Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document Information [Line Items] | ' |
Document Type | 'S-1/A |
Amendment Flag | 'true |
AmendmentDescription | 'The originally filed S-1 included consolidated financial statements for the nine months ended September 30, 2013 and 2012, and for the years ended December 31, 2012, 2011 and 2010. Interactive Data Files relating to those periods were furnished with the original S-1 filing. This S-1 amendment has been updated to include consolidated financial statements for the years ending December 31, 2013, 2012 and 2011. Interactive Data Files are being furnished with this S-1 amendment for the new periods presented in this filing. |
Document Period End Date | 31-Dec-13 |
Trading Symbol | 'APAM |
Entity Registrant Name | 'ARTISAN PARTNERS ASSET MANAGEMENT INC. |
Entity Central Index Key | '0001517302 |
Entity Filer Category | 'Non-accelerated Filer |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $211,839 | $141,159 |
Cash and cash equivalents of Launch Equity | 19,156 | 10,180 |
Accounts receivable | 64,110 | 46,022 |
Accounts receivable of Launch Equity | 7,428 | 10,595 |
Investment securities | 7,804 | 15,241 |
Investment securities of Launch Equity | 63,364 | 46,237 |
Prepaid expenses | 4,785 | 3,890 |
Property and equipment, net | 8,760 | 8,807 |
Restricted cash | 1,185 | 1,185 |
Deferred tax assets | 187,907 | 0 |
Other | 5,060 | 4,244 |
Total assets | 581,398 | 287,560 |
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Accounts payable, accrued expenses and other liabilities | 18,828 | 17,373 |
Accrued incentive compensation | 3,580 | 7,254 |
Deferred lease obligations | 3,515 | 3,636 |
Borrowings | 200,000 | 290,000 |
Class B liability awards | 0 | 225,249 |
Class B redemptions payable | 23,026 | 29,257 |
Amounts payable under tax receivable agreements | 160,663 | 0 |
Payables of Launch Equity | 7,485 | 10,726 |
Securities sold, not yet purchased of Launch Equity | 31,990 | 19,586 |
Total liabilities | 449,087 | 603,081 |
Commitments and contingencies | ' | ' |
Redeemable preferred units | 0 | 357,194 |
Additional paid-in capital | 6,388 | 0 |
Retained earnings | 1,401 | 0 |
Accumulated other comprehensive income (loss) | 378 | 0 |
Total stockholders' equity | 43,779 | 0 |
Noncontrolling interest-Artisan Partners Holdings | 38,060 | -709,414 |
Noncontrolling interest-Launch Equity | 50,472 | 36,699 |
Total equity (deficit) | 132,311 | -672,715 |
Total liabilities, redeemable preferred units and equity (deficit) | 581,398 | 287,560 |
Class A Common Stock | ' | ' |
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common stock | 198 | 0 |
Class B Common Stock | ' | ' |
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common stock | 253 | 0 |
Class C Common Stock | ' | ' |
LIABILITIES, REDEEMABLE PREFERRED UNITS AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common stock | 252 | 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 1,198,128 outstanding at December 31, 2013) | $34,909 | $0 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2013 | |
Class A Common Stock | ' | |
Common stock, par value per share | $0.01 | [1] |
Common stock, shares authorized | 500,000,000 | [1] |
Common stock, shares outstanding | 19,807,436 | [1] |
Class B Common Stock | ' | |
Common stock, par value per share | $0.01 | |
Common stock, shares authorized | 200,000,000 | |
Common stock, shares outstanding | 25,271,889 | |
Class C Common Stock | ' | |
Common stock, par value per share | $0.01 | |
Common stock, shares authorized | 400,000,000 | |
Common stock, shares outstanding | 25,206,554 | |
Convertible preferred stock | ' | |
Convertible preferred stock, par value per share | $0.01 | [1] |
Convertible preferred stock, shares authorized | 15,000,000 | [1] |
Convertible preferred stock, shares outstanding | 1,198,128 | [1] |
[1] | 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. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Management fees | $683,322 | $503,954 | $450,949 |
Performance fees | 2,519 | 1,624 | 4,145 |
Total revenues | 685,841 | 505,578 | 455,094 |
Compensation and benefits | ' | ' | ' |
Salaries, incentive compensation and benefits | 309,163 | 227,258 | 198,601 |
Pre-offering related compensation-share-based awards | 404,160 | 101,682 | -21,082 |
Pre-offering related compensation-other | 143,035 | 54,153 | 55,714 |
Total compensation and benefits | 856,358 | 383,093 | 233,233 |
Distribution and marketing | 38,398 | 28,990 | 26,174 |
Occupancy | 10,476 | 9,251 | 8,962 |
Communication and technology | 14,426 | 13,240 | 10,605 |
General and administrative | 27,387 | 23,917 | 21,825 |
Total operating expenses | 947,045 | 458,491 | 300,799 |
Total operating income (loss) | -261,204 | 47,087 | 154,295 |
Non-operating income (loss) | ' | ' | ' |
Interest expense | -11,869 | -11,442 | -18,386 |
Net gains (losses) of Launch Equity | 10,623 | 8,817 | -3,102 |
Loss on debt extinguishment | 0 | -827 | 0 |
Net gain on the valuation of contingent value rights | 49,570 | 0 | 0 |
Net investment income | 5,138 | 740 | 260 |
Other non-operating gains | 0 | -751 | -1,933 |
Total non-operating income (loss) | 53,462 | -3,463 | -23,161 |
Income (loss) before income taxes | -207,742 | 43,624 | 131,134 |
Provision for income taxes | 26,390 | 1,047 | 1,162 |
Net income (loss) before noncontrolling interests | -234,132 | 42,577 | 129,972 |
Less: Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | -269,562 | 33,760 | 133,073 |
Less: Net income (loss) attributable to noncontrolling interest-Launch Equity | 10,623 | 8,817 | -3,101 |
Net income attributable to Artisan Partners Asset Management Inc. | $24,807 | $0 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) before noncontrolling interests | ($234,132) | $42,577 | $129,972 |
Unrealized gains on investment securities: | ' | ' | ' |
Unrealized holding gains on investment securities, net of tax of $171, $0 and $0, respectively | 3,655 | 2,335 | -4 |
Less: reclassification adjustment for gains included in net income | -4,119 | -497 | -58 |
Net unrealized gains on investment securities | -464 | 1,838 | -62 |
Net unrealized gain on interest rate swaps | 0 | 0 | 6,434 |
Foreign currency translation gain | 197 | 133 | -18 |
Total other comprehensive income (loss) | -267 | 1,971 | 6,354 |
Comprehensive income (loss) | -234,399 | 44,548 | 136,326 |
Comprehensive income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | -270,207 | 35,731 | 139,427 |
Comprehensive income (loss) attributable to non-controlling interests-Launch Equity | 10,623 | 8,817 | -3,101 |
Comprehensive income attributable to Artisan Partners Asset Management Inc. | $25,185 | $0 | $0 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Tax on unrealized gains on investment securities | $171 | $0 | $0 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Noncontrolling Interest | Redeemable Preferred Units | IPO [Member] | IPO [Member] | Follow On Offering [Member] | Follow On Offering [Member] | Follow On Offering [Member] |
In Thousands | Launch Equity | Noncontrolling Interest | Common Stock | Additional Paid-in Capital | ||||||||||
Redeemable preferred units, beginning of period at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | $357,194 | ' | ' | ' | ' | ' |
Balance at beginning of period at Dec. 31, 2010 | -736,578 | 0 | 0 | 0 | 0 | 0 | -736,578 | 0 | ' | ' | ' | ' | ' | ' |
Net income (loss) | 129,972 | ' | ' | ' | ' | ' | 133,073 | -3,101 | 0 | ' | ' | ' | ' | ' |
Other comprehensive income | 6,354 | ' | ' | ' | ' | ' | 6,354 | 0 | 0 | ' | ' | ' | ' | ' |
Change in noncontrolling interest- Launch Equity, net | 26,268 | ' | ' | ' | ' | ' | 0 | 26,268 | 0 | ' | ' | ' | ' | ' |
Partnership distributions | -67,108 | ' | ' | ' | ' | ' | -67,108 | 0 | 0 | ' | ' | ' | ' | ' |
Initial establishment of contingent value right liability | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income-available for sale investments, net of tax | -62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable preferred units, end of period at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | 357,194 | ' | ' | ' | ' | ' |
Balance at end of period at Dec. 31, 2011 | -641,092 | 0 | 0 | 0 | 0 | 0 | -664,259 | 23,167 | ' | ' | ' | ' | ' | ' |
Net income (loss) | 42,577 | ' | ' | ' | ' | ' | 33,760 | 8,817 | 0 | ' | ' | ' | ' | ' |
Other comprehensive income | 1,971 | ' | ' | ' | ' | ' | 1,971 | 0 | 0 | ' | ' | ' | ' | ' |
Change in noncontrolling interest- Launch Equity, net | 4,715 | ' | ' | ' | ' | ' | 0 | 4,715 | 0 | ' | ' | ' | ' | ' |
Partnership distributions | -80,886 | ' | ' | ' | ' | ' | -80,886 | 0 | 0 | ' | ' | ' | ' | ' |
Initial establishment of contingent value right liability | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income-available for sale investments, net of tax | 1,838 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable preferred units, end of period at Dec. 31, 2012 | 357,194 | ' | ' | ' | ' | ' | ' | ' | 357,194 | ' | ' | ' | ' | ' |
Balance at end of period at Dec. 31, 2012 | -672,715 | 0 | 0 | 0 | 0 | 0 | -709,414 | 36,699 | ' | ' | ' | ' | ' | ' |
Net income (loss) | -434,342 | ' | ' | ' | ' | ' | -434,342 | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income | 1,065 | ' | ' | ' | ' | ' | 1,065 | ' | ' | ' | ' | ' | ' | ' |
Partnership distributions | -100,514 | ' | ' | ' | ' | ' | -100,514 | ' | ' | ' | ' | ' | ' | ' |
Modifications 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 | ' | ' | ' | ' | ' | ' | ' |
Capital redemption | -16 | ' | ' | ' | ' | ' | -16 | ' | ' | ' | ' | ' | ' | ' |
Redeemable preferred units, end of period at Mar. 12, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Balance at end of period at Mar. 12, 2013 | -332,297 | 0 | 0 | 0 | 0 | 0 | -368,996 | 36,699 | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 353,414 | 353,414 | 295,502 | 55 | 295,447 |
Attribution of noncontrolling interest at IPO | 0 | 674 | 74,748 | -58,365 | ' | 662 | -17,719 | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 200,210 | ' | ' | ' | 24,807 | ' | 164,780 | 10,623 | ' | ' | ' | ' | ' | ' |
Partnership distributions | -124,256 | ' | ' | ' | ' | ' | -124,256 | ' | ' | ' | ' | ' | ' | ' |
Capital redemption | -76,319 | ' | ' | ' | ' | ' | -76,319 | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets, net of amounts payable under tax receivable agreements | 36,799 | ' | ' | 36,799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income-foreign currency translation | 524 | ' | ' | ' | ' | 134 | 390 | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income-available for sale investments, net of tax | -1,543 | ' | ' | ' | ' | -250 | -1,293 | ' | ' | ' | ' | ' | ' | ' |
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | -313 | ' | ' | -50,312 | ' | -168 | 50,167 | ' | ' | ' | ' | ' | ' | ' |
Capital contribution | 3,150 | ' | ' | ' | ' | ' | ' | 3,150 | ' | ' | ' | ' | ' | ' |
Amortization of equity-based compensation | 82,946 | ' | ' | 20,365 | ' | ' | 62,581 | ' | ' | ' | ' | ' | ' | ' |
Forfeitures | ' | -1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted stock awards | ' | 16 | ' | -16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of convertible preferred stock and subsidiary equity | -290,885 | -41 | -39,839 | -237,531 | -8,785 | ' | -4,689 | ' | ' | ' | ' | ' | ' | ' |
Dividends | -14,621 | ' | ' | ' | -14,621 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redeemable preferred units, end of period at Dec. 31, 2013 | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Balance at end of period at Dec. 31, 2013 | $132,311 | $703 | $34,909 | $6,388 | $1,401 | $378 | $38,060 | $50,472 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Preferred Stock | Preferred Stock | Preferred Stock | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Borrowings [Member] | Borrowings [Member] | Borrowings [Member] | IPO [Member] | IPO [Member] | IPO [Member] | ||||
Cash flows from operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) before noncontrolling interests | ($234,132) | $42,577 | $129,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | 3,225 | 2,401 | 2,360 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income taxes | 9,384 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reinvested dividends | -1,019 | -188 | -190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain on the valuation of contingent value rights | -49,570 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital gains on the sale of investments, net | -4,119 | -551 | -58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Gains) losses of Launch Equity, net | -10,623 | -8,817 | 3,102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of investments by Launch Equity | 146,967 | 60,025 | 17,188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of investments by Launch Equity | -140,664 | -59,763 | -18,899 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on disposal of property and equipment | 16 | 51 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on interest rate swaps | 0 | 69 | 1,933 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt extinguishment | 0 | 827 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt issuance costs | 448 | 631 | 726 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | 655,417 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in assets and liabilities resulting in an increase (decrease) in cash: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net change in operating assets and liabilities of Launch Equity | -9,453 | -4,870 | -5,204 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | -17,739 | -6,605 | -2,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other assets | -1,966 | -1,845 | 1,281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable and accrued expenses | -2,405 | 11,396 | -1,991 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B liability awards | -231,480 | 93,422 | -24,936 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred lease obligations | -121 | 1,296 | 627 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by operating activities | 112,166 | 130,056 | 103,237 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows from investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of property and equipment | -2,359 | -2,744 | -1,614 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leasehold improvements | -832 | -2,721 | -1,122 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of property and equipment | 0 | 0 | 27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of investment securities | 16,932 | 4,598 | 4,101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of investment securities | -5,000 | 0 | -20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in restricted cash | 0 | -145 | -1,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) investing activities | 8,741 | -1,012 | -19,648 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows from financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership distributions | -224,786 | -80,886 | -67,108 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends paid | -14,621 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap | 0 | -1,135 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in other liabilities | -63 | -173 | -214 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of debt issuance costs | 0 | -2,573 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal payments on note payable | 0 | -324,789 | -55,211 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from draw on revolving credit facility | 0 | 90,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of notes payable | 0 | 200,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment under revolving credit facility | -90,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock | 653,335 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of costs directly associated with the issuance of Class A common | -4,168 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of preferred stock and subsidiary equity | -296,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of Class A common units | -76,319 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital invested into Launch Equity | 3,150 | 5,000 | 6,913 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital distributed by Launch Equity | 0 | -285 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) financing activities | -50,227 | -114,841 | -115,620 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net increase (decrease) in cash and cash equivalents | 70,680 | 14,203 | -32,031 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning of period | 141,159 | 126,956 | 158,987 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
End of period | 211,839 | 141,159 | 126,956 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncash activity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock | ' | ' | ' | 74,748 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Establishment of deferred tax assets-Follow on | 123,888 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,574 | 0 | 0 |
Establishment of amounts payable under tax receivable agreements-Follow-on | 105,305 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,358 | 0 | 0 |
Establishment of contingent value rights | 55,440 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution of securities in-kind to Launch Equity | 0 | 0 | -19,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital invested into Launch Equity | 0 | 0 | 19,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplement cash flow information: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on borrowings | ' | ' | ' | ' | ' | ' | 0 | 985 | 9,794 | 11,423 | 6,593 | 12,420 | ' | ' | ' |
Income tax | $16,449 | $541 | $2,475 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_and_nature_of_bus
Organization and nature of business | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization and nature of business | ' | |
Note 1. | Organization and nature of business | |
Organization | ||
On March 12, 2013, Artisan Partners Asset Management Inc. (“APAM”) completed its 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. | ||
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 December 31, 2013, APAM’s total economic interest in Holdings approximated 29% of Holdings’ economics. | ||
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, B, D and E common units and preferred units. The Class A, B, D and E 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. Artisan Investment Corporation holds the Class D common units. Former Artisan employees hold the Class E common units. | ||
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 and Artisan Partners Global Funds PLC (“Artisan Global Funds”). Artisan Funds is a series of thirteen 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. Artisan Global Funds is a family of Ireland-domiciled 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” or the “Company”. | ||
Nature of Business | ||
Artisan is an 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. | ||
As of December 31, 2013, Artisan had five autonomous investment teams overseeing thirteen distinct U.S., non-U.S. and global investment strategies. Artisan is currently establishing its sixth autonomous investment team, which will manage the Artisan High Income strategy. This strategy, which will be Artisan’s first fixed income strategy, is expected to launch in the first half of 2014. | ||
Each current 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. |
Reorganization_and_IPO
Reorganization and IPO | 12 Months Ended | |||
Dec. 31, 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 (“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. The TRAs 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 of 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 $552.0 million 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. The vesting of 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 modified preferred units and partnership CVRs and issued to the shareholder of H&F Corp convertible preferred stock and APAM CVRs. For each outstanding APAM CVR, APAM was issued 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 shareholders of H&F Corp. On November 6, 2013, all of the CVRs were terminated without any payment by us. | |||
IPO and Use of Proceeds | ||||
The net proceeds from the IPO were $353.4 million. In connection with the IPO, Artisan used cash on hand to make cash incentive payments aggregating $56.8 million to certain of its portfolio managers. Artisan used a portion of the IPO net proceeds, combined with remaining cash on hand, for the following: | ||||
• | to pay distributions of retained profits in the aggregate amount of $105.3 million to the pre-IPO partners of Holdings; | |||
• | to repay $90.0 million outstanding under our revolving credit agreement (see Note 6, “Borrowings”); and | |||
• | to purchase for $76.3 million an aggregate of 2,720,823 Class A common units from certain Class A limited partners of Holdings. | |||
Artisan is using the remaining proceeds for general corporate purposes. | ||||
November 2013 Offering | ||||
On November 6, 2013, APAM completed a registered public offering of 5,520,000 shares of Class A common stock (the “November 2013 Offering”) and utilized the entire $296.8 million of net proceeds to purchase 4,152,665 preferred units of Artisan Partners Holdings, APAM’s direct subsidiary, and 1,367,335 shares of APAM convertible preferred stock. The offering and subsequent purchase of shares and units had following impact on the consolidated financial statements: | ||||
• | The CVRs were terminated and the associated $5.9 million liability was eliminated. | |||
• | APAM received 5,520,000 GP units of Holdings, which increased APAM’s ownership interest in Holdings from 24% to 29%. See Note 8, “Noncontrolling interest—Holdings” for the impact of the change in ownership. | |||
• | APAM’s purchase of Holdings’ preferred units with a portion of the net proceeds resulted in an increase to deferred tax assets of approximately $123.9 million and an increase in amounts payable under tax receivable agreements of approximately $105.3 million. | |||
• | The purchase price of the convertible preferred stock exceeded its carrying value on APAM’s consolidated balance sheet by $32.2 million, which is considered a deemed dividend and is subtracted from net income to calculate income available to common stockholders in the calculation of earnings per share. The purchase of subsidiary preferred equity resulted in a similar deemed dividend, which reduced net income available to common stockholders by $19.5 million in the calculation of earnings per share. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
Note 3. | Summary of Significant Accounting Policies | ||||||||||||
Basis of presentation | |||||||||||||
The accompanying consolidated 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 | |||||||||||||
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. | |||||||||||||
At December 31, 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 Company makes initial seed investments in sponsored investment portfolios at the portfolio’s formation. If the seed investment results in a controlling financial interest, APAM consolidates the investment, and the underlying individual securities will be accounted for as trading securities. Seed investments in which the Company does not have a controlling financial interest are classified as available-for-sale investments, as described below under “Investment Securities”. APAM currently does not have a controlling financial interest in any of its seed investments. | |||||||||||||
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. Artisan expects 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. | |||||||||||||
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 | |||||||||||||
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 due to the short-term nature and liquidity of these financial instruments. For disclosure purposes, cash and cash equivalents are categorized as Level 1 in the fair value hierarchy. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions or treasury money market funds. | |||||||||||||
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 Launch Equity are stated at cost, which approximates fair value. See Note 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
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) in the Consolidated Statements of Comprehensive Income (Loss). The cumulative effect of translation adjustments is included in Accumulated other comprehensive income (loss) and Noncontrolling interest—Artisan Partners Holdings in the Consolidated Statements of Financial Condition, based on current ownership levels. | |||||||||||||
Accounts receivable | |||||||||||||
Accounts receivable are carried at invoiced amounts and consistent primarily of investment management fees that have been earned, but not yet received from clients. Due to the short-term nature and liquidity of the receivables, the carrying values of these assets approximate fair value. The accounts receivable balance does not include any allowance for doubtful accounts as Artisan believes all accounts receivable balances are fully collectible. There has not been any bad debt expense recorded for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
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 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
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 include securities held in connection with an incentive compensation plan established during 2011. This incentive compensation plan provided certain portfolio managers with additional cash compensation over a three-year period based on the then-current value of the investment securities, which were shares of mutual funds managed by such portfolio managers. As of December 31, 2013, the plan ended and all related investment securities were sold. 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 Other comprehensive income (loss). Dividend income from these investments is recognized when earned and is included in Net investment income in the Consolidated Statements of Operations. Realized gains (losses) are computed on a specific identification basis and are recorded in Net investment income in the Consolidated Statements of Operations. | |||||||||||||
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 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment are carried at cost, less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the respective assets, which range from three to seven 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. Property and equipment is tested for impairment when there is an indication that the carrying amount of an asset may not be recoverable. When an asset is determined to not be recoverable, the impairment loss is measured based on the excess, if any, of the carrying value of the asset over its fair value. | |||||||||||||
Restricted cash | |||||||||||||
Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation. | |||||||||||||
Derivative instruments | |||||||||||||
Artisan used derivative instruments (interest rate swaps) to manage the interest rate exposure related to its $400 million variable rate term loan, which was re-financed in 2012. Artisan originally 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. 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 Other non-operating income (loss). Changes in fair value occurring after the date of discontinuance were recorded as Other non-operating income (loss). | |||||||||||||
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 the $400 million term loan. Final settlement of the swap contract was $1.1 million. See Note 7, “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 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
Securities sold, not yet purchased of Launch Equity | |||||||||||||
Securities sold, not yet purchased of Launch Equity represent securities, at fair value, sold short by Launch Equity. See Note 9, “Variable and Voting Interest Entities”, 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 Artisan Partners Holdings’ 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. | |||||||||||||
Prior to the IPO Reorganization, vested Class B common units were classified as share-based liability awards. Vested Class B common units of a terminated partner were redeemed in cash, generally in annual installments over the five years following termination of employment. The Partnership redeemed 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 included a premium in the case of employment terminated by reason of death, disability or retirement. The redemption value of Class B common units had been 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 in the Consolidated Statements of Financial Condition. For individuals who had 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 had 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. On and after April 6, 2011, compensation cost was measured at the grant date based on the fair value of the common units granted. Compensation cost was recognized as expense over the requisite service period for vesting, typically five years. Compensation cost was 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 occurred after the end of the vesting period were 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 were recorded to Compensation and benefits expense. During 2013, the Class B common units were modified, which eliminated the cash redemption feature and liability classification. See Note 11, “Compensation and Benefits” for details on the modification of these awards. | |||||||||||||
Share-based compensation | |||||||||||||
Share-based compensation expense is recognized based on grant-date fair value on a straight-line basis over the vesting period of the awards, adjusted for estimated forfeitures. Forfeiture assumptions are evaluated on a quarterly basis and updated as necessary. The awards generally vest ratably over a five-year vesting period, beginning on the date of grant. | |||||||||||||
Distribution fees | |||||||||||||
Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other intermediaries, and in some cases, other organizations designated by an authorized intermediary to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the funds’ behalf. Many intermediaries 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 intermediary 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 intermediary for its distribution and marketing of Artisan Funds shares. Artisan Global Funds distribution arrangements pursuant to which Artisan is required to pay a portion of its investment management fee for distribution and marketing of Artisan Global Funds shares. | |||||||||||||
Distribution fees paid to intermediaries were as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total intermediary fees incurred | $ | 112,360 | $ | 88,818 | $ | 86,166 | |||||||
Less: fees incurred by Artisan Funds | 78,036 | 62,736 | 61,431 | ||||||||||
Fees incurred by Artisan | 34,324 | 26,082 | 24,735 | ||||||||||
Other marketing expenses | 4,074 | 2,908 | 1,439 | ||||||||||
Total distribution and marketing | $ | 38,398 | $ | 28,990 | $ | 26,174 | |||||||
Accrued fees to intermediaries were $5.4 million and $3.6 million as of December 31, 2013 and 2012, 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 and decreases 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 Artisan’s 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, 2013, 2012, and 2011. There is currently no litigation in process or outstanding. | |||||||||||||
Income taxes | |||||||||||||
As a limited partnership, Artisan Partners Holdings has not made a provision for income taxes because it is not subject to Federal income tax and certain state income taxes. It is the responsibility of Artisan Partners Holdings’ partners to separately report their proportionate share of Artisan Partners Holdings’ taxable income or loss. | |||||||||||||
As a result of the IPO, APAM became subject to U.S. C-corporation federal and state income taxes on its allocable portion of the income of Artisan Partners Holdings. During the years ended December 31, 2012 and 2011, APAM was not allocated any of Holdings’ income and therefore did not incur any U.S. income tax. | |||||||||||||
Artisan accounts for income taxes under the liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Artisan recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||
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. | |||||||||||||
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. | |||||||||||||
Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Unrealized gain on investments | $ | 303 | $ | — | |||||||||
Foreign currency translation | 75 | — | |||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 378 | $ | — | |||||||||
Comprehensive income (loss) attributable to noncontrolling interests—Artisan Partners Holdings in 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. | |||||||||||||
Partnership distributions | |||||||||||||
Artisan makes distributions of its net income to its partners (or former partners) for income taxes as required under the terms of Artisan Partners Holdings’ 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 (or former 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 (or former partner’s) share of taxable income. Artisan also makes additional distributions under the terms of the partnership agreement. Distributions are recorded in the financial statements on the declaration date. Partnership distributions, excluding distributions to APAM, totaled $290.5 million, $135.0 million and $122.8 million for the years ended December 31, 2013, 2012, and 2011, respectively, and are reported either as Pre-offering related compensation-other within the Consolidated Statements of Operations or Partnership distributions within the Consolidated Statements of Changes in Stockholders’ Equity, depending on the timing of distributions. | |||||||||||||
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. Prior to the IPO and related reorganization on March 12, 2013, all income for was entirely allocable to noncontrolling interests. As a result, APAM had no earnings per share for the years ended December 31, 2012 and 2011. | |||||||||||||
Recent accounting pronouncements | |||||||||||||
In February 2013, the FASB issued Accounting Standards Update (“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. Artisan adopted the ASU prospectively in the first quarter of 2013 and included the new disclosure requirements in the Consolidated Statements of Comprehensive Income. | |||||||||||||
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. The adoption of this new guidance is not expected to have a financial impact on Artisan’s consolidated financial statements. | |||||||||||||
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. The adoption of this new guidance is not expected to have a financial impact on Artisan’s consolidated financial statements. | |||||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investment Securities | ' | ||||||||||||||||
Note 4. | 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”. | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2013 | |||||||||||||||||
Equity mutual funds | $ | 6,190 | $ | 1,614 | $ | — | $ | 7,804 | |||||||||
December 31, 2012 | |||||||||||||||||
Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 | |||||||||
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 other comprehensive income (loss). Dividends, including capital gain distributions, earned on mutual fund investments totaled $1.0 million, $0.2 million, and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Realized gains on the sale of investment securities totaled $4.1 million, $0.5 million and $0.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
As of December 31, 2013 and 2012, Artisan held no available-for-sale securities in an unrealized loss position. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 5. | Fair Value Measurements | ||||||||||||||||
The table below presents information about Artisan’s assets and liabilities that are measured at fair value and the valuation techniques Artisan 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 Artisan’s borrowings is presented in Note 6, “Borrowings”. 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: | |||||||||||||||||
• | 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.). | ||||||||||||||||
• | Level 3—Significant unobservable inputs (including Artisan’s own assumptions in determining fair value). | ||||||||||||||||
The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of December 31, 2013 and 2012: | |||||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 211,839 | $ | 211,839 | $ | — | $ | — | |||||||||
Equity mutual funds | 7,804 | 7,804 | — | — | |||||||||||||
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. Level 1 assets generally consist of marketable open-end mutual funds or UCITS. There were no Level 3 assets or liabilities as of December 31, 2013 and 2012. | |||||||||||||||||
Artisan’s 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 year ended December 31, 2013 and 2012. | |||||||||||||||||
Contingent Value Rights (“CVRs”) | |||||||||||||||||
As part of the IPO Reorganization, Holdings issued Partnership CVRs and APAM issued APAM CVRs to the holders of Holdings’ preferred units and APAM’s convertible preferred stock, respectively. APAM held one Partnership CVR for each APAM CVR outstanding. On November 6, 2013 the CVRs were terminated in connection with the November 2013 Offering. | |||||||||||||||||
The CVRs were considered derivative instruments under ASC 815, Derivatives and Hedging, and accordingly were recorded as a liability at fair value on the balance sheet until they were terminated on November 6, 2013. Changes in the fair value of these derivative instruments have been recorded in earnings as a net gain (loss) on the valuation of contingent value rights in the period of change. | |||||||||||||||||
Because the CVRs were not traded and therefore there was no market price for them, the fair value of the CVR liability was 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 to estimate future stock prices at the termination date are included in the table below. Artisan’s nonperformance or credit risk was embodied within the Monte Carlo pricing model through the discount rate assumption. As of November 6, 2013, there were no changes in credit risk that would have had 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 volatility, dividend yield rate, and discount rate. Significant increases in the 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. | |||||||||||||||||
November 6, 2013 | |||||||||||||||||
Observable assumptions: | |||||||||||||||||
Price per share of Class A common stock | $ | 61.25 | |||||||||||||||
Remaining term of CVRs | 2.68 years | ||||||||||||||||
Unobservable assumptions: | |||||||||||||||||
Expected price volatility of Class A common stock | 32 | % | |||||||||||||||
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 2.68-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 November 6, 2013, the fair value of the CVRs was $5.9 million based on the assumptions above. For the year ended December 31, 2013, gains of $49.6 million were recorded in other non-operating gains (losses) to reflect a decrease in the estimated fair value of the CVRs. On November 6, 2013, the CVRs were terminated and the liability was eliminated. | |||||||||||||||||
The following table is a reconciliation of the beginning and ending balance of the liability measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2013: | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Issuance of contingent value rights | 55,440 | ||||||||||||||||
(Gains) losses included in earnings | (49,570 | ) | |||||||||||||||
Liability extinguished upon termination | 5,870 | ||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Borrowings | ' | ||||||||||||||||||||
Note 6. | Borrowings | ||||||||||||||||||||
Artisan’s borrowings consist of the following: | |||||||||||||||||||||
Maturity | December 31, 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. | ||||||||||||||||||||
The fair value of borrowings was approximately $197.6 million as of December 31, 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”. | |||||||||||||||||||||
Term Loan—On July 3, 2006, Holdings entered into an unsecured five-year term loan agreement with a syndicate of lenders in the principal amount of $400.0 million. In November 2010, the term loan agreement was amended and the aggregate outstanding principal amount was reduced to $380.0 million. The maturity date of the loan was extended to July 1, 2013, for $363.0 million of the loan outstanding. The remaining $17.0 million of the loan matured on July 1, 2011. The amended term loan generally bore interest at a rate equal to, at the Company’s 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. | |||||||||||||||||||||
On August 16, 2012, Holdings issued $200.0 million in senior unsecured notes and entered into a $100.0 million 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 the Company’s 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. | |||||||||||||||||||||
In connection with the closing of the IPO, Artisan paid all of the then-outstanding principal amount of loans under the revolving credit agreement. As of December 31, 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 one percentage point 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 $11.4 million, $10.1 million and $10.6 million for the year ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
As of December 31, 2013, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: | |||||||||||||||||||||
2014 | $ | — | |||||||||||||||||||
2015 | — | ||||||||||||||||||||
2016 | — | ||||||||||||||||||||
2017 | 60,000 | ||||||||||||||||||||
Thereafter | 140,000 | ||||||||||||||||||||
$ | 200,000 | ||||||||||||||||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Derivative Instruments | ' | ||||||||||||||||||||||||||
Note 7. | 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 million 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 $1.1 million. Net interest expense incurred on the interest rate swap was $0.7 million and $6.9 million for the years ended December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||
See Note 5, “Fair Value Measurements” for information regarding the contingent value rights. | |||||||||||||||||||||||||||
The following tables present gains (losses) recognized on derivative instruments for the year ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||
Income Statement Classification | For the Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 49,570 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Interest rate swap | Other non-operating income (loss) | — | — | — | (69 | ) | — | (1,933 | ) | ||||||||||||||||||
Total | $ | 49,570 | $ | — | $ | — | $ | (69 | ) | $ | — | $ | (1,933 | ) | |||||||||||||
Noncontrolling_interestHolding
Noncontrolling interest-Holdings | 12 Months Ended | |
Dec. 31, 2013 | ||
Noncontrolling interest-Holdings | ' | |
Note 8. | Noncontrolling interest—Holdings | |
Holdings is the predecessor of APAM for accounting purposes, and its consolidated financial statements are Artisan’s historical financial statements for periods prior to March 12, 2013, the date on which APAM became the general partner of Holdings. As of December 31, 2013, APAM held approximately 29% of the economic interests in Holdings. “Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings” in the 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 periods prior to March 12, 2013, is entirely attributable to noncontrolling interests. | ||
During the year ended December 31, 2013, APAM’s ownership interest in Holdings increased due to (i) the issuance of 1,575,157 Holdings’ GP units corresponding to 1,575,157 restricted shares of Class A common stock issued by APAM during the period, (ii) the issuance of 5,520,000 Holdings’ GP units corresponding to the 5,520,000 shares of Class A common stock issued during the period, (iii) APAM’s purchase and retirement of 4,152,665 common units and 1,367,335 common preferred units of Holdings and (iv) the forfeiture of 82,655 common units of Holdings as a result of the termination of employment of employee-partners. Since APAM continues to have a controlling interest in Holdings, changes in ownership of Holdings are accounted for as equity transactions. Additional paid-in capital and Noncontrolling interest—Artisan Partners Holdings in the Consolidated Statements of Financial Condition are adjusted to reallocate Holdings’ historical equity to reflect the change in APAM’s ownership of Holdings. | ||
As a result of the change in ownership, a deficit of $50.3 million was transferred to Additional paid-in capital from Noncontrolling interests–Artisan Partners Holdings. Additionally, accumulated other comprehensive income was adjusted to reflect the change in ownership interest through a $0.1 million reduction to Noncontrolling interest–Artisan Partners Holdings and a $0.1 million increase to Accumulated other comprehensive income. The increased ownership level also resulted in a $0.3 million decrease in Deferred tax assets and Accumulated other comprehensive income in the consolidated statements of financial condition. The impact of the change in APAM’s ownership interests in Holdings is reflected in Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax in the Consolidated Statement of Changes in Stockholders’ Equity. |
Variable_and_Voting_Interest_E
Variable and Voting Interest Entities | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Variable and Voting Interest Entities | ' | ||||||||||||||||||||||||||||||||
Note 9. | Variable and Voting Interest Entities | ||||||||||||||||||||||||||||||||
Artisan Funds and Artisan Global Funds | |||||||||||||||||||||||||||||||||
Artisan serves 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 Artisan holds, 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), Artisan does not have a controlling financial interest or a majority voting interest and, as such, does not consolidate these entities. | |||||||||||||||||||||||||||||||||
Artisan Partners Launch Equity LP | |||||||||||||||||||||||||||||||||
Artisan serves 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. Artisan receives management fees as compensation for services provided as the investment adviser. Artisan also maintains, through Artisan Partners Alternative Investments GP LLC, a direct equity investment in the fund and receives 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 Artisan employees and are considered related parties. Artisan has 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 Artisan). | |||||||||||||||||||||||||||||||||
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 Artisan is the primary beneficiary of Launch Equity, both qualitative and quantitative factors such as voting rights of the equity holders, economic participation of all parties, including how fees are earned, related party ownership and the level of involvement Artisan had in the design of the VIE, were considered. It was concluded that Artisan was the primary beneficiary as the related party group absorbs a majority of the variability associated with Launch Equity and Artisan is the member within the related party group that is most closely associated with the VIE. Although Artisan has only a minimal equity investment in Launch Equity, as the general partner, controls Launch Equity’s management and affairs. In addition, the fund was designed to attract third party investors to provide an economic benefit to Artisan 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, Artisan may choose to waive certain fees or assume operating expenses of the fund. As a result, it was concluded that Artisan is the primary beneficiary of Launch Equity and its results are included in Artisan’s consolidated financial statements. | |||||||||||||||||||||||||||||||||
Artisan’s maximum exposure to loss from its involvement with Launch Equity is limited to its equity investment of $1 thousand while the potential benefit is limited to the management and incentive fees received as investment adviser. Therefore, the gains or losses of Launch Equity 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 do they bear the risks associated with, Launch Equity’s investments, beyond Artisan’s minimal direct investment in Launch Equity. If Artisan were to liquidate, the assets of Launch Equity would not be available to its general creditors and as a result, Artisan does not consider investments held by Launch Equity to be Artisan’s assets. | |||||||||||||||||||||||||||||||||
The following tables reflect the impact of consolidating Launch Equity’s assets and liabilities into the Consolidated Statement of Financial Condition as of December 31, 2013 and December 31, 2012 and results into the Consolidated Statement of Operations for the year ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||
Consolidation | Equity | Consolidation | Equity | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 211,839 | $ | — | $ | — | $ | 211,839 | $ | 141,159 | $ | — | $ | — | $ | 141,159 | |||||||||||||||||
Cash and cash equivalents of Launch Equity | 19,156 | — | 19,156 | — | 10,180 | — | 10,180 | ||||||||||||||||||||||||||
Accounts receivable | 64,110 | — | — | 64,110 | 46,022 | — | — | 46,022 | |||||||||||||||||||||||||
Accounts receivable of Launch Equity | 7,428 | — | 7,428 | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 63,364 | (1 | ) | 63,364 | 1 | 46,237 | (1 | ) | 46,237 | |||||||||||||||||||||||
Other assets | 215,501 | — | — | 215,501 | 33,367 | — | — | 33,367 | |||||||||||||||||||||||||
Total assets | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||
Payables of Launch Equity | $ | — | $ | 7,485 | $ | — | $ | 7,485 | $ | — | $ | 10,726 | $ | — | $ | 10,726 | |||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 31,990 | — | 31,990 | — | 19,586 | — | 19,586 | |||||||||||||||||||||||||
Other liabilities | 409,612 | — | — | 409,612 | 572,769 | — | — | 572,769 | |||||||||||||||||||||||||
Total liabilities | 409,612 | 39,475 | — | 449,087 | 572,769 | 30,312 | — | 603,081 | |||||||||||||||||||||||||
Redeemable preferred units | — | — | — | — | 357,194 | — | — | 357,194 | |||||||||||||||||||||||||
Total stockholders’ equity | 43,779 | — | — | 43,779 | — | — | — | — | |||||||||||||||||||||||||
Noncontrolling interest—Artisan Partners Holdings | 38,060 | 1 | (1 | ) | 38,060 | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | |||||||||||||||||||||
Noncontrolling interest—Launch Equity | — | 50,472 | — | 50,472 | — | 36,699 | — | 36,699 | |||||||||||||||||||||||||
Total equity (deficit) | 81,839 | 50,473 | (1 | ) | 132,311 | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | |||||||||||||||||||||
Total liabilities and equity | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 688,333 | $ | — | $ | (2,492 | ) | $ | 685,841 | ||||||||||||||||||||||||
Total operating expenses | 949,537 | — | (2,492 | ) | 947,045 | ||||||||||||||||||||||||||||
Operating income (loss) | (261,204 | ) | — | — | (261,204 | ) | |||||||||||||||||||||||||||
Non-operating income (loss) | 42,839 | — | — | 42,839 | |||||||||||||||||||||||||||||
Net gains of Launch Equity | — | 10,623 | — | 10,623 | |||||||||||||||||||||||||||||
Total non-operating income (loss) | 42,839 | 10,623 | — | 53,462 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | (218,365 | ) | 10,623 | — | (207,742 | ) | |||||||||||||||||||||||||||
Provision for income taxes | 26,390 | — | — | 26,390 | |||||||||||||||||||||||||||||
Net income (loss) | (244,755 | ) | 10,623 | — | (234,132 | ) | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | (269,562 | ) | — | — | (269,562 | ) | |||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Launch Equity | — | 10,623 | — | 10,623 | |||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 24,807 | $ | — | $ | — | $ | 24,807 | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 506,982 | $ | — | $ | (1,404 | ) | $ | 505,578 | ||||||||||||||||||||||||
Total operating expenses | 459,895 | — | (1,404 | ) | 458,491 | ||||||||||||||||||||||||||||
Operating income (loss) | 47,087 | — | — | 47,087 | |||||||||||||||||||||||||||||
Non-operating income (loss) | (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 (loss) before income taxes | 34,807 | 8,817 | — | 43,624 | |||||||||||||||||||||||||||||
Provision for income taxes | 1,047 | — | — | 1,047 | |||||||||||||||||||||||||||||
Net income | 33,760 | 8,817 | — | 42,577 | |||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Artisan Partners Holdings | 33,760 | — | — | 33,760 | |||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Launch Equity | — | 8,817 | — | 8,817 | |||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 455,191 | $ | — | $ | (97 | ) | $ | 455,094 | ||||||||||||||||||||||||
Total operating expenses | 300,896 | — | (97 | ) | 300,799 | ||||||||||||||||||||||||||||
Operating income (loss) | 154,295 | — | — | 154,295 | |||||||||||||||||||||||||||||
Non-operating income (loss) | (20,059 | ) | — | — | (20,059 | ) | |||||||||||||||||||||||||||
Net gains of Launch Equity | — | (3,102 | ) | — | (3,102 | ) | |||||||||||||||||||||||||||
Total non-operating income (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) | 133,074 | (3,102 | ) | — | 129,972 | ||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Artisan Partners Holdings | 133,074 | (1 | ) | — | 133,073 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests—Launch Equity | — | (3,101 | ) | — | (3,101 | ) | |||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
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. Investments in investment companies are valued at their respective net asset values on the valuation date. Short-term investments, other than repurchase agreements, maturing within sixty days from the valuation date are valued at amortized cost, which approximates market value. | |||||||||||||||||||||||||||||||||
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, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | |||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 19,156 | $ | 19,156 | $ | — | $ | — | |||||||||||||||||||||||||
Investment securities—long position | $ | 63,364 | $ | 63,364 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Investment securities—short position | $ | 31,990 | $ | 31,990 | $ | — | $ | — | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,180 | $ | 10,180 | $ | — | $ | — | |||||||||||||||||||||||||
Investment securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Investment securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||
Note 10. | Stockholders’ Equity | ||||||||||||||||
APAM—Stockholders’ Equity | |||||||||||||||||
As of December 31, 2013, APAM had the following authorized and outstanding equity: | |||||||||||||||||
Shares at December 31, 2013 | Voting Rights(1) | Economic Rights(2) | |||||||||||||||
Authorized | Outstanding | ||||||||||||||||
Common shares | |||||||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 19,807,436 | 1 vote per share | Proportionate | |||||||||||||
Class B, par value $0.01 per share | 200,000,000 | 25,271,889 | 5 votes per share | None | |||||||||||||
Class C, par value $0.01 per share | 400,000,000 | 25,206,554 | 1 vote per share | None | |||||||||||||
Preferred shares | |||||||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 1,198,128 | 1 vote per share | Proportionate | |||||||||||||
(1) | Artisan Investment Corporation and each of the Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of December 31, 2013, Artisan’s employees held 1,575,157 shares of Class A common stock subject to the agreement and all 25,271,889 outstanding shares of Class B common stock, and Artisan Investment Corporation held 9,627,644 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 make distributions 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. APAM declared and paid a dividend of $0.43 per share of outstanding Class A common stock during each of the third and fourth quarters of 2013. | |||||||||||||||||
APAM issued the following shares during the year ended December 31, 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. APAM’s 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. | |||||||||||||||||
On July 17, 2013, APAM issued 1,575,157 restricted shares of Class A common stock to its employees and employees of its subsidiaries. In general, these restricted shares will vest pro rata in the third fiscal quarter of each of the next five years. | |||||||||||||||||
On November 6, 2013, APAM issued 5,520,000 shares of Class A common stock in the November 2013 Offering. See Note 2, “Reorganization and IPO” further describes the transactions relating to this issuance. | |||||||||||||||||
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 year ended December 31, 2013, 999,231 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 year ended December 31, 2013, 4,152,665 shares of Class C common stock were purchased from certain investors in Holdings with a portion of the net proceeds received in the November 2013 Offering and 916,576 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” and repurchased 1,367,335 shares of the convertible preferred stock with a portion of the net proceeds received in the November 2013 Offering. 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. | |||||||||||||||||
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 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 additional distributions of its net income under the terms of the partnership agreement. The distributions have been recorded in the financial statements on the declaration date, or on the payment date in lieu of a declaration date. | |||||||||||||||||
Holdings’ partnership distributions totaled $332.0 million, $135.0 million and $122.8 million for the years ended December 31, 2013, 2012 and 2011, 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, and totaled $65.7 million, $54.2 million and $55.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. The portion of these distributions made prior to the IPO to the other partners of Holdings and, after the IPO, to all partners impact total stockholders’ equity, with the exception of the portion of distributions made to APAM, the general partner of Holdings. Holdings distributions to APAM totaled $41.5 million for the year ended December 31, 2013. | |||||||||||||||||
The pre-IPO partners of Holdings received APAM shares in connection with the reorganization and IPO, as described above. |
Compensation_and_Benefits
Compensation and Benefits | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Benefits | ' | ||||||||||||
Note 11. | Compensation and Benefits | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Salaries, incentive compensation and benefits(1) | $ | 301,621 | $ | 227,258 | $ | 198,601 | |||||||
Restricted share compensation expense | 7,542 | — | — | ||||||||||
Total salaries, incentive compensation and benefits | 309,163 | 227,258 | 198,601 | ||||||||||
Pre-offering related compensation—share-based awards | 404,160 | 101,682 | (21,082 | ) | |||||||||
Pre-offering related compensation—other | 143,035 | 54,153 | 55,714 | ||||||||||
Total compensation and benefits | $ | 856,358 | $ | 383,093 | $ | 233,233 | |||||||
(1) | Excluding restricted share compensation expense | ||||||||||||
Incentive compensation | |||||||||||||
Cash incentive compensation paid to members of Artisan’s portfolio management teams and members of its 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. Cash incentive compensation paid to most other employees is discretionary and subjectively determined based on individual performance and the Company’s overall results during the applicable year and is generally paid in the fourth quarter of the year. | |||||||||||||
Restricted shares | |||||||||||||
Artisan has filed a registration statement registering 15,000,000 shares of Class A common stock for issuance pursuant to its 2013 Omnibus Incentive Compensation Plan and 2013 Non-Employee Director Plan. In July 2013, Artisan’s board of directors approved the issuance of 1,575,157 restricted shares of Class A common stock to Artisan’s employees and employees of its subsidiaries pursuant to the Plan. The shares will vest pro rata over the next five years. Unvested shares are subject to forfeiture upon termination of employment. Grantees receiving the awards are entitled to voting rights and rights to dividends on unvested and vested shares. | |||||||||||||
Total compensation expense associated with the July 17 award is expected to be approximately $79.2 million, which will be recognized over the five-year vesting period. The Company recognizes compensation expense, based on estimated grant date fair value, for only those awards expected to vest, on a straight-line basis over the requisite service period of the award. The Company estimated the number of awards expected to vest based, in part, on historical forfeiture rates and also based on management’s expectations of employee turnover. Forfeitures are estimated at the time of grant and revised in subsequent periods, if necessary, based on actual forfeiture activity. | |||||||||||||
The following table summarizes the restricted share activity for the year ended December 31, 2013: | |||||||||||||
Weighted- | Number of | ||||||||||||
Average Grant | Awards | ||||||||||||
Date Fair Value | |||||||||||||
Unvested at December 31, 2012 | $ | — | — | ||||||||||
Granted | 52.36 | 1,575,157 | |||||||||||
Forfeited | — | — | |||||||||||
Vested | — | — | |||||||||||
Unvested at December 31, 2013 | $ | 52.36 | 1,575,157 | ||||||||||
Compensation expense recognized related to the restricted shares was $7.6 million for the year ended December 31, 2013. The unrecognized compensation expense for the unvested restricted shares as of December 31, 2013 was $71.6 million with a weighted average recognition period of 4.54 years remaining. | |||||||||||||
Pre-offering related compensation consists of the following: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Change in value of Class B liability awards | $ | 41,942 | $ | 101,682 | $ | (21,082 | ) | ||||||
Class B award modification expense | 287,292 | — | — | ||||||||||
Amortization expense on pre-offering Class B awards | 74,926 | — | — | ||||||||||
Pre-offering related compensation—share-based awards | 404,160 | 101,682 | (21,082 | ) | |||||||||
Pre-offering related cash incentive compensation | 56,788 | — | — | ||||||||||
Pre-offering related bonus make-whole compensation | 20,520 | — | — | ||||||||||
Distributions on Class B liability awards | 65,727 | 54,153 | 55,714 | ||||||||||
Pre-offering related compensation—other | 143,035 | 54,153 | 55,714 | ||||||||||
Total pre-offering related compensation | $ | 547,195 | $ | 155,835 | $ | 34,632 | |||||||
Pre-offering related compensation—share-based awards | |||||||||||||
Historical Class B share-based awards | |||||||||||||
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. | |||||||||||||
Historical redemption of Class B awards | |||||||||||||
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. Artisan estimated the aggregate fair value of all outstanding Class B awards in connection with preparation of its 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 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. Artisan 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, Holdings had accepted three 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 would apply 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 in 2012 and effectively became obligated to pay the premium on redemption. The premium for those partners giving notice of retirement resulted in a $7.9 million cumulative increase in the award liability as of December 31, 2012. 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 $23.0 million and $29.3 million as of December 31, 2013 and December 31, 2012, respectively. Payments of $8.8 million were made for the year ended December 31, 2013. Additionally, the partner redemption liability was increased $2.5 million during 2013 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 | ||||||||||||
December 31, | 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 | $ | 23,026 | $ | 29,257 | |||||||||
At December 31, 2012, the aggregate fair value of unrecognized compensation cost for the unvested Class B awards was $103.1 million with a weighted average recognition period of 3.30 years remaining. | |||||||||||||
Modification of Class B share-based awards | |||||||||||||
As a part of the IPO 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, Artisan recognized a non-recurring expense of $287.3 million 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, Artisan will recognize recurring non-cash compensation charges over the remaining vesting period. No additional awards were granted during the year ended December 31, 2013. | |||||||||||||
The following table summarizes the activity related to unvested Class B awards during the period March 12, 2013 to December 31, 2013: | |||||||||||||
March 12, 2013 to December 31, 2013 | |||||||||||||
Weighted- | Number of | ||||||||||||
Average Grant | Class B | ||||||||||||
Date Fair Value | Awards | ||||||||||||
Unvested Class B awards at March 12, 2013 | $ | 30 | 9,911,720 | ||||||||||
Granted | — | — | |||||||||||
Forfeited | 30 | (82,655 | ) | ||||||||||
Vested | 30 | (2,579,223 | ) | ||||||||||
Unvested at December 31, 2013 | $ | 30 | 7,249,842 | ||||||||||
The unrecognized compensation expense for the unvested Class B awards as of December 31, 2013 was $151.9 million with a weighted average recognition period of 2.80 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, Artisan also incurred pre-offering related compensation charges of $56.8 million to pay cash incentive compensation to certain portfolio managers and $20.5 million 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 $65.7 million were made to Class B partners, and are also recorded as pre-offering related compensation. |
Income_Taxes_and_Related_Payme
Income Taxes and Related Payments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes and Related Payments | ' | ||||||||||||
Note 12. | Income Taxes and Related Payments | ||||||||||||
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 was lower than the U.S. Federal statutory rate and 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. Prior to the IPO and reorganization in March 2013, none of Holdings’ earnings were subject to U.S. corporate-level taxes. The provision for income taxes in 2012 represents foreign income taxes of certain foreign corporate subsidiaries. | |||||||||||||
The H&F Corp Merger described in Note 2, “Reorganization and IPO” resulted in an increase in amortizable basis which the Company expects will reduce future U.S. federal and state income taxes and create a liability under the TRA between APAM and the shareholder of H&F Corp. The purchase by APAM of common and preferred units in connection with the IPO and of preferred units in connection with the November 2013 offering also resulted in an increase in amortizable basis which the Company expects 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 $183.9 million, $160.7 million and $28.4 million , respectively, as of December 31, 2013. The deferred tax asset is comprised of $63.7 million related to the IPO and 123.9 million related to the November 2013 offering, less $3.7 million current year-to-date amortization. | |||||||||||||
See Note 3, “Summary of Significant Accounting Policies” for further information. No amounts were paid under the TRAs for the year ended December 31, 2013. | |||||||||||||
Components of the provision for income taxes consist of the following: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 13,816 | $ | — | $ | — | |||||||
State and local | 2,719 | — | — | ||||||||||
Foreign | 471 | 1,047 | 1,162 | ||||||||||
Total | 17,006 | 1,047 | 1,162 | ||||||||||
Deferred: | |||||||||||||
Federal | 9,089 | — | — | ||||||||||
State and local | 295 | — | — | ||||||||||
Total | 9,384 | — | — | ||||||||||
Income tax expense | $ | 26,390 | $ | 1,047 | $ | 1,162 | |||||||
The provision for income taxes from operations differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows: | |||||||||||||
For the Period | |||||||||||||
from March 12, | |||||||||||||
2013 through | |||||||||||||
December 31, 2013 | |||||||||||||
U.S. Federal Statutory Rate | 35 | % | |||||||||||
Non-deductible share-based compensation | 2.6 | ||||||||||||
Rate benefit from the flow through entity | (27.4 | ) | |||||||||||
Other | 1.4 | ||||||||||||
Effective Tax Rate | 11.6 | % | |||||||||||
The effective tax rate includes a rate benefit attributable to the fact that for the year ended December 31, 2013, approximately 78% of Artisan Partners Holdings’ taxable earnings were attributable to other partners and not taxable to Artisan. 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. | |||||||||||||
Net deferred tax assets comprise the following: | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Amortizable basis(1) | $ | 183,858 | $ | — | |||||||||
Other(2) | 4,049 | — | |||||||||||
Total deferred tax assets | 187,907 | — | |||||||||||
Less: valuation allowance(3) | — | — | |||||||||||
Net deferred tax assets | $ | 187,907 | $ | — | |||||||||
(1) | Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units and preferred units by APAM. | ||||||||||||
(2) | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | ||||||||||||
-3 | Artisan assessed whether the deferred tax assets would be realizable and determined based on its 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 December 31, 2013 and December 31, 2012. | |||||||||||||
In the normal course of business, Artisan is subject to examination by federal and certain state, local and foreign tax regulators. As of December 31, 2013, our U.S. federal income tax returns for the years 2009 through 2013 are open and therefore subject to examination. State and local tax returns are generally subject to audit from 2009 to 2013. Foreign tax returns are generally subject to audit from 2009 to 2013. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Earnings (Loss) Per Share | ' | ||||
Note 13. | Earnings (Loss) 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. Unvested restricted shares are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by the employees. 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 earnings (distributed and undistributed) allocated to 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 year ended December 31, 2013. As described in Note 2, “Reorganization and IPO”, the consideration Artisan paid to purchase its convertible preferred stock exceeded the carrying amount of the convertible preferred stock on Artisan’s consolidated balance sheet by $32.2 million, which is subtracted from net income as a deemed dividend to arrive at income available to common stockholders in the earnings per share calculation. The purchase of subsidiary preferred equity resulted in a similar deemed dividend, which reduced net income available to common stockholders by $19.5 million in the calculation of earnings per share. | |||||
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. Potential dilutive Class A common shares consist of (1) the Class A common shares issuable upon 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 conversion of APAM convertible preferred stock into APAM Class A common stock and (2) unvested restricted shares of Class A common stock. | |||||
At December 31, 2013, there were 50,478,443 limited partnership units of Holdings outstanding which, subject to certain restrictions and conditions, will be exchangeable for up to 50,478,443 shares of the Company’s Class A common stock beginning on March 12, 2014, unless the Company 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. Since there was a net loss allocable to common stockholders for the period from March 12, 2013, through December 31, 2013, all potential common shares were excluded from the dilutive earnings per share calculation because their effect would have been anti-dilutive. As a result, the 1,575,157 shares of unvested restricted stock and 1,198,128 shares of convertible preferred stock and the net income allocated to those shares were excluded from the calculation of diluted earnings per share. | |||||
The computation of weighted average common shares outstanding considers the outstanding shares of Class A common stock from March 12, 2013, through December 31, 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 period March 12, 2013 through December 31, 2013 were as follows: | |||||
For the Period from | |||||
March 12, 2013 | |||||
through December 31, | |||||
2013 | |||||
Basic and Diluted Earnings Per Share | |||||
Numerator: | |||||
Net income (loss) attributable to APAM | $ | 24,807 | |||
Less: Convertible preferred stock deemed dividends | (32,215 | ) | |||
Less: Subsidiary preferred equity deemed dividends | (19,457 | ) | |||
Less: Allocation to participating securities | (1,300 | ) | |||
Net income (loss) allocated to common stockholders | $ | (28,165 | ) | ||
Denominator: | |||||
Weighted average shares outstanding | 13,780,378 | ||||
Earnings (loss) per share | $ | (2.04 | ) | ||
Benefit_plans
Benefit plans | 12 Months Ended | |
Dec. 31, 2013 | ||
Benefit plans | ' | |
Note 14. | 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 the years ended December 31, 2013, 2012, and 2011 were $4.4 million, $3.8 million and $3.4 million, 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 the years ended December 31, 2013, 2012, and 2011 were $1.5 million, $0.6 million and $0.6 million, respectively, and are included in Compensation and benefits in the Consolidated Statements of Operations. The accrual at December 31, 2013 and 2012 for this plan was $1.8 million and $1.2 million, respectively. |
Indemnifications
Indemnifications | 12 Months Ended | |
Dec. 31, 2013 | ||
Indemnifications | ' | |
Note 15. | Indemnifications | |
In the normal course of business, APAM enters 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. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against us that have not yet occurred. APAM maintains insurance policies that may provide coverage against certain claims under these indemnities. |
Property_and_equipment
Property and equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property and equipment | ' | ||||||||
Note 16. | Property and equipment | ||||||||
The composition of property and equipment at December 31, 2013 and 2012 are as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Computers and equipment | $ | 6,259 | $ | 5,320 | |||||
Computer software | 5,356 | 4,617 | |||||||
Furniture and fixtures | 4,166 | 3,637 | |||||||
Leasehold improvements | 11,416 | 10,585 | |||||||
Total Cost | 27,197 | 24,159 | |||||||
Less: Accumulated depreciation | (18,437 | ) | (15,352 | ) | |||||
Property and equipment, net of accumulated depreciation | $ | 8,760 | $ | 8,807 | |||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 totaled $3.2 million, $2.4 million and $2.4 million, respectively. |
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Lease Commitments | ' | ||||
Note 17. | 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, 2013, 2012 and 2011 was $8.4 million, $7.8 million and $7.5 million, respectively. | |||||
At December 31, 2013, the aggregate future minimum payments for leases for each of the following five years and thereafter are as follows: | |||||
2014 | 9,119 | ||||
2015 | 9,176 | ||||
2016 | 8,468 | ||||
2017 | 7,537 | ||||
Thereafter | 46,499 | ||||
Total | 80,799 | ||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Transactions | ' | ||||||||||||
Note 18. | Related Party Transactions | ||||||||||||
Artisan engages in transactions with its affiliates in the ordinary course of business. | |||||||||||||
Affiliate transactions—Artisan Funds | |||||||||||||
Artisan has agreements to serve as the investment manager of Artisan Funds, with which certain of Artisan employees are affiliated. Under the terms of these agreements, which are generally reviewed and continued by the board of directors of Artisan Funds annually, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each Artisan Fund ranging from 0.64% to 1.25%. Artisan generally collects revenues related to these services on the last business day of each month and records them 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 certain of the Artisan Funds 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, 2013 and 2012, respectively, accounts receivable included $9 thousand and $81 thousand due from the Funds. | |||||||||||||
Fees for managing the Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investment management fees: | |||||||||||||
Artisan Funds | $ | 455,047 | $ | 333,218 | $ | 303,919 | |||||||
Fee waiver / expense reimbursement: | |||||||||||||
Artisan Funds | $ | 291 | $ | 171 | $ | 374 | |||||||
Affiliate transactions—Artisan Global Funds | |||||||||||||
Artisan has agreements to serve as the investment manager and promoter of Artisan Global Funds, with which certain of Artisan employees are affiliated. Under the terms of these agreements, a fee is paid based on an annual percentage of the average daily net assets of each fund ranging from 0.75% to 1.80%. 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 range from 0.10% to 0.20%. At December 31, 2013 and December 31, 2012, respectively, accounts receivable included $2.2 million and $0.7 million due from Artisan Global Funds. | |||||||||||||
Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investment management fees: | |||||||||||||
Artisan Global Funds | $ | 9,291 | $ | 3,020 | $ | 1,255 | |||||||
Fee waiver / expense reimbursement: | |||||||||||||
Artisan Global Funds | $ | 752 | $ | 653 | $ | 660 | |||||||
Affiliate transactions—Launch Equity | |||||||||||||
Artisan has an agreement to serve as the investment manager of Launch Equity. Under the terms of Artisan’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 the quarterly fee and reimburse Launch Equity for all operating expenses, and Artisan may waive other expenses as well. Artisan is also entitled to receive an allocation equal to 20% of Launch Equity’s net capital appreciation as determined at the conclusion of its fiscal year. That amount, which Artisan also expects to waive in the future, is calculated at the end of the Launch Equity’s fiscal year. Artisan waived all incentive fees for the year ended December 31, 2013 and 2012. Expense reimbursements totaled $172 thousand, $141 thousand and $150 thousand for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Affiliate transactions—AIC | |||||||||||||
Artisan has cost sharing arrangements with AIC, as well as AIC’s beneficial owners, Andrew A. Ziegler (an Artisan employee and Artisan’s Executive Chairman) and Carlene M. Ziegler (also an Artisan employee), pursuant to which Artisan and certain of its employees provide certain administrative services to AIC and its owners, and AIC and its owners reimburse Artisan for the costs related to such services. At December 31, 2013 and 2012, accounts receivable included $243 thousand and $231 thousand due from AIC, respectively. |
Concentration_of_Credit_Risk_a
Concentration of Credit Risk and Significant Relationships | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Concentration of Credit Risk and Significant Relationships | ' | ||||||||||||
Note 19. | Concentration of Credit Risk and Significant Relationships | ||||||||||||
Services provided to the following Artisan Funds generated over ten percent of total revenues for the periods presented. Fees for managing the Funds, and the percentage of total revenues are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
Artisan Fund | 2013 | 2012 | 2011 | ||||||||||
U.S. Mid-Cap Growth | $ | 76,327 | $ | 59,841 | $ | 53,422 | |||||||
Percent of total revenues | 11.1 | % | 11.8 | % | 11.7 | % | |||||||
U.S. Mid-Cap Value | $ | 93,774 | $ | 73,720 | $ | 64,402 | |||||||
Percent of total revenues | 13.7 | % | 14.6 | % | 14.2 | % | |||||||
Non-U.S. Growth | $ | 116,173 | $ | 86,367 | $ | 86,907 | |||||||
Percent of total revenues | 16.9 | % | 17.1 | % | 19.1 | % | |||||||
Non-U.S. Value | $ | 88,342 | $ | 54,851 | $ | 43,996 | |||||||
Percent of total revenues | 12.9 | % | 10.9 | % | 9.7 | % | |||||||
Artisan generates a portion of its revenues from clients domiciled in various countries outside the United States. For the years ended December 31, 2013, 2012 and 2011, approximately 9%, 7% and 5% of Artisan’s investment management fees, respectively, were earned from clients located outside of the United States. | |||||||||||||
Litigation_Matters
Litigation Matters | 12 Months Ended | |
Dec. 31, 2013 | ||
Litigation Matters | ' | |
Note 20. | Litigation Matters | |
In the normal course of business, Artisan may be subject to various legal and administrative proceedings. Currently, there are no legal or administrative proceedings that management believes may have a material effect on the consolidated financial position or results of operations. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Note 21. | Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following table presents unaudited quarterly results of operations for 2013 and 2012. 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, 2013 | June 30, 2013 | Sept. 30, 2013 | Dec. 31, 2013 | ||||||||||||||
Total revenues | $ | 148,223 | $ | 161,933 | $ | 178,092 | $ | 197,593 | |||||||||
Operating income (loss) | $ | (421,314 | ) | $ | 48,384 | $ | 53,360 | $ | 58,366 | ||||||||
Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | $ | (407,123 | ) | $ | 42,442 | $ | 44,614 | $ | 50,505 | ||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 2,950 | $ | 5,798 | $ | 5,977 | $ | 10,082 | |||||||||
Earnings per Share: | |||||||||||||||||
Basic | $ | 0.19 | $ | 0.38 | $ | 0.42 | $ | (3.04 | ) | ||||||||
Diluted | $ | 0.19 | $ | 0.38 | $ | 0.35 | $ | (3.04 | ) | ||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2012 | June 30, 2012 | Sept. 30, 2012 | Dec. 31, 2012 | ||||||||||||||
Total revenues | $ | 119,673 | $ | 120,786 | $ | 128,083 | $ | 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. | $ | — | $ | — | $ | — | $ | — | |||||||||
The summation of quarterly earnings per share does not equal annual earnings per share because the calculations are performed independently. | |||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2013 | ||
Subsequent Events | ' | |
Note 22. | Subsequent Events | |
Distributions and dividends | ||
On February 3, 2014, the board of directors of APAM declared a distribution by Artisan Partners Holdings of $131.6 million to holders of Artisan Partners Holdings partnership units, including APAM. On the same date, the board declared quarterly cash dividends of $3.00 per share of convertible preferred stock and $0.55 per share of Class A common stock and a special annual dividend of $1.63 per share of Class A common stock. Both common stock dividends, a total of $2.18 per share, are payable on February 28, 2014 to shareholders of record as of the close of business on February 14, 2014. | ||
Registration Statement | ||
On January 28, 2014, Artisan Partners Asset Management Inc. filed a registration statement on Form S-1 (File No. 333-193617) with the Securities and Exchange Commission. The registration statement regards a proposed offering of shares of APAM Class A common stock. All of the net proceeds of the proposed offering will be used to purchase limited partnership units of Artisan Partners Holdings from limited partners of Artisan Partners Holdings, including from APAM’s directors and executive officers or their affiliates, and shares of APAM convertible preferred stock from an affiliate of one of APAM’s directors. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The accompanying consolidated 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 | |||||||||||||
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. | |||||||||||||
At December 31, 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 Company makes initial seed investments in sponsored investment portfolios at the portfolio’s formation. If the seed investment results in a controlling financial interest, APAM consolidates the investment, and the underlying individual securities will be accounted for as trading securities. Seed investments in which the Company does not have a controlling financial interest are classified as available-for-sale investments, as described below under “Investment Securities”. APAM currently does not have a controlling financial interest in any of its seed investments. | |||||||||||||
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. Artisan expects 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. | |||||||||||||
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 due to the short-term nature and liquidity of these financial instruments. For disclosure purposes, cash and cash equivalents are categorized as Level 1 in the fair value hierarchy. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions or treasury money market funds. | |||||||||||||
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 Launch Equity are stated at cost, which approximates fair value. See Note 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
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) in the Consolidated Statements of Comprehensive Income (Loss). The cumulative effect of translation adjustments is included in Accumulated other comprehensive income (loss) and Noncontrolling interest—Artisan Partners Holdings in the Consolidated Statements of Financial Condition, based on current ownership levels. | |||||||||||||
Accounts receivable | ' | ||||||||||||
Accounts receivable | |||||||||||||
Accounts receivable are carried at invoiced amounts and consistent primarily of investment management fees that have been earned, but not yet received from clients. Due to the short-term nature and liquidity of the receivables, the carrying values of these assets approximate fair value. The accounts receivable balance does not include any allowance for doubtful accounts as Artisan believes all accounts receivable balances are fully collectible. There has not been any bad debt expense recorded for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
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 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
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 include securities held in connection with an incentive compensation plan established during 2011. This incentive compensation plan provided certain portfolio managers with additional cash compensation over a three-year period based on the then-current value of the investment securities, which were shares of mutual funds managed by such portfolio managers. As of December 31, 2013, the plan ended and all related investment securities were sold. 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 Other comprehensive income (loss). Dividend income from these investments is recognized when earned and is included in Net investment income in the Consolidated Statements of Operations. Realized gains (losses) are computed on a specific identification basis and are recorded in Net investment income in the Consolidated Statements of Operations. | |||||||||||||
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 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
Property and equipment | ' | ||||||||||||
Property and equipment | |||||||||||||
Property and equipment are carried at cost, less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the respective assets, which range from three to seven 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. Property and equipment is tested for impairment when there is an indication that the carrying amount of an asset may not be recoverable. When an asset is determined to not be recoverable, the impairment loss is measured based on the excess, if any, of the carrying value of the asset over its fair value. | |||||||||||||
Restricted cash | ' | ||||||||||||
Restricted cash | |||||||||||||
Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation. | |||||||||||||
Derivative instruments | ' | ||||||||||||
Derivative instruments | |||||||||||||
Artisan used derivative instruments (interest rate swaps) to manage the interest rate exposure related to its $400 million variable rate term loan, which was re-financed in 2012. Artisan originally 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. 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 Other non-operating income (loss). Changes in fair value occurring after the date of discontinuance were recorded as Other non-operating income (loss). | |||||||||||||
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 the $400 million term loan. Final settlement of the swap contract was $1.1 million. See Note 7, “Derivative Instruments”, for additional details. | |||||||||||||
Payables | ' | ||||||||||||
Payables of Launch Equity | |||||||||||||
Payables of Launch Equity represent payables for securities purchased by Launch Equity but not yet settled. See Note 9, “Variable and Voting Interest Entities”, for additional details. | |||||||||||||
Securities sold, not yet purchased | ' | ||||||||||||
Securities sold, not yet purchased of Launch Equity | |||||||||||||
Securities sold, not yet purchased of Launch Equity represent securities, at fair value, sold short by Launch Equity. See Note 9, “Variable and Voting Interest Entities”, 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 and share-based compensation | ' | ||||||||||||
Unit-based compensation | |||||||||||||
In accordance with the provisions of Artisan Partners Holdings’ 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. | |||||||||||||
Prior to the IPO Reorganization, vested Class B common units were classified as share-based liability awards. Vested Class B common units of a terminated partner were redeemed in cash, generally in annual installments over the five years following termination of employment. The Partnership redeemed 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 included a premium in the case of employment terminated by reason of death, disability or retirement. The redemption value of Class B common units had been 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 in the Consolidated Statements of Financial Condition. For individuals who had 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 had 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. On and after April 6, 2011, compensation cost was measured at the grant date based on the fair value of the common units granted. Compensation cost was recognized as expense over the requisite service period for vesting, typically five years. Compensation cost was 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 occurred after the end of the vesting period were 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 were recorded to Compensation and benefits expense. During 2013, the Class B common units were modified, which eliminated the cash redemption feature and liability classification. See Note 11, “Compensation and Benefits” for details on the modification of these awards. | |||||||||||||
Share-based compensation | |||||||||||||
Share-based compensation expense is recognized based on grant-date fair value on a straight-line basis over the vesting period of the awards, adjusted for estimated forfeitures. Forfeiture assumptions are evaluated on a quarterly basis and updated as necessary. The awards generally vest ratably over a five-year vesting period, beginning on the date of grant. | |||||||||||||
Distribution fees | ' | ||||||||||||
Distribution fees | |||||||||||||
Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other intermediaries, and in some cases, other organizations designated by an authorized intermediary to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the funds’ behalf. Many intermediaries 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 intermediary 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 intermediary for its distribution and marketing of Artisan Funds shares. Artisan Global Funds distribution arrangements pursuant to which Artisan is required to pay a portion of its investment management fee for distribution and marketing of Artisan Global Funds shares. | |||||||||||||
Distribution fees paid to intermediaries were as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total intermediary fees incurred | $ | 112,360 | $ | 88,818 | $ | 86,166 | |||||||
Less: fees incurred by Artisan Funds | 78,036 | 62,736 | 61,431 | ||||||||||
Fees incurred by Artisan | 34,324 | 26,082 | 24,735 | ||||||||||
Other marketing expenses | 4,074 | 2,908 | 1,439 | ||||||||||
Total distribution and marketing | $ | 38,398 | $ | 28,990 | $ | 26,174 | |||||||
Accrued fees to intermediaries were $5.4 million and $3.6 million as of December 31, 2013 and 2012, 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 and decreases 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 Artisan’s 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, 2013, 2012, and 2011. There is currently no litigation in process or outstanding. | |||||||||||||
Income taxes | ' | ||||||||||||
Income taxes | |||||||||||||
As a limited partnership, Artisan Partners Holdings has not made a provision for income taxes because it is not subject to Federal income tax and certain state income taxes. It is the responsibility of Artisan Partners Holdings’ partners to separately report their proportionate share of Artisan Partners Holdings’ taxable income or loss. | |||||||||||||
As a result of the IPO, APAM became subject to U.S. C-corporation federal and state income taxes on its allocable portion of the income of Artisan Partners Holdings. During the years ended December 31, 2012 and 2011, APAM was not allocated any of Holdings’ income and therefore did not incur any U.S. income tax. | |||||||||||||
Artisan accounts for income taxes under the liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Artisan recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |||||||||||||
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. | |||||||||||||
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. | |||||||||||||
Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Unrealized gain on investments | $ | 303 | $ | — | |||||||||
Foreign currency translation | 75 | — | |||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 378 | $ | — | |||||||||
Comprehensive income (loss) attributable to noncontrolling interests—Artisan Partners Holdings in 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. | |||||||||||||
Partnership distributions | ' | ||||||||||||
Partnership distributions | |||||||||||||
Artisan makes distributions of its net income to its partners (or former partners) for income taxes as required under the terms of Artisan Partners Holdings’ 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 (or former 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 (or former partner’s) share of taxable income. Artisan also makes additional distributions under the terms of the partnership agreement. Distributions are recorded in the financial statements on the declaration date. Partnership distributions, excluding distributions to APAM, totaled $290.5 million, $135.0 million and $122.8 million for the years ended December 31, 2013, 2012, and 2011, respectively, and are reported either as Pre-offering related compensation-other within the Consolidated Statements of Operations or Partnership distributions within the Consolidated Statements of Changes in Stockholders’ Equity, depending on the timing of distributions. | |||||||||||||
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. Prior to the IPO and related reorganization on March 12, 2013, all income for was entirely allocable to noncontrolling interests. As a result, APAM had no earnings per share for the years ended December 31, 2012 and 2011. | |||||||||||||
Recent accounting pronouncements | ' | ||||||||||||
Recent accounting pronouncements | |||||||||||||
In February 2013, the FASB issued Accounting Standards Update (“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. Artisan adopted the ASU prospectively in the first quarter of 2013 and included the new disclosure requirements in the Consolidated Statements of Comprehensive Income. | |||||||||||||
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. The adoption of this new guidance is not expected to have a financial impact on Artisan’s consolidated financial statements. | |||||||||||||
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. The adoption of this new guidance is not expected to have a financial impact on Artisan’s consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Distribution And Marketing Fees [Table Text Block] | ' | ||||||||||||
Distribution fees paid to intermediaries were as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Total intermediary fees incurred | $ | 112,360 | $ | 88,818 | $ | 86,166 | |||||||
Less: fees incurred by Artisan Funds | 78,036 | 62,736 | 61,431 | ||||||||||
Fees incurred by Artisan | 34,324 | 26,082 | 24,735 | ||||||||||
Other marketing expenses | 4,074 | 2,908 | 1,439 | ||||||||||
Total distribution and marketing | $ | 38,398 | $ | 28,990 | $ | 26,174 | |||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||||||
Accumulated Other Comprehensive Income (Loss), net of tax, in the accompanying Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the following: | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Unrealized gain on investments | $ | 303 | $ | — | |||||||||
Foreign currency translation | 75 | — | |||||||||||
Accumulated Other Comprehensive Income (Loss) | $ | 378 | $ | — | |||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of available-for-sale securities | ' | ||||||||||||||||
Investments held by Launch Equity are described in Note 9, “Variable and Voting Interest Entities”. | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Gains | Losses | Value | |||||||||||||||
December 31, 2013 | |||||||||||||||||
Equity mutual funds | $ | 6,190 | $ | 1,614 | $ | — | $ | 7,804 | |||||||||
December 31, 2012 | |||||||||||||||||
Equity mutual funds | $ | 13,335 | $ | 1,906 | $ | — | $ | 15,241 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
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 December 31, 2013 and 2012: | |||||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
December 31, 2013 | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 211,839 | $ | 211,839 | $ | — | $ | — | |||||||||
Equity mutual funds | 7,804 | 7,804 | — | — | |||||||||||||
December 31, 2012 | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 141,159 | $ | 141,159 | $ | — | $ | — | |||||||||
Equity mutual funds | 15,241 | 15,241 | — | — | |||||||||||||
Inputs used to derive fair value | ' | ||||||||||||||||
Significant increases in the dividend yield rate would result in a significantly higher fair value measurement. | |||||||||||||||||
November 6, 2013 | |||||||||||||||||
Observable assumptions: | |||||||||||||||||
Price per share of Class A common stock | $ | 61.25 | |||||||||||||||
Remaining term of CVRs | 2.68 years | ||||||||||||||||
Unobservable assumptions: | |||||||||||||||||
Expected price volatility of Class A common stock | 32 | % | |||||||||||||||
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 liability measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2013: | |||||||||||||||||
Balance at December 31, 2012 | $ | — | |||||||||||||||
Issuance of contingent value rights | 55,440 | ||||||||||||||||
(Gains) losses included in earnings | (49,570 | ) | |||||||||||||||
Liability extinguished upon termination | 5,870 | ||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of borrowings | ' | ||||||||||||||||||||
Artisan’s borrowings consist of the following: | |||||||||||||||||||||
Maturity | December 31, 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 December 31, 2013, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: | |||||||||||||||||||||
2014 | $ | — | |||||||||||||||||||
2015 | — | ||||||||||||||||||||
2016 | — | ||||||||||||||||||||
2017 | 60,000 | ||||||||||||||||||||
Thereafter | 140,000 | ||||||||||||||||||||
$ | 200,000 | ||||||||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Gains (losses) recognized on derivative instruments | ' | ||||||||||||||||||||||||||
The following tables present gains (losses) recognized on derivative instruments for the year ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||
Income Statement Classification | For the Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Gains | Losses | Gains | Losses | Gains | Losses | ||||||||||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | 49,570 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Interest rate swap | Other non-operating income (loss) | — | — | — | (69 | ) | — | (1,933 | ) | ||||||||||||||||||
Total | $ | 49,570 | $ | — | $ | — | $ | (69 | ) | $ | — | $ | (1,933 | ) | |||||||||||||
Variable_and_Voting_Interest_E1
Variable and Voting Interest Entities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | ' | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||
Consolidation | Equity | Consolidation | Equity | ||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 211,839 | $ | — | $ | — | $ | 211,839 | $ | 141,159 | $ | — | $ | — | $ | 141,159 | |||||||||||||||||
Cash and cash equivalents of Launch Equity | 19,156 | — | 19,156 | — | 10,180 | — | 10,180 | ||||||||||||||||||||||||||
Accounts receivable | 64,110 | — | — | 64,110 | 46,022 | — | — | 46,022 | |||||||||||||||||||||||||
Accounts receivable of Launch Equity | 7,428 | — | 7,428 | — | 10,595 | — | 10,595 | ||||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 63,364 | (1 | ) | 63,364 | 1 | 46,237 | (1 | ) | 46,237 | |||||||||||||||||||||||
Other assets | 215,501 | — | — | 215,501 | 33,367 | — | — | 33,367 | |||||||||||||||||||||||||
Total assets | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||
Payables of Launch Equity | $ | — | $ | 7,485 | $ | — | $ | 7,485 | $ | — | $ | 10,726 | $ | — | $ | 10,726 | |||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 31,990 | — | 31,990 | — | 19,586 | — | 19,586 | |||||||||||||||||||||||||
Other liabilities | 409,612 | — | — | 409,612 | 572,769 | — | — | 572,769 | |||||||||||||||||||||||||
Total liabilities | 409,612 | 39,475 | — | 449,087 | 572,769 | 30,312 | — | 603,081 | |||||||||||||||||||||||||
Redeemable preferred units | — | — | — | — | 357,194 | — | — | 357,194 | |||||||||||||||||||||||||
Total stockholders’ equity | 43,779 | — | — | 43,779 | — | — | — | — | |||||||||||||||||||||||||
Noncontrolling interest—Artisan Partners Holdings | 38,060 | 1 | (1 | ) | 38,060 | (709,414 | ) | 1 | (1 | ) | (709,414 | ) | |||||||||||||||||||||
Noncontrolling interest—Launch Equity | — | 50,472 | — | 50,472 | — | 36,699 | — | 36,699 | |||||||||||||||||||||||||
Total equity (deficit) | 81,839 | 50,473 | (1 | ) | 132,311 | (709,414 | ) | 36,700 | (1 | ) | (672,715 | ) | |||||||||||||||||||||
Total liabilities and equity | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | $ | 220,549 | $ | 67,012 | $ | (1 | ) | $ | 287,560 | |||||||||||||||
Condensed Consolidating Statements of Operations | ' | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 688,333 | $ | — | $ | (2,492 | ) | $ | 685,841 | ||||||||||||||||||||||||
Total operating expenses | 949,537 | — | (2,492 | ) | 947,045 | ||||||||||||||||||||||||||||
Operating income (loss) | (261,204 | ) | — | — | (261,204 | ) | |||||||||||||||||||||||||||
Non-operating income (loss) | 42,839 | — | — | 42,839 | |||||||||||||||||||||||||||||
Net gains of Launch Equity | — | 10,623 | — | 10,623 | |||||||||||||||||||||||||||||
Total non-operating income (loss) | 42,839 | 10,623 | — | 53,462 | |||||||||||||||||||||||||||||
Income (loss) before income taxes | (218,365 | ) | 10,623 | — | (207,742 | ) | |||||||||||||||||||||||||||
Provision for income taxes | 26,390 | — | — | 26,390 | |||||||||||||||||||||||||||||
Net income (loss) | (244,755 | ) | 10,623 | — | (234,132 | ) | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests—Artisan Partners Holdings | (269,562 | ) | — | — | (269,562 | ) | |||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Launch Equity | — | 10,623 | — | 10,623 | |||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 24,807 | $ | — | $ | — | $ | 24,807 | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 506,982 | $ | — | $ | (1,404 | ) | $ | 505,578 | ||||||||||||||||||||||||
Total operating expenses | 459,895 | — | (1,404 | ) | 458,491 | ||||||||||||||||||||||||||||
Operating income (loss) | 47,087 | — | — | 47,087 | |||||||||||||||||||||||||||||
Non-operating income (loss) | (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 (loss) before income taxes | 34,807 | 8,817 | — | 43,624 | |||||||||||||||||||||||||||||
Provision for income taxes | 1,047 | — | — | 1,047 | |||||||||||||||||||||||||||||
Net income | 33,760 | 8,817 | — | 42,577 | |||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Artisan Partners Holdings | 33,760 | — | — | 33,760 | |||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Launch Equity | — | 8,817 | — | 8,817 | |||||||||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||||||
Before | Launch | Eliminations | As Reported | ||||||||||||||||||||||||||||||
Consolidation | Equity | ||||||||||||||||||||||||||||||||
Total revenues | $ | 455,191 | $ | — | $ | (97 | ) | $ | 455,094 | ||||||||||||||||||||||||
Total operating expenses | 300,896 | — | (97 | ) | 300,799 | ||||||||||||||||||||||||||||
Operating income (loss) | 154,295 | — | — | 154,295 | |||||||||||||||||||||||||||||
Non-operating income (loss) | (20,059 | ) | — | — | (20,059 | ) | |||||||||||||||||||||||||||
Net gains of Launch Equity | — | (3,102 | ) | — | (3,102 | ) | |||||||||||||||||||||||||||
Total non-operating income (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) | 133,074 | (3,102 | ) | — | 129,972 | ||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests—Artisan Partners Holdings | 133,074 | (1 | ) | — | 133,073 | ||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling 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 December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | |||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 19,156 | $ | 19,156 | $ | — | $ | — | |||||||||||||||||||||||||
Investment securities—long position | $ | 63,364 | $ | 63,364 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Investment securities—short position | $ | 31,990 | $ | 31,990 | $ | — | $ | — | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 10,180 | $ | 10,180 | $ | — | $ | — | |||||||||||||||||||||||||
Investment securities—long position | $ | 46,237 | $ | 46,237 | $ | — | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Investment securities—short position | $ | 19,586 | $ | 19,586 | $ | — | $ | — |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Authorized and outstanding equity | ' | ||||||||||||||||
As of December 31, 2013, APAM had the following authorized and outstanding equity: | |||||||||||||||||
Shares at December 31, 2013 | Voting Rights(1) | Economic Rights(2) | |||||||||||||||
Authorized | Outstanding | ||||||||||||||||
Common shares | |||||||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 19,807,436 | 1 vote per share | Proportionate | |||||||||||||
Class B, par value $0.01 per share | 200,000,000 | 25,271,889 | 5 votes per share | None | |||||||||||||
Class C, par value $0.01 per share | 400,000,000 | 25,206,554 | 1 vote per share | None | |||||||||||||
Preferred shares | |||||||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 1,198,128 | 1 vote per share | Proportionate | |||||||||||||
(1) | Artisan Investment Corporation and each of the Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of December 31, 2013, Artisan’s employees held 1,575,157 shares of Class A common stock subject to the agreement and all 25,271,889 outstanding shares of Class B common stock, and Artisan Investment Corporation held 9,627,644 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) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of compensation cost | ' | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Salaries, incentive compensation and benefits(1) | $ | 301,621 | $ | 227,258 | $ | 198,601 | |||||||
Restricted share compensation expense | 7,542 | — | — | ||||||||||
Total salaries, incentive compensation and benefits | 309,163 | 227,258 | 198,601 | ||||||||||
Pre-offering related compensation—share-based awards | 404,160 | 101,682 | (21,082 | ) | |||||||||
Pre-offering related compensation—other | 143,035 | 54,153 | 55,714 | ||||||||||
Total compensation and benefits | $ | 856,358 | $ | 383,093 | $ | 233,233 | |||||||
(1) | Excluding restricted share compensation expense | ||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||
The following table summarizes the restricted share activity for the year ended December 31, 2013: | |||||||||||||
Weighted- | Number of | ||||||||||||
Average Grant | Awards | ||||||||||||
Date Fair Value | |||||||||||||
Unvested at December 31, 2012 | $ | — | — | ||||||||||
Granted | 52.36 | 1,575,157 | |||||||||||
Forfeited | — | — | |||||||||||
Vested | — | — | |||||||||||
Unvested at December 31, 2013 | $ | 52.36 | 1,575,157 | ||||||||||
Schedule of pre-offering related compensation costs | ' | ||||||||||||
Pre-offering related compensation consists of the following: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Change in value of Class B liability awards | $ | 41,942 | $ | 101,682 | $ | (21,082 | ) | ||||||
Class B award modification expense | 287,292 | — | — | ||||||||||
Amortization expense on pre-offering Class B awards | 74,926 | — | — | ||||||||||
Pre-offering related compensation—share-based awards | 404,160 | 101,682 | (21,082 | ) | |||||||||
Pre-offering related cash incentive compensation | 56,788 | — | — | ||||||||||
Pre-offering related bonus make-whole compensation | 20,520 | — | — | ||||||||||
Distributions on Class B liability awards | 65,727 | 54,153 | 55,714 | ||||||||||
Pre-offering related compensation—other | 143,035 | 54,153 | 55,714 | ||||||||||
Total pre-offering related compensation | $ | 547,195 | $ | 155,835 | $ | 34,632 | |||||||
Redemption values and liabilities of Class B awards | ' | ||||||||||||
The aggregate redemption values and liabilities of the Class B obligation were as follows: | |||||||||||||
As of | As of | ||||||||||||
December 31, | 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 | $ | 23,026 | $ | 29,257 | |||||||||
Activity related to unvested Class B awards | ' | ||||||||||||
The following table summarizes the activity related to unvested Class B awards during the period March 12, 2013 to December 31, 2013: | |||||||||||||
March 12, 2013 to December 31, 2013 | |||||||||||||
Weighted- | Number of | ||||||||||||
Average Grant | Class B | ||||||||||||
Date Fair Value | Awards | ||||||||||||
Unvested Class B awards at March 12, 2013 | $ | 30 | 9,911,720 | ||||||||||
Granted | — | — | |||||||||||
Forfeited | 30 | (82,655 | ) | ||||||||||
Vested | 30 | (2,579,223 | ) | ||||||||||
Unvested at December 31, 2013 | $ | 30 | 7,249,842 | ||||||||||
Income_Taxes_and_Related_Payme1
Income Taxes and Related Payments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Components of the provision for income taxes | ' | ||||||||||||
Components of the provision for income taxes consist of the following: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current: | |||||||||||||
Federal | $ | 13,816 | $ | — | $ | — | |||||||
State and local | 2,719 | — | — | ||||||||||
Foreign | 471 | 1,047 | 1,162 | ||||||||||
Total | 17,006 | 1,047 | 1,162 | ||||||||||
Deferred: | |||||||||||||
Federal | 9,089 | — | — | ||||||||||
State and local | 295 | — | — | ||||||||||
Total | 9,384 | — | — | ||||||||||
Income tax expense | $ | 26,390 | $ | 1,047 | $ | 1,162 | |||||||
Reconciliation of effective tax rate | ' | ||||||||||||
The provision for income taxes from operations differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows: | |||||||||||||
For the Period | |||||||||||||
from March 12, | |||||||||||||
2013 through | |||||||||||||
December 31, 2013 | |||||||||||||
U.S. Federal Statutory Rate | 35 | % | |||||||||||
Non-deductible share-based compensation | 2.6 | ||||||||||||
Rate benefit from the flow through entity | (27.4 | ) | |||||||||||
Other | 1.4 | ||||||||||||
Effective Tax Rate | 11.6 | % | |||||||||||
Components of deferred tax assets | ' | ||||||||||||
Net deferred tax assets comprise the following: | |||||||||||||
As of | As of | ||||||||||||
December 31, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Amortizable basis(1) | $ | 183,858 | $ | — | |||||||||
Other(2) | 4,049 | — | |||||||||||
Total deferred tax assets | 187,907 | — | |||||||||||
Less: valuation allowance(3) | — | — | |||||||||||
Net deferred tax assets | $ | 187,907 | $ | — | |||||||||
(1) | Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units and preferred units by APAM. | ||||||||||||
(2) | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | ||||||||||||
-3 | Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Computation of basic and diluted net income (loss) per share | ' | ||||
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 period March 12, 2013 through December 31, 2013 were as follows: | |||||
For the Period from | |||||
March 12, 2013 | |||||
through December 31, | |||||
2013 | |||||
Basic and Diluted Earnings Per Share | |||||
Numerator: | |||||
Net income (loss) attributable to APAM | $ | 24,807 | |||
Less: Convertible preferred stock deemed dividends | (32,215 | ) | |||
Less: Subsidiary preferred equity deemed dividends | (19,457 | ) | |||
Less: Allocation to participating securities | (1,300 | ) | |||
Net income (loss) allocated to common stockholders | $ | (28,165 | ) | ||
Denominator: | |||||
Weighted average shares outstanding | 13,780,378 | ||||
Earnings (loss) per share | $ | (2.04 | ) | ||
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
The composition of property and equipment at December 31, 2013 and 2012 are as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Computers and equipment | $ | 6,259 | $ | 5,320 | |||||
Computer software | 5,356 | 4,617 | |||||||
Furniture and fixtures | 4,166 | 3,637 | |||||||
Leasehold improvements | 11,416 | 10,585 | |||||||
Total Cost | 27,197 | 24,159 | |||||||
Less: Accumulated depreciation | (18,437 | ) | (15,352 | ) | |||||
Property and equipment, net of accumulated depreciation | $ | 8,760 | $ | 8,807 | |||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
At December 31, 2013, the aggregate future minimum payments for leases for each of the following five years and thereafter are as follows: | |||||
2014 | 9,119 | ||||
2015 | 9,176 | ||||
2016 | 8,468 | ||||
2017 | 7,537 | ||||
Thereafter | 46,499 | ||||
Total | 80,799 | ||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Artisan Funds | ' | ||||||||||||
Schedule of related party transactions | ' | ||||||||||||
Fees for managing the Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investment management fees: | |||||||||||||
Artisan Funds | $ | 455,047 | $ | 333,218 | $ | 303,919 | |||||||
Fee waiver / expense reimbursement: | |||||||||||||
Artisan Funds | $ | 291 | $ | 171 | $ | 374 | |||||||
Artisan Global Funds | ' | ||||||||||||
Schedule of related party transactions | ' | ||||||||||||
Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Investment management fees: | |||||||||||||
Artisan Global Funds | $ | 9,291 | $ | 3,020 | $ | 1,255 | |||||||
Fee waiver / expense reimbursement: | |||||||||||||
Artisan Global Funds | $ | 752 | $ | 653 | $ | 660 |
Concentration_of_Credit_Risk_a1
Concentration of Credit Risk and Significant Relationships (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||
Services provided to the following Artisan Funds generated over ten percent of total revenues for the periods presented. Fees for managing the Funds, and the percentage of total revenues are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
Artisan Fund | 2013 | 2012 | 2011 | ||||||||||
U.S. Mid-Cap Growth | $ | 76,327 | $ | 59,841 | $ | 53,422 | |||||||
Percent of total revenues | 11.1 | % | 11.8 | % | 11.7 | % | |||||||
U.S. Mid-Cap Value | $ | 93,774 | $ | 73,720 | $ | 64,402 | |||||||
Percent of total revenues | 13.7 | % | 14.6 | % | 14.2 | % | |||||||
Non-U.S. Growth | $ | 116,173 | $ | 86,367 | $ | 86,907 | |||||||
Percent of total revenues | 16.9 | % | 17.1 | % | 19.1 | % | |||||||
Non-U.S. Value | $ | 88,342 | $ | 54,851 | $ | 43,996 | |||||||
Percent of total revenues | 12.9 | % | 10.9 | % | 9.7 | % |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
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, 2013 | June 30, 2013 | Sept. 30, 2013 | Dec. 31, 2013 | ||||||||||||||
Total revenues | $ | 148,223 | $ | 161,933 | $ | 178,092 | $ | 197,593 | |||||||||
Operating income (loss) | $ | (421,314 | ) | $ | 48,384 | $ | 53,360 | $ | 58,366 | ||||||||
Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | $ | (407,123 | ) | $ | 42,442 | $ | 44,614 | $ | 50,505 | ||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 2,950 | $ | 5,798 | $ | 5,977 | $ | 10,082 | |||||||||
Earnings per Share: | |||||||||||||||||
Basic | $ | 0.19 | $ | 0.38 | $ | 0.42 | $ | (3.04 | ) | ||||||||
Diluted | $ | 0.19 | $ | 0.38 | $ | 0.35 | $ | (3.04 | ) | ||||||||
For the Quarter Ended | |||||||||||||||||
March 31, 2012 | June 30, 2012 | Sept. 30, 2012 | Dec. 31, 2012 | ||||||||||||||
Total revenues | $ | 119,673 | $ | 120,786 | $ | 128,083 | $ | 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 (Detail) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | |
Investment_Teams | Class A Common Stock | Class A Common Stock | ||
Investment_Strategies | ||||
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares issued during the period (shares) | ' | ' | 5,520,000 | 12,712,279 |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 29.00% | 24.00% | ' | ' |
Number of autonomous investment teams | 5 | ' | ' | ' |
Number of investment strategies | 13 | ' | ' | ' |
Reorganization_and_IPO_Detail
Reorganization and IPO (Detail) (USD $) | 1 Months Ended | 10 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Cash incentive compensation | Cash incentive compensation | Cash incentive compensation | Class A Common Stock | Class A Common Stock | Class A Common Stock | Limited Partnership Units | Convertible preferred stock | Convertible preferred stock | Convertible preferred stock | Follow On Offering [Member] | ||||||||
Reorganization And Inital Public Offering [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B liability awards | ' | $0 | $0 | $225,249 | ' | ' | $551,951 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance Initial Public Offering | 353,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-offering related compensation - other | ' | ' | 143,035 | 54,153 | 55,714 | ' | ' | 56,788 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Retained profits distributions to pre-IPO partners | ' | ' | 105,301 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of principal amounts under the revolving credit agreement | ' | ' | 90,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of 2,720,823 Class A common units from certain investors | ' | ' | 76,319 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,720,823 | ' | ' | ' | ' | ' |
Shares issued during the period (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,520,000 | 12,712,279 | ' | ' | ' | 2,565,463 | ' | ' |
Proceeds from Issuance of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 296,755 | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased and retired during the period (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,152,665 | 1,367,335 | ' | ' | ' |
Liability of Contingent Value Rights | ' | ' | ' | ' | ' | 5,870 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | ' | 29.00% | 29.00% | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial establishment of deferred tax assets | ' | ' | 123,888 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 123,888 |
Initial establishment of amounts payable under tax receivable agreements | ' | ' | 105,305 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,305 |
Preferred Stock Dividends and Other Adjustments | ' | $19,457 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,215 | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Tax Receivable Agreements (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Agreement | |
Accounting Policies [Abstract] | ' |
Number of Tax Receivable Agreements | 2 |
TRA percent of savings to be paid to shareholders | 85.00% |
TRA percent of savings to be retained by entity | 15.00% |
TRA percent of savings to be paid to shareholders | '125 days |
Tax Receivable Agreements Basis Spread On Variable Rate | 1.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Jul. 03, 2006 | Aug. 16, 2012 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Segment | Term Loan | Term Loan | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Class B Liability Awards | Maximum | Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Segment | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portfolio Manager Performance Period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '3 years |
Debt principal amount | ' | ' | ' | $400,000 | $400,000 | ' | ' | ' | $400,000 | ' | ' | ' |
Payments to settle derivative | 0 | 1,135 | 0 | ' | ' | 1,100 | 1,135 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Accrued fees to intermediaries | 5,401 | 3,592 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership distributions | $332,000 | $135,000 | $122,800 | ' | ' | ' | ' | $290,500 | ' | ' | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Distribution fees (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Total intermediary fees incurred | $112,360 | $88,818 | $86,166 |
Less: fees incurred by Artisan Funds | 78,036 | 62,736 | 61,431 |
Fees incurred by Artisan | 34,324 | 26,082 | 24,735 |
Other marketing expenses | 4,074 | 2,908 | 1,439 |
Total distribution and marketing | $38,398 | $28,990 | $26,174 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Components of AOCI (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income | $378 | $0 |
Unrealized gain on investments | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income | 303 | 0 |
Foreign currency translation | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' |
Accumulated other comprehensive income | $75 | $0 |
Investment_Securities_Detail
Investment Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $7,804 | $15,241 |
Equity Mutual Funds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost | 6,190 | 13,335 |
Unrealized Gains | 1,614 | 1,906 |
Unrealized Losses | 0 | 0 |
Fair Value | $7,804 | $15,241 |
Investment_Securities_Narrativ
Investment Securities - Narrative (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Position | Position | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $4,119 | $497 | $58 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 0 | 0 | ' |
Equity Mutual Funds | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Investment Income, Dividend | $1,019 | $243 | $202 |
Fair_Value_Measurements_Fair_v
Fair Value Measurements - Fair value hierarchy of assets and liabilities (Detail) (Recurring, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $211,839 | $141,159 |
Equity mutual funds | 7,804 | 15,241 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents | 211,839 | 141,159 |
Equity mutual funds | 7,804 | 15,241 |
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 |
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 |
Fair_Value_Measurements_Valuat
Fair Value Measurements - Valuation techniques and fair value assumptions (Detail) (Recurring, Level 3, Contingent Value Rights, USD $) | 0 Months Ended |
Nov. 06, 2013 | |
Recurring | Level 3 | Contingent Value Rights | ' |
Observable assumptions: | ' |
Price per share of Class A common stock | $61.25 |
Remaining term of CVRs | '2 years 8 months 5 days |
Unobservable assumptions: | ' |
Expected price volatility of Class A common stock (percent) | 32.00% |
Dividend yield rate (percent) | 4.40% |
Discount rate (percent) | 5.00% |
Fair_Value_Measurements_Rollfo
Fair Value Measurements - Rollforward of Level 3 liabilities (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 06, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' |
Contingent value rights | ' | ' | ' | $5,870 |
Net gain on the valuation of contingent value rights | 49,570 | 0 | 0 | ' |
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 | -49,570 | ' | ' | ' |
Liability extinguished upon termination | 5,870 | ' | ' | ' |
Balance at end of period | $0 | ' | ' | ' |
Borrowings_Components_of_Borro
Borrowings - Components of Borrowings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Total outstanding balance | $200,000 | $290,000 | |
Senior notes | Series A | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Total outstanding balance | 60,000 | 60,000 | |
Interest rate per annum | 4.98% | 4.98% | |
Senior notes | Series B | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Total outstanding balance | 50,000 | 50,000 | |
Interest rate per annum | 5.32% | 5.32% | |
Senior notes | Series C | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Total outstanding balance | 90,000 | 90,000 | |
Interest rate per annum | 5.82% | 5.82% | |
Revolving credit agreement | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Total outstanding balance | $0 | $90,000 | |
Interest rate at period end | ' | 1.96% | [1] |
[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 $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 03, 2006 | Dec. 31, 2011 | Nov. 30, 2010 | Aug. 16, 2012 | Nov. 30, 2010 | Nov. 30, 2010 | Aug. 16, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Term Loan | Term Loan | Amended Term Loan | Senior notes | Matures July 1, 2013 | Matures July 1, 2011 | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Libor Adjusted By Statutory Reserve Percentage | Libor Adjusted By Statutory Reserve Percentage | Prime Rate | Federal Funds Effective Rate | One Month Libor Adjusted By Statutory Reserve Percentage | Margin Based On Leverage Ratio | Margin Based On Leverage Ratio | Recurring | ||||
Amended Term Loan | Amended Term Loan | Minimum | Maximum | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Revolving credit agreement | Level 2 | ||||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $197,613,000 |
Debt Instrument, Term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt principal amount | ' | ' | ' | 400,000,000 | 400,000,000 | 380,000,000 | ' | 363,000,000 | 17,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of notes payable | 0 | 200,000,000 | 0 | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from draw on revolving credit facility | 0 | 90,000,000 | 0 | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 3.00% | 0.50% | 0.50% | 1.00% | 0.50% | 2.00% | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.18% | 0.18% | 0.63% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense incurred on debt and credit facilities | $11,400,000 | $10,100,000 | $10,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Aggregate_Maturitie
Borrowings - Aggregate Maturities of Debt Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $0 | ' |
2015 | 0 | ' |
2016 | 0 | ' |
2017 | 60,000 | ' |
Thereafter | 140,000 | ' |
Borrowings | $200,000 | $290,000 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 16, 2012 | Aug. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 22, 2010 |
Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivatives | ' | ' | ' | ' | ' | ' | ' | $200,000 |
Derivative, fixed interest rate | ' | ' | ' | ' | ' | ' | ' | 1.04% |
Payments to settle derivative | 0 | 1,135 | 0 | 1,100 | 1,135 | ' | ' | ' |
Interest Expense | $11,869 | $11,442 | $18,386 | ' | ' | $700 | $6,900 | ' |
Derivative_Instruments_Income_
Derivative Instruments - Income statement disclosures (Detail) (Not Designated as Hedging Instrument, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative, Gain on Derivative | $49,570 | $0 | $0 |
Derivative, Loss on Derivative | 0 | -69 | -1,933 |
Contingent Value Rights | Net gain on the valuation of contingent value rights | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative, Gain on Derivative | 49,570 | 0 | 0 |
Derivative, Loss on Derivative | 0 | 0 | 0 |
Interest Rate Swap | Loss on interest rate swap | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Derivative, Gain on Derivative | 0 | 0 | 0 |
Derivative, Loss on Derivative | $0 | ($69) | ($1,933) |
Noncontrolling_Interest_Holdin
Noncontrolling Interest - Holdings (Detail) (USD $) | 10 Months Ended | 12 Months Ended | 0 Months Ended | 10 Months Ended | 0 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | Nov. 06, 2013 | Dec. 31, 2013 | Jul. 17, 2013 | |
Class A Common Stock | Class A Common Stock | Convertible preferred stock | Convertible preferred stock | Limited Partnership Units | Additional Paid-in Capital | Restricted Stock [Member] | ||||
Employee Partners | ||||||||||
Class A Common Stock | ||||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 29.00% | 29.00% | 24.00% | ' | ' | ' | ' | ' | ' | ' |
Shares issued during the period (shares) | ' | ' | ' | 5,520,000 | 12,712,279 | ' | 2,565,463 | ' | ' | 1,575,157 |
Shares repurchased and retired during the period (shares) | ' | ' | ' | ' | ' | 1,367,335 | ' | 4,152,665 | ' | ' |
Shares forfeited | ' | 82,655 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | ($313,000) | ' | ' | ' | ' | ' | ' | ' | ($50,312,000) | ' |
AOCI Adjustment to Reflect Changes in Ownership | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
AOCI Adjustment to Reflect Changes in Ownership, Tax Effect | ($300,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable_and_Voting_Interest_E2
Variable and Voting Interest Entities - Condensed Consolidating Statements of Financial Condition (Detail) (USD $) | Dec. 31, 2013 | Mar. 12, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||||
Cash and cash equivalents | $211,839 | ' | $141,159 | $126,956 | $158,987 |
Cash and cash equivalents of Launch Equity | 19,156 | ' | 10,180 | ' | ' |
Accounts receivable | 64,110 | ' | 46,022 | ' | ' |
Accounts receivable of Launch Equity | 7,428 | ' | 10,595 | ' | ' |
Investment securities of Launch Equity | 63,364 | ' | 46,237 | ' | ' |
Other assets | 215,501 | ' | 33,367 | ' | ' |
Total assets | 581,398 | ' | 287,560 | ' | ' |
Payables of Launch Equity | 7,485 | ' | 10,726 | ' | ' |
Securities sold, not yet purchased of Launch Equity | 31,990 | ' | 19,586 | ' | ' |
Other liabilities | 409,612 | ' | 572,769 | ' | ' |
Total liabilities | 449,087 | ' | 603,081 | ' | ' |
Redeemable preferred units | 0 | ' | 357,194 | ' | ' |
Total stockholders' equity | 43,779 | ' | 0 | ' | ' |
Noncontrolling interest-Artisan Partners Holdings | 38,060 | ' | -709,414 | ' | ' |
Noncontrolling interest-Launch Equity | 50,472 | ' | 36,699 | ' | ' |
Total equity (deficit) | 132,311 | -332,297 | -672,715 | -641,092 | -736,578 |
Total liabilities and equity | 581,398 | ' | 287,560 | ' | ' |
Eliminations | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | 0 | ' | ' |
Cash and cash equivalents of Launch Equity | 0 | ' | 0 | ' | ' |
Accounts receivable | 0 | ' | 0 | ' | ' |
Accounts receivable of Launch Equity | 0 | ' | 0 | ' | ' |
Investment securities of Launch Equity | -1 | ' | -1 | ' | ' |
Other assets | 0 | ' | 0 | ' | ' |
Total assets | -1 | ' | -1 | ' | ' |
Payables of Launch Equity | 0 | ' | 0 | ' | ' |
Securities sold, not yet purchased of Launch Equity | 0 | ' | 0 | ' | ' |
Other liabilities | 0 | ' | 0 | ' | ' |
Total liabilities | 0 | ' | 0 | ' | ' |
Redeemable preferred units | 0 | ' | 0 | ' | ' |
Total stockholders' equity | 0 | ' | 0 | ' | ' |
Noncontrolling interest-Artisan Partners Holdings | -1 | ' | -1 | ' | ' |
Noncontrolling interest-Launch Equity | 0 | ' | 0 | ' | ' |
Total equity (deficit) | -1 | ' | -1 | ' | ' |
Total liabilities and equity | -1 | ' | -1 | ' | ' |
Before Consolidation | ' | ' | ' | ' | ' |
Parent equity investment in Launch Equity | 1 | ' | ' | ' | ' |
Cash and cash equivalents | 211,839 | ' | 141,159 | ' | ' |
Cash and cash equivalents of Launch Equity | ' | ' | 0 | ' | ' |
Accounts receivable | 64,110 | ' | 46,022 | ' | ' |
Accounts receivable of Launch Equity | ' | ' | 0 | ' | ' |
Investment securities of Launch Equity | 1 | ' | 1 | ' | ' |
Other assets | 215,501 | ' | 33,367 | ' | ' |
Total assets | 491,451 | ' | 220,549 | ' | ' |
Payables of Launch Equity | 0 | ' | 0 | ' | ' |
Securities sold, not yet purchased of Launch Equity | 0 | ' | 0 | ' | ' |
Other liabilities | 409,612 | ' | 572,769 | ' | ' |
Total liabilities | 409,612 | ' | 572,769 | ' | ' |
Redeemable preferred units | 0 | ' | 357,194 | ' | ' |
Total stockholders' equity | 43,779 | ' | 0 | ' | ' |
Noncontrolling interest-Artisan Partners Holdings | 38,060 | ' | -709,414 | ' | ' |
Noncontrolling interest-Launch Equity | 0 | ' | 0 | ' | ' |
Total equity (deficit) | 81,839 | ' | -709,414 | ' | ' |
Total liabilities and equity | 491,451 | ' | 220,549 | ' | ' |
Launch Equity | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | 0 | ' | ' |
Cash and cash equivalents of Launch Equity | 19,156 | ' | 10,180 | ' | ' |
Accounts receivable | 0 | ' | 0 | ' | ' |
Accounts receivable of Launch Equity | 7,428 | ' | 10,595 | ' | ' |
Investment securities of Launch Equity | 63,364 | ' | 46,237 | ' | ' |
Other assets | 0 | ' | 0 | ' | ' |
Total assets | 89,948 | ' | 67,012 | ' | ' |
Payables of Launch Equity | 7,485 | ' | 10,726 | ' | ' |
Securities sold, not yet purchased of Launch Equity | 31,990 | ' | 19,586 | ' | ' |
Other liabilities | 0 | ' | 0 | ' | ' |
Total liabilities | 39,475 | ' | 30,312 | ' | ' |
Redeemable preferred units | 0 | ' | 0 | ' | ' |
Total stockholders' equity | 0 | ' | 0 | ' | ' |
Noncontrolling interest-Artisan Partners Holdings | 1 | ' | 1 | ' | ' |
Noncontrolling interest-Launch Equity | 50,472 | ' | 36,699 | ' | ' |
Total equity (deficit) | 50,473 | ' | 36,700 | ' | ' |
Total liabilities and equity | $89,948 | ' | $67,012 | ' | ' |
Variable_and_Voting_Interest_E3
Variable and Voting Interest Entities - Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Mar. 12, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total revenues | ' | $197,593 | $178,092 | $161,933 | $148,223 | $137,036 | $128,083 | $120,786 | $119,673 | ' | $685,841 | $505,578 | $455,094 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 947,045 | 458,491 | 300,799 |
Operating income (loss) | ' | 58,366 | 53,360 | 48,384 | -421,314 | 39,433 | -38,219 | 41,508 | 4,365 | ' | -261,204 | 47,087 | 154,295 |
Non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,839 | -12,280 | -20,059 |
Net gains of Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,102 |
Total non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,462 | -3,463 | -23,161 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -207,742 | 43,624 | 131,134 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,390 | 1,047 | 1,162 |
Net income (loss) | -434,342 | ' | ' | ' | ' | ' | ' | ' | ' | 200,210 | -234,132 | 42,577 | 129,972 |
Less: Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | ' | 50,505 | 44,614 | 42,442 | -407,123 | 36,652 | -42,902 | 38,959 | 1,051 | ' | -269,562 | 33,760 | 133,073 |
Less: Net income (loss) attributable to noncontrolling interests-Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,101 |
Net income attributable to Artisan Partners Asset Management Inc. | ' | 10,082 | 5,977 | 5,798 | 2,950 | 0 | 0 | 0 | 0 | 24,807 | 24,807 | 0 | 0 |
Eliminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,492 | -1,404 | -97 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,492 | -1,404 | -97 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net gains of Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Total non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Less: Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Less: Net income (loss) attributable to noncontrolling interests-Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Net income attributable to Artisan Partners Asset Management Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Before Consolidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 688,333 | 506,982 | 455,191 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 949,537 | 459,895 | 300,896 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -261,204 | 47,087 | 154,295 |
Non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,839 | -12,280 | -20,059 |
Net gains of Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Total non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,839 | -12,280 | -20,059 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -218,365 | 34,807 | 134,236 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,390 | 1,047 | 1,162 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -244,755 | 33,760 | 133,074 |
Less: Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -269,562 | 33,760 | 133,074 |
Less: Net income (loss) attributable to noncontrolling interests-Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Net income attributable to Artisan Partners Asset Management Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,807 | 0 | 0 |
Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net gains of Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,102 |
Total non-operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,102 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,102 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,102 |
Less: Net income (loss) attributable to noncontrolling interests-Artisan Partners Holdings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1 |
Less: Net income (loss) attributable to noncontrolling interests-Launch Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,623 | 8,817 | -3,101 |
Net income attributable to Artisan Partners Asset Management Inc. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 |
Variable_and_Voting_Interest_E4
Variable and Voting Interest Entities - Fair Value Hierarchy of Assets and Liabilities of Consolidated Investment Products (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $19,156 | $10,180 |
Investment securities of Launch Equity | 63,364 | 46,237 |
Securities sold, not yet purchased of Launch Equity | 31,990 | 19,586 |
Launch Equity | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash and cash equivalents of Launch Equity | 19,156 | 10,180 |
Investment securities of Launch Equity | 63,364 | 46,237 |
Securities sold, not yet purchased of Launch Equity | 31,990 | 19,586 |
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 | 19,156 | 10,180 |
Investment securities of Launch Equity | 63,364 | 46,237 |
Securities sold, not yet purchased of Launch Equity | 31,990 | 19,586 |
Launch Equity | Recurring | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities of Launch Equity | 0 | 0 |
Securities sold, not yet purchased of Launch Equity | 0 | 0 |
Launch Equity | Recurring | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities of Launch Equity | 0 | 0 |
Securities sold, not yet purchased of Launch Equity | $0 | $0 |
Stockholders_Equity_Detail
Stockholders' Equity (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 17, 2013 | Dec. 31, 2013 | Mar. 12, 2013 | Jul. 17, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |||||
Class A Common Stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | Class B Common Stock | Class B Common Stock | Class C Common Stock | Class C Common Stock | Class C Common Stock | Limited Partnership Units | Convertible preferred stock | Convertible preferred stock | Convertible preferred stock | Employee Partners | Employee Partners | AIC | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Artisan Partners Asset Management [Member] | ||||||||
Vote | Vote | Vote | Vote | Class A Common Stock | Class B Common Stock | Class C Common Stock | Class A Common Stock | Employee Partners | Distributions on liability awards | Distributions on liability awards | Distributions on liability awards | |||||||||||||||||||||
Class A Common Stock | ||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Common stock, par value per share | ' | ' | ' | ' | ' | $0.01 | [1] | ' | ' | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock, shares authorized | ' | ' | ' | ' | ' | 500,000,000 | [1] | ' | ' | 200,000,000 | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock, shares outstanding | ' | ' | ' | ' | ' | 19,807,436 | [1] | ' | ' | 25,271,889 | ' | ' | 25,206,554 | ' | ' | ' | ' | 1,575,157 | 25,271,889 | 9,627,644 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock votes per share | ' | ' | ' | ' | ' | 1 | [1],[2] | ' | ' | 5 | [2] | ' | ' | 1 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Convertible preferred stock, par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Convertible preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Convertible preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,198,128 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock votes per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Dividends declared per share | ' | ' | ' | ' | ' | $0.43 | $0.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Common Stock, Dividends, Per Share, Cash Paid | ' | ' | ' | ' | ' | $0.43 | $0.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares issued on IPO | ' | ' | ' | 5,520,000 | 12,712,279 | ' | ' | 26,271,120 | ' | 916,576 | 28,442,643 | ' | ' | ' | 2,565,463 | ' | ' | ' | ' | ' | ' | ' | 1,575,157 | ' | ' | ' | ' | ' | ||||
Grants in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,575,157 | 16,670 | ' | ' | ' | ' | ' | ' | ||||
Exchange ratio to common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'One-for-one | ' | ' | ' | ' | ' | 'One-for-one | ' | ' | ' | ' | ' | ' | ||||
Shares, Issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,575,157 | ' | ' | ' | ' | ' | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | '5 years | '5 years | ' | ' | ' | ' | ||||
Number of Shares Cancelled | ' | ' | ' | ' | ' | ' | ' | ' | 999,231 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Shares repurchased and retired during the period (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,152,665 | 1,367,335 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Partnership distributions | $332,000,000 | $135,000,000 | $122,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65,727,000 | $54,153,000 | $55,714,000 | ' | ||||
Distributions to limited partner | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41,500,000 | ||||
[1] | 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. | |||||||||||||||||||||||||||||||
[2] | Artisan Investment Corporation and each of the Company's employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of December 31, 2013, Artisan's employees held 1,575,157 shares of Class A common stock subject to the agreement and all 25,271,889 outstanding shares of Class B common stock, and Artisan Investment Corporation held 9,627,644 shares of Class C common stock. |
Compensation_and_Benefits_Comp
Compensation and Benefits - Components of expense (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Salaries, incentive compensation and benefits | $301,621 | [1] | $227,258 | [1] | $198,601 | [1] |
Share-based compensation | 655,417 | 0 | 0 | |||
Salaries, incentive compensation and benefits | 309,163 | 227,258 | 198,601 | |||
Pre-offering related compensation-share-based awards | 404,160 | 101,682 | -21,082 | |||
Pre-offering related compensation - other | 143,035 | 54,153 | 55,714 | |||
Total compensation and benefits | 856,358 | 383,093 | 233,233 | |||
Change in value of Class B liability awards | 41,942 | 101,682 | -21,082 | |||
Class B award modification expense | 287,292 | 0 | 0 | |||
Amortization expense on pre-offering Class B awards | 74,926 | 0 | 0 | |||
Pre-offering related compensation-share-based awards | 404,160 | 101,682 | -21,082 | |||
Partners' Capital Account, Distributions | 332,000 | 135,000 | 122,800 | |||
Total pre-offering related compensation | 547,195 | 155,835 | 34,632 | |||
Restricted Stock [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Share-based compensation | 7,542 | 0 | 0 | |||
Cash incentive compensation | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Pre-offering related compensation - other | 56,788 | 0 | 0 | |||
Bonus make-whole compensation | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Pre-offering related compensation - other | 20,520 | 0 | 0 | |||
Class B Liability Awards | Distributions on liability awards | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Partners' Capital Account, Distributions | $65,727 | $54,153 | $55,714 | |||
[1] | Excluding restricted share compensation expense |
Compensation_and_Benefits_Addi
Compensation and Benefits - Additional information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 06, 2013 | Mar. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 17, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 17, 2013 | Mar. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class A Common Stock | Class A Common Stock | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Class B Liability Awards | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Cash incentive compensation | Cash incentive compensation | Cash incentive compensation | Bonus make-whole compensation | Bonus make-whole compensation | Bonus make-whole compensation | ||||
Minimum | Distributions on liability awards | Distributions on liability awards | Distributions on liability awards | Employee Partners | Employee Partners | ||||||||||||||||||
Class A Common Stock | Class A Common Stock | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | 5,520,000 | 12,712,279 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,575,157 | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' |
Award vesting period | '5 years | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | $151,876,000 | ' | ' | ' | ' | ' | $79,200,000 | $71,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | 655,417,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,542,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not recognized, period for recognition | ' | ' | ' | ' | ' | '2 years 9 months 18 days | '3 years 3 months 18 days | ' | ' | ' | ' | ' | '4 years 6 months 14 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption period for terminated employees | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retirement qualifying period | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intent to retire, notification period required | ' | ' | ' | ' | ' | '3 years | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Retirement Notifications Received | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class B award modification expense | 287,292,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-offering related compensation - other | 143,035,000 | 54,153,000 | 55,714,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,788,000 | 0 | 0 | 20,520,000 | 0 | 0 |
Partners' Capital Account, Distributions | $332,000,000 | $135,000,000 | $122,800,000 | ' | ' | ' | ' | ' | $65,727,000 | $54,153,000 | $55,714,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation_and_Benefits_Acti
Compensation and Benefits - Activity (Detail) (USD $) | 10 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
Class B Liability Awards | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' |
Weighted average grant date fair value, beginning of period | $30 | $0 |
Granted, weighted average grant date fair value | $0 | $52.36 |
Forfeited, weighted average grant date fair value | $30 | $0 |
Vested, weighted average grant date fair value | $30 | $0 |
Weighted average grant date fair value, end of period | $30 | $52.36 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Number of awards, beginning of period (shares) | 9,911,720 | 0 |
Granted (shares) | ' | 1,575,157 |
Forfeited (shares) | -82,655 | 0 |
Vested (shares) | -2,579,223 | 0 |
Number of awards, end of period (shares) | 7,249,842 | 1,575,157 |
Compensation_and_Benefits_Fair
Compensation and Benefits - Fair value and liability of Class B awards (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Mar. 12, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Vested | Vested | Unvested | Unvested | Purchased | Purchased | Class B Liability Awards | Class B Liability Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative increase in award liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,532 | $7,851 |
Redeemed Class B share-based awards | 23,026 | ' | 29,257 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments - stock based compensation | 8,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate fair value of share-based awards | 0 | ' | 331,112 | 0 | 225,249 | 0 | 103,052 | 0 | 2,811 | ' | ' |
Class B share-based awards | $0 | $551,951 | $225,249 | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not recognized, period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 9 months 18 days | '3 years 3 months 18 days |
Income_Taxes_and_Related_Payme2
Income Taxes and Related Payments - Additional information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Tax Disclosures [Line Items] | ' | ' |
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 | $183,858 | ' |
Amounts payable under tax receivable agreements | 160,663 | 0 |
APIC cumulative increase | 28,352 | ' |
Total | 3,769 | ' |
IPO [Member] | ' | ' |
Tax Disclosures [Line Items] | ' | ' |
Deferred tax assets | 63,739 | ' |
Follow On Offering [Member] | ' | ' |
Tax Disclosures [Line Items] | ' | ' |
Deferred tax assets | $123,888 | ' |
Income_Taxes_and_Related_Payme3
Income Taxes and Related Payments - Components of provision for income taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
Federal | $13,816 | $0 | $0 |
State and local | 2,719 | 0 | 0 |
Foreign | 471 | 1,047 | 1,162 |
Total | 17,006 | 1,047 | 1,162 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' |
Federal | 9,089 | 0 | 0 |
State and local | 295 | 0 | 0 |
Total | 9,384 | 0 | 0 |
Income tax expense | $26,390 | $1,047 | $1,162 |
Income_Taxes_and_Related_Payme4
Income Taxes and Related Payments - Reconciliation of effective tax rate (Detail) | 10 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
U.S. Federal Statutory Rate | 35.00% |
Non-deductible share-based compensation | 2.60% |
Rate benefit from the flow through entity | -27.40% |
Other | 1.40% |
Effective Tax Rate | 11.60% |
Income_Taxes_and_Related_Payme5
Income Taxes and Related Payments - Components of deferred tax assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ||
Amortizable basis | $183,858 | [1] | $0 | [1] |
Other | 4,049 | [2] | 0 | [2] |
Total deferred tax assets | 187,907 | 0 | ||
Less: valuation allowance | 0 | [3] | 0 | [3] |
Net deferred tax assets | $187,907 | $0 | ||
[1] | Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of Class A common units and preferred units by APAM. | |||
[2] | Represents the net deferred tax assets associated with the H&F Corp Merger and other miscellaneous deferred tax assets. | |||
[3] | Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Earnings_Per_Share_Antidilutiv
Earnings Per Share - Antidilutive securities excluded from the computation of net income per share (Detail) | 10 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Nov. 06, 2013 | Mar. 12, 2013 | Jul. 17, 2013 | |
Limited Partnership Units | Class A Common Stock | Class A Common Stock | Restricted Stock [Member] | ||
Employee Partners | |||||
Class A Common Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 50,478,443 | ' | ' | ' |
Shares issued during the period (shares) | ' | ' | 5,520,000 | 12,712,279 | 1,575,157 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,198,128 | ' | ' | ' | ' |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of basic and diluted net income (loss) per share (Detail) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Subsidiary Preferred Stock Dividends [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to APAM | $10,082 | $5,977 | $5,798 | $2,950 | $0 | $0 | $0 | $0 | $24,807 | $24,807 | $0 | $0 |
Less: Convertible preferred stock deemed dividends | ' | ' | ' | ' | ' | ' | ' | ' | -19,457 | ' | ' | ' |
Less: Allocation to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | -1,300 | ' | ' | ' |
Net income (loss) allocated to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | -28,165 | ' | ' | ' |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 13,780,378 | ' | ' | ' |
Earnings (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ($2.04) | ' | ' | ' |
Convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary Preferred Stock Dividends [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Convertible preferred stock deemed dividends | ' | ' | ' | ' | ' | ' | ' | ' | ($32,215) | ' | ' | ' |
Benefit_Plans_Detail
Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Defined Benefit Plan, Contributions by Employer | $4,400,000 | $3,800,000 | $3,400,000 |
Share-based compensation | 655,417,000 | 0 | 0 |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Share-based compensation | 1,500,000 | 600,000 | 600,000 |
Deferred Compensation Liability, Current and Noncurrent | $1,800,000 | $1,200,000 | ' |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total cost | $27,197 | $24,159 | ' |
Less: Accumulated depreciation | -18,437 | -15,352 | ' |
Property and equipment, net of accumulated depreciation | 8,760 | 8,807 | ' |
Depreciation expense | 3,207 | 2,384 | 2,350 |
Computers and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total cost | 6,259 | 5,320 | ' |
Computer Software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total cost | 5,356 | 4,617 | ' |
Furniture and Fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total cost | 4,166 | 3,637 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total cost | $11,416 | $10,585 | ' |
Lease_Commitments_Detail
Lease Commitments (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense, Net | $8,402 | $7,800 | $7,476 |
2014 | 9,119 | ' | ' |
2015 | 9,176 | ' | ' |
2016 | 8,468 | ' | ' |
2017 | 7,537 | ' | ' |
Thereafter | 46,499 | ' | ' |
Total | $80,799 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Artisan Funds | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | $9 | $81 | ' |
Annualized operating expenses maximum percentage of average daily net assets | 1.50% | ' | ' |
Investment management fees | 455,047 | 333,218 | 303,919 |
Fee waiver / expense reimbursement | 291 | 171 | 374 |
Artisan Funds | Minimum | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee percentage of average daily net assets | 0.64% | ' | ' |
Artisan Funds | Maximum | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee percentage of average daily net assets | 1.25% | ' | ' |
Artisan Global Funds | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | 2,201 | 728 | ' |
Investment management fees | 9,291 | 3,020 | 1,255 |
Fee waiver / expense reimbursement | 752 | 653 | 660 |
Artisan Global Funds | Minimum | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee percentage of average daily net assets | 0.75% | ' | ' |
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% | ' | ' |
Management fee threshold for reimbursement, percentage average daily net assets | 0.20% | ' | ' |
Launch Equity | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fee waiver / expense reimbursement | 172 | 141 | 150 |
Management fee as a percentage of closing capital account | 1.00% | ' | ' |
Percentage of fee expected to be waived in current period | 100.00% | ' | ' |
Percentage profit allocation | 20.00% | ' | ' |
AIC | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | $243 | $231 | ' |
Concentration_of_Credit_Risk_a2
Concentration of Credit Risk and Significant Relationships (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $197,593 | $178,092 | $161,933 | $148,223 | $137,036 | $128,083 | $120,786 | $119,673 | $685,841 | $505,578 | $455,094 |
Total Revenue [Member] | Geographic Concentration Risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 7.00% | 5.00% |
US Mid-Cap Growth [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 76,327 | 59,841 | 53,422 |
US Mid-Cap Growth [Member] | Total Revenue [Member] | Credit Concentration Risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 11.10% | 11.80% | 11.70% |
US Mid-Cap Value [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 93,774 | 73,720 | 64,402 |
US Mid-Cap Value [Member] | Total Revenue [Member] | Credit Concentration Risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 13.70% | 14.60% | 14.20% |
Non-US Growth [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 116,173 | 86,367 | 86,907 |
Non-US Growth [Member] | Total Revenue [Member] | Credit Concentration Risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 16.90% | 17.10% | 19.10% |
Non-US Value [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $88,342 | $54,851 | $43,996 |
Non-US Value [Member] | Total Revenue [Member] | Credit Concentration Risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 12.90% | 10.90% | 9.70% |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Detail) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $197,593 | $178,092 | $161,933 | $148,223 | $137,036 | $128,083 | $120,786 | $119,673 | ' | $685,841 | $505,578 | $455,094 |
Operating income | 58,366 | 53,360 | 48,384 | -421,314 | 39,433 | -38,219 | 41,508 | 4,365 | ' | -261,204 | 47,087 | 154,295 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | 50,505 | 44,614 | 42,442 | -407,123 | 36,652 | -42,902 | 38,959 | 1,051 | ' | -269,562 | 33,760 | 133,073 |
Net income attributable to Artisan Partners Asset Management Inc. | $10,082 | $5,977 | $5,798 | $2,950 | $0 | $0 | $0 | $0 | $24,807 | $24,807 | $0 | $0 |
Earnings Per Share, Basic | ($3.04) | $0.42 | $0.38 | $0.19 | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share, Diluted | ($3.04) | $0.35 | $0.38 | $0.19 | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Detail
Subsequent Events (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 | Feb. 03, 2014 |
Class A Common Stock | Class A Common Stock | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | |
Convertible preferred stock | Class A Common Stock | Class A Common Stock | Class A Common Stock | ||||
Quarterly cash dividend | Quarterly cash dividend | Special annual dividend | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Limited Partner, Cash Distributions Declared | ' | ' | $131,619 | ' | ' | ' | ' |
Dividends declared per share | $0.43 | $0.43 | ' | $3 | $2.18 | $0.55 | $1.63 |