
(2) | The holders of preferred units of Holdings are entitled to preferential distributions in the case of a partial capital event or upon dissolution of Holdings. In the case of any distributions on the preferred units, prior to declaring or paying any dividends on the Class A common stock, APAM must pay the holders of convertible preferred stock a dividend equal to the distribution APAM received in respect of the preferred units it holds, net of taxes, if any. |
Compensation_and_Benefits_Tabl
Compensation and Benefits (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||
Components of compensation cost | Compensation and benefits expense is comprised of the following: | |||||||||||||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | For the year ended December 31, | ||||||||||||||||||||||||||
Salaries, incentive compensation and benefits | $ | 69,251 | $ | 53,561 | $ | 141,931 | $ | 109,254 | 2012 | 2011 | 2010 | |||||||||||||||||||
Pre-offering related compensation—share-based awards | 23,851 | (4,931 | ) | 357,082 | 29,884 | Salaries, incentive compensation, and benefits | $ | 227,258 | $ | 198,601 | $ | 166,629 | ||||||||||||||||||
Pre-offering related compensation—other | — | 13,747 | 143,035 | 21,895 | Pre-offering related compensation—share-based awards | 101,682 | (21,082 | ) | 79,071 | |||||||||||||||||||||
Pre-offering related compensation—other | 54,153 | 55,714 | 17,578 | |||||||||||||||||||||||||||
Total compensation and benefits | $ | 93,102 | $ | 62,377 | $ | 642,048 | $ | 161,033 | ||||||||||||||||||||||
Total compensation and benefits expense | $ | 383,093 | $ | 233,233 | $ | 263,278 | ||||||||||||||||||||||||
Schedule of pre-offering related compensation costs | Pre-offering related compensation consists of the following: | |||||||||||||||||||||||||||||
For the Three Months | For the Six Months | |||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
Change in value of Class B liability awards | $ | — | $ | (4,931 | ) | $ | 41,942 | $ | 29,884 | |||||||||||||||||||||
Class B award modification expense | — | — | 287,292 | — | ||||||||||||||||||||||||||
Amortization expense on pre-offering Class B awards | 23,851 | — | 27,848 | — | ||||||||||||||||||||||||||
Pre-offering related compensation—share-based awards | 23,851 | (4,931 | ) | 357,082 | 29,884 | |||||||||||||||||||||||||
Pre-offering related cash incentive compensation | — | — | 56,788 | — | ||||||||||||||||||||||||||
Pre-offering related bonus make-whole compensation | — | — | 20,520 | — | ||||||||||||||||||||||||||
Distributions on Class B liability awards | — | 13,747 | 65,727 | 21,895 | ||||||||||||||||||||||||||
Pre-offering related compensation—other | — | 13,747 | 143,035 | 21,895 | ||||||||||||||||||||||||||
Total pre-offering related compensation | $ | 23,851 | $ | 8,816 | $ | 500,117 | $ | 51,779 | ||||||||||||||||||||||
Redemption values and liabilities of Class B awards | The aggregate redemption values and liabilities of the Class B obligation were as follows: | The aggregate fair value and liabilities of this obligation are as follows: | ||||||||||||||||||||||||||||
As of | As of | As of December 31, | ||||||||||||||||||||||||||||
June 30, | December 31, | 2012 | 2011 | |||||||||||||||||||||||||||
2013 | 2012 | Fair value: | ||||||||||||||||||||||||||||
Redemption value: | Vested Class B liability awards | $ | 225,249 | $ | 146,175 | |||||||||||||||||||||||||
Vested Class B share-based awards | $ | — | $ | 225,249 | Unvested Class B liability awards | 103,052 | 31,825 | |||||||||||||||||||||||
Unvested Class B share-based awards | — | 103,052 | Purchased Class B liability awards | 2,811 | 2,328 | |||||||||||||||||||||||||
Purchased Class B share-based awards | — | 2,811 | ||||||||||||||||||||||||||||
Aggregate fair value | $ | 331,112 | $ | 180,328 | ||||||||||||||||||||||||||
Aggregate fair value | $ | — | $ | 331,112 | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Class B liability awards | $ | 225,249 | $ | 146,175 | ||||||||||||||||||||||||||
Liabilities: | Redeemed Class B liability awards | $ | 29,257 | $ | 14,909 | |||||||||||||||||||||||||
Class B share-based awards | $ | — | $ | 225,249 | ||||||||||||||||||||||||||
Redeemed Class B share-based awards | 27,561 | 29,257 | ||||||||||||||||||||||||||||
Activity related to unvested Clas B awards | The following table summarizes the activity related to unvested Class B awards during the period March 12, 2013 to June 30, 2013: | |||||||||||||||||||||||||||||
March 12, 2013 to June 30, 2013 | ||||||||||||||||||||||||||||||
Weighted- | Number of | |||||||||||||||||||||||||||||
Average Grant | Class B Awards | |||||||||||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||||||||||
Unvested Class B awards at March 12 | $ | 30 | 7,624,004 | |||||||||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||||||
Forfeited | — | (22,381 | ) | |||||||||||||||||||||||||||
Vested | — | (928,294 | ) | |||||||||||||||||||||||||||
Unvested at June 30 | $ | 30 | 6,673,329 | |||||||||||||||||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2013 | |||||||||||||||||
Components of the provision for income taxes | Components of the provision for income taxes consist of the following: | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 1,962 | $ | — | $ | 3,139 | $ | — | |||||||||
State and local | 372 | — | 917 | — | |||||||||||||
Foreign | 138 | 247 | 220 | 579 | |||||||||||||
Total | 2,472 | 247 | 4,276 | 579 | |||||||||||||
Deferred: | |||||||||||||||||
Federal | 3,308 | — | 5,896 | — | |||||||||||||
State and local | 93 | — | 150 | — | |||||||||||||
Total | 3,401 | — | 6,046 | — | |||||||||||||
Income tax expense | $ | 5,873 | $ | 247 | $ | 10,322 | $ | 579 | |||||||||
Components of deferred tax assets | Net deferred tax assets comprise the following: | ||||||||||||||||
As of | As of | ||||||||||||||||
June 30, 2013 | December 31, | ||||||||||||||||
2012 | |||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Step-up of tax basis (1) | $ | 62,044 | $ | — | |||||||||||||
Contingent value rights (2) | 1,549 | — | |||||||||||||||
Other (3) | 883 | — | |||||||||||||||
Total deferred tax assets | 64,476 | — | |||||||||||||||
Less: valuation allowance (4) | — | — | |||||||||||||||
Net deferred tax assets | $ | 64,476 | $ | — | |||||||||||||
(1) | Represents the step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units by APAM. | ||||||||||||||||
(2) | The initial establishment of the CVR liability at the time of the IPO was recorded through equity. For tax purposes, this liability will result in a tax benefit when the CVRs are settled. | ||||||||||||||||
(3) | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | ||||||||||||||||
(4) | We assessed whether the deferred tax assets would be realizable and determined based on our history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Computation of basic and diluted net income (loss) per share | The computation of basic and diluted earnings per share for the three months ended June 30, 2013 and the period March 12, 2013 through June 30, 2013 were as follows (in thousands, except for per share amounts): | ||||||||
For the three | For the Period from | ||||||||
months ended | March 12, 2013 | ||||||||
June 30, 2013 | through June 30, | ||||||||
2013 | |||||||||
Numerator: | |||||||||
Net income (loss) allocable to APAM—diluted | $ | 5,798 | $ | 8,748 | |||||
Convertible preferred stock dividends | — | — | |||||||
Net income allocated to participating securities | (973 | ) | (1,467 | ) | |||||
Net income (loss) allocable to common shareholders | $ | 4,825 | $ | 7,281 | |||||
Denominator: | |||||||||
Weighted average shares outstanding— basic | 12,728,949 | 12,728,949 | |||||||
Effect of dilutive securities | 2,565,463 | 2,565,463 | |||||||
Weighted average shares outstanding— diluted | 15,294,412 | 15,294,412 | |||||||
Earnings per share—basic | $ | 0.38 | $ | 0.57 | |||||
Earnings per share—diluted | $ | 0.38 | $ | 0.57 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||
Artisan Funds | ||||||||||||||||||||||||||||||
Schedule of related party transactions | Fees for managing the Artisan Funds and amounts waived or reimbursed by us for fees and expenses (including management fees) are as follows: | Fees for managing the Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: | ||||||||||||||||||||||||||||
For the Three Months | For the Six Months | For the years ended December 31, | ||||||||||||||||||||||||||||
Ended June 30, | Ended June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Investment management fees: | ||||||||||||||||||||||||||
Investment management fees: | Artisan Funds | $ | 333,218 | $ | 303,919 | $ | 261,535 | |||||||||||||||||||||||
Artisan Funds | $ | 107,533 | $ | 80,220 | $ | 205,613 | $ | 159,082 | Fee waiver / expense reimbursement: | |||||||||||||||||||||
Fee waiver / expense reimbursement: | Artisan Funds | $ | 171 | $ | 374 | $ | 441 | |||||||||||||||||||||||
Artisan Funds | $ | 1 | $ | 49 | $ | 122 | $ | 115 | ||||||||||||||||||||||
Artisan Global Funds | ||||||||||||||||||||||||||||||
Schedule of related party transactions | Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by us are as follows: | Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: | ||||||||||||||||||||||||||||
For the Three | For the Six Months | For the years ended December 31, | ||||||||||||||||||||||||||||
Months Ended | Ended June 30, | 2012 | 2011 | 2010 | ||||||||||||||||||||||||||
June 30, | Investment management fees: | |||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | Artisan Global Funds | $ | 3,020 | $ | 1,255 | $ | — | ||||||||||||||||||||
Investment management fees: | Fee waiver / expense reimbursement: | |||||||||||||||||||||||||||||
Artisan Funds | $ | 2,109 | $ | 633 | $ | 3,548 | $ | 1,217 | Artisan Global Funds | $ | 653 | $ | 660 | $ | — | |||||||||||||||
Fee waiver / expense reimbursement: | ||||||||||||||||||||||||||||||
Artisan Funds | $ | 301 | $ | 47 | $ | 427 | $ | 379 |
Organization_and_nature_of_bus1
Organization and nature of business (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
Percentages of Units Outstanding and The Interests inThe Partnership's Profits | The percentages of units outstanding represented by each class at December 31, 2012, and of the interests in the Partnership’s profits at December 31, 2011 and 2010, were approximately as follows: | ||||||||||||
At December 31, | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
General Partner units/interests | 15.99 | % | 17.78 | % | 18.72 | % | |||||||
Class A common units/interests | 22.82 | % | 24.46 | % | 25.76 | % | |||||||
Class B common units/interests | 43.99 | % | 40.94 | % | 37.8 | % | |||||||
Preferred units/Class C interests | 17.2 | % | 16.82 | % | 17.72 | % | |||||||
100 | % | 100 | % | 100 | % | ||||||||
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2012 | |||||||||
Components of Property and Equipment | The composition of property and equipment at December 31, 2012 and 2011 are as follows: | ||||||||
December 31, | |||||||||
2012 | 2011 | ||||||||
Computers and equipment | $ | 5,320 | $ | 4,831 | |||||
Computer software | 4,617 | 4,255 | |||||||
Furniture and fixtures | 3,637 | 2,500 | |||||||
Leasehold improvements | 10,585 | 7,949 | |||||||
Total cost | 24,159 | 19,535 | |||||||
Less: Accumulated depreciation | (15,352 | ) | (13,963 | ) | |||||
Property and equipment, net of accumulated depreciation | $ | 8,807 | $ | 5,572 | |||||
Lease_commitments_Tables
Lease commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2012 | |||||
Future Minimum Payments | At December 31, 2012, the aggregate future minimum payments for leases for each of the following five years and thereafter are as follows: | ||||
2013 | $ | 8,398 | |||
2014 | 6,387 | ||||
2015 | 4,859 | ||||
2016 | 3,918 | ||||
Thereafter | 13,715 | ||||
Total | $ | 37,277 | |||
Quarterly_information_unaudite1
Quarterly information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Schedule of Operation Activity | Revenues and net income can vary significantly from quarter to quarter due to the nature of Artisan’s business activities. | ||||||||||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2011 | June 30, 2011 | Sept. 30, 2011 | Dec. 31, 2011 | ||||||||||||||
Total revenues | $ | 112,945 | $ | 120,210 | $ | 110,284 | $ | 111,655 | |||||||||
Operating income (loss) | $ | 17,150 | $ | 39,988 | $ | 70,462 | $ | 26,695 | |||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | $ | 10,115 | $ | 34,068 | $ | 67,141 | $ | 21,749 | |||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2012 | June 30, 2012 | Sept. 30, 2012 | Dec. 31, 2012 | ||||||||||||||
Total revenues | $ | 119,673 | $ | 120,787 | $ | 128,082 | $ | 137,036 | |||||||||
Operating income (loss) | $ | 4,365 | $ | 41,508 | $ | (38,219 | ) | $ | 39,433 | ||||||||
Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | $ | 1,051 | $ | 38,959 | $ | (42,902 | ) | $ | 36,652 | ||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — |
Recovered_Sheet1
Organization and Nature of Business - Additional information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 03, 2006 | Mar. 31, 2013 |
Investment_Teams | Investment_Strategies | Medium-term Notes | Class A Common Stock | ||
Investment_Strategies | Investment_Teams | ||||
Class of Stock [Line Items] | |||||
Number of shares issued on IPO | 12,712,279 | ||||
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 22.00% | ||||
Number of autonomous investment teams | 5 | 5 | |||
Number of investment strategies | 13 | 13 | |||
Interest in Artisan Partners Limited Partnership by Artisan Partners Holdings | 100.00% | ||||
Debt principal amount | $400,000 | ||||
Percentage of Class B interests reclassified as Class B common units | 13.06% | 5.35% | |||
Redeemable preferred units | $0 | $357,194 | $357,194 |
Reorganization_and_IPO_Additio
Reorganization and IPO - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 12, 2013 |
Reorganization And Inital Public Offering [Line Items] | ||||||||||
Class B liability awards | $0 | $0 | $0 | $225,249 | $146,175 | $551,951 | ||||
Proceeds from Issuance Initial Public Offering | 353,414 | |||||||||
Pre-offering related compensation - other | 0 | 13,747 | 143,035 | 21,895 | 54,153 | 55,714 | 17,578 | |||
Cash incentive compensation | ||||||||||
Reorganization And Inital Public Offering [Line Items] | ||||||||||
Pre-offering related compensation - other | $0 | $0 | $56,788 | $0 |
Reorganization_and_IPO_Detail
Reorganization and IPO (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 |
Reorganization And Inital Public Offering [Line Items] | |||
Retained profits distributions to pre-IPO partners | $105,301 | $285 | |
Repayment of principal amounts under the revolving credit agreement | 90,000 | 0 | |
Purchase of 2,720,823 Class A common units from certain investors | 76,319 | 0 | |
Financing activities using IPO net proceeds and cash on hand | $271,620 |
Reorganization_and_IPO_Parenth
Reorganization and IPO (Parenthetical) (Detail) (Class A Common Stock) | 6 Months Ended |
Jun. 30, 2013 | |
Class A Common Stock | |
Reorganization And Inital Public Offering [Line Items] | |
Stock Repurchased During Period, Shares | 2,720,823 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Segment | Interest Rate Swap | Interest Rate Swap | Class B Common Units | Fees Due to Intermediaries | Fees Due to Intermediaries | Furniture and Fixtures | computer hardware and equipment | Computer Software | Portfolio managers | ||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||
TRA percent of savings to be paid to shareholders | 85.00% | ||||||||||||||||
TRA percent of savings to be retained by entity | 15.00% | ||||||||||||||||
TRA, payment period from filing | 125 days | ||||||||||||||||
Tax Receivable Agreements Basis Spread On Variable Rate | 1.00% | ||||||||||||||||
Operating Segment | 1 | ||||||||||||||||
Award vesting period | 5 years | 3 years | |||||||||||||||
Useful life of Property and equipment | 7 years | 5 years | 3 years | ||||||||||||||
Payments to settle derivative | $1,135 | $1,135 | $1,135 | ||||||||||||||
Redemption period for terminated employees | 5 years | ||||||||||||||||
Compensation cost, requisite period of recognition | 5 years | ||||||||||||||||
Accrued fees to authorized agent | 3,592 | 3,075 | |||||||||||||||
Redeemable preferred units | 0 | 0 | 0 | 357,194 | 357,194 | ||||||||||||
Redeemable preferred units, redemption date | 3-Jul-16 | ||||||||||||||||
Provision for income taxes | 5,873 | 247 | 10,322 | 579 | 1,047 | 1,162 | 1,281 | ||||||||||
Partnership distributions | $20,379 | $33,699 | $186,620 | $53,507 | $135,039 | $122,822 | $54,338 | ||||||||||
Earnings per share | $0.38 | $0.57 | $0 |
Components_of_AOCI_Detail
Components of AOCI (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Net Unrealized Investment Gain (Loss) | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Accumulated Translation Adjustment [Member] | Unrealized loss on interest rate swap | |||
Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | Noncontrolling Interest | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||
Accumulated other comprehensive income | $748 | $0 | $0 | $1,964 | ($7) | ($6,361) | $805 | $1,906 | $68 | $130 | ($57) | $58 | ($75) | ($57) | ($6,434) | ||
Accumulated other comprehensive income (pre IPO) | $0 | $0 | $0 |
Investment_Securities_Detail
Investment Securities (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $22,239 | $15,241 | $17,262 |
Equity Mutual Funds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 18,335 | 13,335 | 17,194 |
Unrealized Gains | 3,937 | 1,906 | 68 |
Unrealized Losses | -33 | 0 | |
Fair Value | $22,239 | $15,241 | $17,262 |
Fair_value_hierarchy_of_assets
Fair value hierarchy of assets and liabilities (Detail) (Recurring, USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Total Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $257,404 | $141,159 | |
Equity mutual funds | 22,239 | 15,241 | 17,262 |
Contingent value rights | 22,020 | ||
Interest rate swaps | 1,066 | ||
Borrowings | 293,434 | 324,268 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 257,404 | 141,159 | |
Equity mutual funds | 22,239 | 15,241 | 17,262 |
Contingent value rights | 0 | ||
Interest rate swaps | 0 | ||
Borrowings | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Equity mutual funds | 0 | 0 | 0 |
Contingent value rights | 0 | ||
Interest rate swaps | 1,066 | ||
Borrowings | 197,744 | 293,434 | 324,268 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Equity mutual funds | 0 | 0 | 0 |
Contingent value rights | 22,020 | ||
Interest rate swaps | 0 | ||
Borrowings | $0 | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Fair Value Measurements Disclosure [Line Items] | |||
Contingent Value Rights Maximum Aggregate Payment | $100,000 | $100,000 | |
Contingent value rights | 22,020 | 22,020 | 0 |
(Gains) losses included in earnings | ($8,620) | ($33,420) | |
Contingent Value Rights | |||
Fair Value Measurements Disclosure [Line Items] | |||
Contingent Value Rights Required Payment Date Change of Control | 5 days | ||
Number of consecutive trading days used to calculate VWAP | 60 days | ||
Derivative minimum VWAP | $43.11 |
Fair_Value_Measurements_Signif
Fair Value Measurements Significant Unobservable Inputs (Detail) (Recurring, Level 3, Contingent Value Rights, USD $) | 6 Months Ended |
Jun. 30, 2013 | |
Recurring | Level 3 | Contingent Value Rights | |
Observable assumptions: | |
Price per share of Class A common stock | $49.91 |
Remaining term of CVRs | 3 years 0 months 10 days |
Unobservable assumptions: | |
Expected price volatility of Class A common stock | 37.00% |
Dividend yield rate | 4.40% |
Fair Value Inputs, Discount Rate | 5.00% |
Fair_Value_Liabilities_Measure
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
(Gains) losses included in earnings | ($8,620) | ($33,420) |
Recurring | Level 3 | Contingent Value Rights | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | 0 | |
Issuance of contingent value rights | 55,440 | |
(Gains) losses included in earnings | -33,420 | |
Balance at end of period | $22,020 | $22,020 |
Components_of_Borrowings_Detai
Components of Borrowings (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | $200,000 | $290,000 | $324,789 | |
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | 0 | 90,000 | ||
Interest rate at period end | 1.96% | [1] | ||
Series C Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | 90,000 | |||
Senior Notes | Series A Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | 60,000 | 60,000 | ||
Interest rate per annum | 4.98% | 4.98% | ||
Senior Notes | Series B Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | 50,000 | 50,000 | ||
Interest rate per annum | 5.32% | 5.32% | ||
Senior Notes | Series C Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total outstanding balance | $90,000 | $90,000 | ||
Interest rate per annum | 5.82% | 5.82% | ||
[1] | Interest rate under revolving credit agreement represents LIBOR plus the applicable margin as of December 31, 2012. |
Borrowings_Additional_informat
Borrowings - Additional information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Aug. 16, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Aug. 16, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jul. 03, 2006 | Dec. 31, 2011 | Nov. 30, 2010 | Nov. 30, 2010 | Nov. 30, 2010 | Aug. 16, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Maximum | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Series C Senior Notes | Medium-term Notes | Amended Term Loan | Amended Term Loan | Amended Term Loan | Amended Term Loan | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Level 2 | Level 2 | Level 2 | ||||||||||
Prime Rate | Prime Rate | Federal Funds Effective Rate | Federal Funds Effective Rate | One Month Libor Adjusted By Statutory Reserve Percentage | One Month Libor Adjusted By Statutory Reserve Percentage | Minimum | Minimum | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Maximum | Maximum | Maturity Period One | Maturity Period Two | Series A Senior Notes | Series A Senior Notes | Series B Senior Notes | Series B Senior Notes | Series C Senior Notes | Series C Senior Notes | Recurring | Recurring | Recurring | |||||||||||||||||||||
Libor Adjusted By Statutory Reserve Percentage | Libor Adjusted By Statutory Reserve Percentage | Margin Based On Leverage Ratio | Margin Based On Leverage Ratio | Libor Adjusted By Statutory Reserve Percentage | Libor Adjusted By Statutory Reserve Percentage | Margin Based On Leverage Ratio | Margin Based On Leverage Ratio | ||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | $197,744 | $293,434 | $324,268 | ||||||||||||||||||||||||||||||||||||||||||||||
Debt principal amount | 400,000 | 380,000 | 363,000 | 17,000 | 200,000 | 60,000 | 50,000 | 90,000 | |||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long term debt | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from lines of credit | 90,000 | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||
Term of debt agreement | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||
Commitment fee percentage | 0.18% | 0.20% | 0.18% | 0.18% | 0.63% | 0.63% | |||||||||||||||||||||||||||||||||||||||||||
Spread on variable rate | 0.50% | 0.50% | 0.50% | 0.50% | 1.00% | 1.00% | 1.50% | 1.50% | 0.50% | 0.50% | 3.00% | 3.00% | 2.00% | 2.00% | |||||||||||||||||||||||||||||||||||
Potential percentage increase in interest rate | 1.00% | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense incurred on debt and credit facilities | 2,769 | 2,072 | 5,862 | 4,318 | 10,123 | 10,645 | 8,086 | ||||||||||||||||||||||||||||||||||||||||||
Debt, interest rate | 2.77% | 4.98% | 5.32% | 5.82% | |||||||||||||||||||||||||||||||||||||||||||||
Refinancing expense | 1,509 | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | -827 | -827 | |||||||||||||||||||||||||||||||||||||||||||||||
Other non-operating gains | 682 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt, maturity date | 16-Aug-17 | 16-Aug-19 | 16-Aug-22 | ||||||||||||||||||||||||||||||||||||||||||||||
Total outstanding balance | $200,000 | $200,000 | $290,000 | $324,789 | $0 | $90,000 | $90,000 | $60,000 | $60,000 | $50,000 | $50,000 | $90,000 | $90,000 | ||||||||||||||||||||||||||||||||||||
Revolving credit agreement | 1.96% | [1] | |||||||||||||||||||||||||||||||||||||||||||||||
Leverage ratio | 137000.00% | 164000.00% | 300000.00% | ||||||||||||||||||||||||||||||||||||||||||||||
Interest coverage ratio | 1957.00% | 1124.00% | 400.00% | ||||||||||||||||||||||||||||||||||||||||||||||
[1] | Interest rate under revolving credit agreement represents LIBOR plus the applicable margin as of December 31, 2012. |
Aggregate_Maturities_Of_Debt_O
Aggregate Maturities Of Debt Obligations (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Debt And Commitments Maturities [Line Items] | |||
2013 | $0 | $0 | |
2014 | 0 | 0 | |
2015 | 0 | 0 | |
2016 | 0 | 0 | |
Thereafter | 200,000 | 290,000 | |
Borrowings | $200,000 | $290,000 | $324,789 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Aug. 31, 2012 | Jul. 07, 2006 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Apr. 07, 2011 | Nov. 22, 2010 | Apr. 07, 2010 | Apr. 07, 2009 | Apr. 07, 2008 | Dec. 14, 2011 | Aug. 16, 2012 |
Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | |||||||||
Item | Not Designated as Hedging Instrument | Terminated | ||||||||||||||||||||
Derivative [Line Items] | ||||||||||||||||||||||
Notional amount of derivatives | $400,000 | $0 | $200,000 | $200,000 | $250,000 | $300,000 | $350,000 | $200,000 | $200,000 | |||||||||||||
Derivative, fixed interest rate | 5.69% | 1.04% | ||||||||||||||||||||
Payments to settle derivative | 1,135 | 1,135 | 1,135 | |||||||||||||||||||
Interest Expense | 2,891 | 2,552 | 6,101 | 5,232 | 11,442 | 18,386 | 22,961 | 282 | 520 | 671 | 6,884 | 14,277 | ||||||||||
Derivative, term of contract | 5 years | |||||||||||||||||||||
Derivative, number of counterparties | 2 | |||||||||||||||||||||
Loss on Derivative | 0 | 250 | 0 | -52 | -69 | -1,933 | 866 | -1,933 | ||||||||||||||
Unrealized loss | ($2,264) |
Gains_losses_Recognized_on_Der
Gains (losses) Recognized on Derivative Instruments (Detail) (Not Designated as Hedging Instrument, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative | $8,620 | $250 | $33,420 | $0 |
Derivative, Loss on Derivative | 0 | 0 | 0 | -52 |
Contingent Value Rights | Net gain on the valuation of contingent value rights | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative | 8,620 | 0 | 33,420 | 0 |
Derivative, Loss on Derivative | 0 | 0 | 0 | 0 |
Interest Rate Swap | Loss on interest rate swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain on Derivative | 0 | 250 | 0 | 0 |
Derivative, Loss on Derivative | $0 | $0 | $0 | ($52) |
Noncontrolling_Interest_Additi
Noncontrolling Interest - Additional Information (Detail) | Jun. 30, 2013 |
Noncontrolling Interest [Abstract] | |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 22.00% |
Variable_and_Voting_Interest_E2
Variable and Voting Interest Entities - Additional Information (Detail) (Before Consolidation, USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Before Consolidation | ||
Variable Interest Entity [Line Items] | ||
Parent equity investment in Launch Equity | $1 | $1 |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Financial Condition (Detail) (USD $) | Jun. 30, 2013 | Mar. 12, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Thousands, unless otherwise specified | |||||||
Cash and cash equivalents | $257,404 | $141,159 | $172,084 | $126,956 | $158,987 | $101,844 | |
Cash and cash equivalents of consolidated investment products | 16,068 | 10,180 | 5,142 | ||||
Accounts receivable | 53,843 | 46,022 | 39,417 | ||||
Accounts receivable of consolidated investment products | 1 | 10,595 | 37 | ||||
Investment securities of consolidated investment products | 60,066 | 46,237 | 24,265 | ||||
Other assets | 103,579 | 33,367 | 29,034 | ||||
Total assets | 490,961 | 287,560 | 224,851 | ||||
Payables of consolidated investment products | 64 | 10,726 | |||||
Securities sold, not yet purchased of consolidated investment products | 32,652 | 19,586 | 6,276 | ||||
Other liabilities | 396,027 | 572,769 | 502,473 | ||||
Total liabilities | 428,743 | 603,081 | 508,749 | ||||
Redeemable preferred units | 0 | 357,194 | 357,194 | ||||
Total stockholders' equity | 50,091 | 0 | 0 | ||||
Equity attributable to non-controlling interest-Artisa Partners Holdings | -31,291 | -709,414 | -664,259 | ||||
Non-controlling interest-Launch Equity | 43,418 | 36,699 | 23,167 | ||||
Total equity (deficit) | 62,218 | -332,297 | -672,715 | -641,092 | -736,578 | -757,156 | |
Total liabilities, redeemable preferred units and equity (deficit) | 490,961 | 287,560 | 224,851 | ||||
Eliminations | |||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||
Cash and cash equivalents of consolidated investment products | 0 | 0 | 0 | ||||
Accounts receivable | 0 | 0 | 0 | ||||
Accounts receivable of consolidated investment products | 0 | 0 | 0 | ||||
Investment securities of consolidated investment products | -1 | -1 | -1 | ||||
Other assets | 0 | 0 | 0 | ||||
Total assets | -1 | -1 | -1 | ||||
Payables of consolidated investment products | 0 | 0 | |||||
Securities sold, not yet purchased of consolidated investment products | 0 | 0 | 0 | ||||
Other liabilities | 0 | 0 | 0 | ||||
Total liabilities | 0 | 0 | 0 | ||||
Redeemable preferred units | 0 | 0 | 0 | ||||
Total stockholders' equity | 0 | 0 | |||||
Equity attributable to non-controlling interest-Artisa Partners Holdings | -1 | -1 | -1 | ||||
Non-controlling interest-Launch Equity | 0 | 0 | 0 | ||||
Total equity (deficit) | -1 | -1 | -1 | ||||
Total liabilities, redeemable preferred units and equity (deficit) | -1 | -1 | -1 | ||||
Before Consolidation | |||||||
Cash and cash equivalents | 257,404 | 141,159 | 126,956 | ||||
Cash and cash equivalents of consolidated investment products | 0 | 0 | 0 | ||||
Accounts receivable | 53,843 | 46,022 | 39,417 | ||||
Accounts receivable of consolidated investment products | 0 | 0 | 0 | ||||
Investment securities of consolidated investment products | 1 | 1 | 1 | ||||
Other assets | 103,579 | 33,367 | 29,034 | ||||
Total assets | 414,827 | 220,549 | 195,408 | ||||
Payables of consolidated investment products | 0 | 0 | |||||
Securities sold, not yet purchased of consolidated investment products | 0 | 0 | 0 | ||||
Other liabilities | 396,027 | 572,769 | 502,473 | ||||
Total liabilities | 396,027 | 572,769 | 502,473 | ||||
Redeemable preferred units | 0 | 357,194 | 357,194 | ||||
Total stockholders' equity | 50,091 | 0 | |||||
Equity attributable to non-controlling interest-Artisa Partners Holdings | -31,291 | -709,414 | -664,259 | ||||
Non-controlling interest-Launch Equity | 0 | 0 | 0 | ||||
Total equity (deficit) | 18,800 | -709,414 | -664,259 | ||||
Total liabilities, redeemable preferred units and equity (deficit) | 414,827 | 220,549 | 195,408 | ||||
Launch Equity | |||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||
Cash and cash equivalents of consolidated investment products | 16,068 | 10,180 | 5,142 | ||||
Accounts receivable | 0 | 0 | 0 | ||||
Accounts receivable of consolidated investment products | 1 | 10,595 | 37 | ||||
Investment securities of consolidated investment products | 60,066 | 46,237 | 24,265 | ||||
Other assets | 0 | 0 | 0 | ||||
Total assets | 76,135 | 67,012 | 29,444 | ||||
Payables of consolidated investment products | 64 | 10,726 | |||||
Securities sold, not yet purchased of consolidated investment products | 32,652 | 19,586 | 6,276 | ||||
Other liabilities | 0 | 0 | 0 | ||||
Total liabilities | 32,716 | 30,312 | 6,276 | ||||
Redeemable preferred units | 0 | 0 | 0 | ||||
Total stockholders' equity | 0 | 0 | |||||
Equity attributable to non-controlling interest-Artisa Partners Holdings | 1 | 1 | 1 | ||||
Non-controlling interest-Launch Equity | 43,418 | 36,699 | 23,167 | ||||
Total equity (deficit) | 43,419 | 36,700 | 23,168 | ||||
Total liabilities, redeemable preferred units and equity (deficit) | $76,135 | $67,012 | $29,444 |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Operation (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Mar. 12, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Total revenues | $161,933 | $137,036 | $128,082 | $120,786 | $119,673 | $111,655 | $110,284 | $120,210 | $112,945 | $310,156 | $240,459 | $505,578 | $455,094 | $382,286 | ||
Total operating expenses | 113,549 | 79,279 | 683,086 | 194,587 | 458,491 | 300,799 | 317,088 | |||||||||
Operating income | 48,384 | 39,433 | -38,219 | 41,507 | 4,365 | 26,695 | 70,462 | 39,988 | 17,150 | -372,930 | 45,872 | 47,087 | 154,295 | 65,198 | ||
Non-operating expenses | 5,729 | -2,302 | 27,319 | -5,284 | -12,280 | -20,059 | ||||||||||
Net gains (losses) of consolidated investment products | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||||||||||
Total non-operating income (loss) | 4,519 | -3,257 | 30,888 | -3,745 | -3,463 | -23,161 | -21,390 | |||||||||
Income (loss) before income taxes | 52,903 | 38,250 | -342,042 | 42,127 | 43,624 | 131,134 | 43,808 | |||||||||
Provision for income taxes | 5,873 | 247 | 10,322 | 579 | 1,047 | 1,162 | 1,281 | |||||||||
Net income (loss) | -434,342 | 47,030 | 38,003 | 81,978 | -352,364 | 41,548 | 42,577 | 129,972 | 42,527 | |||||||
Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 42,442 | 36,652 | -42,902 | 38,958 | 1,051 | 21,749 | 67,141 | 34,068 | 10,115 | -364,681 | 40,009 | 33,760 | 133,073 | 42,527 | ||
Less: Net income attributable to non-controlling interests-Launch Equity | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,101 | ||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | 5,798 | 0 | 0 | 0 | 0 | 8,748 | 8,748 | 0 | 0 | 0 | ||||||
Eliminations | ||||||||||||||||
Total revenues | -109 | -72 | -213 | -139 | -1,404 | -97 | ||||||||||
Total operating expenses | -109 | -72 | -213 | -139 | -1,404 | -97 | ||||||||||
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Non-operating expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net gains (losses) of consolidated investment products | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Total non-operating income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net income (loss) | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Less: Net income attributable to non-controlling interests-Launch Equity | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Before Consolidation | ||||||||||||||||
Total revenues | 162,042 | 120,858 | 310,369 | 240,598 | 506,982 | 455,191 | ||||||||||
Total operating expenses | 113,658 | 79,351 | 683,299 | 194,726 | 459,895 | 300,896 | ||||||||||
Operating income | 48,384 | 41,507 | -372,930 | 45,872 | 47,087 | 154,295 | ||||||||||
Non-operating expenses | 5,729 | -2,302 | 27,319 | -5,284 | -12,280 | -20,059 | ||||||||||
Net gains (losses) of consolidated investment products | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Total non-operating income (loss) | 5,729 | -2,302 | 27,319 | -5,284 | -12,280 | -20,059 | ||||||||||
Income (loss) before income taxes | 54,113 | 39,205 | -345,611 | 40,588 | 34,807 | 134,236 | ||||||||||
Provision for income taxes | 5,873 | 247 | 10,322 | 579 | 1,047 | 1,162 | ||||||||||
Net income (loss) | 48,240 | 38,958 | -355,933 | 40,009 | 33,760 | 133,074 | ||||||||||
Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 42,442 | 38,958 | -364,681 | 40,009 | 33,760 | 133,074 | ||||||||||
Less: Net income attributable to non-controlling interests-Launch Equity | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | 5,798 | 0 | 8,748 | 0 | 0 | 0 | ||||||||||
Launch Equity | ||||||||||||||||
Total revenues | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Total operating expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Operating income | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Non-operating expenses | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net gains (losses) of consolidated investment products | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||||||||||
Total non-operating income (loss) | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||||||||||
Income (loss) before income taxes | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||||||||||
Provision for income taxes | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Net income (loss) | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,102 | ||||||||||
Less: Net income (loss) attributable to non-controlling interest Artisan Partners Holdings | 0 | 0 | 0 | 0 | 0 | -1 | ||||||||||
Less: Net income attributable to non-controlling interests-Launch Equity | -1,210 | -955 | 3,569 | 1,539 | 8,817 | -3,101 | ||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $0 | $0 | $0 | $0 | $0 | $0 |
Recovered_Sheet2
Fair Value Hierarchy of Assets and Liabilities of Consolidated Investment Products (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents of Launch Equity | $16,068 | $10,180 | $5,142 |
Investment securities of Launch Equity | 60,066 | 46,237 | 24,265 |
Securities sold, not yet purchased of Launch Equity | 32,652 | 19,586 | 6,276 |
Launch Equity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents of Launch Equity | 16,068 | 10,180 | 5,142 |
Investment securities of Launch Equity | 60,066 | 46,237 | 24,265 |
Securities sold, not yet purchased of Launch Equity | 32,652 | 19,586 | 6,276 |
Launch Equity | Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents of Launch Equity | 16,068 | 10,180 | |
Investment securities of Launch Equity | 60,066 | 46,237 | 24,265 |
Securities sold, not yet purchased of Launch Equity | 32,652 | 19,586 | 6,276 |
Launch Equity | Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents of Launch Equity | 0 | 0 | |
Investment securities of Launch Equity | 0 | 0 | 0 |
Securities sold, not yet purchased of Launch Equity | 0 | 0 | 0 |
Launch Equity | Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents of Launch Equity | 0 | 0 | |
Investment securities of Launch Equity | 0 | 0 | 0 |
Securities sold, not yet purchased of Launch Equity | $0 | $0 | $0 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2013 |
Class A Common Stock | Class A Common Stock | Class B Common Stock | Class B Common Stock | Class C Common Stock | Class C Common Stock | Convertible preferred stock | Convertible preferred stock | ||||||||
Restricted Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Partnership distributions | $20,379 | $33,699 | $186,620 | $53,507 | $135,039 | $122,822 | $54,338 | ||||||||
Number of shares issued on IPO | 12,712,279 | 26,271,120 | 28,442,643 | 391,518 | 2,565,463 | ||||||||||
Grants in period | 16,670 | ||||||||||||||
Exchange ratio to common stock | One-for-one | One-for-one | |||||||||||||
Number of Shares Cancelled | 432,118 |
Authorized_and_Outstanding_Equ
Authorized and Outstanding Equity (Detail) (USD $) | Jun. 30, 2013 | |
Vote | ||
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value per share | $0.01 | |
Common stock, shares authorized | 500,000,000 | |
Common stock, shares outstanding | 12,712,279 | |
Common stock votes per share | 1 | |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value per share | $0.01 | |
Common stock, shares authorized | 200,000,000 | |
Common stock, shares outstanding | 25,839,002 | |
Common stock votes per share | 5 | [1] |
Class C Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value per share | $0.01 | |
Common stock, shares authorized | 400,000,000 | |
Common stock, shares outstanding | 28,834,161 | |
Common stock votes per share | 1 | [1] |
Convertible preferred stock | ||
Class of Stock [Line Items] | ||
Convertible preferred stock, par value per share | $0.01 | |
Convertible preferred stock, shares authorized | 15,000,000 | |
Convertible preferred stock, shares outstanding | 2,565,463 | |
Preferred stock votes per share | 1 | |
[1] | In connection with the IPO-related reorganization, each of our employee-partners and Artisan Investment Corporation granted an irrevocable voting proxy with respect to all shares of our common stock they held at such time or acquire from us in the future to a Stockholders Committee. As of June 30, 2013, our employee-partners held all 25,839,002 outstanding shares of Class B common stock and AIC held 9,627,644 outstanding shares of Class C common stock. |
Authorized_and_Outstanding_Equ1
Authorized and Outstanding Equity (Parenthetical) (Detail) | Jun. 30, 2013 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Common stock, shares outstanding | 25,839,002 |
Class B Common Stock | Employee Partners | |
Class of Stock [Line Items] | |
Common stock, shares outstanding | 25,839,002 |
Class C Common Stock | |
Class of Stock [Line Items] | |
Common stock, shares outstanding | 28,834,161 |
Class C Common Stock | AIC | |
Class of Stock [Line Items] | |
Common stock, shares outstanding | 9,627,644 |
Compensation_and_Benefits_Comp
Compensation and Benefits - Components of expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Salaries, incentive compensation and benefits | $69,251 | $53,561 | $141,931 | $109,254 | $227,258 | $198,601 | $166,629 | |
Pre-offering related compensation-share-based awards | 23,851 | -4,931 | 357,082 | 29,884 | 101,682 | -21,082 | 79,071 | |
Pre-offering related compensation-other | 0 | 13,747 | 143,035 | 21,895 | 54,153 | 55,714 | 17,578 | |
Total compensation and benefits | $93,102 | $62,377 | $642,048 | $161,033 | $383,093 | $233,233 | $263,278 |
PreOffering_Related_Compensati
Pre-Offering Related Compensation (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Change in value of Class B liability awards | $0 | ($4,931) | $41,942 | $29,884 | ||||
Class B award modification expense | 0 | 0 | 287,292 | 0 | ||||
Amortization expense on pre-offering Class B awards | 23,851 | 0 | 27,848 | 0 | ||||
Pre-offering related compensation-share-based awards | 23,851 | -4,931 | 357,082 | 29,884 | 101,682 | -21,082 | 79,071 | |
Pre-offering related compensation - other | 0 | 13,747 | 143,035 | 21,895 | 54,153 | 55,714 | 17,578 | |
Total pre-offering related compensation | 23,851 | 8,816 | 500,117 | 51,779 | ||||
Cash incentive compensation | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | 0 | 0 | 56,788 | 0 | ||||
Bonus make-whole compensation | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | 0 | 0 | 20,520 | 0 | ||||
Class B Liability Awards | Distributions on liability awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | $0 | $13,747 | $65,727 | $21,895 |
Compensation_and_Benefits_Addi
Compensation and Benefits - Additional information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Redemption period for terminated employees | 5 years | |||||||
Redemption amount for Class B awards | $27,561 | $27,561 | $27,561 | $29,257 | $14,909 | |||
Aggregate fair value of share-based awards | 0 | 0 | 0 | 331,112 | 180,328 | |||
Class B award modification expense | 0 | 0 | 287,292 | 0 | ||||
Pre-offering related compensation - other | 0 | 13,747 | 143,035 | 21,895 | 54,153 | 55,714 | 17,578 | |
Unvested | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate fair value of share-based awards | 0 | 0 | 0 | 103,052 | 31,825 | |||
Class B Liability Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Redemption period for terminated employees | 5 years | 5 years | ||||||
Retirement qualifying period | 10 years | 10 years | ||||||
Intent to retire, notification period required | 3 years | 3 years | ||||||
Cumulative increase in award liability | 2,532 | 7,851 | 7,621 | |||||
Payments - stock based compensation | 769 | 4,228 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | 200,200 | 200,200 | 200,200 | |||||
Class B Liability Awards | Redemption values determined by retirement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate fair value of share-based awards | 434,797 | 276,517 | ||||||
Class B Liability Awards | Unvested | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost not recognized, period for recognition | 3 years 0 months 3 days | 3 years 3 months 18 days | 2 years 4 months 17 days | |||||
Class B Liability Awards | Distributions on liability awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | 0 | 13,747 | 65,727 | 21,895 | ||||
Class B Liability Awards | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Intent to retire, notification period required | 1 year | 1 year | ||||||
Cash incentive compensation | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | 0 | 0 | 56,788 | 0 | ||||
Bonus make-whole compensation | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-offering related compensation - other | $0 | $0 | $20,520 | $0 |
Fair_value_and_liability_of_Cl
Fair value and liability of Class B awards (Detail) (USD $) | Jun. 30, 2013 | Mar. 12, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of share-based awards | $0 | $331,112 | $180,328 | |
Class B liability awards | 0 | 551,951 | 225,249 | 146,175 |
Redeemed Class B liability awards | 27,561 | 29,257 | 14,909 | |
Vested | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of share-based awards | 0 | 225,249 | 146,175 | |
Unvested | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of share-based awards | 0 | 103,052 | 31,825 | |
Purchased | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Aggregate fair value of share-based awards | $0 | $2,811 | $2,328 |
Summary_of_Activity_Related_to
Summary of Activity Related to Unvested Class B Awards (Detail) (Class B Liability Awards, USD $) | 3 Months Ended |
Jun. 30, 2013 | |
Class B Liability Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value, beginning of period | $30 |
Granted, weighted average grant date fair value | $0 |
Forfeited, weighted average grant date fair value | $0 |
Vested, weighted average grant date fair value | $0 |
Weighted average grant date fair value, end of period | $30 |
Number of Class B awards, beginning of period (shares) | 7,624,004 |
Granted (shares) | 0 |
Forfeited (shares) | -22,381 |
Vested (shares) | -928,294 |
Number of Class B awards, end of period (shares) | 6,673,329 |
Income_Taxes_and_Related_Payme
Income Taxes and Related Payments - Additional information (Detail) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | ||
Income Tax Disclosure [Abstract] | ||||
Approximate percentage of earnings not subject to income taxes | 78.00% | |||
TRA percent of savings to be paid to shareholders | 85.00% | |||
TRA percent of savings to be retained by entity | 15.00% | |||
Deferred tax assets | $62,044 | [1] | $0 | [1] |
Amounts payable under tax receivable agreements | 53,618 | 0 | ||
APIC cumulative increase | $9,462 | |||
[1] | Represents the step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units by APAM. |
Income_Taxes_and_Related_Payme1
Income Taxes and Related Payments - Components of provision for income taxes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Current: | ||||||||
Federal | $1,962 | $0 | $3,139 | $0 | ||||
State and local | 372 | 0 | 917 | 0 | ||||
Foreign | 138 | 247 | 220 | 579 | ||||
Total | 2,472 | 247 | 4,276 | 579 | ||||
Federal | 3,308 | 0 | 5,896 | 0 | ||||
State and local | 93 | 0 | 150 | 0 | ||||
Total | 3,401 | 0 | 6,046 | 0 | ||||
Income tax expense | $5,873 | $247 | $10,322 | $579 | $1,047 | $1,162 | $1,281 |
Income_Taxes_and_Related_Payme2
Income Taxes and Related Payments - Components of deferred tax assets (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ||||
Step-up of tax basis | $62,044 | [1] | $0 | [1] |
Contingent value rights | 1,549 | [2] | 0 | [2] |
Other | 883 | [3] | 0 | [3] |
Total deferred tax assets | 64,476 | 0 | ||
Less: valuation allowance | 0 | [4] | 0 | [4] |
Net deferred tax assets | $64,476 | $0 | ||
[1] | Represents the step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units by APAM. | |||
[2] | The initial establishment of the CVR liability at the time of the IPO was recorded through equity. For tax purposes, this liability will result in a tax benefit when the CVRs are settled. | |||
[3] | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | |||
[4] | We assessed whether the deferred tax assets would be realizable and determined based on our history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Limited Partnership Units) | 3 Months Ended |
Jun. 30, 2013 | |
Limited Partnership Units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 54,673,163 |
Computation_of_basic_and_dilut
Computation of basic and diluted net income (loss) per share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings per share | ||||||||||
Net income (loss) allocable to APAM-diluted | $5,798 | $0 | $0 | $0 | $0 | $8,748 | $8,748 | $0 | $0 | $0 |
Convertible preferred stock dividends | 0 | 0 | ||||||||
Net income allocated to participating securities | -973 | -1,467 | ||||||||
Net income (loss) allocable to common shareholders | $4,825 | $7,281 | ||||||||
Weighted average shares outstanding- basic | 12,728,949 | 12,728,949 | ||||||||
Effect of dilutive securities | 2,565,463 | 2,565,463 | ||||||||
Weighted average shares outstanding- diluted | 15,294,412 | 15,294,412 | ||||||||
Earnings per share-basic | $0.38 | $0.57 | $0 | |||||||
Earnings per share-diluted | $0.38 | $0.57 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Artisan Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Annualized operating expenses maximum percentage of average daily net assets | 1.50% | 1.50% | |||||
Due from related parties | $0 | $0 | $81 | $195 | |||
Fee waiver / expense reimbursement | 1 | 49 | 122 | 115 | 171 | 374 | 441 |
Artisan Funds | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee percentage of average daily net assets | 0.64% | 0.64% | |||||
Artisan Funds | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee percentage of average daily net assets | 1.25% | 1.25% | |||||
Artisan Global Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | 851 | 851 | 728 | 709 | |||
Management fee threshold for reimbursement, percentage average daily net assets | 0.20% | ||||||
Fee waiver / expense reimbursement | 301 | 47 | 427 | 379 | 653 | 660 | 0 |
Artisan Global Funds | Emerging Markets Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.35% | ||||||
Artisan Global Funds | Global Value Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.35% | ||||||
Artisan Global Funds | Value Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.35% | ||||||
Artisan Global Funds | Global Equity Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.35% | ||||||
Artisan Global Funds | Global Opportunities Fund | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.35% | ||||||
Artisan Global Funds | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee percentage of average daily net assets | 0.75% | 0.85% | |||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.10% | ||||||
Artisan Global Funds | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee percentage of average daily net assets | 1.80% | 0.95% | |||||
Management fee threshold for reimbursement, percentage average daily net assets | 0.20% | ||||||
Launch Equity | |||||||
Related Party Transaction [Line Items] | |||||||
Management fee as a percentage of closing capital account | 1.00% | 1.00% | |||||
Percentage of fee expected to be waived in current period | 100.00% | 100.00% | |||||
Percentage profit allocation | 20.00% | 20.00% | |||||
Fee waiver / expense reimbursement | 47 | 44 | 87 | 81 | 141 | 150 | |
AIC | |||||||
Related Party Transaction [Line Items] | |||||||
Due from related parties | $28 | $28 | $231 | $189 |
Fees_for_Managing_Funds_and_Am
Fees for Managing Funds and Amounts Reimbursed (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Artisan Global Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Investment management fees | $2,109 | $633 | $3,548 | $1,217 | $3,020 | $1,255 | $0 |
Fee waiver / expense reimbursement | 301 | 47 | 427 | 379 | 653 | 660 | 0 |
Artisan Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Investment management fees | 107,533 | 80,220 | 205,613 | 159,082 | 333,218 | 303,919 | 261,535 |
Fee waiver / expense reimbursement | $1 | $49 | $122 | $115 | $171 | $374 | $441 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2013 | Oct. 15, 2013 | Jul. 17, 2013 | Jan. 31, 2013 | Jul. 17, 2013 | Jul. 17, 2013 | Jul. 17, 2013 |
Class A Common Stock | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||
Restricted Stock | Share Distribution | 2013 Omnibus Incentive Compensation Plan | Employee Termination Agreement | Artisan Partners Holdings | Class A Common Stock | Class A Common Stock | ||||||||
Restricted Stock | Share Distribution | 2013 Omnibus Incentive Compensation Plan | Artisan Partners Holdings | |||||||||||
Restricted Stock | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 16,670 | 1,575,157 | ||||||||||||
Award vesting period | 5 years | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $79,200 | |||||||||||||
Distribution Made to Member or Limited Partner, Cash Distributions Declared | 19,080 | |||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.43 | |||||||||||||
Termination expense | 5,987 | |||||||||||||
Dividend payable date | 26-Aug-13 | |||||||||||||
Dividend record date | 12-Aug-13 | |||||||||||||
Partnership distributions | $20,379 | $33,699 | $186,620 | $53,507 | $135,039 | $122,822 | $54,338 | $245,100 |
Percentage_of_Units_Outstandin
Percentage of Units Outstanding Represented By Each Class And The Interest in Partnership's Profits (Detail) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Organization and Nature of Operations [Line Items] | |||
Percentage of Unit outstanding | 100.00% | ||
Percentage of interests in partnership profit | 100.00% | 100.00% | |
General Partner | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of Unit outstanding | 15.99% | ||
Percentage of interests in partnership profit | 17.78% | 18.72% | |
Class A Common Stock | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of Unit outstanding | 22.82% | ||
Percentage of interests in partnership profit | 24.46% | 25.76% | |
Class B Common Stock | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of Unit outstanding | 43.99% | ||
Percentage of interests in partnership profit | 40.94% | 37.80% | |
Convertible preferred stock | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of Unit outstanding | 17.20% | ||
Class C Common Stock | |||
Organization and Nature of Operations [Line Items] | |||
Percentage of interests in partnership profit | 16.82% | 17.72% |
Distribution_fees_paid_to_auth
Distribution fees paid to authorized agents (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Significant Accounting Policies [Line Items] | ||||||||
Total authorized agent fees incurred | $26,082 | $24,735 | $22,086 | |||||
Other marketing expenses | 2,908 | 1,439 | 936 | |||||
Total distribution and marketing | 8,847 | 7,111 | 17,023 | 14,208 | 28,990 | 26,174 | 23,022 | |
Total authorized agent fees | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Total authorized agent fees incurred | 88,818 | 86,166 | 74,929 | |||||
Artisan Funds | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Total authorized agent fees incurred | $62,736 | $61,431 | $52,843 |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments (Detail) (USD $) | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Total derivatives not designated as hedges | $1,066 | [1] |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Interest rate swap | $1,066 | [1] |
[1] | Refer to disclosures within this footnote for additional information on Artisan's purpose for holding derivative instruments not designated as hedging instruments under FASB ASC 815-20. |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments on Statements of operation (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Noncontrolling interest - Artisan Partners Holdings (Effective Portion) | $6,434 | $15,313 | |||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | -69 | -1,933 | 866 | ||
Interest Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Noncontrolling interest - Artisan Partners Holdings into Income (Effective Portion) | -6,884 | -14,277 | |||
Not Designated as Hedging Instrument | Interest Rate Swap | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Noncontrolling interest - Artisan Partners Holdings (Effective Portion) | 304 | [1] | |||
Not Designated as Hedging Instrument | Interest Rate Swap | Unrealized Gain Loss On Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | -69 | [1] | -1,933 | [1] | |
Not Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Noncontrolling interest - Artisan Partners Holdings into Income (Effective Portion) | -745 | [1] | |||
Designated as Hedging Instrument | Interest Rate Swap | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Noncontrolling interest - Artisan Partners Holdings (Effective Portion) | 6,130 | 15,617 | |||
Designated as Hedging Instrument | Interest Rate Swap | Interest Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Reclassified from Noncontrolling interest - Artisan Partners Holdings into Income (Effective Portion) | -6,139 | -14,277 | |||
Designated as Hedging Instrument | Interest Rate Swap | Forward Contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Noncontrolling interest - Artisan Partners Holdings (Effective Portion) | -304 | ||||
Designated as Hedging Instrument | Interest Rate Swap | Forward Contracts | Unrealized Gain Loss On Derivatives | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion) | $866 | ||||
[1] | On December 14, 2011 Artisan discontinued the hedge accounting relationship under FASB ASC 815-20 for the interest rate swap with a start date of July 1, 2011. |
Consolidated_Investment_Produc
Consolidated Investment Products - Additional Information (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Risk with respect to investments in consolidated investment products, maximum | $1 | |
Before Consolidation | ||
Variable Interest Entity [Line Items] | ||
Parent equity investment in Launch Equity | $1 | $1 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 12, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
401(k) plan matching contribution | $3,789 | $3,367 | $3,001 | |||
Equity Incentive Plan, expense | 600,820 | 0 | ||||
Equity Incentive Plan,accrual | 0 | 225,249 | 146,175 | 551,951 | ||
Equity Incentive Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Equity Incentive Plan, expense | 617 | 645 | 220 | |||
Equity Incentive Plan,accrual | $1,206 | $865 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Computers and equipment | $5,320 | $4,831 | |
Computer software | 4,617 | 4,255 | |
Furniture and fixtures | 3,637 | 2,500 | |
Leasehold improvements | 10,585 | 7,949 | |
Total cost | 24,159 | 19,535 | |
Less: Accumulated depreciation | -15,352 | -13,963 | |
Property and equipment, net of accumulated depreciation | $8,731 | $8,807 | $5,572 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $2,384 | $2,350 | $2,281 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Operating Lease Obligations [Line Items] | |||
Rental expense | $7,800 | $7,476 | $7,090 |
Future_Minimum_Payments_Detail
Future Minimum Payments (Detail) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2013 | $8,398 |
2014 | 6,387 |
2015 | 4,859 |
2016 | 3,918 |
Thereafter | 13,715 |
Total | $37,277 |
Litigation_Matters_Additional_
Litigation Matters - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Loss Contingencies [Line Items] | |
Insurance policy, retention amount | $1,000 |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Quarterly Financial Information [Line Items] | |||||||||||||||
Total revenues | $161,933 | $137,036 | $128,082 | $120,786 | $119,673 | $111,655 | $110,284 | $120,210 | $112,945 | $310,156 | $240,459 | $505,578 | $455,094 | $382,286 | |
Operating income (loss) | 48,384 | 39,433 | -38,219 | 41,507 | 4,365 | 26,695 | 70,462 | 39,988 | 17,150 | -372,930 | 45,872 | 47,087 | 154,295 | 65,198 | |
Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | 42,442 | 36,652 | -42,902 | 38,958 | 1,051 | 21,749 | 67,141 | 34,068 | 10,115 | -364,681 | 40,009 | 33,760 | 133,073 | 42,527 | |
Net income attributable to Artisan Partners Asset Management Inc. | 5,798 | 0 | 0 | 0 | 0 | 8,748 | 8,748 | 0 | 0 | 0 | |||||
Scenario, Previously Reported | |||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||
Total revenues | 120,787 | ||||||||||||||
Operating income (loss) | 41,508 | ||||||||||||||
Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | 38,959 | ||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $0 |