Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |||
Mar. 31, 2014 | 5-May-14 | 5-May-14 | 5-May-14 | |
Class A Common Stock | Class B Common Stock | Class C Common Stock | ||
Document Information [Line Items] | ' | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 29,133,585 | 21,566,436 | 20,370,787 |
Entity Registrant Name | 'Artisan Partners Asset Management Inc. | ' | ' | ' |
Entity Central Index Key | '0001517302 | ' | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' | ' |
Document Type | '10-Q | ' | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' | ' |
Amendment Flag | 'false | ' | ' | ' |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Financial Condition (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $208,371 | $211,839 |
Cash and cash equivalents of Launch Equity | 30,263 | 19,156 |
Accounts receivable | 62,219 | 64,110 |
Accounts receivable of Launch Equity | 0 | 7,428 |
Investment securities | 17,911 | 7,804 |
Investment securities of Launch Equity | 60,528 | 63,364 |
Property and equipment, net | 9,998 | 8,760 |
Deferred tax assets | 474,789 | 187,907 |
Prepaid expenses and other assets | 13,049 | 11,030 |
Total assets | 877,128 | 581,398 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable, accrued expenses, and other | 48,672 | 45,369 |
Accrued incentive compensation | 64,580 | 3,580 |
Borrowings | 200,000 | 200,000 |
Amounts payable under tax receivable agreements | 405,207 | 160,663 |
Accounts payable of Launch Equity | 869 | 7,485 |
Securities sold, not yet purchased of Launch Equity | 38,222 | 31,990 |
Total liabilities | 757,550 | 449,087 |
Commitments and Contingencies | ' | ' |
Additional paid-in capital | 65,485 | 6,388 |
Retained earnings (deficit) | -24,419 | 1,401 |
Accumulated other comprehensive income (loss) | 582 | 378 |
Total stockholdersb equity | 55,616 | 43,779 |
Noncontrolling interest - Artisan Partners Holdings | 12,263 | 38,060 |
Noncontrolling interest - Launch Equity | 51,699 | 50,472 |
Total equity | 119,578 | 132,311 |
Total liabilities and equity | 877,128 | 581,398 |
Class A Common Stock | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 291 | 198 |
Class B Common Stock | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 216 | 253 |
Class C Common Stock | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 204 | 252 |
Convertible preferred stock | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Convertible preferred stock | $13,257 | $34,909 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Class A Common Stock | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 29,133,585 | 19,807,436 |
Class B Common Stock | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 21,566,436 | 25,271,889 |
Class C Common Stock | ' | ' |
Common stock, par value per share | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 20,370,787 | 25,206,554 |
Convertible preferred stock | ' | ' |
Convertible preferred stock, par value per share | $0.01 | $0.01 |
Convertible preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Convertible preferred stock, shares outstanding | 455,011 | 1,198,128 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Operations (USD $) | 1 Months Ended | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues | ' | ' | ' |
Management Fees | ' | $201,792 | $148,214 |
Performance fees | ' | 0 | 9 |
Total revenues | ' | 201,792 | 148,223 |
Compensation and benefits | ' | ' | ' |
Salaries, incentive compensation and benefits | ' | 85,855 | 72,680 |
Pre-offering related compensation - share-based awards | ' | 23,637 | 333,231 |
Pre-offering related compensation - other | ' | 0 | 143,035 |
Total compensation and benefits | ' | 109,492 | 548,946 |
Distribution and marketing | ' | 11,174 | 8,176 |
Occupancy | ' | 2,686 | 2,616 |
Communication and technology | ' | 4,476 | 3,330 |
General and administrative | ' | 6,812 | 6,469 |
Total operating expenses | ' | 134,640 | 569,537 |
Total operating income (loss) | ' | 67,152 | -421,314 |
Non-operating income (loss) | ' | ' | ' |
Interest expense | ' | -2,883 | -3,210 |
Net gain (loss) of Launch Equity | ' | -598 | 4,779 |
Net gain on the valuation of contingent value rights | ' | 0 | 24,800 |
Other non-operating expense | ' | -276 | 0 |
Total non-operating income (loss) | ' | -3,757 | 26,369 |
Income (loss) before income taxes | ' | 63,395 | -394,945 |
Provision for income taxes | ' | 11,208 | 4,449 |
Net income (loss) before noncontrolling interests | 34,948 | 52,187 | -399,394 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | ' | 44,149 | -407,123 |
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | ' | -598 | 4,779 |
Net income attributable to Artisan Partners Asset Management Inc. | $2,950 | $8,636 | $2,950 |
Earnings (loss) per share | ' | ' | ' |
Basic | $0.19 | ($2.29) | ' |
Diluted | $0.19 | ($2.29) | ' |
Weighted average number of common shares outstanding | ' | ' | ' |
Basic | 12,728,949 | 20,214,242 | ' |
Diluted | 15,294,412 | 20,214,242 | ' |
Dividends declared per Class A common share | $0 | $2.18 | ' |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income (loss) before noncontrolling interests | $52,187 | ($399,394) |
Unrealized gains on investment securities: | ' | ' |
Unrealized holding gains on investment securities, net of tax of $86 and $39, respectively | 21 | 1,854 |
Less: reclassification adjustment for gains (losses) included in net income | 0 | 0 |
Net unrealized gains on investment securities | 21 | 1,854 |
Foreign currency translation gain (loss) | 53 | -322 |
Total other comprehensive income | 74 | 1,532 |
Comprehensive income (loss) | 52,261 | -397,862 |
Comprehensive income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | 44,019 | -405,662 |
Comprehensive income (loss) attributable to noncontrolling interests - Launch Equity | -598 | 4,779 |
Comprehensive income attributable to Artisan Partners Asset Management Inc. | $8,840 | $3,021 |
Unaudited_Consolidated_Stateme4
Unaudited Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Tax on unrealized gains on investment securities | $86 | $39 |
Unaudited_Consolidated_Stateme5
Unaudited Consolidated Statements of Changes in Shareholders Equity (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest | Noncontrolling Interest | Redeemable Preferred Units [Member] | IPO [Member] | IPO [Member] |
In Thousands | Launch Equity | Noncontrolling Interest | |||||||||
Redeemable preferred units at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | $357,194 | ' | ' |
Balance at beginning of period at Dec. 31, 2012 | -672,715 | 0 | 0 | 0 | 0 | 0 | -709,414 | 36,699 | ' | ' | ' |
Net income (loss) before noncontrolling interests | -434,342 | ' | ' | ' | ' | ' | -434,342 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 1,065 | ' | ' | ' | ' | ' | 1,065 | ' | ' | ' | ' |
Distributions | -100,514 | ' | ' | ' | ' | ' | -100,514 | ' | ' | ' | ' |
Modification of equity 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 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 | ' | ' | ' |
Net income (loss) before noncontrolling interests | 34,948 | ' | ' | ' | 2,950 | ' | 27,219 | 4,779 | ' | ' | ' |
Capital contribution | 3,050 | ' | ' | ' | ' | ' | ' | 3,050 | ' | ' | ' |
Amortization of equity-based compensation | 4,498 | ' | ' | 1,374 | ' | ' | 3,124 | ' | ' | ' | ' |
Deferred Tax Assets Net Of Amounts Payable Under Tax Receivable Agreements | 17,989 | ' | ' | 17,989 | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A Common Stock, Net of Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 353,414 | 353,414 |
Other Comprehensive Income (Loss), Net of Tax | 467 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Capital redemption | -76,319 | ' | ' | ' | ' | ' | -76,319 | ' | ' | ' | ' |
Attribution of Noncontrolling Interest | 0 | 674 | 74,748 | -58,365 | ' | 3,029 | -20,086 | ' | ' | ' | ' |
Redeemable preferred units at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Balance at end of period at Mar. 31, 2013 | 5,750 | 674 | 74,748 | -39,002 | 2,950 | 3,496 | -81,644 | 44,528 | ' | ' | ' |
Balance at beginning of period at Dec. 31, 2013 | 132,311 | 703 | 34,909 | 6,388 | 1,401 | 378 | 38,060 | 50,472 | ' | ' | ' |
Net income (loss) before noncontrolling interests | 52,187 | ' | ' | ' | 8,636 | ' | 44,149 | -598 | ' | ' | ' |
Other comprehensive income - foreign currency translation | 53 | ' | ' | ' | ' | 13 | 40 | ' | ' | ' | ' |
Other comprehensive income - available for sale investments, net of tax | 99 | ' | ' | ' | ' | 14 | 85 | ' | ' | ' | ' |
Cumulative impact of changes in ownership, net of tax | -78 | ' | ' | -3,456 | ' | 177 | 3,201 | ' | ' | ' | ' |
Capital contribution | 1,825 | ' | ' | ' | ' | ' | ' | 1,825 | ' | ' | ' |
Amortization of equity-based compensation | 28,278 | ' | ' | 9,357 | ' | ' | 18,921 | ' | ' | ' | ' |
Deferred Tax Assets Net Of Amounts Payable Under Tax Receivable Agreements | 45,825 | ' | ' | 45,825 | ' | ' | ' | ' | ' | ' | ' |
Issuance of Class A Common Stock, Net of Issuance Costs | 552,990 | 93 | ' | 552,897 | ' | ' | ' | ' | ' | ' | ' |
Purchase of convertible preferred stock and subsidiary equity | -554,129 | -85 | -21,652 | -533,204 | 0 | ' | 812 | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Net of Tax | 74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions | -93,005 | ' | ' | ' | ' | ' | -93,005 | ' | ' | ' | ' |
Dividends | -46,778 | ' | ' | -12,322 | -34,456 | ' | ' | ' | ' | ' | ' |
Initial establishment of contingent value right liability | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at end of period at Mar. 31, 2014 | $119,578 | $711 | $13,257 | $65,485 | ($24,419) | $582 | $12,263 | $51,699 | ' | ' | ' |
Unaudited_Consolidated_Stateme6
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income (loss) before noncontrolling interests | $52,187 | ($399,394) |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 693 | 698 |
Deferred income taxes | 2,540 | 2,646 |
Net gain on the valuation of contingent value rights | 0 | -24,800 |
(Gains) losses of Launch Equity, net | 598 | -4,779 |
Proceeds from sale of investments by Launch Equity | 56,880 | 22,204 |
Purchase of investments by Launch Equity | -48,094 | -22,109 |
Loss on disposal of property and equipment | 5 | 1 |
Amortization of debt issuance costs | 112 | 112 |
Share-based compensation | 28,278 | 576,969 |
Change in assets and liabilities resulting in an increase (decrease) in cash: | ' | ' |
Net change in operating assets and liabilities of Launch Equity | -10,611 | -3,013 |
Accounts receivable | 1,891 | -5,459 |
Prepaid expenses and other assets | -1,442 | -263 |
Accounts payable and accrued expenses | 67,634 | 54,434 |
Class B liability awards | -3,459 | -226,177 |
Deferred lease obligations | 10 | -71 |
Net cash (used in) provided by operating activities | 147,222 | -29,001 |
Cash flows from investing activities | ' | ' |
Acquisition of property and equipment | -990 | -455 |
Leasehold improvements | -949 | -199 |
Proceeds from Sale of Property, Plant, and Equipment | 4 | 0 |
Purchase of Investment Securities | -10,000 | -2,000 |
Net cash used in investing activities | -11,935 | -2,654 |
Cash flows from financing activities | ' | ' |
Partnership distributions | -93,005 | -100,530 |
Dividends Paid | -46,778 | 0 |
Change in other liabilities | -16 | -16 |
Repayment under revolving credit facility | 0 | -90,000 |
Net proceeds from issuance of common stock | 554,129 | 356,579 |
Payment of costs directly associated with the issuance of Class A common stock | -781 | -3,165 |
Purchase of preferred stock and subsidiary equity | -554,129 | 0 |
Purchase of Class A common units | 0 | -76,319 |
Capital invested into Launch Equity | 1,825 | 3,050 |
Net cash provided by (used in) financing activities | -138,755 | 89,599 |
Net increase (decrease) in cash and cash equivalents | -3,468 | 57,944 |
Cash and cash equivalents | ' | ' |
Beginning of period | 211,839 | 141,159 |
End of period | 208,371 | 199,103 |
Noncash activity: | ' | ' |
Establishment of deferred tax assets | 287,367 | 70,862 |
Establishment of amounts payable under tax receivable agreements | 244,262 | 53,449 |
Establishment of contingent value rights | 0 | 55,440 |
Preferred Stock | ' | ' |
Noncash activity: | ' | ' |
Issuance of preferred stock | $0 | $74,748 |
Organization_and_nature_of_bus
Organization and nature of business | 3 Months Ended | |
Mar. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
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 (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 (“IPO Reorganization”) established the necessary corporate structure to complete the IPO while at the same time preserving the ability of the firm to conduct operations through Holdings and its subsidiaries. | ||
As part of the IPO 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 March 31, 2014, APAM’s total economic interest in Holdings approximated 41% 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. 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. | ||
Artisan has six autonomous investment teams that oversee fourteen distinct U.S., non-U.S. and global investment strategies. During the March quarter of 2014 Artisan launched its fourteenth investment strategy, the Artisan Partners High Income strategy, which is managed by the firm’s Credit team. | ||
Each strategy is offered through multiple investment vehicles to accommodate a broad range of client mandates. Artisan offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. | ||
2014 Follow-On Offering | ||
On March 12, 2014, APAM completed a registered public offering of 9,284,337 shares of Class A common stock (the “2014 Follow-on Offering”) and utilized all of the net proceeds to purchase an aggregate of 6,284,337 common units and 2,256,883 preferred units of Artisan Partners Holdings and 743,117 shares of APAM’s convertible preferred stock, at a price per unit or share, as applicable, equal to $62.00 less the underwriting discount per share. The offering and subsequent purchase of shares and units had the following impact on the consolidated financial statements: | ||
• | APAM received 9,284,337 general partnership (“GP”) units of Holdings, and APAM’s ownership interest in Holdings increased from 29% to 41%. See Note 7, “Noncontrolling interest - Holdings” for the impact of the change in ownership. | |
• | APAM’s purchase of common and preferred units of Holdings with a portion of the net proceeds resulted in an increase to deferred tax assets of approximately $287.4 million and an increase in amounts payable under tax receivable agreements of approximately $244.3 million. | |
• | The purchase price of the convertible preferred stock exceeded its carrying value on APAM’s consolidated balance sheet by $22.7 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 the preferred units of Holdings resulted in a similar deemed dividend, which reduced net income available to common stockholders by an additional $25.2 million in the calculation of earnings per share. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2014 | ||
Policy Text Block [Abstract] | ' | |
Significant Accounting Policies [Text Block] | ' | |
Note 2. Summary of Significant Accounting Policies | ||
Basis of presentation | ||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such consolidated financial statements have been included. Such interim results are not necessarily indicative of full year results. | ||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and accordingly they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. As a result, the interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in APAM’s latest annual report on Form 10-K. | ||
The accompanying financial statements were prepared in accordance with U.S. GAAP and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. | ||
Because APAM and Holdings were under common control at the time of the IPO 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’ equity or 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. | |
Principles of consolidation | ||
Artisan’s policy is to consolidate all subsidiaries or other entities 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 or other entities 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. | ||
Artisan’s wholly-owned subsidiary, Artisan Partners Alternative Investments GP LLC, is 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 is accounted for under ASC 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 8, “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 are 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 of March 31, 2014, APAM does not have a controlling financial interest in any of its seed investments. | ||
Recent accounting pronouncements | ||
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 was adopted prospectively on January 1, 2014 and did not have an impact on the Company’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 was adopted prospectively on January 1, 2014 and did not have an impact on the Company’s consolidated financial statements. |
Investment_Securities
Investment Securities | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investment securities | ' | |||||||||||||||
Note 3. Investment Securities | ||||||||||||||||
The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are described in Note 8, “Variable and Voting Interest Entities”. | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
At March 31, 2014 | ||||||||||||||||
Mutual funds | $ | 16,190 | $ | 1,721 | $ | — | $ | 17,911 | ||||||||
At December 31, 2013 | ||||||||||||||||
Mutual funds | $ | 6,190 | $ | 1,614 | $ | — | $ | 7,804 | ||||||||
Artisan’s investments in 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). During the three months ended March 31, 2014, Artisan made an investment of $10.0 million in Artisan Partners High Income Fund. | ||||||||||||||||
As of March 31, 2014 and December 31, 2013, Artisan held no available-for-sale securities in an unrealized loss position. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Note 4. Fair Value Measurements | ||||||||||||||||
The table below presents information about Artisan’s assets and liabilities that are measured at fair value and the valuation techniques Artisan utilized to determine such fair value. The fair value of financial instruments held by Launch Equity is presented in Note 8, “Variable and Voting Interest Entities”. 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 March 31, 2014 and December 31, 2013: | ||||||||||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
March 31, 2014 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 60,002 | $ | 60,002 | $ | — | $ | — | ||||||||
Mutual funds | 17,911 | 17,911 | — | — | ||||||||||||
December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 105,001 | $ | 105,001 | $ | — | $ | — | ||||||||
Equity mutual funds | 7,804 | 7,804 | — | — | ||||||||||||
Fair values determined based on Level 1 inputs utilize quoted market prices for identical assets. Level 1 assets generally consist of money market accounts, marketable open-end mutual funds or UCITS. There were no Level 2 or Level 3 assets or liabilities recorded at fair value as of March 31, 2014 and December 31, 2013. | ||||||||||||||||
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 three months ended March 31, 2014 and 2013. |
Borrowings
Borrowings | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Borrowings | ' | ||||||||
Note 5. Borrowings | |||||||||
Artisan’s borrowings consist of the following as of March 31, 2014 and December 31, 2013: | |||||||||
Maturity | Outstanding Balance | Interest Rate Per Annum | |||||||
Revolving credit agreement | Aug-17 | — | NA | ||||||
Senior notes | |||||||||
Series A | Aug-17 | 60,000 | 4.98 | % | |||||
Series B | Aug-19 | 50,000 | 5.32 | % | |||||
Series C | Aug-22 | 90,000 | 5.82 | % | |||||
Total borrowings | $ | 200,000 | |||||||
The fair value of borrowings was approximately $201.6 million as of March 31, 2014. 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 4, “Fair Value Measurements”. | |||||||||
Interest expense incurred on the unsecured notes and revolving credit agreement was $2.8 million and $3.1 million for the three months ended March 31, 2014 and 2013, respectively. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Note 6. Derivative Instruments | ||||||||||||||||||
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 with no amounts paid or payable by Artisan. | ||||||||||||||||||
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. 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. The following table presents gains (losses) recognized on derivative instruments for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Income Statement Classification | Gains | Losses | Gains | Losses | ||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | — | $ | — | $ | 24,800 | $ | — | |||||||||
Total | $ | — | $ | — | $ | 24,800 | $ | — | ||||||||||
Noncontrolling_Interest_Holdin
Noncontrolling Interest - Holdings | 3 Months Ended |
Mar. 31, 2014 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling interest - Artisan Partners Holdings | ' |
Note 7. 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 March 31, 2014, APAM held approximately 41% of the economic interests in Holdings. Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings in the Unaudited Consolidated Statements of Operations represents the portion of earnings or loss attributable to the economic interests in Holdings held by the limited partners of Holdings. All income for the period prior to March 12, 2013, is entirely attributable to noncontrolling interests. | |
During the three months ended March 31, 2014, APAM’s ownership interest in Holdings increased due to (i) the issuance of 41,812 Holdings’ GP units corresponding to 41,812 restricted shares of Class A common stock issued by APAM during the period, (ii) the issuance of 9,284,337 Holdings’ GP units corresponding to the 9,284,337 shares of Class A common stock issued during the period and (iii) APAM’s purchase and cancellation of 6,284,337 common units and 3,000,000 preferred units of Holdings. 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 Unaudited Condensed 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 $3.5 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 $0.3 million reduction to Noncontrolling interest and a $0.2 million increase to accumulated other comprehensive income, net of tax. The increased ownership level also resulted in a $2.1 million increase in deferred tax assets and Additional paid-in-capital. The impact of the change in APAM’s ownership interests in Holdings is reflected in the Unaudited Consolidated Statement of Changes in Stockholders’ Equity. |
Variable_and_Voting_Interest_E
Variable and Voting Interest Entities | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Variable Interest Entities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Variable and voting interest entities | ' | |||||||||||||||||||||||||||||||
Note 8. 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 current or former Artisan employees and are considered related parties. Artisan has determined that Launch Equity is a 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 fees and incentive allocations, 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 allocation based upon the net capital appreciation of the fund. Also, in the ordinary course of business, Artisan may choose to waive certain fees, its incentive allocation 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 does it 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 March 31, 2014 and December 31, 2013 and results into the Consolidated Statement of Operations for the three months ended March 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||
Consolidation | Consolidation | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 208,371 | $ | — | $ | — | $ | 208,371 | $ | 211,839 | $ | — | $ | — | $ | 211,839 | ||||||||||||||||
Cash and cash equivalents of Launch Equity | — | 30,263 | — | 30,263 | — | 19,156 | — | 19,156 | ||||||||||||||||||||||||
Accounts receivable | 62,219 | — | — | 62,219 | 64,110 | — | — | 64,110 | ||||||||||||||||||||||||
Accounts receivable of Launch Equity | — | — | — | — | — | 7,428 | — | 7,428 | ||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 60,528 | (1 | ) | 60,528 | 1 | 63,364 | (1 | ) | 63,364 | ||||||||||||||||||||||
Other assets | 515,747 | — | — | 515,747 | 215,501 | — | — | 215,501 | ||||||||||||||||||||||||
Total assets | $ | 786,338 | $ | 90,791 | $ | (1 | ) | $ | 877,128 | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | ||||||||||||||
Accounts payable of Launch Equity | $ | — | $ | 869 | $ | — | $ | 869 | $ | — | $ | 7,485 | $ | — | $ | 7,485 | ||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 38,222 | — | 38,222 | — | 31,990 | — | 31,990 | ||||||||||||||||||||||||
Other liabilities | 718,459 | — | — | 718,459 | 409,612 | — | — | 409,612 | ||||||||||||||||||||||||
Total liabilities | 718,459 | 39,091 | — | 757,550 | 409,612 | 39,475 | — | 449,087 | ||||||||||||||||||||||||
Total stockholders’ equity | 55,616 | — | — | 55,616 | 43,779 | — | — | 43,779 | ||||||||||||||||||||||||
Noncontrolling interest - Artisan Partners Holdings | 12,263 | 1 | (1 | ) | 12,263 | 38,060 | 1 | (1 | ) | 38,060 | ||||||||||||||||||||||
Noncontrolling interest - Launch Equity | — | 51,699 | — | 51,699 | — | 50,472 | — | 50,472 | ||||||||||||||||||||||||
Total equity | 67,879 | 51,700 | (1 | ) | 119,578 | 81,839 | 50,473 | (1 | ) | 132,311 | ||||||||||||||||||||||
Total liabilities and equity | $ | 786,338 | $ | 90,791 | $ | (1 | ) | $ | 877,128 | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | ||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||
Consolidation | Consolidation | |||||||||||||||||||||||||||||||
Total revenues | $ | 201,917 | $ | — | $ | (125 | ) | $ | 201,792 | $ | 148,327 | $ | — | $ | (104 | ) | $ | 148,223 | ||||||||||||||
Total operating expenses | 134,765 | — | (125 | ) | 134,640 | 569,641 | — | (104 | ) | 569,537 | ||||||||||||||||||||||
Operating income (loss) | 67,152 | — | — | 67,152 | (421,314 | ) | — | — | (421,314 | ) | ||||||||||||||||||||||
Non-operating income (loss) | (3,159 | ) | — | — | (3,159 | ) | 21,590 | — | — | 21,590 | ||||||||||||||||||||||
Net gain (loss) of Launch Equity | — | (598 | ) | — | (598 | ) | — | 4,779 | — | 4,779 | ||||||||||||||||||||||
Total non-operating income (loss) | (3,159 | ) | (598 | ) | — | (3,757 | ) | 21,590 | 4,779 | — | 26,369 | |||||||||||||||||||||
Income (loss) before income taxes | 63,993 | (598 | ) | — | 63,395 | (399,724 | ) | 4,779 | — | (394,945 | ) | |||||||||||||||||||||
Provision for income taxes | 11,208 | — | — | 11,208 | 4,449 | — | — | 4,449 | ||||||||||||||||||||||||
Net income (loss) | 52,785 | (598 | ) | — | 52,187 | (404,173 | ) | 4,779 | — | (399,394 | ) | |||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | 44,149 | — | — | 44,149 | (407,123 | ) | — | — | (407,123 | ) | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | — | (598 | ) | — | (598 | ) | — | 4,779 | — | 4,779 | ||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 8,636 | $ | — | $ | — | $ | 8,636 | $ | 2,950 | $ | — | $ | — | $ | 2,950 | ||||||||||||||||
The carrying value of Launch Equity’s consolidated investments is also their fair value. Short and long positions on investment 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 March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities – long position | $ | 60,528 | $ | 60,528 | $ | — | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Investment securities – short position | $ | 38,222 | $ | 38,222 | $ | — | $ | — | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities – long position | $ | 63,364 | $ | 63,364 | $ | — | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Investment securities – short position | $ | 31,990 | $ | 31,990 | $ | — | $ | — | ||||||||||||||||||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Shareholder's equity | ' | ||||||||||||
Note 9. Stockholders' Equity | |||||||||||||
APAM - Stockholders’ Equity | |||||||||||||
As of March 31, 2014 and December 31, 2013, APAM had the following authorized and outstanding equity: | |||||||||||||
Outstanding | |||||||||||||
Authorized | 31-Mar-14 | 31-Dec-13 | Voting Rights (1) | Economic Rights (2) | |||||||||
Common shares | |||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 29,133,585 | 19,807,436 | 1 vote per share | Proportionate | ||||||||
Class B, par value $0.01 per share | 200,000,000 | 21,566,436 | 25,271,889 | 5 votes per share | None | ||||||||
Class C, par value $0.01 per share | 400,000,000 | 20,370,787 | 25,206,554 | 1 vote per share | None | ||||||||
Preferred shares | |||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 455,011 | 1,198,128 | 1 vote per share | Proportionate | ||||||||
(1) 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 March 31, 2014, Artisan’s employees held 1,616,969 shares of Class A common stock subject to the agreement and all 21,566,436 outstanding shares of Class B 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 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. During the three months ended March 31, 2014, APAM paid a dividend of $2.18 per share of outstanding Class A common stock and $3.00 per share of outstanding convertible preferred stock. | |||||||||||||
Class A Common Stock | |||||||||||||
During the three months ended March 31, 2014, APAM issued 9,326,149 shares of Class A common stock, in connection with the 2014 Follow-on Offering and restricted share awards granted during the quarter. APAM also granted a total of 6,970 restricted stock units with respect to Class A common stock to non-employee directors. | |||||||||||||
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) is exchangeable for one share of Class A common stock. The preferred units of Holdings (together with the corresponding shares of Class C common stock) are also exchangeable for Class A common stock generally on a one-for-one basis, though in certain circumstances on a 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. During the three months ended March 31, 2014, there were no exchanges of units or conversions of convertible preferred stock. | |||||||||||||
Class B Common Stock | |||||||||||||
In 2013, APAM issued 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. As part of the 2014 Follow-on Offering, APAM canceled 3,705,453 shares of Class B common stock corresponding to the Class B common units APAM purchased. | |||||||||||||
Class C Common Stock | |||||||||||||
In 2013, APAM issued shares of Class C common stock to certain investors in Holdings in amounts equal to the number of units the investors held in Holdings. As part of the 2014 Follow-on Offering, APAM canceled 4,835,767 shares of Class C common stock corresponding to the Class A, D, and E common units and the preferred units APAM purchased. | |||||||||||||
Convertible Preferred Stock | |||||||||||||
APAM issued shares of convertible preferred stock in 2013. 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. As part of the March 2014 Follow-on Offering, APAM purchased 743,117 shares of convertible preferred stock and immediately canceled the shares. | |||||||||||||
Artisan Partners Holdings - Partners’ Equity | |||||||||||||
Prior to the IPO Reorganization, Holdings was a private company. Holdings has several outstanding classes of partnership units held by investors. | |||||||||||||
Holdings makes 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 makes additional distributions of its net income under the terms of the partnership agreement. The distributions are recorded in the financial statements on the declaration date, or on the payment date in lieu of a declaration date. | |||||||||||||
Holdings’ partnership distributions totaled $131.6 million and $166.2 million for the three months ended March 31, 2014 and 2013, 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 for the three months ended March 31, 2013. The portion of these distributions made prior to the IPO to the other partners of Holdings and, after the IPO, to all partners are recorded to total stockholders’ equity, with the exception of the portion of distributions made to APAM, the general partner of Holdings. Holdings distributions to APAM totaled $38.6 million for the three months ended March 31, 2014. |
Compensation_and_Benefits
Compensation and Benefits | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Compensation and benefits | ' | ||||||||
Note 10. Compensation and Benefits | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Salaries, incentive compensation and benefits (1) | $ | 81,597 | $ | 72,680 | |||||
Restricted share compensation expense | 4,258 | — | |||||||
Total salaries, incentive compensation and benefits | 85,855 | 72,680 | |||||||
Pre-offering related compensation - share-based awards | 23,637 | 333,231 | |||||||
Pre-offering related compensation - other | — | 143,035 | |||||||
Total compensation and benefits | $ | 109,492 | $ | 548,946 | |||||
(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 Artisan’s overall results during the applicable year and has historically been paid in the fourth quarter of the year. | |||||||||
Restricted shares | |||||||||
Pursuant to the 2013 Omnibus Incentive Compensation Plan, Artisan has issued restricted shares of Class A common stock to its employees and employees of its subsidiaries. The shares vest on a pro rata basis over five years. Unvested shares are subject to forfeiture upon termination of employment. Grantees receiving the awards are entitled to dividends on unvested and vested shares. | |||||||||
Compensation expense related to the restricted shares is recognized based on the 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 three months ended March 31, 2014: | |||||||||
Weighted-Average Grant Date Fair Value | Number of Awards | ||||||||
Unvested at December 31, 2013 | $ | 52.36 | 1,575,157 | ||||||
Granted | $ | 71.59 | 41,812 | ||||||
Forfeited | — | — | |||||||
Vested | — | — | |||||||
Unvested at March 31, 2014 | $ | 52.85 | 1,616,969 | ||||||
Compensation expense recognized related to the restricted shares was $4.3 million for the three months ended March 31, 2014. The unrecognized compensation expense for the unvested restricted shares as of March 31, 2014 was $70.5 million with a weighted average recognition period of 4.4 years remaining. | |||||||||
Pre-offering related compensation consists of the following: | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Change in value of Class B liability awards | $ | — | $ | 41,942 | |||||
Class B award modification expense | — | 287,292 | |||||||
Amortization expense on pre-offering Class B awards | 23,637 | 3,997 | |||||||
Pre-offering related compensation - share-based awards | 23,637 | 333,231 | |||||||
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 | |||||||
Pre-offering related compensation - other | — | 143,035 | |||||||
Total pre-offering related compensation | $ | 23,637 | $ | 476,266 | |||||
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. The Class B awards of partners whose services to Holdings terminated prior to the IPO will be redeemed for payments totaling $19.6 million and $23.0 million as of March 31, 2014 and December 31, 2013, respectively. Payments of $3.4 million were made for the three months ended March 31, 2014. | |||||||||
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. | |||||||||
The following table summarizes the activity related to unvested Class B awards for the three months ended March 31, 2014: | |||||||||
Weighted-Average Grant Date Fair Value | Number of Class B Awards | ||||||||
Unvested Class B awards at January 1, 2014 | $ | 30 | 7,249,842 | ||||||
Granted | — | — | |||||||
Forfeited | — | — | |||||||
Vested | $ | 30 | (666,878 | ) | |||||
Unvested at March 31, 2014 | $ | 30 | 6,582,964 | ||||||
The unrecognized compensation expense for the unvested Class B awards as of March 31, 2014 was $128.2 million with a weighted average recognition period of 2.8 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 | |||||||||
During the three months ended March 31, 2013, 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 was allocated and distributed to certain employee-partners. For the period between January 1, 2013 and the IPO, profits distributions totaling $65.7 million were made to Class B partners. |
Income_Taxes_and_Related_Payme
Income Taxes and Related Payments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income taxes and related payments | ' | ||||||||
Note 11. 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 of 35% primarily due to a rate benefit attributable to the fact that approximately 62% 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 Reorganization, none of Holdings’ earnings were subject to U.S. corporate-level taxes. | |||||||||
In connection with the IPO, APAM entered into two tax receivable agreements (“TRAs”). Under the first TRA, APAM generally is required to pay to a private equity fund controlled by Hellman & Friedman LLC 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 of a wholly-owned subsidiary of the private equity fund into APAM in March 2013 (the “H&F Corp 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 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. | |||||||||
The 2014 Follow-on Offering resulted in an increase to deferred tax assets and amounts payable under the TRA of $287.4 million and $244.3 million, respectively. As of March 31, 2014, the deferred tax asset and amounts payable related to the TRA were $468.4 million and $405.2 million. respectively. No amounts were paid under the TRAs during the three months ended March 31, 2014. | |||||||||
Components of the provision for income taxes consist of the following: | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 7,610 | $ | 1,177 | |||||
State and local | 981 | 544 | |||||||
Foreign | 77 | 82 | |||||||
Total | 8,668 | 1,803 | |||||||
Deferred: | |||||||||
Federal | 2,776 | 2,588 | |||||||
State and local | (236 | ) | 58 | ||||||
Total | 2,540 | 2,646 | |||||||
Income tax expense | $ | 11,208 | $ | 4,449 | |||||
Net deferred tax assets comprise the following: | |||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||
Deferred tax assets: | |||||||||
Amortizable basis (1) | $ | 468,440 | $ | 183,858 | |||||
Other (2) | 6,349 | 4,049 | |||||||
Total deferred tax assets | 474,789 | 187,907 | |||||||
Less: valuation allowance (3) | — | — | |||||||
Net deferred tax assets | $ | 474,789 | $ | 187,907 | |||||
(1) Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of common 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 March 31, 2014 and December 31, 2013. | |||||||||
In the normal course of business, Artisan is subject to examination by federal and certain state, local and foreign tax regulators. As of March 31, 2014, U.S. federal income tax returns for the years 2010 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 2010 to 2013. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Text Block] | ' | |||||||
Note 12. Accumulated Other Comprehensive Income (loss) | ||||||||
Accumulated other comprehensive income (loss), net of tax, in the accompanying Condensed Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the | ||||||||
following: | ||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||
Unrealized gain on investments | $ | 455 | $ | 303 | ||||
Foreign currency translation | 127 | 75 | ||||||
Accumulated Other Comprehensive Income (Loss) | $ | 582 | $ | 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. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share [Text Block] | ' | |||||||
Note 13. Earnings Per Share | ||||||||
Basic earnings per share is computed by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. 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 reducing net income attributable to APAM by 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. All income for the period prior to the IPO was entirely allocable to noncontrolling interest. As a result, only net income allocable to APAM from the period subsequent to the IPO is included in net income (loss) available to Class A common stockholders for the period ended March 31, 2013. | ||||||||
As described in Note 1, “Organization and nature of business” the consideration Artisan paid to purchase shares of its convertible preferred stock in connection with the 2014 Follow-on Offering exceeded the carrying amount of the shares of convertible preferred stock on Artisan’s consolidated balance sheet by $22.7 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 in connection with the 2014 Follow-on Offering resulted in a similar deemed dividend, which reduced net income available to common stockholders by an additional $25.2 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, (2) the Class A common shares issuable upon conversion of APAM convertible preferred stock into APAM Class A common stock and (3) unvested restricted shares of Class A common stock. | ||||||||
At March 31, 2014 and 2013, there were 41,937,223 and 54,713,763, respectively, limited partnership units of Holdings outstanding exchangeable, as of March 12, 2014, for up to 41,937,223 and 54,713,763 shares, respectively, of APAM’s Class A common stock. 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. For the three months ended March 31, 2014, a net loss was allocable to common stockholders. As a result, 1,616,969 shares of unvested restricted stock and 455,011 shares of convertible preferred stock and the net income allocated to those shares were excluded from the diluted earnings per share calculation because their effect would have been anti-dilutive. | ||||||||
At March 31, 2013, 2,565,463 shares of APAM convertible preferred stock were determined to be dilutive and are included in the diluted earnings per share calculation. The dilutive effect of outstanding convertible preferred stock is reflected in diluted earnings per share by application of the if-converted method. | ||||||||
The computation of weighted average common shares outstanding considers the outstanding shares of Class A common stock from January 1, 2014 through March 31, 2014 and March 12, 2013 through March 31, 2013, for the respective periods. 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 periods ended March 31, 2014 and 2013 were as follows: | ||||||||
Basic and Diluted Earnings Per Share | For the Three Months Ended March 31, 2014 | For the Period from March 12, 2013 to March 31, 2013 | ||||||
Numerator: | ||||||||
Net income (loss) allocable to APAM | $ | 8,636 | $ | 2,950 | ||||
Less: Convertible preferred stock deemed dividends | (22,694 | ) | — | |||||
Less: Subsidiary preferred equity deemed dividends | (25,155 | ) | — | |||||
Less: Allocation to participating securities | (6,980 | ) | (495 | ) | ||||
Net income (loss) allocable to common stockholders | $ | (46,193 | ) | $ | 2,455 | |||
Denominator: | ||||||||
Weighted average shares outstanding - basic | 20,214,242 | 12,728,949 | ||||||
Effect of dilutive securities | — | 2,565,463 | ||||||
Weighted average shares outstanding - diluted | 20,214,242 | 15,294,412 | ||||||
Earnings (loss) per share - basic and diluted | $ | (2.29 | ) | $ | 0.19 | |||
Indemnifications
Indemnifications | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Indemnifications | ' |
Note 14. 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, Artisan Investment Corporation (“AIC”) as its former general partner, the directors and officers of APAM, the directors and officers of AIC as its former general partner, the members of its former Advisory Committee, and its partners, directors, officers, employees and agents. Holdings’ subsidiaries may also have similar agreements to indemnify their respective general partner(s), directors, officers, 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. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related party transactions | ' | |||||||
Note 15. 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 0.63% 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, and 1.25% of the fund’s average daily net assets for the Artisan Partners High Income Fund. 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 March 31, 2014 and December 31, 2013, accounts receivable included $3 thousand and $9 thousand due from the Funds, respectively. | ||||||||
Fees for managing the Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment management fees: | ||||||||
Artisan Funds | $ | 136,586 | $ | 98,080 | ||||
Fee waiver / expense reimbursement: | ||||||||
Artisan Funds | $ | 60 | $ | 121 | ||||
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 March 31, 2014 and December 31, 2013, respectively, accounts receivable included $1.2 million and $2.2 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 Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment management fees: | ||||||||
Artisan Global Funds | $ | 3,239 | $ | 1,439 | ||||
Fee waiver / expense reimbursement: | ||||||||
Artisan Global Funds | $ | 82 | $ | 126 | ||||
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 of profits 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, is calculated at the end of the Launch Equity’s fiscal year. Artisan waived its incentive allocation for the year ended December 31, 2013. Expense reimbursements totaled $38 thousand and $40 thousand for the three months ended March 31, 2014 and 2013, respectively. | ||||||||
Affiliate transactions—AIC | ||||||||
Artisan had and has cost sharing arrangements with entities controlled by Andrew A. Ziegler (APAM’s Chairman of the Board and former Artisan employee) and Carlene M. Ziegler (also a former Artisan employee), pursuant to which the Ziegler entities currently reimburse Artisan for the costs associated with three employees using Artisan’s office space while they transition to new facilities, which is expected to occur by the end of June 2014. In addition, Artisan has obtained and paid for insurance policies covering potential liability AIC may incur as the prior general partner of Holdings. At March 31, 2014 and December 31, 2013, accounts receivable included $139 thousand and $243 thousand due from Ziegler entities, respectively. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
Note 16. Subsequent Events | |
Distributions and dividends | |
On April 10, 2014, Artisan Partners Holdings paid an aggregate tax distribution of $48.9 million to partnership unit holders, including APAM. On April 22, 2014, the board of directors of APAM declared a distribution by Artisan Partners Holdings of $30.6 million to holders of Artisan Partners Holdings partnership units, including APAM. On the same date, the board declared a quarterly dividend of $0.55 per share of APAM’s Class A common stock and a dividend of $0.81 per share of APAM’s convertible preferred stock. The APAM dividends are payable on May 30, 2014, to shareholders of record as of May 16, 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of presentation | ' | |
Basis of presentation | ||
The accompanying financial statements are unaudited. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of such consolidated financial statements have been included. Such interim results are not necessarily indicative of full year results. | ||
The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and accordingly they do not include all of the information and footnotes required in the annual consolidated financial statements and accompanying footnotes. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. As a result, the interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in APAM’s latest annual report on Form 10-K. | ||
The accompanying financial statements were prepared in accordance with U.S. GAAP and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. | ||
Because APAM and Holdings were under common control at the time of the IPO 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’ equity or 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. | |
Principles of consolidation | ' | |
Principles of consolidation | ||
Artisan’s policy is to consolidate all subsidiaries or other entities 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 or other entities 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. | ||
Artisan’s wholly-owned subsidiary, Artisan Partners Alternative Investments GP LLC, is 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 is accounted for under ASC 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 8, “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 are 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 of March 31, 2014, APAM does not have a controlling financial interest in any of its seed investments. | ||
Recent accounting pronouncements | ' | |
Recent accounting pronouncements | ||
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 was adopted prospectively on January 1, 2014 and did not have an impact on the Company’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 was adopted prospectively on January 1, 2014 and did not have an impact on the Company’s consolidated financial statements. |
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Schedule of available-for-sale securities | ' | |||||||||||||||
The disclosures below include details of Artisan’s investments. Investments held by Launch Equity are described in Note 8, “Variable and Voting Interest Entities”. | ||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | |||||||||||||
Gains | Losses | |||||||||||||||
At March 31, 2014 | ||||||||||||||||
Mutual funds | $ | 16,190 | $ | 1,721 | $ | — | $ | 17,911 | ||||||||
At December 31, 2013 | ||||||||||||||||
Mutual funds | $ | 6,190 | $ | 1,614 | $ | — | $ | 7,804 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||||
Assets and Liabilities at Fair Value | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
March 31, 2014 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 60,002 | $ | 60,002 | $ | — | $ | — | ||||||||
Mutual funds | 17,911 | 17,911 | — | — | ||||||||||||
December 31, 2013 | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents | $ | 105,001 | $ | 105,001 | $ | — | $ | — | ||||||||
Equity mutual funds | 7,804 | 7,804 | — | — | ||||||||||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of borrowings | ' | ||||||||
Artisan’s borrowings consist of the following as of March 31, 2014 and December 31, 2013: | |||||||||
Maturity | Outstanding Balance | Interest Rate Per Annum | |||||||
Revolving credit agreement | Aug-17 | — | NA | ||||||
Senior notes | |||||||||
Series A | Aug-17 | 60,000 | 4.98 | % | |||||
Series B | Aug-19 | 50,000 | 5.32 | % | |||||
Series C | Aug-22 | 90,000 | 5.82 | % | |||||
Total borrowings | $ | 200,000 | |||||||
Aggregate maturities of debt obligations | ' | ||||||||
As of March 31, 2014, 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) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | |||||||||||||||||
The following table presents gains (losses) recognized on derivative instruments for the three months ended March 31, 2014 and 2013: | ||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Income Statement Classification | Gains | Losses | Gains | Losses | ||||||||||||||
Contingent value rights | Net gain on the valuation of contingent value rights | $ | — | $ | — | $ | 24,800 | $ | — | |||||||||
Total | $ | — | $ | — | $ | 24,800 | $ | — | ||||||||||
Variable_and_Voting_Interest_E1
Variable and Voting Interest Entities (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||
Variable Interest Entities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | ' | |||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Financial Condition | ||||||||||||||||||||||||||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||
Consolidation | Consolidation | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 208,371 | $ | — | $ | — | $ | 208,371 | $ | 211,839 | $ | — | $ | — | $ | 211,839 | ||||||||||||||||
Cash and cash equivalents of Launch Equity | — | 30,263 | — | 30,263 | — | 19,156 | — | 19,156 | ||||||||||||||||||||||||
Accounts receivable | 62,219 | — | — | 62,219 | 64,110 | — | — | 64,110 | ||||||||||||||||||||||||
Accounts receivable of Launch Equity | — | — | — | — | — | 7,428 | — | 7,428 | ||||||||||||||||||||||||
Investment securities of Launch Equity | 1 | 60,528 | (1 | ) | 60,528 | 1 | 63,364 | (1 | ) | 63,364 | ||||||||||||||||||||||
Other assets | 515,747 | — | — | 515,747 | 215,501 | — | — | 215,501 | ||||||||||||||||||||||||
Total assets | $ | 786,338 | $ | 90,791 | $ | (1 | ) | $ | 877,128 | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | ||||||||||||||
Accounts payable of Launch Equity | $ | — | $ | 869 | $ | — | $ | 869 | $ | — | $ | 7,485 | $ | — | $ | 7,485 | ||||||||||||||||
Securities sold, not yet purchased of Launch Equity | — | 38,222 | — | 38,222 | — | 31,990 | — | 31,990 | ||||||||||||||||||||||||
Other liabilities | 718,459 | — | — | 718,459 | 409,612 | — | — | 409,612 | ||||||||||||||||||||||||
Total liabilities | 718,459 | 39,091 | — | 757,550 | 409,612 | 39,475 | — | 449,087 | ||||||||||||||||||||||||
Total stockholders’ equity | 55,616 | — | — | 55,616 | 43,779 | — | — | 43,779 | ||||||||||||||||||||||||
Noncontrolling interest - Artisan Partners Holdings | 12,263 | 1 | (1 | ) | 12,263 | 38,060 | 1 | (1 | ) | 38,060 | ||||||||||||||||||||||
Noncontrolling interest - Launch Equity | — | 51,699 | — | 51,699 | — | 50,472 | — | 50,472 | ||||||||||||||||||||||||
Total equity | 67,879 | 51,700 | (1 | ) | 119,578 | 81,839 | 50,473 | (1 | ) | 132,311 | ||||||||||||||||||||||
Total liabilities and equity | $ | 786,338 | $ | 90,791 | $ | (1 | ) | $ | 877,128 | $ | 491,451 | $ | 89,948 | $ | (1 | ) | $ | 581,398 | ||||||||||||||
Condensed Consolidating Statements of Operations | ' | |||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-13 | |||||||||||||||||||||||||||||||
Before | Launch Equity | Eliminations | As Reported | Before | Launch Equity | Eliminations | As Reported | |||||||||||||||||||||||||
Consolidation | Consolidation | |||||||||||||||||||||||||||||||
Total revenues | $ | 201,917 | $ | — | $ | (125 | ) | $ | 201,792 | $ | 148,327 | $ | — | $ | (104 | ) | $ | 148,223 | ||||||||||||||
Total operating expenses | 134,765 | — | (125 | ) | 134,640 | 569,641 | — | (104 | ) | 569,537 | ||||||||||||||||||||||
Operating income (loss) | 67,152 | — | — | 67,152 | (421,314 | ) | — | — | (421,314 | ) | ||||||||||||||||||||||
Non-operating income (loss) | (3,159 | ) | — | — | (3,159 | ) | 21,590 | — | — | 21,590 | ||||||||||||||||||||||
Net gain (loss) of Launch Equity | — | (598 | ) | — | (598 | ) | — | 4,779 | — | 4,779 | ||||||||||||||||||||||
Total non-operating income (loss) | (3,159 | ) | (598 | ) | — | (3,757 | ) | 21,590 | 4,779 | — | 26,369 | |||||||||||||||||||||
Income (loss) before income taxes | 63,993 | (598 | ) | — | 63,395 | (399,724 | ) | 4,779 | — | (394,945 | ) | |||||||||||||||||||||
Provision for income taxes | 11,208 | — | — | 11,208 | 4,449 | — | — | 4,449 | ||||||||||||||||||||||||
Net income (loss) | 52,785 | (598 | ) | — | 52,187 | (404,173 | ) | 4,779 | — | (399,394 | ) | |||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | 44,149 | — | — | 44,149 | (407,123 | ) | — | — | (407,123 | ) | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | — | (598 | ) | — | (598 | ) | — | 4,779 | — | 4,779 | ||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 8,636 | $ | — | $ | — | $ | 8,636 | $ | 2,950 | $ | — | $ | — | $ | 2,950 | ||||||||||||||||
Launch Equity | ' | |||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | |||||||||||||||||||||||||||||||
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 March 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value: | ||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
31-Mar-14 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities – long position | $ | 60,528 | $ | 60,528 | $ | — | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Investment securities – short position | $ | 38,222 | $ | 38,222 | $ | — | $ | — | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investment securities – long position | $ | 63,364 | $ | 63,364 | $ | — | $ | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Investment securities – short position | $ | 31,990 | $ | 31,990 | $ | — | $ | — | ||||||||||||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Authorized and outstanding equity | ' | ||||||||||||
As of March 31, 2014 and December 31, 2013, APAM had the following authorized and outstanding equity: | |||||||||||||
Outstanding | |||||||||||||
Authorized | 31-Mar-14 | 31-Dec-13 | Voting Rights (1) | Economic Rights (2) | |||||||||
Common shares | |||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 29,133,585 | 19,807,436 | 1 vote per share | Proportionate | ||||||||
Class B, par value $0.01 per share | 200,000,000 | 21,566,436 | 25,271,889 | 5 votes per share | None | ||||||||
Class C, par value $0.01 per share | 400,000,000 | 20,370,787 | 25,206,554 | 1 vote per share | None | ||||||||
Preferred shares | |||||||||||||
Convertible preferred, par value $0.01 per share | 15,000,000 | 455,011 | 1,198,128 | 1 vote per share | Proportionate | ||||||||
(1) 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 March 31, 2014, Artisan’s employees held 1,616,969 shares of Class A common stock subject to the agreement and all 21,566,436 outstanding shares of Class B 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 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) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Components of compensation cost | ' | ||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Salaries, incentive compensation and benefits (1) | $ | 81,597 | $ | 72,680 | |||||
Restricted share compensation expense | 4,258 | — | |||||||
Total salaries, incentive compensation and benefits | 85,855 | 72,680 | |||||||
Pre-offering related compensation - share-based awards | 23,637 | 333,231 | |||||||
Pre-offering related compensation - other | — | 143,035 | |||||||
Total compensation and benefits | $ | 109,492 | $ | 548,946 | |||||
(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 three months ended March 31, 2014: | |||||||||
Weighted-Average Grant Date Fair Value | Number of Awards | ||||||||
Unvested at December 31, 2013 | $ | 52.36 | 1,575,157 | ||||||
Granted | $ | 71.59 | 41,812 | ||||||
Forfeited | — | — | |||||||
Vested | — | — | |||||||
Unvested at March 31, 2014 | $ | 52.85 | 1,616,969 | ||||||
Schedule of pre-offering related compensation costs | ' | ||||||||
Pre-offering related compensation consists of the following: | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Change in value of Class B liability awards | $ | — | $ | 41,942 | |||||
Class B award modification expense | — | 287,292 | |||||||
Amortization expense on pre-offering Class B awards | 23,637 | 3,997 | |||||||
Pre-offering related compensation - share-based awards | 23,637 | 333,231 | |||||||
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 | |||||||
Pre-offering related compensation - other | — | 143,035 | |||||||
Total pre-offering related compensation | $ | 23,637 | $ | 476,266 | |||||
Activity related to unvested Clas B awards | ' | ||||||||
The following table summarizes the activity related to unvested Class B awards for the three months ended March 31, 2014: | |||||||||
Weighted-Average Grant Date Fair Value | Number of Class B Awards | ||||||||
Unvested Class B awards at January 1, 2014 | $ | 30 | 7,249,842 | ||||||
Granted | — | — | |||||||
Forfeited | — | — | |||||||
Vested | $ | 30 | (666,878 | ) | |||||
Unvested at March 31, 2014 | $ | 30 | 6,582,964 | ||||||
Income_Taxes_and_Related_Payme1
Income Taxes and Related Payments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Components of the provision for income taxes | ' | ||||||||
Components of the provision for income taxes consist of the following: | |||||||||
For the Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Current: | |||||||||
Federal | $ | 7,610 | $ | 1,177 | |||||
State and local | 981 | 544 | |||||||
Foreign | 77 | 82 | |||||||
Total | 8,668 | 1,803 | |||||||
Deferred: | |||||||||
Federal | 2,776 | 2,588 | |||||||
State and local | (236 | ) | 58 | ||||||
Total | 2,540 | 2,646 | |||||||
Income tax expense | $ | 11,208 | $ | 4,449 | |||||
Components of deferred tax assets | ' | ||||||||
Net deferred tax assets comprise the following: | |||||||||
As of March 31, 2014 | As of December 31, 2013 | ||||||||
Deferred tax assets: | |||||||||
Amortizable basis (1) | $ | 468,440 | $ | 183,858 | |||||
Other (2) | 6,349 | 4,049 | |||||||
Total deferred tax assets | 474,789 | 187,907 | |||||||
Less: valuation allowance (3) | — | — | |||||||
Net deferred tax assets | $ | 474,789 | $ | 187,907 | |||||
(1) Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of common 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. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||
Accumulated other comprehensive income (loss), net of tax, in the accompanying Condensed Consolidated Statements of Financial Condition represents the portion of accumulated other comprehensive income attributable to APAM, and consists of the | ||||||||
following: | ||||||||
As of March 31, 2014 | As of December 31, 2013 | |||||||
Unrealized gain on investments | $ | 455 | $ | 303 | ||||
Foreign currency translation | 127 | 75 | ||||||
Accumulated Other Comprehensive Income (Loss) | $ | 582 | $ | 378 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of basic and diluted net income (loss) per share | ' | |||||||
The computation of basic and diluted earnings per share for the periods ended March 31, 2014 and 2013 were as follows: | ||||||||
Basic and Diluted Earnings Per Share | For the Three Months Ended March 31, 2014 | For the Period from March 12, 2013 to March 31, 2013 | ||||||
Numerator: | ||||||||
Net income (loss) allocable to APAM | $ | 8,636 | $ | 2,950 | ||||
Less: Convertible preferred stock deemed dividends | (22,694 | ) | — | |||||
Less: Subsidiary preferred equity deemed dividends | (25,155 | ) | — | |||||
Less: Allocation to participating securities | (6,980 | ) | (495 | ) | ||||
Net income (loss) allocable to common stockholders | $ | (46,193 | ) | $ | 2,455 | |||
Denominator: | ||||||||
Weighted average shares outstanding - basic | 20,214,242 | 12,728,949 | ||||||
Effect of dilutive securities | — | 2,565,463 | ||||||
Weighted average shares outstanding - diluted | 20,214,242 | 15,294,412 | ||||||
Earnings (loss) per share - basic and diluted | $ | (2.29 | ) | $ | 0.19 | |||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Artisan Funds | ' | |||||||
Related Party Transaction [Line Items] | ' | |||||||
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 Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment management fees: | ||||||||
Artisan Funds | $ | 136,586 | $ | 98,080 | ||||
Fee waiver / expense reimbursement: | ||||||||
Artisan Funds | $ | 60 | $ | 121 | ||||
Artisan Global Funds | ' | |||||||
Related Party Transaction [Line Items] | ' | |||||||
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 Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment management fees: | ||||||||
Artisan Global Funds | $ | 3,239 | $ | 1,439 | ||||
Fee waiver / expense reimbursement: | ||||||||
Artisan Global Funds | $ | 82 | $ | 126 | ||||
Organization_and_nature_of_bus1
Organization and nature of business (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 12, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 12, 2014 |
Investment_strategies | Class A Common Stock | Class A Common Stock | Limited Partnership Units | Subsidiary Preferred Stock [Member] | Subsidiary Preferred Stock [Member] | Convertible preferred stock | General Partnership Units [Member] | |||
investment_teams | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of autonomous investment teams | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investment strategies | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | ' | ' | 6,284,337 | 2,256,883 | ' | 743,117 | ' |
Share Price | ' | ' | $62 | ' | ' | ' | ' | ' | ' | ' |
Less: Convertible preferred stock deemed dividends | $22,694 | ' | ' | ' | ' | ' | ' | $25,155 | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | 9,284,337 | 9,326,149 | ' | ' | ' | ' | 9,284,337 |
Establishment of amounts payable under tax receivable agreements | 244,262 | 53,449 | ' | ' | ' | ' | ' | ' | ' | ' |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 41.00% | ' | 29.00% | ' | ' | ' | ' | ' | ' | ' |
Establishment of deferred tax assets | $287,367 | $70,862 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
positions | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Purchase of Investment Securities | ($10,000) | ($2,000) | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 0 | ' | ' |
Cost | 16,190 | ' | 6,190 |
Unrealized Gains | 1,721 | ' | 1,614 |
Unrealized Losses | 0 | ' | 0 |
Fair Value | $17,911 | ' | $7,804 |
Fair_Value_Measurements_Fair_v
Fair Value Measurements - Fair value hierarchy of assets and liabilities (Details) (Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $60,002 | $105,001 |
Mutual funds | 17,911 | 7,804 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 60,002 | 105,001 |
Mutual funds | 17,911 | 7,804 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Mutual funds | 0 | 0 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 0 | 0 |
Mutual funds | $0 | $0 |
Borrowings_Components_of_Borro
Borrowings - Components of Borrowings (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total outstanding balance | $200,000 | $200,000 |
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 | $0 |
Borrowings_Aggregate_Maturitie
Borrowings - Aggregate Maturities of Debt Obligations (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $0 | ' |
2015 | 0 | ' |
2016 | 0 | ' |
2017 | 60,000 | ' |
Thereafter | 140,000 | ' |
Borrowings | $200,000 | $200,000 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Interest expense incurred on debt and credit facilities | $2.80 | $3.10 |
Level 2 | Recurring | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowings fair value | $201.60 | ' |
Derivative_Instruments_Income_
Derivative Instruments - Income statement disclosures (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Net gain on the valuation of contingent value rights | $0 | $24,800 |
Noncontrolling_Interest_Holdin1
Noncontrolling Interest - Holdings (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 12, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Jan. 22, 2014 |
Additional Paid-in Capital | Noncontrolling Interest | Accumulated Other Comprehensive Income | Deferred Tax Assets [Member] | Preferred Stock | Limited Partnership Units | Class A Common Stock | Class A Common Stock | General Partnership Units [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||
Class A Common Stock | General Partnership Units [Member] | ||||||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | ' | ' | ' | 3,000,000 | 6,284,337 | ' | ' | ' | ' | ' |
Cumulative impact of changes in ownership, net of tax | ($78) | ' | ($3,456) | $3,201 | $177 | $2,064 | ' | ' | ' | ' | ' | ' | ' |
AOCI Adjustment to Reflect Changes in Ownership | ' | ' | ' | $255 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | 9,284,337 | 9,326,149 | 9,284,337 | 41,812 | 41,812 |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 41.00% | 29.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable_and_Voting_Interest_E2
Variable and Voting Interest Entities - Condensed Consolidating Statements of Financial Condition (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 12, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||||
Cash and cash equivalents | $208,371 | $211,839 | $199,103 | ' | $141,159 |
Cash and cash equivalents of Launch Equity | 30,263 | 19,156 | ' | ' | ' |
Accounts receivable | 62,219 | 64,110 | ' | ' | ' |
Accounts receivable of Launch Equity | 0 | 7,428 | ' | ' | ' |
Investment securities of Launch Equity | 60,528 | 63,364 | ' | ' | ' |
Other assets | 515,747 | 215,501 | ' | ' | ' |
Total assets | 877,128 | 581,398 | ' | ' | ' |
Accounts payable of Launch Equity | 869 | 7,485 | ' | ' | ' |
Securities sold, not yet purchased of Launch Equity | 38,222 | 31,990 | ' | ' | ' |
Other liabilities | 718,459 | 409,612 | ' | ' | ' |
Total liabilities | 757,550 | 449,087 | ' | ' | ' |
Total stockholders' equity | 55,616 | 43,779 | ' | ' | ' |
Noncontrolling interest - Artisan Partners Holdings | 12,263 | 38,060 | ' | ' | ' |
Noncontrolling interest - Launch Equity | 51,699 | 50,472 | ' | ' | ' |
Total equity | 119,578 | 132,311 | 5,750 | -332,297 | -672,715 |
Total liabilities and equity | 877,128 | 581,398 | ' | ' | ' |
Eliminations | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 0 | ' | ' | ' |
Cash and cash equivalents of Launch Equity | ' | 0 | ' | ' | ' |
Accounts receivable | ' | 0 | ' | ' | ' |
Accounts receivable of Launch Equity | ' | 0 | ' | ' | ' |
Investment securities of Launch Equity | -1 | -1 | ' | ' | ' |
Other assets | ' | 0 | ' | ' | ' |
Total assets | -1 | -1 | ' | ' | ' |
Accounts payable of Launch Equity | ' | 0 | ' | ' | ' |
Securities sold, not yet purchased of Launch Equity | ' | 0 | ' | ' | ' |
Other liabilities | ' | 0 | ' | ' | ' |
Total liabilities | 0 | 0 | ' | ' | ' |
Noncontrolling interest - Artisan Partners Holdings | -1 | -1 | ' | ' | ' |
Noncontrolling interest - Launch Equity | ' | 0 | ' | ' | ' |
Total equity | -1 | -1 | ' | ' | ' |
Total liabilities and equity | -1 | -1 | ' | ' | ' |
Before Consolidation | ' | ' | ' | ' | ' |
Parent Investment in Consolidated Variable Interest Entity | 1 | ' | ' | ' | ' |
Cash and cash equivalents | 208,371 | 211,839 | ' | ' | ' |
Cash and cash equivalents of Launch Equity | ' | 0 | ' | ' | ' |
Accounts receivable | 62,219 | 64,110 | ' | ' | ' |
Accounts receivable of Launch Equity | ' | 0 | ' | ' | ' |
Investment securities of Launch Equity | 1 | 1 | ' | ' | ' |
Other assets | 515,747 | 215,501 | ' | ' | ' |
Total assets | 786,338 | 491,451 | ' | ' | ' |
Accounts payable of Launch Equity | ' | 0 | ' | ' | ' |
Securities sold, not yet purchased of Launch Equity | ' | 0 | ' | ' | ' |
Other liabilities | 718,459 | 409,612 | ' | ' | ' |
Total liabilities | 718,459 | 409,612 | ' | ' | ' |
Total stockholders' equity | 55,616 | ' | ' | ' | ' |
Noncontrolling interest - Artisan Partners Holdings | 12,263 | 38,060 | ' | ' | ' |
Noncontrolling interest - Launch Equity | ' | 0 | ' | ' | ' |
Total equity | 67,879 | 81,839 | ' | ' | ' |
Total liabilities and equity | 786,338 | 491,451 | ' | ' | ' |
Launch Equity | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | 0 | ' | ' | ' |
Cash and cash equivalents of Launch Equity | 30,263 | 19,156 | ' | ' | ' |
Accounts receivable | ' | 0 | ' | ' | ' |
Accounts receivable of Launch Equity | 0 | 7,428 | ' | ' | ' |
Other assets | ' | 0 | ' | ' | ' |
Total assets | 90,791 | 89,948 | ' | ' | ' |
Accounts payable of Launch Equity | 869 | 7,485 | ' | ' | ' |
Other liabilities | ' | 0 | ' | ' | ' |
Total liabilities | 39,091 | 39,475 | ' | ' | ' |
Noncontrolling interest - Artisan Partners Holdings | 1 | 1 | ' | ' | ' |
Noncontrolling interest - Launch Equity | 51,699 | 50,472 | ' | ' | ' |
Total equity | 51,700 | 50,473 | ' | ' | ' |
Total liabilities and equity | $90,791 | $89,948 | ' | ' | ' |
Variable_and_Voting_Interest_E3
Variable and Voting Interest Entities - Condensed Consolidating Statements of Operations (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Mar. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Total revenues | ' | ' | $201,792 | $148,223 |
Total operating expenses | ' | ' | 134,640 | 569,537 |
Operating income | ' | ' | 67,152 | -421,314 |
Non-operating income (loss) | ' | ' | -3,159 | 21,590 |
Net gain (loss) of Launch Equity | ' | ' | -598 | 4,779 |
Total non-operating income (loss) | ' | ' | -3,757 | 26,369 |
Income (loss) before income taxes | ' | ' | 63,395 | -394,945 |
Provision for income taxes | ' | ' | 11,208 | 4,449 |
Net income (loss) | 34,948 | -434,342 | 52,187 | -399,394 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | ' | ' | 44,149 | -407,123 |
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | ' | ' | -598 | 4,779 |
Net income attributable to Artisan Partners Asset Management Inc. | 2,950 | ' | 8,636 | 2,950 |
Eliminations | ' | ' | ' | ' |
Total revenues | ' | ' | -125 | -104 |
Total operating expenses | ' | ' | -125 | -104 |
Operating income | ' | ' | 0 | 0 |
Non-operating income (loss) | ' | ' | ' | 0 |
Net gain (loss) of Launch Equity | ' | ' | ' | 0 |
Total non-operating income (loss) | ' | ' | 0 | 0 |
Income (loss) before income taxes | ' | ' | 0 | 0 |
Provision for income taxes | ' | ' | ' | 0 |
Net income (loss) | ' | ' | 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 |
Before Consolidation | ' | ' | ' | ' |
Total revenues | ' | ' | 201,917 | 148,327 |
Total operating expenses | ' | ' | 134,765 | 569,641 |
Operating income | ' | ' | 67,152 | -421,314 |
Non-operating income (loss) | ' | ' | -3,159 | 21,590 |
Net gain (loss) of Launch Equity | ' | ' | ' | 0 |
Total non-operating income (loss) | ' | ' | -3,159 | 21,590 |
Income (loss) before income taxes | ' | ' | 63,993 | -399,724 |
Provision for income taxes | ' | ' | 11,208 | 4,449 |
Net income (loss) | ' | ' | 52,785 | -404,173 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | ' | ' | 44,149 | -407,123 |
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | ' | ' | ' | 0 |
Net income attributable to Artisan Partners Asset Management Inc. | ' | ' | 8,636 | 2,950 |
Launch Equity | ' | ' | ' | ' |
Total revenues | ' | ' | ' | 0 |
Total operating expenses | ' | ' | ' | 0 |
Operating income | ' | ' | 0 | 0 |
Non-operating income (loss) | ' | ' | ' | 0 |
Net gain (loss) of Launch Equity | ' | ' | -598 | 4,779 |
Total non-operating income (loss) | ' | ' | -598 | 4,779 |
Income (loss) before income taxes | ' | ' | -598 | 4,779 |
Provision for income taxes | ' | ' | ' | 0 |
Net income (loss) | ' | ' | -598 | 4,779 |
Less: Net income (loss) attributable to noncontrolling interests - Artisan Partners Holdings | ' | ' | ' | 0 |
Less: Net income (loss) attributable to noncontrolling interests - Launch Equity | ' | ' | -598 | 4,779 |
Net income attributable to Artisan Partners Asset Management Inc. | ' | ' | $0 | $0 |
Variable_and_Voting_Interest_E4
Variable and Voting Interest Entities - Fair Value Hierarchy of Assets and Liabilities of Consolidated Investment Products (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities of Launch Equity | $60,528 | $63,364 |
Securities sold, not yet purchased of Launch Equity | 38,222 | 31,990 |
Launch Equity | Recurring | Total Fair Value | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities of Launch Equity | 60,528 | 63,364 |
Securities sold, not yet purchased of Launch Equity | 38,222 | 31,990 |
Launch Equity | Recurring | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities of Launch Equity | 60,528 | 63,364 |
Securities sold, not yet purchased of Launch Equity | 38,222 | 31,990 |
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_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||||||
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 12, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 12, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 12, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | |||
Class B Liability Awards | Restricted Stock [Member] | 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 B Common Stock | Class C Common Stock | Class C Common Stock | Class C Common Stock | Convertible preferred stock | Convertible preferred stock | Convertible preferred stock | Distributions on liability awards | Distributions on liability awards | Artisan Partners Asset Management [Member] | ||||||
votes | Restricted Stock [Member] | votes | votes | votes | Class B Liability Awards | Class B Liability Awards | |||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividends declared per Class A common share | $0 | $2.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred Stock, Dividends, Per Share, Cash Paid | ' | $3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Issued During Period, Shares, New Issues | ' | ' | ' | 0 | ' | 9,284,337 | 9,326,149 | ' | 41,812 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Partnership distributions | ' | $131,629,000 | $166,241,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $65,727,000 | ' | ||
Pre-offering related compensation - other | ' | 0 | 143,035,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,727,000 | ' | ||
Common stock, shares authorized | ' | ' | ' | ' | ' | ' | 500,000,000 | 500,000,000 | ' | ' | 200,000,000 | 200,000,000 | ' | 400,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ||
Common stock, shares outstanding | ' | ' | ' | ' | 1,616,969 | ' | 29,133,585 | 19,807,436 | ' | ' | 21,566,436 | 25,271,889 | ' | 20,370,787 | 25,206,554 | ' | ' | ' | ' | ' | ' | ||
Convertible preferred stock, shares authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 15,000,000 | ' | ' | ' | ||
Convertible preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 455,011 | 1,198,128 | ' | ' | ' | ||
Common stock votes per share | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | 5 | [1] | ' | ' | 1 | [1] | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value per share | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | ' | $0.01 | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ||
Preferred stock votes per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ||
Convertible preferred stock, par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | ' | ' | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | ' | 6,970 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Exchange ratio to common stock | ' | ' | ' | ' | ' | ' | 'one-for-one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Repurchased and Retired During Period, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,705,453 | ' | ' | 4,835,767 | ' | ' | 743,117 | ' | ' | ' | ' | ' | ||
Distribution Made to Limited Partner, Cash Distributions Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38,600,000 | ||
[1] | Each of the Companybs employees to whom Artisan has granted equity has 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 March 31, 2014, Artisanbs employees held 1,616,969 shares of Class A common stock subject to the agreement and all 21,566,436 outstanding shares of Class B common stock. |
Compensation_and_Benefits_Comp
Compensation and Benefits - Components of expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Salaries, incentive compensation and benefits | $81,597 | $72,680 |
Restricted share compensation expense | 28,278 | 576,969 |
Total salaries, incentive compensation and benefits | 85,855 | 72,680 |
Change in value of Class B liability awards | 0 | 41,942 |
Class B award modification expense | 0 | 287,292 |
Amortization expense on pre-offering Class B awards | 23,637 | 3,997 |
Pre-offering related compensation - share-based awards | 23,637 | 333,231 |
Pre-offering related compensation - other | 0 | 143,035 |
Distributions on Class B liability awards | 131,629 | 166,241 |
Total pre-offering related compensation | 23,637 | 476,266 |
Total compensation and benefits | 109,492 | 548,946 |
Restricted Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Restricted share compensation expense | 4,258 | 0 |
Pre-offering related cash incentive compensation | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Pre-offering related compensation - other | 0 | 56,788 |
Pre-offering related bonus make-whole compensation | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Pre-offering related compensation - other | 0 | 20,520 |
Distributions on liability awards | Distributions on Class B liability awards | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Pre-offering related compensation - other | ' | 65,727 |
Distributions on Class B liability awards | $0 | $65,727 |
Compensation_and_Benefits_Acti
Compensation and Benefits - Activity (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 12, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Class B Liability Awards | Class B Liability Awards | Restricted Stock [Member] | Restricted Stock [Member] | Class A Common Stock | Class A Common Stock | Class A Common Stock | |
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $128,239 | ' | $70,500 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Unvested Class B Shares | 6,582,964 | 7,249,842 | 1,616,969 | 1,575,157 | ' | ' | ' |
Granted (shares) | 0 | ' | ' | ' | 9,284,337 | 9,326,149 | 41,812 |
Forfeited (shares) | 0 | ' | 0 | ' | ' | ' | ' |
Vested (shares) | 666,878 | ' | 0 | ' | ' | ' | ' |
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 | $30 | $30 | $52.85 | $52.36 | ' | ' | ' |
Granted, weighted average grant date fair value | $0 | ' | $71.59 | ' | ' | ' | ' |
Forfeited, weighted average grant date fair value | $0 | ' | $0 | ' | ' | ' | ' |
Vested, weighted average grant date fair value | $30 | ' | $0 | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 9 months 8 days | ' | '4 years 4 months 7 days | ' | ' | ' | ' |
Compensation_and_Benefits_Addi
Compensation and Benefits - Additional information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
StockBasedAwardPayment | $3,459 | ' | ' |
Stock Based Awards Redemption Amount | 19,566 | ' | 23,026 |
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | 0 | 287,292 | ' |
Other Labor-related Expenses | 0 | 143,035 | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 70,500 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '4 years 4 months 7 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Class B Liability Awards | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $128,239 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 9 months 8 days | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Redemption period for terminated employees | '5 years | ' | ' |
Income_Taxes_and_Related_Payme2
Income Taxes and Related Payments - Components of provision for income taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income tax disclosures [Abstract] | ' | ' |
Federal | $7,610 | $1,177 |
State and local | 981 | 544 |
Foreign | 77 | 82 |
Total | 8,668 | 1,803 |
Federal | 2,776 | 2,588 |
State and local | -236 | 58 |
Total | 2,540 | 2,646 |
Income tax expense | $11,208 | $4,449 |
Income_Taxes_and_Related_Payme3
Income Taxes and Related Payments - Components of deferred tax assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ||
Step-up of tax basis | $468,440 | [1] | $183,858 | [1] |
Other | 6,349 | [2] | 4,049 | [2] |
Total deferred tax assets | 474,789 | 187,907 | ||
Less: valuation allowance | 0 | 0 | ||
Deferred tax assets | $474,789 | $187,907 | ||
[1] | Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of common and preferred units by APAM. | |||
[2] | 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. |
Income_Taxes_and_Related_Payme4
Income Taxes and Related Payments - Additional information (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ' | ' | ' | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ' | ' | ||
Approximate percentage of earnings not subject to income taxes | 62.00% | ' | ' | ||
TRA percent of savings to be paid to shareholders | 85.00% | ' | ' | ||
Tax Receivable Agreement Payment Period | '125 | ' | ' | ||
Establishment of deferred tax assets | $287,367 | $70,862 | ' | ||
Establishment of amounts payable under tax receivable agreements | 244,262 | 53,449 | ' | ||
Deferred tax assets | 468,440 | [1] | ' | 183,858 | [1] |
Amounts payable under tax receivable agreements | $405,207 | ' | $160,663 | ||
[1] | Represents the unamortized step-up of tax basis from the H&F Corp Merger and the purchase of common and preferred units by APAM. |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' |
Unrealized gain on investments | $455 | $303 |
Foreign currency translation | 127 | 75 |
Accumulated other comprehensive income (loss) | $582 | $378 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of basic and diluted net income (loss) per share (Details) (USD $) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Net income (loss) allocable to APAM | $2,950,000 | $8,636,000 | $2,950,000 |
Less: Convertible preferred stock deemed dividends | ' | -22,694,000 | ' |
Participating Policies, Additional Income Allocated | -495,000 | -6,980,000 | ' |
Net Income (Loss) Available to Common Stockholders, Basic | 2,455,000 | -46,193,000 | ' |
Weighted average shares outstanding - basic | 12,728,949 | 20,214,242 | ' |
Dilutive Securities, Effect on Basic Earnings Per Share | 2,565,463 | 0 | ' |
Weighted Average Number of Shares Outstanding, Diluted | 15,294,412 | 20,214,242 | ' |
Earnings Per Share, Basic | $0.19 | ($2.29) | ' |
Subsidiary Preferred Stock [Member] | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Less: Convertible preferred stock deemed dividends | ' | ($25,155,000) | ' |
Restricted Stock [Member] | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Common stock, shares outstanding | ' | 1,616,969 | ' |
Earnings_Per_Share_Antidilutiv
Earnings Per Share - Antidilutive securities excluded from the computation of net income per share (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
Limited Partnership Units | Limited Partnership Units | Class A Common Stock | Class A Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' |
Dilutive Securities, Effect on Basic Earnings Per Share | $2,565,463 | $0 | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 41,937,223 | 54,713,763 | ' | ' |
Common stock, shares outstanding | ' | ' | ' | ' | 29,133,585 | 19,807,436 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Artisan Funds | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | $3 | ' | $9 |
Investment management fees | 136,586 | 98,080 | ' |
Fee waiver / expense reimbursement | 60 | 121 | ' |
Annualized operating expenses maximum percentage of average daily net assets | 1.50% | ' | ' |
Artisan Funds | Minimum | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee percentage of average daily net assets | 0.63% | ' | ' |
Artisan Funds | Maximum | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Management fee percentage of average daily net assets | 1.25% | ' | ' |
Artisan Partners High Income Fund [Domain] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Annualized operating expenses maximum percentage of average daily net assets | 1.25% | ' | ' |
Artisan Global Funds | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from related parties | 1,200 | ' | 2,200 |
Investment management fees | 3,239 | 1,439 | ' |
Fee waiver / expense reimbursement | 82 | 126 | ' |
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 | 38 | 40 | ' |
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 | $139 | ' | $243 |
Subsequent_Events_Details_Deta
Subsequent Events Details (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Apr. 22, 2014 | Apr. 10, 2014 |
Subsequent Event [Line Items] | ' | ' |
Distribution Made to Limited Partner, Cash Distributions Declared | $30.60 | $48.90 |
Quarterly Cash Dividend [Member] | Class A Common Stock | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.55 | ' |
Quarterly Cash Dividend [Member] | Convertible preferred stock | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Preferred Stock, Dividends Per Share, Declared | $0.81 | ' |