Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38979 | ||
Entity Registrant Name | BrightSphere Investment Group Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1121020 | ||
Entity Address, Address Line One | 200 Clarendon Street, 53rd Floor | ||
Entity Address, City or Town | Boston, | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02116 | ||
City Area Code | 617 | ||
Local Phone Number | 369-7300 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,168,112,678 | ||
Entity Common Stock, Shares Outstanding | 43,934,421 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held on or about June 22, 2022 are incorporated by reference into Part III. | ||
Entity Central Index Key | 0001748824 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Trading Symbol | BSIG | ||
Security Exchange Name | NYSE | ||
4.800% Notes due 2026 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 4.800% Notes due 2026 | ||
Trading Symbol | BSIG 26 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Investments (includes balances reported at fair value of $54.5 and $88.0) | $ 54.5 | $ 90 |
Goodwill | 20.3 | 20.3 |
Total assets | 714.8 | 1,379.2 |
Liabilities and shareholders’ equity | ||
Other compensation liabilities | 103.7 | 73.8 |
Operating lease liabilities | 77.6 | |
Liabilities held for sale | 0 | 313.3 |
Total liabilities | 732.4 | 994.8 |
Commitments and contingencies | ||
Equity: | ||
Total equity and non-controlling interests in consolidated Funds | (17.6) | 384.4 |
Total liabilities and equity | 714.8 | 1,379.2 |
Consolidated Entity Excluding Consolidated Funds | ||
Assets | ||
Cash and cash equivalents | 252.1 | 371.3 |
Restricted cash | 0 | 1.6 |
Investment advisory fees receivable | 167.1 | 100.6 |
Income taxes receivable | 4.9 | 9.3 |
Fixed assets, net | 50.2 | 62.8 |
Right of use assets | 65.1 | 78.6 |
Investments (includes balances reported at fair value of $54.5 and $88.0) | 54.5 | 90 |
Goodwill | 20.3 | 20.3 |
Other assets | 28.2 | 33.3 |
Deferred tax assets | 72.4 | 170.3 |
Consolidated Funds’ assets held for sale (Note 3) | 0 | 326.8 |
Liabilities and shareholders’ equity | ||
Accounts payable and accrued expenses | 35.2 | 31.3 |
Accrued incentive compensation | 117.4 | 78.3 |
Other compensation liabilities | 103.7 | 73.8 |
Accrued income taxes | 1.1 | 4.1 |
Operating lease liabilities | 77.6 | 94.8 |
Other liabilities | 2.5 | 4.9 |
Third party borrowings | 394.9 | 394.3 |
Liabilities held for sale | 0 | 313.3 |
Equity: | ||
Common stock (par value $0.001; 45,397,260 and 79,387,961 shares, respectively, issued) | 0 | 0.1 |
Additional paid-in capital | 0 | 492.4 |
Retained deficit | (6.8) | (176.5) |
Accumulated other comprehensive loss | (10.8) | (13.6) |
Non-controlling interests | 0 | 1.7 |
Consolidated Funds | ||
Assets | ||
Consolidated Funds’ assets held for sale (Note 3) | 0 | 114.3 |
Equity: | ||
Non-controlling interests | $ 0 | $ 80.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments at fair value | $ 54.5 | $ 88 |
Consolidated Entity Excluding Consolidated Funds | ||
Investments at fair value | $ 54.5 | $ 88 |
Common stock, par value (in dollars per share) | $ 0.001 | |
Common stock, issued shares (in shares) | 45,397,260 | 79,387,961 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total revenue | $ 523.8 | $ 499.5 | $ 594.6 |
Operating expenses: | |||
Impairment of goodwill | 0 | 16.4 | |
Depreciation and amortization | 22.1 | ||
Total operating expenses | 378 | 367.8 | 372.4 |
Operating income | 145.8 | 131.7 | 222.2 |
Non-operating income and (expense): | |||
Gain on sale of subsidiaries | 48.6 | 241.3 | |
Total non-operating income | 32.3 | 213.1 | (9) |
Income from continuing operations before taxes | 178.1 | 344.8 | 213.2 |
Income tax expense | 50 | 97.1 | 10.5 |
Income from continuing operations | 128.1 | 247.7 | 202.7 |
Income from discontinued operations, net of tax | 77.3 | 67.8 | 37.3 |
Gain on disposal of discontinued operations, net of tax | 691 | 0 | 0 |
Net income | 896.4 | 315.5 | 240 |
Net income attributable to non-controlling interests in consolidated Funds | 68 | 28.8 | 16.1 |
Net income attributable to controlling interests | $ 828.4 | $ 286.7 | $ 223.9 |
Earnings per share (basic) attributable to controlling interests (in dollars per share) | $ 10.73 | $ 3.53 | $ 2.45 |
Earnings per share (diluted) attributable to controlling interests (in dollars per share) | 10.29 | 3.49 | 2.45 |
Continuing operations earnings per share (basic) attributable to controlling interests (in dollars per share) | 1.66 | 3.04 | 2.16 |
Continuing operations earnings per share (diluted) attributable to controlling interests (in dollars per share) | $ 1.59 | $ 3.01 | $ 2.16 |
Weighted average shares outstanding (in shares) | 77,213,010 | 81,259,778 | 91,205,412 |
Weighted average diluted shares outstanding (in shares) | 80,485,924 | 82,036,203 | 91,268,952 |
Consolidated Entity Excluding Consolidated Funds | |||
Revenue: | |||
Other revenue | $ 5.7 | $ 7.3 | $ 6 |
Operating expenses: | |||
Compensation and benefits | 284.6 | 243.1 | 248.6 |
General and administrative expense | 71.2 | 88 | 107.1 |
Impairment of goodwill | 0 | 16.4 | 0 |
Amortization of acquired intangibles | 0.1 | 0.3 | 0.2 |
Depreciation and amortization | 22.1 | 19.8 | 16.2 |
Non-operating income and (expense): | |||
Investment income | 8.3 | 4.9 | 16.8 |
Interest income | 0.2 | 0.6 | 2.2 |
Interest expense | (24.8) | (28.5) | (32.2) |
Gain on sale of subsidiaries | 48.6 | 241.3 | 0 |
Gain on disposal of discontinued operations, net of tax | 0 | ||
Consolidated Funds | |||
Revenue: | |||
Total revenue | 0 | 5.5 | 6.6 |
Operating expenses: | |||
Total operating expenses | 0 | 0.2 | 0.3 |
Non-operating income and (expense): | |||
Net consolidated Funds’ investment gains (losses) | 0 | (5.2) | 4.2 |
Income from discontinued operations, net of tax | 77.3 | 67.8 | 37.3 |
Net income attributable to non-controlling interests in consolidated Funds | 68 | 28.8 | 16.1 |
Management fees | |||
Revenue: | |||
Management fee revenue | 433.3 | 478.9 | 582.1 |
Management fees | Consolidated Entity Excluding Consolidated Funds | |||
Revenue: | |||
Management fee revenue | 433.3 | 478.9 | 582.1 |
Performance fees | Consolidated Entity Excluding Consolidated Funds | |||
Revenue: | |||
Management fee revenue | $ 84.8 | $ 7.8 | $ (0.1) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 896.4 | $ 315.5 | $ 240 |
Other comprehensive income: | |||
Amortization related to derivative securities, net of tax | 2.4 | 2.3 | 2.4 |
Foreign currency translation adjustment | 0.4 | 1.6 | 1 |
Other comprehensive income | 2.8 | 3.9 | 3.4 |
Total other comprehensive income | 899.2 | 319.4 | 243.4 |
Comprehensive income attributable to non-controlling interests in consolidated Funds | 68 | 28.8 | 16.1 |
Total comprehensive income attributable to controlling interests | $ 831.2 | $ 290.6 | $ 227.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Consolidated Entity Excluding Consolidated FundsCommon stock | Consolidated Entity Excluding Consolidated FundsAdditional paid-in capital | Consolidated Entity Excluding Consolidated FundsRetained earnings (deficit) | Consolidated Entity Excluding Consolidated FundsAccumulated other comprehensive income (loss) | Consolidated Entity Excluding Consolidated FundsTotal shareholders’ equity | Consolidated Entity Excluding Consolidated FundsNon- controlling interests | Consolidated Funds | Consolidated FundsNon- controlling interests |
Beginning balance (in shares) at Dec. 31, 2018 | 105,200,000 | ||||||||
Beginning balance at Dec. 31, 2018 | $ 134.2 | $ 0.1 | $ 764.6 | $ (640.5) | $ (20.9) | $ 103.3 | $ 1.6 | $ 29.3 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock (in shares) | 200,000 | ||||||||
Repurchase of common stock (in shares) | (19,479,945) | (19,500,000) | |||||||
Repurchase of common stock | $ (236.5) | (236.5) | (236.5) | ||||||
Capital contributions | 9.2 | 9.2 | |||||||
Equity-based compensation | 6.2 | 6.2 | 6.2 | ||||||
Foreign currency translation adjustment | 1 | 1 | 1 | ||||||
Amortization related to derivative securities, net of tax | 2.4 | 2.4 | 2.4 | ||||||
Other changes in non-controlling interests | (0.3) | (0.3) | |||||||
Dividends | (35.9) | (35.9) | (35.9) | ||||||
Net income | 234.2 | 223.9 | 223.9 | 10.3 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 85,900,000 | ||||||||
Ending balance at Dec. 31, 2019 | 114.5 | $ 0.1 | 534.3 | (452.5) | (17.5) | 64.4 | 1.3 | 48.8 | |
Beginning balance at Dec. 31, 2018 | $ 41.9 | ||||||||
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Capital contributions | 36.2 | ||||||||
Net income | 5.8 | ||||||||
Ending balance at Dec. 31, 2019 | 83.9 | ||||||||
Beginning balance at Dec. 31, 2018 | 176.1 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Issuance of common stock | 0 | ||||||||
Repurchase of common stock | (236.5) | ||||||||
Capital contributions | 45.4 | ||||||||
Equity-based compensation | 6.2 | ||||||||
Foreign currency translation adjustment | 1 | ||||||||
Amortization related to derivative securities, net of tax | 2.4 | ||||||||
Other changes in non-controlling interests | 0.3 | ||||||||
Dividends | (35.9) | ||||||||
Net income | 240 | ||||||||
Ending balance at Dec. 31, 2019 | 198.4 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock (in shares) | 100,000 | ||||||||
Issuance of common stock | $ 0.2 | 0.2 | 0.2 | ||||||
Retirement of common stock | (200,000) | ||||||||
Repurchase of common stock (in shares) | (6,412,663) | (6,400,000) | |||||||
Repurchase of common stock | $ (46) | (46) | (46) | ||||||
Capital contributions | 3.1 | 3.1 | |||||||
Equity-based compensation | 2.5 | 2.5 | 2.5 | ||||||
Foreign currency translation adjustment | 1.6 | 1.6 | 1.6 | ||||||
Amortization related to derivative securities, net of tax | 2.3 | 2.3 | 2.3 | ||||||
Other changes in non-controlling interests | 0.4 | 0.4 | |||||||
Other movements | 1.4 | 1.4 | 1.4 | ||||||
Dividends | (10.7) | (10.7) | (10.7) | ||||||
Net income | 315.1 | 286.7 | 286.7 | 28.4 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 79,400,000 | ||||||||
Ending balance at Dec. 31, 2020 | 384.4 | $ 0.1 | 492.4 | (176.5) | (13.6) | 302.4 | 1.7 | 80.3 | |
Increase (Decrease) in redeemable non-controlling interest in consolidated Funds | |||||||||
Capital contributions | 151.7 | ||||||||
Net consolidation (de-consolidation) of Funds | (236) | ||||||||
Net income | 0.4 | ||||||||
Ending balance at Dec. 31, 2020 | 0 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Issuance of common stock | 0.2 | ||||||||
Repurchase of common stock | (46) | ||||||||
Capital contributions | 154.8 | ||||||||
Equity-based compensation | 2.5 | ||||||||
Foreign currency translation adjustment | 1.6 | ||||||||
Amortization related to derivative securities, net of tax | 2.3 | ||||||||
Other changes in non-controlling interests | 0.4 | ||||||||
Other changes in non-controlling interests | 1.4 | ||||||||
Net de-consolidation of Funds | (236) | ||||||||
Dividends | (10.7) | ||||||||
Net income | 315.5 | ||||||||
Ending balance at Dec. 31, 2020 | 384.4 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock (in shares) | 1,600,000 | ||||||||
Issuance of common stock | $ 2.7 | 2.7 | 2.7 | ||||||
Repurchase of common stock (in shares) | 0 | (35,600,000) | |||||||
Repurchase of common stock | $ (1,121.7) | $ (0.1) | (465.7) | (655.9) | (1,121.7) | ||||
Capital contributions | 33.5 | 3.8 | 29.7 | ||||||
Equity-based compensation | 1.9 | 1.9 | 1.9 | ||||||
Foreign currency translation adjustment | 0.4 | 0.4 | 0.4 | ||||||
Amortization related to derivative securities, net of tax | 2.4 | 2.4 | 2.4 | ||||||
Withholding tax related to stock option exercise | (31.3) | (31.3) | (31.3) | ||||||
Other changes in non-controlling interests | (5.5) | (5.5) | |||||||
Dividends | (2.8) | (2.8) | (2.8) | ||||||
Net income | 896.4 | 828.4 | 828.4 | 68 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 45,400,000 | ||||||||
Ending balance at Dec. 31, 2021 | (17.6) | $ 0 | $ 0 | $ (6.8) | $ (10.8) | $ (17.6) | $ 0 | 0 | |
Ending balance at Dec. 31, 2021 | $ 0 | ||||||||
Increase (Decrease) in total equity and redeemable non-controlling interest in consolidated Funds | |||||||||
Issuance of common stock | 2.7 | ||||||||
Repurchase of common stock | (1,121.7) | ||||||||
Capital contributions | 33.5 | ||||||||
Equity-based compensation | 1.9 | ||||||||
Foreign currency translation adjustment | 0.4 | ||||||||
Amortization related to derivative securities, net of tax | 2.4 | ||||||||
Other changes in non-controlling interests | (5.5) | ||||||||
Net de-consolidation of Funds | (178) | $ (178) | |||||||
Dividends | (2.8) | ||||||||
Net income | 896.4 | ||||||||
Ending balance at Dec. 31, 2021 | $ (17.6) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends to shareholders (in dollars per share) | $ 0.04 | $ 0.13 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 896.4 | $ 315.5 | $ 240 |
Less: Income from discontinued operations, net of tax | (77.3) | (67.8) | (37.3) |
Less: Net (income) loss attributable to non-controlling interests in consolidated Funds from continuing operations | 0 | (0.4) | (5.8) |
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | |||
Impairments | 0 | 16.4 | |
Gain on disposal of discontinued operations, net of tax | (691) | 0 | 0 |
Gain on sale of subsidiaries | (48.6) | (241.3) | |
Depreciation and amortization | 22.1 | ||
Distributions from discontinued operations | 52.7 | 71.9 | |
Deferred income taxes | (5) | 71.6 | 31.3 |
Adjustments to reconcile net income (loss) attributable to non-controlling interests of consolidated Funds to net cash flows from operating activities from continuing operations of consolidated Funds: | |||
Net cash flows from operating activities of continuing operations | (4.4) | 95.4 | (115.1) |
Net cash flows from operating activities of discontinued operations | (7.1) | (4.9) | (23.4) |
Total net cash flows from operating activities | (11.5) | 90.5 | (138.5) |
Cash flows from investing activities: | |||
Net cash flows from investing activities of continuing operations | 1,036 | 275.9 | 18.4 |
Net cash flows from investing activities of discontinued operations | 3.1 | (5.9) | (9.4) |
Total net cash flows from investing activities | 1,039.1 | 270 | 9 |
Cash flows from financing activities of consolidated Funds: | |||
Net cash flows from financing activities of continuing operations | (1,152.4) | (80.5) | (104.2) |
Net cash flows from financing activities of discontinued operations | (27.2) | 3.1 | 9.2 |
Total net cash flows from financing activities | (1,179.6) | (77.4) | (95) |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (152) | 283.1 | (224.5) |
Cash and cash equivalents at beginning of period (including restricted cash) | 372.9 | 82.1 | 283 |
Cash and cash equivalents at beginning of period classified within assets held for sale | 31.2 | 38.9 | 62.5 |
Cash and cash equivalents at end of period | 252.1 | 404.1 | 121 |
Less: cash and cash equivalents at end of period classified within assets held for sale | 0 | 31.2 | 38.9 |
Cash and cash equivalents at end of period (including restricted cash) | 252.1 | 372.9 | 82.1 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 205 | 33.4 | 44.6 |
Supplemental disclosure of non-cash investing and financing transactions: | |||
Consolidation (de-consolidation) of Funds | 0 | (236) | 0 |
Consolidated Entity Excluding Consolidated Funds | |||
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | |||
Impairments | 0 | 16.4 | 0 |
Amortization of acquired intangibles | 0.1 | 0.3 | 0.2 |
Gain on disposal of discontinued operations, net of tax | 0 | ||
Gain on sale of subsidiaries | (48.6) | (241.3) | 0 |
Depreciation and amortization | 22.1 | 19.8 | 16.2 |
Amortization of debt-related costs | 4.6 | 4.3 | 3.7 |
Amortization and revaluation of non-cash compensation awards | 39.1 | (2.8) | (50.7) |
Net earnings from Affiliate accounted for using the equity method | (2.6) | (2.9) | (2.8) |
Distributions received from equity method Affiliate | 4.4 | 3 | 2.7 |
Distributions from discontinued operations | 63 | ||
Deferred income taxes | (1.5) | 73.2 | 25.8 |
(Gains) losses on other investments | (8.8) | (8.6) | (28.8) |
Changes in operating assets and liabilities (excluding discontinued operations): | |||
(Increase) decrease in investment advisory fees receivable | (87.9) | 13.6 | 3.6 |
(Increase) decrease in other receivables, prepayments, deposits and other assets | 2.2 | 14.4 | (14.9) |
Increase (decrease) in accrued incentive compensation, operating lease liabilities and other liabilities | 44.7 | (9.7) | (259.1) |
Increase (decrease) in accounts payable, accrued expenses and accrued income taxes | (153) | (19.4) | (48) |
Adjustments to reconcile net income (loss) attributable to non-controlling interests of consolidated Funds to net cash flows from operating activities from continuing operations of consolidated Funds: | |||
Net cash flows from operating activities of continuing operations | (4.4) | 170.6 | (83.3) |
Cash flows from investing activities: | |||
Additions of fixed assets | (15.1) | (25.6) | (32.9) |
Proceeds from sale of discontinued operations | 949.3 | 0 | 0 |
Proceeds from sale of subsidiaries | 61.6 | 295.2 | 5 |
Purchase of investment securities | (2.5) | (17.8) | (25) |
Distributions received from equity method investees | 42.7 | 109.8 | 71.3 |
Cash flows from financing activities: | |||
Proceeds from third party and non-recourse borrowings | 176 | 80 | 505 |
Repayment of third party and non-recourse borrowings | (176) | (255) | (330) |
Payment of debt issuance costs | (0.4) | 0 | (1.8) |
Proceeds from stock issuance | 2.7 | 0 | 0 |
Payment to OM plc for DTA Deed | 0 | 0 | (32.7) |
Payment to OM plc for co-investment redemptions | (1.5) | (0.3) | (5.1) |
Repurchases of common stock | (776.7) | (46) | (239.8) |
Repurchases of common stock from related parties | (345) | 0 | 0 |
Dividends paid to shareholders | (1.9) | (7.2) | (24.5) |
Dividends paid to related parties | (1) | (3.7) | (11.5) |
Withholding tax payments related to stock option exercise | (28.6) | 0 | 0 |
Supplemental disclosure of cash flow information: | |||
Interest paid (excluding consolidated Funds) | 19.6 | 24.3 | 28.4 |
Consolidated Funds | |||
Cash flows from operating activities: | |||
Less: Income from discontinued operations, net of tax | (77.3) | (67.8) | (37.3) |
Less: Net (income) loss attributable to non-controlling interests in consolidated Funds from continuing operations | 0 | 0.4 | 5.8 |
Adjustments to reconcile net income to net cash flows from operating activities from continuing operations: | |||
(Gains) losses on other investments | 0 | 4.9 | 0.6 |
Adjustments to reconcile net income (loss) attributable to non-controlling interests of consolidated Funds to net cash flows from operating activities from continuing operations of consolidated Funds: | |||
Purchase of investments | 0 | (146.3) | (186.9) |
Sale of investments | 0 | 91.3 | 149.1 |
(Increase) decrease in receivables and other assets | 0 | (32.2) | 7.5 |
Increase (decrease) in accounts payable and other liabilities | 0 | 6.7 | (7.9) |
Net cash flows from operating activities of continuing operations | 0 | (75.2) | (31.8) |
Cash flows from investing activities: | |||
Consolidation (de-consolidation) of Funds | 0 | (85.7) | 0 |
Cash flows from financing activities of consolidated Funds: | |||
Redeemable non-controlling interest capital raised | 0 | 152.8 | 37.9 |
Redeemable non-controlling interest capital redeemed | 0 | (1.1) | (1.7) |
Supplemental disclosure of non-cash investing and financing transactions: | |||
Payable for securities purchased by a consolidated Fund | $ 0 | $ 0 | $ 4 |
Organization and Description of
Organization and Description of the Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of the Business | Organization and Description of the Business BrightSphere Investment Group Inc. (“BrightSphere”, “BSIG” or the “Company”), through its subsidiaries, is a global asset management company. The Company provides investment management services globally to predominantly institutional investors. The Company historically held interests in a diverse group of investment management firms (the “Affiliates”) individually headquartered in the United States. The Company completed the disposition of certain Affiliates and currently operates the business through one Affiliate, Acadian Asset Management LLC (“Acadian”). Acadian comprises the Company’s Quant & Solutions reportable segment (1)(2) : • Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, ESG, multi-asset, equity alternatives, and long/short strategies. This segment is comprised of the Company’s interest in Acadian. Acadian is organized as a limited liability company. Fees for services are largely asset-based and, as a result, revenues fluctuate based on the performance of financial markets and investors’ asset flows in and out of Acadian’s products. The Company utilizes a profit-sharing model in structuring its compensation and ownership arrangements with Acadian. Variable compensation is based on the firm’s profitability. BSIG and Acadian key employees share in profits after variable compensation according to their respective ownership interests. The profit-sharing model results in the alignment of BSIG and Acadian key employee economic interests, which is critical to the Company’s talent management strategy and long-term growth of the business. Campbell Global, LLC (“Campbell Global”), Investment Counselors of Maryland (“ICM”) and the corporate head office are included within the Other category. (1) Prior to March 31, 2021, the Company had an Alternatives reportable segment which was comprised of Landmark Partners, LLC (“Landmark”) and Campbell Global operating segments. On March 30, 2021, the Company entered into an agreement to sell all of the Company’s interests in Landmark. As a result of this transaction, Landmark was reclassified to discontinued operations, and the Alternatives segment no longer constitutes a reportable segment of the Company. The reportable segments for all periods presented have been recast to reflect the reporting of Landmark within discontinued operations and the reclassification of Campbell Global to “Other”. On June 21, 2021, the Company entered into an agreement to sell all of the Company’s interests in Campbell Global. See Note 3, Divestitures, Held for Sale and Discontinued Operations and Note 23, Segments for further discussion. (2) Prior to June 30, 2021, the Company had a Liquid Alpha reportable segment which was comprised of Thompson, Siegel & Walmsley LLC (“TSW”) and ICM. On February 6, 2021, the Company entered into an agreement to sell all of the Company’s interests in ICM, an equity-accounted Affiliate. On May 9, 2021, the Company entered into an agreement to sell all of the Company’s interests in TSW. As a result of this transaction, TSW has been reclassified to discontinued operations and the Liquid Alpha segment no longer constitutes a reportable segment of the Company. The reportable segments for all periods presented have been recast to reflect the reporting of TSW within discontinued operations. Also, the ICM operating segment has been reclassified to “Other” within the Company’s segment reporting for the year ended December 31, 2021. See Note 3, Divestitures, Held for Sale and Discontinued Operations and Note 23, Segments for further discussion. Prior to 2014, the Company was a wholly-owned subsidiary of Old Mutual plc (“OM plc”), an international long-term savings, protection and investment group, listed on the London Stock Exchange. On October 15, 2014, the Company completed the initial public offering (the “Offering”) by OM plc pursuant to the Securities Act of 1933, as amended. Additionally, between the Offering and February 25, 2019, the Company, OM plc and/or HNA Capital U.S. (“HNA”) completed a series of transactions in the Company’s shares, including a two-step transaction announced on March 25, 2017 for a sale by OM plc of a 24.95% shareholding in the Company to HNA and a two-step transaction announced on November 19, 2018 for a sale of the substantial majority of the ordinary shares held by HNA of the Company to Paulson & Co. (“Paulson”). On February 25, 2019, this transaction was completed and Paulson held approximately 21.7% of the ordinary shares of the Company. The remaining shares held by HNA were bought back by the Company in the first quarter of 2019. On July 12, 2019, the BrightSphere corporate group, which consisted of BrightSphere Investment Group plc, a public company limited by shares incorporated under the laws of England and Wales and its operating subsidiaries (such operating subsidiaries and the holding company collectively, the “BrightSphere Group”), completed a redomestication, resulting in BrightSphere Investment Group Inc., a Delaware corporation, becoming the publicly traded parent company of BrightSphere Group (the “Redomestication”). The scheme of arrangement pursuant to which the Redomestication was effected was approved by the Company’s shareholders and the High Court of Justice of England and Wales. Effective as of the close of business on July 12, 2019, all issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. As a result, all outstanding shareholders of BrightSphere Investment Group plc became common stockholders of BrightSphere Investment Group Inc. The common stock of BrightSphere Investment Group Inc. began trading on July 15, 2019, and the Company’s trading symbol on the NYSE remained unchanged as “BSIG.” On November 4, 2021, the Company announced its plan to launch a fixed price tender offer to purchase up to 33,300,000 shares of its common stock (the “Shares”) at a purchase price of $31.50 per share. Under the terms of the tender offer, stockholders who tender their shares would receive a fixed price of $31.50 for each share, subject to proration if the tender offer was oversubscribed. The tender offer expired at 5:00 p.m., New York City Time, on December 6, 2021. On December 7, 2021, the Company accepted for purchase 34,917,532 shares of common stock in the tender offer for a total cost of approximately $1.1 billion excluding fees and expenses relating to the tender offer. The shares of common stock accepted for purchase includes 1,617,532 shares that the Company elected to purchase pursuant to its right to purchase up to an additional 2% of its outstanding common stock. On November 3, 2021, the Company entered into a repurchase agreement with Paulson and certain funds managed by Paulson and its affiliates pursuant to which the Company agreed that, on the 11th day after the expiration date of the tender offer, it would repurchase from Paulson and its affiliates, if necessary, a number of shares, such that, upon the closing of the repurchase, Paulson and its affiliates’ percentage ownership interest in the Company’s total outstanding shares shall not exceed 19.99%. In the repurchase agreement, Paulson and its affiliates agreed to tender in the tender offer at least 41.7% of the total shares held by them. In accordance therewith, on December 21, 2021, the Company consummated its repurchase of 690,000 shares of common stock from Paulson and its affiliates at $31.50 per share, following which Paulson and its affiliates owned 19.99% of the Company’s total outstanding shares of common stock. For the year ended December 31, 2021, a reduction to additional paid-in capital in the amount of $465.7 million was recorded for share repurchases until it was depleted, with the remaining $655.9 million of share repurchases recorded to retained deficit. For the year ended December 31, 2021, the Company did not repurchase any shares of common stock in the open market under the share repurchase program. For the year ended December 31, 2020, the Company repurchased 6,412,663 shares at a weighted average price of $7.15 per share, or approximately $46.0 million in total, including commissions. In 2019, the Company repurchased 19,479,945 shares at a weighted average price of $12.08 per share, or approximately $235.4 million in total, including commissions. All shares of common stock repurchased by the Company were retired. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The Company’s significant accounting policies are as follows: Basis of presentation These Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in shareholders’ equity and statements of cash flows of the Company. Within these Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.” The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Transactions between the Company and its related parties are included in the Consolidated Financial Statements; however, material intercompany balances and transactions among the Company, its consolidated Affiliates and consolidated Funds are eliminated in consolidation. As a result of the Redomestication on July 12, 2019, discussed in Note 1, the Company revised its equity accounts to reflect a U.S. domiciled company presentation on the Consolidated Statements of Changes in Shareholders’ equity and the Consolidated Balance Sheets for all periods presented. The previously issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The Redomestication and related internal reorganization was accounted for consistent with a reorganization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805 Business Combinations . Accordingly, the transfer of the assets and liabilities and exchange of shares was recorded in the new entity (BrightSphere Investment Group Inc.) at their carrying amounts from the transferring entity (BrightSphere Investment Group plc) at the date of transfer. On February 6, 2021 the Company entered into a definitive agreement to sell all of the Company’s interests in ICM, an equity-accounted Affiliate. The criteria for discontinued operations were not met for this divestiture. The transaction closed on July 19, 2021. See Note 3, Divestitures, Held for Sale and Discontinued Operations for additional information. On March 30, 2021, the Company entered into a definitive agreement with Ares Holdings L.P. (“Ares”), pursuant to which Ares agreed to purchase all of the Company’s interests in Landmark and the Company’s carried interest and co-investments in Landmark Funds. The transaction closed on June 2, 2021. The divestiture of Landmark met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results. As a result, the Company has reclassified the financial results of Landmark and consolidated Landmark Funds to income from discontinued operations, net of tax in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019. Cash flows from discontinued operations are presented in the Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020, and 2019. On May 9, 2021, the Company entered into a definitive agreement with Pendal Group Limited (“Pendal”), pursuant to which Pendal agreed to purchase all of the Company’s interests in TSW and the Company’s seed investments in TSW strategies. The transaction closed on July 22, 2021. The divestiture of TSW met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results. As a result, the Company has reclassified the financial results of TSW to income from discontinued operations, net of tax in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019. Cash flows from discontinued operations are presented in the Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020, and 2019. On June 21, 2021, the Company entered into a definitive agreement to sell all of the Company’s interests in Campbell Global and the Company’s co-investments in Campbell Global’s Funds. The transaction closed on August 31, 2021. The divestiture of Campbell Global did not meet the discontinued operations criteria as it did not represent a strategic shift that had a major effect on the Company’s operations and financial results. See Note 3, Divestitures, Held for Sale and Discontinued Operations for additional information. Revenue recognition Revenue from contracts with customers The Company recognizes revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in accordance with the revenue recognition guidance. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. The Company’s management fee revenue is calculated based upon levels of assets under management multiplied by a fee rate. Management fee revenue is typically calculated on a monthly or quarterly basis, but is earned continuously as performance obligations are fulfilled. The transaction price is variable in contracts which calculate AUM on an average basis over a specified period and this variability is resolved at the end of the period, when the actual average AUM for the contract period may be calculated. The Company is able to resolve the variability and calculate the most likely amount to be recognized for any given period by estimating revenue based upon a daily average AUM. All of the Company’s performance obligations are satisfied ratably over time and there is no distinction in the methodology used to recognize management fee revenue in instances where there is more than one performance obligation. Typically, revenue is recognized over time using a time-based output measure to measure progress. Management fees are recognized monthly as services are rendered. Affiliates that manage tangible property may also earn transaction fees at the time the underlying property is bought and sold. Dividend income received is recorded on the ex-dividend date. Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account. Additionally, separate accounts or other products which primarily earn management fees are potentially subject to performance adjustments up or down based on investment performance versus benchmark. Performance fees, including those that are subject to clawback, are recognized when they (i) become billable to customers (based on contractual terms of agreements) and (ii) are not subject to contingent repayment. The Company is required to capitalize certain costs directly related to the acquisition or fulfillment of a contract with a customer. The Company has noted no instances where sales-based compensation or similar costs met the definition of an incremental cost to acquire a contract with a customer in accordance with revenue recognition guidance. There are no instances where the Company has incurred costs to fulfill a contract with a customer, therefore no assets related to contract acquisition or fulfillment have been recognized. For each one of its contracts with customers, the Company identifies one or more performance obligations within the contract and then, for each performance obligation, determines if it is a principal (where the nature of its promise is to provide a specified good or service itself) or an agent (where the nature of its promise is to arrange for a good or service to be provided by another party). In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, if the Company is acting as a principal, the reimbursement is recorded on a gross basis and if the Company is acting as an agent, the reimbursement is recorded on a net basis. Certain Funds reimburse the Company’s Affiliates for certain expenses where the Affiliate is acting as a principal, primarily for compensation expense for field office personnel at several Timber Funds, where revenue is recognized from log and fiber sales upon delivery to the customer. Revenue from expense reimbursement is accrued at cost as the corresponding reimbursable expenses are incurred and is recorded in other revenue in the Company’s Consolidated Statements of Operations. Revenue from other sources Other revenue also includes interest income on cash and cash equivalents and revenue from administration and consulting services. Compensation arrangements The Company operates short term variable compensation arrangements where generally, a percentage of each Affiliate’s annual pre-variable compensation earnings, as defined in each arrangement, is allocated to a “pool” of each respective Affiliate’s key employees, and subsequently distributed to individuals subject to recommendation and approval of a remuneration committee comprised of both the Company’s and each respective Affiliate’s management. Additionally, a contractual percentage of Affiliate performance fee revenues and post-bonus profits are included in a deferred compensation pool. The deferred compensation pool is allocated to Affiliate key employees and is subject to a three-year vesting period. Variable compensation expense is accrued and recognized in the Consolidated Statements of Operations as services are provided by individual employees. The Company operates longer term profit-interest plans whereby certain Affiliate key employees are granted (or have a right to purchase) awards representing a profits interest in their respective Affiliate, as distinct from an equity interest due to the lack of pari passu voting rights. Under these plans, the Company may award a portion of the aforementioned variable compensation arrangement through issuance of a profits interest in the Affiliate. The awards generally have a three In addition, under certain circumstances, Affiliate key employees are eligible to receive repurchase payments upon exiting the plans based on a multiple of the last twelve months profits of their respective Affiliate, as defined. Profits allocated and movements in the potential repurchase value, determined based on a fixed multiple times trailing twelve month profits, as defined, are recognized as compensation expense. Profit interests compensation liabilities are re-measured at each reporting date at the twelve month earnings multiple, with movements treated as compensation expense in the Company’s Consolidated Statements of Operations. Share-based compensation plans The Company recognizes the cost of all share-based payments to directors, senior management and employees, including grants of restricted stock and stock options, as compensation expense in the Consolidated Statements of Operations over the respective vesting periods. Awards made under the Company’s equity plans are accounted for as equity settled, and the grant date fair value is recognized as compensation expense over the requisite service period, with a corresponding contribution to additional paid-in capital. Valuation of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) is determined based on the Company’s closing share price as quoted on the New York Stock Exchange on the measurement date. For performance-based awards and stock options, a Monte-Carlo simulation model is used to determine the fair value. Key inputs for the model include: assumed reinvestment of dividends, risk-free interest rate, expected volatility and term. All excess tax benefits and deficiencies on share-based payment awards are recognized as income tax expense or benefit in the Consolidated Statements of Operations. In addition, the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur and excess tax benefits or deficiencies are classified with other income tax cash flows as an operating activity in the Consolidated Statements of Cash Flows. The Company recognizes forfeitures as they occur. The Company has compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees and may be repurchased either by Affiliate key employees or by the Company at a future date, subject to service requirements having been met. Awards of equity made to Affiliate key employees are accounted for as cash settled, with the fair value recognized as compensation expense over the requisite service period, with a corresponding liability carried within other compensation liabilities on the Consolidated Balance Sheets until the award is settled. The fair value of the liabilities are determined with the assistance of third party valuation specialists using discounted cash flow analyses which incorporate assumptions for the forecasted earnings information, market risk adjustments, discount rates and post-vesting restrictions. The liabilities are revalued at each reporting period, with any movements recorded within compensation expense. Consolidation Affiliates The Company evaluates each of its Affiliates and other operating entities to determine the appropriate method of accounting. Generally, majority-owned entities or otherwise controlled investments in which the Company holds a controlling financial interest as the principal shareholder, managing member, or general partner are consolidated. Funds In the normal course of business, the Company’s Affiliates sponsor and manage certain investment vehicles (the “Funds”). The Company assesses consolidation requirements with respect to its Funds. In evaluating whether or not a legal entity must be consolidated, the Company determines if such entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”). A VOE is considered an entity in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns, and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. A VIE is an entity that lacks one or more of the characteristics of a VOE. Assessing whether an entity is a VIE or VOE involves judgment and analysis. Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure and equity ownership and any related party or de-facto agent implications of the Company’s involvement with the entity. Investments that are determined to be VIEs are consolidated if the Company or a consolidated Affiliate is the primary beneficiary of the investment. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties on a proportional basis. The primary beneficiary of the VIE is defined as the variable interest holder that has a controlling financial interest. A controlling financial interest is defined as (i) the power to direct the activities of the VIE that most significantly impacts its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. If no single party satisfies both criteria, but the Company and its related parties satisfy the criteria on a combined basis, then the primary beneficiary is the entity out of the related party group that is most closely associated to the VIE. The consolidation analysis can generally be performed qualitatively, however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest in the fund, including interests of related parties on a proportional basis, is significant. The Company consolidates VOEs when it has control over significant operating, financial and investing decisions of the entity or holds the majority voting interest. Upon the occurrence of certain events (such as contributions and redemptions, either by the Company, its Affiliates, or third parties, or amendments to the governing documents of the Company’s investees or sponsored Funds) management reviews and reconsiders its previous conclusion regarding the status of an entity as a VIE or a VOE. Additionally, management continually reconsiders whether the Company is deemed to be a VIE’s primary beneficiary who consolidates such entity. Investments and Investment Transactions Valuation of investments held at fair value Valuation of Fund investments, including Timber Funds, is evaluated pursuant to the fair value methodology discussed below. Other investments are categorized as trading and recorded at estimated fair value. Realized and unrealized gains and losses arising from changes in fair value of investments are reported within net consolidated funds’ investment gains and losses in the Consolidated Statements of Operations. See Note 5 for a summary of the inputs utilized to determine the fair value of other investments held at fair value. Security transactions The Company generally records securities transactions on a trade-date basis. Realized gains and losses on securities transactions are generally determined on the average-cost method (net of foreign capital gain taxes) and for certain transactions determined based on the specific identification method. Income and expense recognition The Company records interest income on an accrual basis and includes amortization of premiums and accretion of discounts. Dividend income is recorded on the ex-dividend date, net of applicable withholding taxes. Expenses are recorded on an accrual basis. Short sales Certain Funds may sell a security they do not own in anticipation of a decline in the fair value of that security. When a Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The short sales are secured by the long portfolio and available cash. The Fund records a gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, upon the termination of a short sale. The amount of the gain or loss will be equal to the proceeds received in entering into the short sale less the cost of buying back the short security to close the short position. While the transaction is open, the Fund will incur an expense for any accrued dividends or interest which is paid to the lender of the securities. These short sales may involve a level of risk in excess of the liability recognized in the accompanying Consolidated Balance Sheets. The extent of such risk cannot be quantified. Foreign currency translation and transactions Assets and liabilities of non-U.S. entities for which the local currency is the functional currency are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings. Equity method investments The Company uses the equity method of accounting for investments that provide the Company with the ability to exercise significant influence over an entity, but that do not meet the requirements for consolidation. Equity method investments includes the Company’s former Affiliate, ICM, as well as all unconsolidated Funds over which the Company exercises significant influence. Equity-accounted investments in consolidated Funds is comprised of investments in partnership interests where a portion of the return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence. The Company’s share of earnings from equity method investments is included in investment income in the Consolidated Statements of Operations. The carrying amounts of equity method investments are reflected in Investments and assets of consolidated Funds in the Consolidated Balance Sheets. The Company evaluates its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. The difference between the carrying value and its estimated fair value is recognized as impairment when the loss is deemed other than temporary. Fair value measurements In accordance with the accounting standards for fair value measurements, fair value is the price that the Company expects to be paid upon the sale of an asset or expects to pay upon the transfer of a liability in an orderly transaction between market participants. There is a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect the Company’s own conclusions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: • Level I—Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities and listed derivatives. As required by U.S. GAAP, the Company does not adjust the quoted price for these investments. • Level II—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies utilizing observable market inputs other than quoted prices. Investments which are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives. • Level III—Pricing inputs are unobservable for the asset or liability and include assets and liabilities where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Investments that are included in this category generally include general and limited partner interests in timber funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. In cases in which the fair value of an investment is established using the net asset value (or its equivalent) as a practical expedient, the investment is not categorized within the fair value hierarchy. Use of estimates The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The years ended December 31, 2021 and 2020 were characterized by heightened uncertainty due to the COVID-19 pandemic which could impact estimates and assumptions made by management. Actual results could differ significantly from those estimates. Operating segment The Company currently operates in one reportable segment that provides investment management services and products primarily to institutional clients. See Note 23 for further information regarding the Company’s segment. Derivatives and Hedging The Company may utilize derivative financial instruments to hedge the risk of movement of interest rates and foreign currency on financial assets and liabilities. These derivative financial instruments may or may not qualify as hedges for accounting purposes. The Company records all derivative financial instruments as either assets or liabilities on its Consolidated Balance Sheets and measures these instruments at fair value. For a derivative financial instrument that qualifies as a hedge for accounting purposes and is designated as a hedging instrument, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (loss) and subsequently reclassified into earnings over the life of the hedge. The ineffective portion of the gain or loss is recognized in earnings immediately. Cash and cash equivalents The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. Restricted cash at December 31, 2020 represents amounts held in escrow related to the Company's disposition of a former affiliate, Barrow, Hanley, Mewhinney & Strauss (“Barrow Hanley”). Cash held by consolidated Funds is not available to fund general liquidity needs of the Company and is therefore also classified as restricted cash. Investment advisory fees receivable The Company earns management and performance fees which are billed monthly, quarterly and annually, according to the terms of the relevant investment management agreement. Management and performance fees that have been earned, but have not yet been collected are presented as investment advisory fees receivable on the Consolidated Balance Sheets. Due to the short-term nature and liquidity of these receivables, the carrying amounts approximate their fair values. The Company typically does not record an allowance for doubtful accounts or bad debt expense, or any amounts recorded have been immaterial. Fixed assets Fixed assets are recorded at historical cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three Goodwill The Company records goodwill when the consideration paid in a business acquisition exceeds the fair value of the net total of tangible assets acquired, identifiable intangible assets acquired and liabilities assumed. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if events or circumstances occur that indicate impairment may exist. Factors that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of the acquired assets in a business combination or the strategy for the Company’s overall business, and significant negative industry or economic trends. The Company performs its assessment for impairment of goodwill annually as of the first business day of the fourth quarter, or as necessary. The Company has determined that it had one reporting unit, consisting of Acadian, as of the annual goodwill impairment test date. The Company first considers various qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is greater than its respective carrying amount, including goodwill. If based on the qualitative assessment it is determined that it is more likely than not that the fair value of the reporting unit is below its respective carrying amount, therefore indicating that impairment may exist, the impact would be determined at that point through a quantitative assessment. For purposes of assessing potential impairment, the fair value of the reporting unit is estimated and compared to the carrying value of the reporting unit. The fair value of a reporting unit is based on discounted estimated future cash flows. The assumptions used to estimate fair value include management’s estimates of future growth rates, operating cash flows, discount rates and terminal value. These assumptions and estimates can change in future periods based on market movement and factors impacting the expected business performance. Changes in assumptions or estimates could materially affect the determination of the fair value of the reporting unit. If it is determined that the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized in the amount equal to that excess; not to exceed the total amount of goodwill allocated to that reporting unit. Based on the Company’s most recent annual goodwill impairment test, the Company concluded that the fair value of its reporting unit was more likely than not in excess of their carrying value. At the close of each year, management assessed whether there were any conditions present during the fourth quarter that would indicate impairment subsequent to the initial assessment date and concluded that no such conditions were present. Assets Held for Sale The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale on the Consolidated Balance Sheet. Discontinued Operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs only when the disposal of a component or a group of components of the Company (i) meets the held-for-sale classification criteria, is disposed of by sale, or other than by sale, and (ii) represents a strategic shift that will have a major effect on the Compa |
Divestitures, Held for Sale and
Divestitures, Held for Sale and Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures, Held for Sale and Discontinued Operations | Divestitures, Held for Sale and Discontinued Operations Landmark Partners On March 30, 2021, the Company entered into a definitive agreement with Ares, pursuant to which Ares agreed to purchase all of the Company’s interests in Landmark and the Company’s co-investments in Landmark funds. On June 2, 2021, the Company completed the sale of all its interests in Landmark to Ares for cash consideration of $690.0 million, adjusted for customary closing adjustments. The Company recognized a gain on disposal of discontinued operations of $505.8 million, net of tax of $179.5 million for the year ended December 31, 2021. The divestiture of Landmark met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results. The Company utilized $88.2 million of its deferred tax asset in connection with the sale of all its interests in Landmark. The Company also redeemed co-investments of $31.5 million in Landmark’s funds as of June 2, 2021 upon consummation of the sale. Thompson Siegel & Walmsley, LLC On May 9, 2021, the Company entered into an agreement with Pendal to sell all of the Company’s interests in TSW and the Company’s seed investment in TSW strategies. On July 22, 2021, the Company completed the sale of all its interests in TSW to Pendal for cash consideration of $240.0 million. The Company recognized a gain on disposal of discontinued operations of $185.2 million net of tax of $73.9 million for the year ended December 31, 2021. The divestiture of TSW met the discontinued operations criteria as it represented a strategic shift that has a major effect on the Company’s operations and financial results. The Company utilized $10.2 million of its deferred tax asset in connection with the sale of all its interests in TSW. Campbell Global On June 21, 2021, the Company entered into a definitive agreement with J.P. Morgan to sell all of the Company’s interests in Campbell Global and the Company’s co-investments in Campbell Global funds. On August 31, 2021, the Company completed the sale of all its interests in Campbell Global to J.P. Morgan. Financial and operational results for Campbell Global are included within the “Other” category until August 31, 2021, the consummation of the sale. The divestiture of Campbell Global did not meet the criteria for discontinued operations. The Company also redeemed co-investments in Campbell Global’s funds as of August 31, 2021 upon consummation of the sale. The major classes of assets and liabilities held for sale consisted of the following at December 31 (in millions): 2021 2020 Cash and cash equivalents $ — $ 30.6 Investment advisory fees receivable — 12.2 Fixed assets, net — 8.8 Right of use assets — 12.1 Investments — 25.1 Intangible assets, net — 58.2 Goodwill — 161.8 Other assets — 17.5 Deferred tax assets — 0.5 Assets of discontinued operations classified as held for sale (1) $ — $ 326.8 Accounts payable and accrued expenses $ — $ 2.2 Accrued incentive compensation — 42.5 Other compensation liabilities — 254.2 Operating lease liabilities — 13.1 Other liabilities — 1.3 Liabilities of discontinued operations classified as held for sale (1) $ — $ 313.3 (1) Includes assets and liabilities of discontinued operations of Landmark and TSW as of December 31, 2020. The major classes of revenue and expenses constituting net income from discontinued operations attributable to controlling interests for Landmark and TSW in the Consolidated Statements of Operations for the years ended December 31 are as follows (in millions): 2021 2020 2019 Revenues $ 115.1 $ 219.0 $ 224.9 Operating expenses: Compensation and benefits 91.2 145.6 167.6 General and administrative expenses 8.1 18.0 21.7 Amortization of intangibles 2.7 6.4 6.4 Depreciation and amortization 0.5 1.2 1.0 Consolidated Funds’ expense 0.1 0.1 0.1 Total operating expenses 102.6 171.3 196.8 Operating income 12.5 47.7 28.1 Investment gains of consolidated Funds 68.1 35.1 16.7 Income from discontinued operations before taxes 80.6 82.8 44.8 Income tax expense 3.3 15.0 7.5 Income from discontinued operations, net of tax 77.3 67.8 37.3 Gain on disposal, net of tax of $253.4 691.0 — — Total discontinued operations 768.3 67.8 37.3 Income from discontinued operations attributable to non-controlling interests 68.0 28.4 10.3 Net income from discontinued operations attributable to controlling interests $ 700.3 $ 39.4 $ 27.0 Consolidated Funds In connection with the sale of Landmark on June 2, 2021, the Company transferred its co-investment interests in Landmark funds to Ares for $31.5 million. The redemption resulted in the de-consolidation of consolidated Funds that were considered to be variable interest entities as of June 2, 2021 upon consummation of the sale. The assets and liabilities of the consolidated Funds have been classified as held for sale as the criteria for held for sale and discontinued operations accounting treatment were met and are therefore presented separately in the Company’s Consolidated Balance Sheet as of December 31, 2020. The consolidated Funds’ investments gains from discontinued operations, net of tax, attributable to controlling interests was $0.0 million, $6.6 million, and $6.3 million in the Company’s Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019, respectively. The major classes of assets comprising the consolidated Funds classified as held for sale are as follows at December 31 (in millions): 2021 2020 Cash and cash equivalents $ — $ 0.6 Equity-accounted investments (1) — 113.7 Consolidated Funds’ assets held for sale $ — $ 114.3 (1) Equity-accounted investments in consolidated Funds is comprised of Investments in partnership interests where a portion of return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence. Other divestitures Investment Counselors of Maryland On February 6, 2021, the Company entered into a definitive agreement to sell all of the Company’s interests in ICM, an equity-accounted Affiliate within the “Other” category. On July 19, 2021, the Company completed the sale of all its interest in ICM to William Blair Investment Management for cash consideration totaling $18.5 million. The criteria for discontinued operations were not met for this divestiture. BrightSphere International Ltd. On March 17, 2021, BrightSphere completed the sale of its subsidiary BrightSphere International Ltd. to Perpetual U.S. Holdings Company Inc. Barrow, Hanley, Mewhinney & Strauss LLC On October 14, 2021 the Company received $15.8 million of cash proceeds from the sale of a previously disposed of Affiliate, Barrow Hanley. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments Investments are comprised of the following at December 31 (in millions): 2021 2020 Other investments held at fair value 9.5 40.0 Investments related to long-term incentive compensation plans held at fair value 45.0 48.0 Total investments held at fair value $ 54.5 $ 88.0 Equity-accounted investment in Affiliate — 2.0 Total investments per Consolidated Balance Sheets $ 54.5 $ 90.0 Investment income is comprised of the following for the years ended December 31 (in millions): 2021 2020 2019 Realized and unrealized gains (losses) on other investments held at fair value 5.7 2.0 14.0 Earnings from equity-accounted investment in Affiliate 2.6 2.9 2.8 Total investment income per Consolidated Statements of Operations $ 8.3 $ 4.9 $ 16.8 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2021 (in millions): Quoted prices Significant Significant Uncategorized Total value, Assets (1) Investments in separate accounts (2) 4.6 — — — 4.6 Investments related to long-term incentive compensation plans (3) 45.0 — — — 45.0 Investments in unconsolidated Funds (4) — — — 4.9 4.9 Total fair value assets $ 49.6 $ — $ — $ 4.9 $ 54.5 The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020 (in millions): Quoted prices Significant Significant Uncategorized Total value, Assets (1) Investments in separate accounts (2) 9.7 11.6 — — 21.3 Investments related to long-term incentive compensation plans (3) 48.0 — — — 48.0 Investments in unconsolidated Funds (4) — — 2.6 16.1 18.7 Total fair value assets $ 57.7 $ 11.6 $ 2.6 $ 16.1 $ 88.0 (1) Assets measured at fair value are comprised of financial investments managed by the Company’s Affiliates. Equity securities, including common and preferred stock, and short-term investment funds which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II. The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided. If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures. (2) Investments in separate accounts of $4.6 million at December 31, 2021 consist of approximately 100% of e quity securities and other investments. Investments in separate accounts of $21.3 million at December 31, 2020, consist of approximately 11% of cash equivalents and 89% of equity securities, fixed income securities, and other investments. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II). (3) Investments related to long-term incentive compensation plans of $45.0 million and $48.0 million at December 31, 2021 and December 31, 2020, respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. (4) The uncategorized amounts of $4.9 million and $16.1 million at December 31, 2021 and December 31, 2020, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investments Funds, UCITS and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. UCITS and other investment vehicles are not subject to redemption restrictions. The real estate investment Funds of $4.8 million and $6.2 million at December 31, 2021 and December 31, 2020, respectively, are subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year to two years from December 31, 2021. The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, acquisitions, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair-value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions. Investments in unconsolidated Funds categorized as Level III of $0.0 million and $2.6 million at December 31, 2021 and December 31, 2020, respectively, related to investments in Forestry Funds advised by Affiliates and are valued by the general partner of those Funds. Determination of estimated fair value involves subjective judgment because the actual fair value can be determined only through negotiation between parties in a sale transaction and amounts ultimately realized may vary significantly from the fair value presented. The following table reconciles the opening balances of Level III financial assets to closing balances at December 31 (in millions): Investments in unconsolidated Funds 2021 2020 Level III financial assets At beginning of the period $ 2.6 $ 3.0 Redemptions (0.1) (0.3) Disposals (2.8) — Total net fair value gains/(losses) recognized in net income 0.3 (0.1) Total Level III financial assets $ — $ 2.6 There were no significant transfers of financial assets or liabilities between Levels II or III during the year ended December 31, 2021. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities The Company, through its Affiliates, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by Affiliates and other partnership interests typically owned entirely by third-party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that own minority interests in an Affiliate. The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial. The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions): 2021 2020 Assets Consolidated Funds’ assets held for sale (Note 3) $ — $ 114.3 Total Assets $ — $ 114.3 In connection with the sale of Landmark on June 2, 2021, the Company transferred its co-investment interests in Landmark funds to Ares for $31.5 million. The redemption resulted in the de-consolidation of consolidated Funds that were considered to be VIEs as of June 2, 2021 upon consummation of the sale. The Company reclassified assets of consolidated Funds as “Consolidated Funds’ assets held for sale” in the Consolidated Balance Sheets as of December 31, 2020. See Note 3, Divestitures, Held for Sale and Discontinued Operations, in these Notes for additional information. To the extent the Company has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above. The assets of consolidated VIEs presented in the table above belong to the investors in those Funds, are available for use only by the Fund to which they belong, and are not available for use by the Company to the extent they are held by non-controlling interests. The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any. The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors. The following information pertains to unconsolidated VIEs for which the Company holds a variable interest at December 31 (in millions): 2021 2020 Unconsolidated VIE assets $ 795.5 $ 6,437.1 Unconsolidated VIE liabilities $ 323.6 $ 4,332.1 Equity interests on the Consolidated Balance Sheets $ 4.8 $ 14.3 Maximum risk of loss (1) $ 5.0 $ 19.3 (1) Includes equity investments the Company has made or is required to make and any earned but uncollected management and incentive fees. The Company does not record performance or incentive allocations until the respective measurement period has ended. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets Fixed assets consisted of the following at December 31 (in millions): 2021 2020 Leasehold improvements $ 30.4 $ 31.6 Office equipment 8.4 14.6 Furniture and fixtures 6.2 10.9 Software and web development 103.2 97.8 Fixed assets, at cost 148.2 154.9 Accumulated depreciation and amortization (98.0) (92.1) Fixed assets, net $ 50.2 $ 62.8 Depreciation and amortization expense for continuing operations was $22.1 million, $19.8 million and $16.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company disposed of property, plant, and equipment with a cost basis of $13.6 million and accumulated depreciation of $(13.6) million during the year ended December 31, 2021. These disposals included leasehold improvements and other assets. There was no gain or loss on disposals recorded. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices, data centers, vehicles and certain equipment. The operating leases have remaining lease terms of 1 year to 12 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The following table summarizes information about the Company’s operating leases for the years ended December 31 (in millions): 2021 2020 Operating lease cost $ 11.2 $ 13.2 Variable lease cost 0.1 0.1 Sublease income (0.5) $ (0.2) Total operating lease expense $ 10.8 $ 13.1 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.1 $ 11.9 ROU asset obtained in exchange for new operating lease liabilities 3.0 74.9 In determining the incremental borrowing rate, the Company considered the interest rate yield for the specific interest rate environment and the Company’s credit spread at the inception of the lease. For the years ended December 31, 2021 and 2020, the weighted average remaining lease term was 11.3 years and 10.0 years, respectively, and the weighted average discount rate was 3.35% and 3.35%, respectively. Maturities of operating lease liabilities were as follows (in millions): Operating Leases Year Ending December 31, 2022 $ 6.2 2023 8.6 2024 8.0 2025 7.7 2026 7.6 Thereafter 56.4 Total lease payments 94.5 Less imputed interest (16.9) Total $ 77.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the changes in goodwill in 2021 and 2020 (in millions): Quant & Solutions Alternatives Liquid Alpha Total Goodwill $ 22.1 $ 5.0 $ 118.4 $ 145.5 Accumulated impairment (1.8) (5.0) (25.9) (32.7) December 31, 2019 $ 20.3 $ — $ 92.5 $ 112.8 Additions — — — — Impairments — — (16.4) (16.4) Disposals (1) — — (76.1) (76.1) Goodwill 22.1 5.0 — 27.1 Accumulated impairment (1.8) (5.0) — (6.8) December 31, 2020 $ 20.3 $ — $ — $ 20.3 Additions — — — — Impairments — — — — Disposals — — — — Goodwill 22.1 — — 22.1 Accumulated impairment (1.8) — — (1.8) December 31, 2021 $ 20.3 $ — $ — $ 20.3 (1) The disposal of $76.1 million pertains to the goodwill assigned to the Barrow Hanley reporting unit that was divested in November 2020. Due to the decline in the Company’s assets under management for the three months ended March 31, 2020, management determined that an interim impairment assessment was necessary as of March 31, 2020 with respect to the Copper Rock Capital Partners, LLC (“Copper Rock”) reporting unit. In the first quarter of 2020, the Company performed a quantitative impairment test for the Copper Rock reporting unit which was included within the Liquid Alpha segment prior to its disposition in July 2020. The quantitative impairment test concluded that the fair value of the reporting unit did not exceed its carrying value. Accordingly, the Company recognized a goodwill impairment charge of $16.4 million for the year ended December 31, 2020. The 2021 annual impairment assessment determined that no impairment existed at the annual assessment date. The fair value of the reporting unit was estimated using the income approach, which calculates the fair value based on the present value of estimated future cash flows. Cash flow projections are based on management’s estimates of Assets Under Management (“AUM”) growth rates, product mix and effective fee rates, taking into consideration industry and market conditions. The discount rates used are based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics. The Company’s quantitative impairment analysis at March 31, 2020 incorporated revised forecasts that took into account the market disruptions during the quarter and its impact on the results in future periods. Given the significant level of uncertainty that currently exists, management also considered alternative scenarios for market and reporting unit performance over the next several years. If the Company’s AUM are further impacted by the global economic conditions caused by COVID-19, such as adverse and significant declines in the value of global financial markets, additional impairments of goodwill or intangible assets are possible in future periods. In connection with the divestitures of Landmark and TSW, the Company disposed of goodwill of $148.1 million and $13.7 million, respectively, during the year ended December 31, 2021. The Company also reclassified goodwill pertaining to Landmark and TSW of $148.1 million and $13.7 million, respectively, within “Assets held for sale” as of December 31, 2020. In connection with the divestiture of Landmark, the Company disposed of $55.5 million of intangible assets during the year ended December 31, 2021. The Company also reclassified intangible assets of $58.2 million pertaining to Landmark within “Assets held for sale” as of December 31, 2020. See Note 3, Divestitures, Held for Sale and Discontinued Operations, in these notes for additional information. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Amounts due for investment advisory fee receivables from related parties were comprised of the following at December 31 (in millions): 2021 2020 Investment advisory fee receivable from unconsolidated Funds (1) $ 14.1 $ 7.6 Total amounts due for investment advisory fee receivables from related parties $ 14.1 $ 7.6 Related party transactions included in the Company’s Consolidated Statements of Operations for the years ended December 31 consisted of (in millions): Revenues: 2021 2020 2019 Management fees from unconsolidated Funds (1) $ 52.7 $ 52.8 $ 59.0 Performance fees from unconsolidated Funds (1) 2.0 1.6 1.2 Total related party revenues $ 54.7 $ 54.4 $ 60.2 (1) Transactions with unconsolidated Affiliate-sponsored Funds are considered related party items on the basis of the Company’s significant influence over the activities of such entities in its capacity as investment advisor thereto. These transactions are comprised of fees for advisory services and investments in unconsolidated funds. Other related party arrangements As the Company is a member of a group of related businesses, it is possible that the terms of certain related party transactions are not the same as those that would result from transactions with wholly unrelated parties. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following at December 31 (in millions): 2021 2020 Accounts payable 5.0 6.7 Accrued expenses 23.4 17.8 Accrued interest payable 6.8 6.8 Total accounts payable and accrued expenses $ 35.2 $ 31.3 |
Other Compensation Liabilities
Other Compensation Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Other Compensation Liabilities | Other Compensation Liabilities Other compensation liabilities consisted of the following at December 31 (in millions): 2021 2020 Share-based payments liability (Note 19) $ 28.1 $ 25.0 Profit interests compensation liability 30.6 0.8 Voluntary deferral plan liability (Note 18) 45.0 48.0 Total other compensation liabilities $ 103.7 $ 73.8 Profit interests compensation expense amounted to $31.8 million in 2021, $(7.5) million in 2020, and $(56.4) million in 2019. Redemptions of profit sharing interests from Affiliate key employees for cash were $0.0 million in 2021, $4.3 million in 2020, and $9.5 million in 2019. |
Borrowings and Debt
Borrowings and Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings and Debt | Borrowings and Debt The Company’s borrowings were comprised of the following as of the dates indicated (in millions): December 31, 2021 December 31, 2020 (in millions) Carrying value Fair Value Fair Value Level Carrying value Fair Value Fair Value Level Revolving credit facility: $125 million revolving credit facility expiring August 22, 2022 (1)(2) $ — $ — $ — $ — Total revolving credit facility $ — $ — $ — $ — Third party borrowings: $275 million 4.80% Senior Notes Due July 27, 2026 (3) 273.1 286.5 2 272.8 298.9 2 $125 million 5.125% Senior Notes Due August 1, 2031 (3) 121.8 126.4 2 121.5 126.0 2 Total third party borrowings $ 394.9 $ 412.9 $ 394.3 $ 424.9 (1) Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates. (2) On February 23, 2021, the Company’s $150 million revolving credit facility was assigned to Acadian and amended to reduce the facility to $125 million. (3) The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts. Revolving credit facility On September 3, 2020, the Company, Royal Bank of Canada, BMO Harris Bank, N.A., Bank of China, New York Branch, Wells Fargo Bank, National Association, Barclays Bank PLC, Morgan Stanley Bank, N.A., Bank of America N.A., the Bank of New York Mellon and Citibank, N.A., as an issuing bank and administrative agent (collectively, the “Lenders”), entered into an amendment (the “Amendment") to the Revolving Credit Agreement dated as of August 20, 2019 (the “Original Credit Agreement”, and as amended by the Amendment, the “Amended Credit Agreement”). The Amendment included changes to the Original Credit Agreement to permit the sale of the Company's equity interests in Barrow Hanley (the “Barrow Hanley Sale”). Under the Original Credit Agreement, the Barrow Hanley Sale required consent of the Lenders given that Barrow Hanley accounted for more than 10% of the Company's consolidated Adjusted EBITDA. The Amendment provided that, effective immediately upon the consummation of the Barrow Hanley Sale, the Lenders commitments under the Credit Agreement would be $150 million. The Barrow Hanley Sale was consummated on November 17, 2020 and the Lenders’ commitments under the Amended Credit Agreement were reduced to $150 million from thereon. On February 23, 2021, the Company, along with the Lenders, entered into an assignment and assumption and amendment agreement (the “Assignment”) to the Amended Credit Agreement. Pursuant to the Assignment, the Amended Credit Agreement was assigned to and assumed by Acadian and the Amended Credit Agreement was amended (the Amended Credit Agreement, as amended by the Assignment, the “Acadian Credit Agreement”) to, among other things, reduce the Lenders’ commitments thereunder to $125 million. The Acadian Credit Agreement has a maturity date of August 22, 2022. Borrowings under the Acadian Credit Agreement bear interest, at Acadian’s option, at either the per annum rate equal to (a) the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5% and (iii) the one month Adjusted LIBOR Rate plus 1.0%, plus, in each case an additional amount based on its credit rating or (b) the London interbank offered rate for a period, at our, equal to one, three or six months plus an additional amount ranging from 1.5% to 2.0%, with such additional amount based on Acadian’s Leverage Ratio (as defined below). In addition, Acadian is charged a commitment fee based on the average daily unused portion of the revolving credit facility under the Acadian Credit Agreement at a per annum rate ranging from 0.25% to 0.375%, with such amount based on Acadian’s Leverage Ratio. The weighted average interest rate for the revolving credit facility was 1.60%, 2.27% and 3.54% in 2021, 2020 and 2019, respectively. Under the Acadian Credit Agreement, the ratio of Acadian’s third-party borrowings to Acadian’s trailing twelve months Adjusted EBITDA, as defined by the Acadian Credit Agreement (the “Leverage Ratio”), cannot exceed 2.5x and the ratio of Acadian’s trailing twelve months Adjusted EBITDA to Acadian’s interest expense (the “Interest Coverage Ratio”) must be not less than 4.0x. At December 31, 2021, the Company is in compliance with these debt covenants. Senior Notes In July 2016, the Company issued $275.0 million of 4.80% Senior Notes due 2026 (the “2026 Notes”) and $125.0 million of 5.125% Senior Notes due 2031 (the “2031 Notes”). 4.80% Senior Notes Due July 2026 The $275.0 million 2026 Notes were sold at a discount of $(0.5) million and the Company incurred debt issuance costs of $(3.0) million, which are being amortized to interest expense over the ten-year term. The 2026 Notes can be redeemed at any time prior to the scheduled maturity in part or in aggregate, at the greater of the 100% principal amount at that time or the sum of the remaining scheduled payments discounted at the treasury rate plus 0.5%, together with any related accrued and unpaid interest. 5.125% Senior Notes Due August 2031 The Company incurred debt issuance costs of $(4.3) million in connection with the issuance of the $125.0 million 2031 Notes, which are being amortized to interest expense over the fifteen-year term. The 2031 Notes can be redeemed at any time, on or after August 1, 2019 at a redemption price equal to 100.0% of the principal amount together with any related accrued and unpaid interest. The fair value of the senior notes was determined using broker quotes and any recent trading activity for each of the notes listed above, which are considered Level II inputs. As of December 31, 2021, the aggregate maturities of debt commitments, based on their contractual terms, are as follows: Future minimum 2022 $ — 2023 — 2024 — 2025 — 2026 275.0 Thereafter 125.0 Total $ 400.0 The Company was in compliance with the required covenants related to borrowings and debt facilities as of December 31, 2021. Subsequent Events On December 17, 2021, the Company issued a notice for the full redemption of the $125 million aggregate principal amount outstanding of its 5.125% Senior Notes due August 1, 2031. On January 18, 2022 the Company completed the full redemption of the 2031 Notes. The redemption price for the 2031 Notes was $1,011.53 per $1,000.00 of principal amount of the 2031 Notes, which is equal to 100% of the principal amount, plus accrued and unpaid interest on the principal amount being redeemed up to, but excluding, the date of redemption. The aggregate interest paid upon redemption was approximately $1.4 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income from continuing operations before income taxes consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Domestic $ 171.3 $ 340.9 $ 193.0 Foreign 6.8 3.9 20.2 Total $ 178.1 $ 344.8 $ 213.2 The components of income tax expense from continuing operations for the years ended December 31 are as follows (in millions): 2021 2020 2019 Current: Federal $ 36.4 $ 16.1 $ (28.4) State 16.3 9.6 4.1 Foreign 2.3 (0.2) 3.5 Total current expense (benefit) 55.0 25.5 (20.8) Deferred: Federal (3.4) 57.7 26.9 State (1.3) 13.4 2.9 Foreign (0.3) 0.5 1.5 Total deferred expense (benefit) (5.0) 71.6 31.3 Total tax expense (benefit) $ 50.0 $ 97.1 $ 10.5 The Company has recognized income tax expense (benefit) related to derivative securities within other comprehensive income of $0.9 million, $0.8 million and $0.6 million in the years ended December 31, 2021, 2020 and 2019, respectively. The provision for income taxes in 2021, 2020 and 2019 included benefits of $0.5 million, $0.4 million and $0.4 million, respectively, related to the utilization of net operating loss carryforwards. The reconciliation of the difference between the Company’s U.S. Federal statutory income tax rate and the effective income tax rate for continuing operations for the years ended December 31 is as follows: 2021 2020 2019 Tax at U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.8 % 6.4 % 6.1 % Non-deductible expenses 0.2 % 0.2 % 0.3 % Executive Compensation 1.6 % 0.1 % 0.4 % Adjustment to liabilities for uncertain tax positions (1.7) % (2.5) % (19.2) % Effect of foreign operations 0.7 % 0.2 % 0.3 % Effect of changes in tax law — % — % (0.4) % Effect of disposal of Affiliates (0.1) % 3.6 % — % Effect of income from non-controlling interest — % — % (0.6) % Impact of increased state tax obligations to deferred tax assets (0.4) % (0.4) % (1.6) % Impact of Redomestication to deferred tax assets — % — % (1.1) % Other — % (0.4) % (0.3) % Effective income tax rate for continuing operations 28.1 % 28.2 % 4.9 % The Company’s effective income tax rate is higher than the US federal tax rate of 21% primarily due to its state tax obligations, non-deductible executive compensation and the effects of foreign operations. In connection with the sale of its Affiliates, the Company recorded tax expense of $9.4 million, $77.6 million, and $0.0 million, including tax impacts of non-deductible tax items, during the years ended December 31, 2021, 2020 and 2019, respectively. In addition, during the year ended December 31, 2021, the Company recorded income tax expense of $256.7 million in discontinued operations. The Company reduced its liability for uncertain tax positions by $3.4 million, $9.1 million and $40.8 million during the years ended December 31, 2021, 2020 and 2019, respectively, due to the lapse of statute of limitations. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) included a provision that increased the business interest limitation under IRC Section 163(j) from 30% to 50% for tax years 2019 and 2020. This provision allowed the Company to utilize more of the deferred tax asset related to interest expense. In connection with the Redomestication in 2019, the Company revalued certain deferred tax assets that were transferred to the U.S. parent from the former U.K. parent. These deferred tax assets are measured using applicable U.S. and state income tax rates. The Company’s state tax filing obligations have increased in the normal course of business and in connection with states tax law changes regarding apportionment of income. These changes have resulted in an increase to the state income tax rate and accordingly to the state deferred tax assets. The Company has elected to treat global intangible low-taxed income (“GILTI”) taxes as period costs in the accounting and tax periods in which they are incurred. The Company has recognized tax expense of $0.9 million, $0.8 million and $0.5 million during the years ended December 31, 2021, 2020 and 2019, respectively, related to the GILTI tax. In general, it is the practice and intention of the Company to reinvest earnings of its non-U.S. subsidiaries in those operations. Management has no intention of repatriating earnings of its non-U.S. subsidiaries in the foreseeable future. At December 31, 2021, the Company has not recorded any deferred tax liabilities relating to additional taxes such as foreign withholding and state taxes which could arise on the repatriation of unremitted earnings of its non-U.S. subsidiaries. It is not practical for the Company to determine the potential unrecognized deferred tax liability related to unremitted earnings due to numerous assumptions associated with the determination. Deferred tax assets and liabilities reflect the expected future tax consequences of temporary differences between the book carrying amounts and tax bases of the Company’s assets and liabilities. The significant components of deferred tax assets and deferred tax liabilities for the years ended December 31 are as follows (in millions): 2021 2020 Deferred tax assets: Interest expense $ 0.2 $ 5.2 Federal net operating loss 0.1 0.5 Investment in partnerships 62.4 156.1 Intangible assets — 0.1 Employee compensation 2.7 3.9 Other 2.6 2.8 Cash flow hedge 4.9 5.5 Total deferred tax assets 72.9 174.1 Valuation allowance — — Deferred tax assets, net of valuation allowance 72.9 174.1 Deferred tax liabilities: Right of use assets 0.5 0.8 Investments — 3.0 Total deferred tax liabilities 0.5 3.8 Net deferred tax assets $ 72.4 $ 170.3 At December 31, 2021, the Company’s net deferred tax assets decreased as compared to December 31, 2020 primarily due to the divestitures of Landmark, TSW, Campbell, and ICM, and the redemptions of the co-investment funds. At December 31, 2021, the Company has tax attributes that carry forward for varying periods. The Company’s federal net operating loss carryforward of $0.3 million originated during 2004 and 2006 and will expire over a three A reconciliation of the change in gross unrecognized tax benefits for the years ended December 31 is as follows (in millions): 2021 2020 2019 Balance as of January 1 $ 3.6 $ 11.3 $ 46.9 Additions based on current year tax positions 0.1 0.1 0.1 Reductions related to lapses of statutes of limitations (2.7) (7.8) (35.7) Balance as of December 31 $ 1.0 $ 3.6 $ 11.3 The Company’s liability for uncertain tax positions includes unrecognized benefits of $0.9 million and $3.4 million at December 31, 2021 and 2020, respectively, that if recognized would affect the effective tax rate on income from continuing operations. The Company recognized $(0.5) million, $(0.9) million, and $(5.3) million in interest and penalties in its income tax provision for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognizes accrued interest and penalties relating to unrecognized tax benefits as income tax expense. The Company’s liability for uncertain tax positions at December 31, 2021, 2020 and 2019 includes accrued interest and penalties of $0.1 million, $0.5 million and $1.4 million, respectively. The Company believes that it is reasonably possible that a decrease of up to $0.4 million in unrecognized tax benefits may be necessary within the next twelve months, as the result of a lapse of statute of limitations. The Company is periodically under examination by various taxing authorities. Examinations are inherently uncertain, may result in payment of additional taxes or the recognition of tax benefits and may be in process for extended periods of time. At December 31, 2021, 2020 and 2019, the Company is subject to examination in two jurisdictions. The Company and its subsidiaries file tax returns in the U.S., U.K., state, local, and other foreign jurisdictions. As of December 31, 2021, 2020 and 2019, the Company is generally no longer subject to income tax examinations by U.S. federal, state, local, or foreign tax authorities for calendar years prior to 2018. In the U.K., as of December 31, 2021, the Company continues to be subject to an income tax examination for calendar year 2017 but otherwise is generally no longer subject to income tax examinations for tax years before 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operational commitments The Company had unfunded commitments to invest up to approximately $0.2 million in co-investments as of December 31, 2021. These commitments will be funded as required through the end of the respective investment periods ranging through fiscal 2022. During 2021, the Company divested of all of its interests in Landmark and Campbell and funded its commitments as required through the disposition dates. As a result of these dispositions, the Company no longer had any unfunded commitments to Landmark or Campbell as of December 31, 2021. See Note 3, Divestitures, Held for Sale and Discontinued Operations for additional information. Included in cash and cash equivalents is $1.5 million pertaining to the wind-down of BrightSphere Investment UK, Ltd. Certain Affiliates operate under regulatory authorities that require that they maintain minimum financial or capital requirements. Management is not aware of any violations of such financial requirements occurring during the period. Guaranty The Company entered into a guaranty for an office space security deposit on behalf of Acadian in the amount of $2.5 million in January 2020. This represents the maximum potential amount of future (undiscounted) payments that the Company could be required to make under the guaranty in the event of default by the guaranteed party. This guaranty expires in 2022. There are no liabilities recorded on the Consolidated Balance Sheet as of December 31, 2021 and 2020, related to this guaranty. Litigation The Company and its Affiliates are subject to claims, legal proceedings and other contingencies in the ordinary course of their business activities. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved in a manner unfavorable to the Company or its Affiliates. The Company and its Affiliates establish accruals for matters for which the outcome is probable and can be reasonably estimated. If an insurance claim or other indemnification for a litigation accrual is available to the Company, the associated gain will not be recognized until all contingencies related to the gain have been resolved. As of December 31, 2021, there were no material accruals for claims, legal proceedings or other contingencies. Indemnifications In the normal course of business, such as through agreements to enter into business combinations and divestitures of Affiliates, the Company enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. Foreign tax contingency The Company has clients in non-U.S. jurisdictions which require entities that are conducting certain business activities in such jurisdictions to collect and remit tax assessed on certain fees paid for goods and services provided. The Company does not believe this requirement is applicable based on its limited business activities in these jurisdictions. However, given the fact that uncertainty exists around the requirement, the Company has chosen to evaluate its potential exposure related to non-collection and remittance of these taxes. At December 31, 2021, management of the Company has estimated the potential maximum exposure and concluded that it is not material. No accrual for the potential exposure has been recorded as the probability of incurring any potential liability relating to this exposure is not probable at December 31, 2021. Considerations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, restricted cash and investments. The Company maintains cash and cash equivalents and short term investments with various financial institutions. These financial institutions are typically located in cities in which the Company and its Affiliates operate. For the Company and certain Affiliates, cash deposits at a financial institution may exceed Federal Deposit Insurance Corporation insurance limits. The majority of the Company’s cash equivalents consists of money market funds. At December 31, 2021, approximately $176 million of the Company’s cash and cash equivalents were invested in money market funds. Additionally, the Company holds insurance policies which cover historical and future tax benefits relating to certain of its deferred tax assets. The insurers of the policies are considered a significant counterparty to the Company. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share is calculated by dividing net income attributable to controlling interests by the weighted average number of shares of common stock outstanding. Diluted earnings per share is similar to basic earnings per share, but is adjusted for the effect of potentially issuable common stock, except when inclusion is antidilutive. The calculation of basic and diluted earnings per share of common stock for the years ended December 31, 2021, 2020 and 2019 is as follows (dollars in millions, except per share data): 2021 2020 2019 Numerator: Income from continuing operations attributable to controlling interests 128.1 247.3 196.9 Income from discontinued operations attributable to controlling interests (Note 3) 700.3 39.4 27.0 Net income attributable to controlling interests 828.4 286.7 223.9 Less: Total income available to participating unvested securities (1) (0.1) (0.1) (0.1) Total net income attributable to common stock 828.3 286.6 223.8 Denominator: Weighted-average shares of common stock outstanding—basic 77,213,010 81,259,778 91,205,412 Potential shares of common stock: Restricted stock units 33,175 60,276 63,540 Employee stock options 3,239,739 716,149 — Weighted-average shares of common stock outstanding—diluted 80,485,924 82,036,203 91,268,952 Earnings per share of common stock attributable to controlling interests: Basic: Continuing operations $ 1.66 $ 3.04 $ 2.16 Discontinued operations $ 9.07 $ 0.49 $ 0.29 Basic earnings per share of common stock attributable to controlling interests $ 10.73 $ 3.53 $ 2.45 Diluted Continuing operations $ 1.59 $ 3.01 $ 2.16 Discontinued operations $ 8.70 $ 0.48 $ 0.29 Diluted earnings per share of common stock attributable to controlling interests $ 10.29 $ 3.49 $ 2.45 (1) Income available to participating unvested securities includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Management fees The Company’s management fees are a function of the fee rates the Affiliates charge to their clients, which are typically expressed in basis points, and the levels of the Company’s assets under management. The most significant driver of increases or decreases in this average fee rate is changes in the mix of the Company’s assets under management caused by net inflows or outflows in certain asset classes or disproportionate market movements. Performance fees The Company’s products subject to performance fees earn these fees upon exceeding high-water mark performance thresholds or outperforming a hurdle rate. Performance fees are recorded in revenues when the contractual performance criteria have been met and when it is probable that a significant reversal of revenue recognized will not occur in future reporting periods. Other revenue Included in other revenue are certain payroll and benefits costs and expenses paid on behalf of Funds by the Company’s Affiliates. In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, the Company is acting as a principal and the reimbursement is accrued on a gross basis at cost as the corresponding reimbursable expenses are incurred. Revenue from expense reimbursements amounted to $2.9 million, $4.6 million and $4.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, and is recorded in other revenue in the Company’s Consolidated Statements of Operations. Other revenue may also include other miscellaneous revenue, consisting primarily of administration and consulting services. Disaggregation of management fee revenue The geographic disaggregation of management fee revenue for the years ended December 31 (in millions) is presented below: 2021 2020 2019 Quant & Solutions U.S. $ 313.1 $ 249.7 $ 261.4 Non-U.S. 106.3 97.1 109.4 Liquid Alpha (1) U.S. — 82.0 145.5 Non-U.S. — 26.3 42.2 Other (2) U.S. 10.2 17.1 18.2 Non-U.S. 3.7 6.7 5.4 Management fee revenue $ 433.3 $ 478.9 $ 582.1 (1) Prior to June 30, 2021, the Company had a Liquid Alpha reportable segment which was comprised of TSW and ICM. On May 9, 2021, the Company entered into an agreement to sell all of the Company’s interests in TSW and completed the sale on July 22, 2021. As a result of this transaction, TSW was reclassified to discontinued operations and the Liquid Alpha no longer constitutes a reportable segment of the Company. The ICM operating segment was reclassified to “Other” within the Company’s segment reporting for the year ended December 31, 2021. On July 19, 2021, the Company completed the sale of all its equity interests in ICM. See Note 3, Divestitures, Held for Sale and Discontinued Operations for further discussion and Note 23, Segments for further discussion. (2) Prior to March 31, 2021, the Company had an Alternatives reportable segment which consisted of Landmark and Campbell Global operating segments. On March 30, 2021, the Company entered into an agreement to sell of all of the Company’s interests in Landmark and completed the sale on June 2, 2021. As a result of this transaction, Landmark was reclassified to discontinued operations and the Alternatives segment no longer constitutes a reportable segment of the Company. The Campbell Global operating segment was reclassified to “Other” within the Company’s segment reporting. On August 31, 2021 the Company sold all of its equity interests in Campbell Global. See Note 3, Divestitures, Held for Sale and Discontinued Operations and Note 23, Segments for further discussion. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has various defined contribution plans covering substantially all of its full-time employees. In addition to pre-tax contributions made by employees, the Company also makes contributions to the qualified plans annually. The Company also has non-qualified defined contribution plans covering certain senior employees. The Company has established a Deferred Compensation Plan under which the Board of Directors makes awards that may be invested by the recipient in investments deemed available under the plan. Vesting of awards under the Deferred Compensation Plan is based on the number of years of service already provided by the employee at the date of the grant. In addition, the Company has established a Voluntary Deferral Plan that provides officers of the Company the opportunity to voluntarily defer a portion of their compensation. The compensation deferred is deemed to be invested in one or more investment options available under the plan. These non-qualified plans are unfunded, although the Company does make contributions to a Rabbi Trust to hedge its risks in terms of providing returns to employees on their deemed investments held in the plan. As of December 31, 2021 and 2020, a total of $45.0 million and $48.0 million, respectively, had been recorded as long-term compensation liabilities and a total of $45.0 million and $48.0 million had been invested under the Deferred Compensation and Voluntary Deferral plans, respectively. The change in the fair value of long-term compensation liabilities and the change in fair value of the assets invested under the Deferred Compensation and Voluntary Deferral plans was $3.5 million and $3.5 million, respectively, for the year ended December 31, 2021, $7.6 million and $7.0 million, respectively, for the year ended December 31, 2020, and $7.6 million, and $7.9 million, respectively, for the year ended December 31, 2019. The Company recorded total expenses in relation to its qualified and non-qualified plans within compensation and benefits in its Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 of $8.5 million, $9.0 million and $12.0 million, respectively. |
Equity-based Compensation
Equity-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-based Compensation | Cash-settled Affiliate awards The Company maintains compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees subject to a limit imposed by the Company, and may be repurchased either by Affiliate key employees or by the Company at a future date at the then applicable fair value, subject to service requirements having been met. Compensation expense is recognized over the requisite service period equal to the cumulative vested fair value of the award at the end of each period up to vesting date. The Company accounts for these arrangements as “cash-settled” share-based payments, and accordingly a corresponding share-based payment liability is recorded. The fair value of the liabilities are determined with the assistance of third party valuation specialists using discounted cash flow analyses, which incorporate assumptions for the forecasted earnings information, market risk adjustments, discount rates and post-vesting restrictions. Vested Affiliate equity liabilities are revalued at each period end until settlement date, with changes in the liabilities included within compensation expense. The following table presents the changes in the share-based payments liability for the years ended December 31 (in millions): 2021 2020 2019 Balance, beginning of period $ 25.0 $ 33.2 $ 35.4 Amortization and revaluation of granted awards 5.4 2.0 (0.4) Affiliate disposals (0.8) — — Repurchases (cash-settled) (1.5) (10.2) (1.8) Balance, end of period $ 28.1 $ 25.0 $ 33.2 Equity-settled corporate awards BrightSphere Investment Group equity incentive plan The Company has established various plans under which it is authorized to grant restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance-based restricted stock awards (“Performance-based RSAs”), performance-based restricted stock units (“Performance-based RSUs”) and stock option awards. These plans are maintained to provide equity-based compensation arrangements to employees and non-executive directors. Equity ownership encourages employees and directors to act in the best long-term interests of the Company. As of December 31, 2021, the Company had 4.6 million shares of common stock available to be granted under the various plans. Compensation expense recognized by the Company for the years ended December 31, 2021, 2020 and 2019 in relation to these awards was $1.9 million, $2.5 million, and $6.2 million respectively. The related income tax benefit recognized for years ended December 31, 2021, 2020 and 2019 was $0.3 million, $0.4 million and $0.5 million respectively. Unamortized compensation expense related to unvested RSAs, RSUs, Performance-based RSAs, Performance-based RSUs and stock options at December 31, 2021 of $2.7 million is expected to be recognized over a weighted-average period of 1.4 years. The service inception date for annual awards granted in 2021 is deemed to be January 1, 2020. It is anticipated that annual awards for 2021 with a fair value of $0.8 million will be granted during 2022 with a service inception date of January 1, 2021. The following summarizes the grant date fair value of the instruments granted by the Company during the year ended December 31: 2021 2020 2019 BrightSphere Investment Group Inc. awards Shares granted Weighted average fair value Shares granted Weighted average fair value Shares granted Weighted average fair value RSAs — $ — — $ — 18,000 $ 10.09 RSUs 15,548 22.06 105,678 10.20 88,980 12.40 Performance-based RSUs — — — — 9,013 14.62 Stock options — — 2,820,000 0.65 2,070,000 2.48 Grants of restricted stock in BrightSphere Investment Group Inc. The following table summarizes the activity related to restricted stock awards: 2021 2020 2019 BrightSphere Investment Group Inc. RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 14,010 $ 13.26 77,217 $ 14.43 325,976 $ 14.83 Granted during the year — — — — 18,000 10.09 Forfeited during the year (1,500) 10.09 (6,447) 14.19 (47,453) 15.43 Vested during the year (10,010) 14.53 (56,760) 14.75 (219,306) 14.45 Outstanding at end of the year 2,500 $ 10.09 14,010 $ 13.26 77,217 $ 14.43 The grant date fair value per share, calculated based on the closing price as quoted on the New York Stock Exchange on the measurement date, is used to determine the fair value of restricted stock awards granted to employees. There were no RSAs granted by the Company during the year ended December 31, 2021. Restricted stock awards under the plan generally have a vesting period of one Grants of restricted stock units in BrightSphere Investment Group Inc. The following table summarizes the activity related to restricted stock units: 2021 2020 2019 BrightSphere Investment Group Inc. RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 60,364 $ 10.53 62,899 $ 11.79 47,191 $ 14.46 Granted during the year 15,548 22.06 105,678 10.20 88,980 12.40 Forfeited during the year (2,345) 10.30 (30,927) 10.83 (24,591) 14.46 Vested during the year (34,864) 10.35 (77,286) 10.99 (48,681) 14.14 Outstanding at end of the year 38,703 $ 15.33 60,364 $ 10.53 62,899 $ 11.79 The grant date fair value per share, calculated based on the closing price as quoted on the New York Stock Exchange on the measurement date, is used to determine the fair value of restricted stock units granted to employees. Restricted stock units under the plan generally have a vesting period of one Grants of Performance-based restricted stock awards in BrightSphere Investment Group Inc. The following table summarizes the activity related to performance-based restricted stock awards: 2021 2020 2019 BrightSphere Investment Group Inc. Performance-based RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 83,092 $ 9.78 258,678 $ 10.11 258,678 $ 10.11 Vested during the year (36,007) 9.78 — — — — Other movements (47,085) 9.78 (175,586) 10.26 — — Outstanding at end of the year — $ — 83,092 $ 9.78 258,678 $ 10.11 Other movements includes performance-based RSAs that did not meet the market vesting condition and did not vest during the year ended December 31, 2021. There were no performance-based RSAs granted by the Company during the years ended December 31, 2021, 2020, and 2019, respectively. Grants of Performance-based restricted stock units in BrightSphere Investment Group Inc. The following table summarizes the activity related to performance-based restricted stock units: 2021 2020 2019 BrightSphere Investment Group Inc. Performance-based RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 9,013 $ 14.62 9,013 $ 14.62 189,335 $ 10.92 Granted during the year — — — — 9,013 14.62 Vested during the year — — — — (193,125) 10.98 Other movements — — — — 3,790 14.15 Outstanding at end of the year 9,013 $ 14.62 9,013 $ 14.62 9,013 $ 14.62 There were no performance-based RSUs granted by the Company during the years ended December 31, 2021 and 2020, respectively. The Performance-based RSUs granted in 2019 by the Company have a market vesting condition; therefore a Monte-Carlo simulation model has been used to determine the fair value of the restricted units granted to employees. Significant assumptions utilized in the Monte-Carlo simulation model include assumed reinvestment of dividends, the risk-free interest rate of 2.48%, and expected volatility of 26.11%, which is based on an average volatility of the Company’s peer group. Performance-based RSUs under the plan have a vesting period of three years. Grants of Stock Options in BrightSphere Investment Group Inc. The following tables summarizes the activity related to the Company’s stock option awards: 2021 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 7,375,000 $ 11.38 3.4 Granted during the year — — Forfeited during the year — — Exercised during the year (4,405,037) 11.57 Outstanding at end of the year 2,969,963 $ 11.09 2.5 $ 43,091,497 Exercisable at end of the year 911,963 $ 11.56 2.3 $ 12,802,697 2020 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 8,970,000 $ 12.00 4.0 Granted during the year 2,820,000 10.37 4.8 Forfeited during the year (4,396,000) 12.00 Exercised during the year (19,000) 12.00 Outstanding at end of the year 7,375,000 $ 11.38 3.4 $ 58,290,000 Exercisable at end of the year 4,288,000 $ 11.73 3.2 $ 32,366,640 2019 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 6,900,000 $ 12.00 5.0 Granted during the year 2,070,000 12.00 5.0 Forfeited during the year — — Exercised during the year — — Outstanding at end of the year 8,970,000 $ 12.00 4.0 $ — Exercisable at end of the year 3,174,000 $ 12.00 4.0 $ — There were no stock options granted by the Company during the year ended December 31, 2021. The Company granted stock options with a fair value of $1.8 million and $5.1 million during the years ended December 31, 2020 and 2019, respectively. The total fair value of options vested during the years ended December 31, 2021, 2020 and 2019 was $1.3 million, $1.5 million and $4.3 million, respectively. The Company received $2.7 million and $0.2 million related to the exercise of options for the year ended December 31, 2021, and 2020, respectively. The Company realized tax benefits of $0.6 million and $0.0 million related to the exercise of options for the year ended December 31, 2021, and 2020, respectively. Shares issued upon exercise of the options represent newly issued shares. The fair value of the stock options grant was estimated on the grant date using a Monte-Carlo simulation valuation model. The weighted average fair value of stock options granted during the years ended December 31, 2020 and 2019 was $0.65 and $2.48 per option, respectively, based on the grant date assumptions stated below. 2021 2020 2019 Weighted-average grant date fair value per option $ — $ 0.65 $ 2.48 Assumptions: Dividend yield (1) —% 3.9% to 7.4% 3.4 % Expected volatility (2) —% 29.7% to 41.3% 28.4 % Risk-free interest rate (3) —% 1.4% to 0.3% 2.6 % Expected life of options (4) 0 4.7 years to 5.0 years 5.0 years (1) Dividend yield assumption represents the Company’s expected dividend yield based on its historical dividend payouts and the stock price at the date of grant. (2) Expected volatility is based upon historical BSIG stock price volatility. (3) The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 were as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2018 $ 1.8 $ (22.7) $ (20.9) Foreign currency translation adjustment 1.0 — 1.0 Amortization related to derivatives securities, before tax — 3.0 3.0 Tax impact — (0.6) (0.6) Other comprehensive income 1.0 2.4 3.4 Balance, as of December 31, 2019 $ 2.8 $ (20.3) $ (17.5) Foreign currency translation adjustment 1.6 — 1.6 Amortization related to derivatives securities, before tax — 3.1 3.1 Tax impact — (0.8) (0.8) Other comprehensive income (loss) 1.6 2.3 3.9 Balance, as of December 31, 2020 $ 4.4 (18.0) $ (13.6) Foreign currency translation adjustment 0.4 — 0.4 Amortization related to derivatives securities, before tax — 3.3 3.3 Tax impact — (0.9) (0.9) Other comprehensive income 0.4 2.4 2.8 Balance, as of December 31, 2021 $ 4.8 $ (15.6) $ (10.8) |
Non-controlling Interests
Non-controlling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | Non-controlling Interests Non-controlling interests on the Consolidated Balance Sheets include capital and undistributed profits of certain entities that are consolidated, but not 100% owned, which amounted to $0.0 million at December 31, 2021 and $1.7 million at December 31, 2020. Non-controlling interests in consolidated Funds Net income (loss) attributable to non-controlling interests in consolidated Funds in the Consolidated Statements of Operations is comprised of the net income or loss and net gains and losses allocated to equity-holders, other than BSIG, of consolidated Funds. For the years ended December 31, 2021, 2020 and 2019 this net income was $68.0 million, $28.8 million, and $16.1 million, respectively. Non-controlling interests in consolidated Funds on the Consolidated Balance Sheets represents the share of net assets of the Funds attributable to those equity holders who are restricted in their ability to redeem their interests, which amounted to $0.0 million at December 31, 2021, and $80.3 million at December 31, 2020. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging Cash flow hedge In July 2015, the Company entered into a series of $300.0 million notional Treasury rate lock contracts which were designated and qualified as cash flow hedges. The Company documented its hedging strategy and risk management objective for this contract in anticipation of a future debt issuance. The Treasury rate lock contract eliminated the impact of fluctuations in the underlying benchmark interest rate for future forecasted debt issuances. The Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter. The forecasted debt issuances occurred in July 2016 and the Treasury rate lock, which had an accumulated fair value of $(34.4) million, was settled. Refer to Note 13, Borrowings and Debt, for additional information on the debt issuances. Amounts recorded in accumulated other comprehensive income in connection with the settled Treasury rate lock were $2.4 million, net of tax of $0.9 million for the year ended December 31, 2021. As of December 31, 2021, the balance in accumulated other comprehensive income (loss) in connection with the Treasury rate lock contract amounted to $(15.6) million, net of tax. This balance will be reclassified to earnings through interest expense over the life of the issued debt. Amounts of $3.3 million, $3.1 million and $3.0 million have been reclassified for the years ended December 31, 2021, 2020 and 2019, respectively. During the next twelve months the Company expects to reclassify approximately $3.5 million to interest expense. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has the following reportable segment (1)(2) : • Quant & Solutions —comprised of versatile, often highly-tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including global, non-U.S. and small-cap equities, as well as managed volatility, ESG, multi-asset, equity alternatives, and long/short strategies. This segment is comprised of the Company’s interest in Acadian. The corporate head office is included within Other (1)(2) category. The corporate head office expenses are not allocated to the Company’s business segment but the Chief Operating Decision Maker (“CODM”) does consider the cost structure of the corporate head office when evaluating the financial performance of the segment. (1) Prior to March 31, 2021, the Company had an Alternatives reportable segment which was comprised of Landmark and Campbell Global operating segments. On March 30, 2021, the Company entered into an agreement to sell all of the Company’s interests in Landmark. On June 2, 2021, the Company completed the sale of all the Company’s interests in Landmark. As a result of this transaction, Landmark has been reclassified to discontinued operations, and the Alternatives segment no longer constitutes a reportable segment of the Company. The reportable segments for all periods presented have been recast to reflect the reporting of Landmark within discontinued operations and the reclassification of Campbell Global to “Other”. On August 31, 2021, the Company completed the sale of all its interests in Campbell Global. The financial results of Campbell Global are included in the “Other” category until August 30, 2021, the consummation of the sale. See Note 3, Divestitures, Held for Sale and Discontinued Operations for further discussion. (2) Prior to June 30, 2021, the Company had a Liquid Alpha reportable segment which was comprised of TSW and ICM. On May 9, 2021, the Company entered into an agreement to sell all of the Company’s interests in TSW. On July 19, 2021, the Company completed the sale of all the Company’s interest in TSW. As a result of this transaction, TSW has been reclassified to discontinued operations and Liquid Alpha no longer constitutes a reportable segment of the Company. The ICM operating segment was reclassified to “Other” within the Company’s segment reporting for the year ended December 31, 2021. On July 19, 2021 the Company completed the sale of all its interests in ICM, an equity-accounted Affiliate. The financial results of ICM are included in the “Other” category until July 19, 2021, the consummation of the sale. See Note 3, Divestitures, Held for Sale and Discontinued Operations for further discussion. Performance Measure The primary measure used by the CODM in measuring performance and allocating resources to the segments is economic net income (“ENI”). The Company defines economic net income for the segments as ENI revenue less (i) ENI operating expenses, (ii) variable compensation and (iii) key employee distributions. The ENI adjustments to U.S. GAAP include both reclassifications of U.S. GAAP revenue and expense items, as well as adjustments to U.S. GAAP results, primarily to exclude non-cash, non-economic expenses, or to reflect cash benefits not recognized under U.S. GAAP. This measure supplements and should be considered in addition to, and not in lieu of, the Consolidated Statements of Operations prepared in accordance with U.S. GAAP. The Company does not disclose total asset information for its reportable segments as the information is not reviewed by the CODM. ENI revenue includes management fees, performance fees and other revenue under U.S. GAAP, adjusted to include management fees paid to Affiliates by consolidated Funds and the Company’s share of earnings from its equity- accounted Affiliate. ENI revenue is also adjusted to exclude the separate revenues recorded under U.S. GAAP for certain Fund expenses reimbursed to our Affiliates. ENI operating expenses include compensation and benefits, general and administrative expense, and depreciation and amortization under U.S. GAAP, adjusted to exclude non-cash expenses representing changes in the value of Affiliate equity and profit interests held by Affiliate key employees, goodwill impairment and amortization of acquired intangible assets, capital transaction costs, restructuring costs, and the separate expenses recorded under U.S. GAAP for certain Fund expenses reimbursed to Affiliates. Additionally, variable compensation and Affiliate key employee distributions are segregated from ENI operating expenses. ENI segment results are also adjusted to exclude the portion of consolidated Fund revenues, expenses and investment return recorded under U.S. GAAP. Segment Presentation The following tables set forth summarized operating results for the Company’s segments and related adjustments necessary to reconcile the segment economic net income to arrive at the Company's consolidated U.S. GAAP net income (loss) for the year ended December 31, 2021 (in millions): Quant & Solutions Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 488.1 $ 35.4 $ 0.3 (a) $ 523.8 ENI operating expenses 160.8 32.0 41.3 (b) 234.1 Earnings before variable compensation 327.3 3.4 (41.0) 289.7 Variable compensation 100.8 28.8 0.9 (c) 130.5 ENI operating earnings (after variable comp) 226.5 (25.4) (41.9) 159.2 Affiliate key employee distributions 12.4 1.0 — 13.4 Earnings after Affiliate key employee distributions 214.1 (26.4) (41.9) 145.8 Net interest expense — (22.3) (2.3) (d) (24.6) Net investment income — — 8.3 (e) 8.3 Gain on sale of subsidiaries — — 48.6 (e) 48.6 Net income attributable to non-controlling interests in consolidated Funds — — (68.0) (e) (68.0) Income tax expense — (47.1) (2.9) (f) (50.0) Income from discontinued operations, net of tax — — 77.3 (g) 77.3 Gain on disposal of discontinued operations, net of tax — — 691.0 (h) 691.0 Economic net income $ 214.1 $ (95.8) $ 710.1 $ 828.4 The following table presents the financial data for the Company’s segments for the year ended December 31, 2020 (in millions): Quant & Solutions Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 354.8 $ 111.1 $ 26.4 $ 7.2 (a) $ 499.5 ENI operating expenses 149.0 39.4 45.1 13.7 (b) 247.2 Earnings before variable compensation 205.8 71.7 (18.7) (6.5) 252.3 Variable compensation 72.8 29.0 6.1 4.2 (c) 112.1 ENI operating earnings (after variable comp) 133.0 42.7 (24.8) (10.7) 140.2 Affiliate key employee distributions 4.3 3.9 0.3 — 8.5 Earnings after Affiliate key employee distributions 128.7 38.8 (25.1) (10.7) 131.7 Net interest income expense — — (21.6) (6.3) (d) (27.9) Net investment income — — — (0.3) (e) (0.3) Gain on sale of Affiliates — — — 241.3 (e) 241.3 Net income attributable to non-controlling interests in consolidated Funds — — — (28.8) (e) (28.8) Income tax (expense) benefit — — (32.5) (64.6) (f) (97.1) Income from discontinued operations, net of tax — — — 67.8 (g) 67.8 Economic net income $ 128.7 $ 38.8 $ (79.2) $ 198.4 $ 286.7 The following table presents the financial data for the Company’s segments for the year ended December 31, 2019 (in millions): Quant & Solutions Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 380.6 $ 180.3 $ 25.5 $ 8.2 (a) $ 594.6 ENI operating expenses 160.6 54.1 57.4 (57.8) (b) 214.3 Earnings before variable compensation 220.0 126.2 (31.9) 66.0 380.3 Variable compensation 75.6 43.7 12.0 6.7 (c) 138.0 ENI operating earnings (after variable comp) 144.4 82.5 (43.9) 59.3 242.3 Affiliate key employee distributions 6.4 13.7 — — 20.1 Earnings after Affiliate key employee distributions 138.0 68.8 (43.9) 59.3 222.2 Net interest income (expense) — — (21.0) (9.0) (d) (30.0) Net investment income — — — 21.0 (e) 21.0 Net income attributable to non-controlling interests in consolidated Funds — — — (16.1) (e) (16.1) Income tax (expense) benefit — — (37.7) 27.2 (f) (10.5) Income from discontinued operations, net of tax — — — 37.3 (g) 37.3 Economic net income $ 138.0 $ 68.8 $ (102.6) $ 119.7 $ 223.9 (1) The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests. Reconciling Adjustments: (a) Adjusted to exclude earnings from equity-accounted Affiliate, which are included in U.S. GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S. GAAP revenue. (b) Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, goodwill impairment and amortization of acquired intangible assets, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S. GAAP operating expenses. (c) Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense. (d) Adjusted to include the cost of seed financing, and amortization of debt issuance costs, which is included in U.S. GAAP interest expense. (e) Adjusted to include net investment income (loss), net income (loss) attributable to non-controlling interests in consolidated Funds, and the gain on sale of Affiliates, all of which are included in U.S. GAAP net income attributable to controlling interests. (f) Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes. (g) Adjusted to include the results of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests. (h) Adjusted to include the gain on disposal of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | Selected Quarterly Financial Data The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2021 and 2020 ($ in millions, unless otherwise noted): 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 109.7 $ 133.3 $ 117.9 $ 162.9 Operating income 32.5 36.1 28.7 48.5 Income from continuing operations before income taxes 27.6 34.6 57.4 58.5 Income from discontinued operations, net of tax 21.9 53.4 1.2 0.8 Gain (Loss) on disposal of discontinued operations, net of tax — 509.2 185.4 (3.6) Net income 40.4 587.3 229.5 39.2 Net income attributable to controlling interests 27.0 532.7 229.5 39.2 Basic earnings per share ($) $ 0.34 $ 6.71 $ 2.88 $ 0.55 Diluted earnings per share ($) $ 0.33 $ 6.42 $ 2.76 $ 0.53 Continuing operations basic earnings per share ($) $ 0.23 $ 0.31 $ 0.54 $ 0.59 Continuing operations diluted earnings per share ($) $ 0.22 $ 0.29 $ 0.52 $ 0.57 Basic shares outstanding (in millions) 79.3 79.4 79.6 70.6 Diluted shares outstanding (in millions) 82.3 82.9 83.2 73.5 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 128.6 $ 122.6 $ 127.5 $ 120.8 Operating income 40.7 29.9 34.2 26.9 Income from continuing operations before income taxes 2.3 36.0 41.2 265.3 Income from discontinued operations, net of tax 23.3 26.7 2.1 15.7 Net income 22.1 53.9 34.0 205.5 Net income attributable to controlling interests 32.6 18.9 37.2 198.0 Basic earnings per share ($) $ 0.38 $ 0.23 $ 0.46 $ 2.49 Diluted earnings per share ($) $ 0.38 $ 0.23 $ 0.46 $ 2.42 Continuing operations basic earnings per share ($) $ 0.06 $ 0.26 $ 0.36 $ 2.36 Continuing operations diluted earnings per share ($) $ 0.09 $ 0.26 $ 0.36 $ 2.30 Basic shares outstanding (in millions) 85.1 80.4 80.0 79.6 Diluted shares outstanding (in millions) 85.1 80.4 80.9 81.8 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsDuring the period from January 1, 2022 through February 24, 2022, the Company repurchased 1,630,691 shares at a weighted average price of $24.51 per share, or approximately $40.0 million in total, including commissions. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These Consolidated Financial Statements reflect the historical balance sheets, statements of operations, statements of comprehensive income, statements of changes in shareholders’ equity and statements of cash flows of the Company. Within these Consolidated Financial Statements, Paulson and its related entities, as defined above, are referred to as “related parties.” The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). All dollar amounts, except per-share data in the text and tables herein, are stated in millions unless otherwise indicated. Transactions between the Company and its related parties are included in the Consolidated Financial Statements; however, material intercompany balances and transactions among the Company, its consolidated Affiliates and consolidated Funds are eliminated in consolidation. As a result of the Redomestication on July 12, 2019, discussed in Note 1, the Company revised its equity accounts to reflect a U.S. domiciled company presentation on the Consolidated Statements of Changes in Shareholders’ equity and the Consolidated Balance Sheets for all periods presented. The previously issued ordinary shares of BrightSphere Investment Group plc were exchanged on a one-for-one basis for newly issued shares of common stock of BrightSphere Investment Group Inc. The Redomestication and related internal reorganization was accounted for consistent with a reorganization of entities under common control in accordance with Accounting Standards Codification (“ASC”) 805 Business Combinations . Accordingly, the transfer of the assets and liabilities and exchange of shares was recorded in the new entity (BrightSphere Investment Group Inc.) at their carrying amounts from the transferring entity (BrightSphere Investment Group plc) at the date of transfer. On February 6, 2021 the Company entered into a definitive agreement to sell all of the Company’s interests in ICM, an equity-accounted Affiliate. The criteria for discontinued operations were not met for this divestiture. The transaction closed on July 19, 2021. See Note 3, Divestitures, Held for Sale and Discontinued Operations for additional information. On March 30, 2021, the Company entered into a definitive agreement with Ares Holdings L.P. (“Ares”), pursuant to which Ares agreed to purchase all of the Company’s interests in Landmark and the Company’s carried interest and co-investments in Landmark Funds. The transaction closed on June 2, 2021. The divestiture of Landmark met the discontinued operations criteria as it represented a strategic shift that had a major effect on the Company’s operations and financial results. As a result, the Company has reclassified the financial results of Landmark and consolidated Landmark Funds to income from discontinued operations, net of tax in the Consolidated Statements of Operations for the years ended December 31, 2021, 2020, and 2019. Cash flows from discontinued operations are presented in the Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020, and 2019. |
Revenue recognition | Revenue recognition Revenue from contracts with customers The Company recognizes revenue when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in accordance with the revenue recognition guidance. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. The Company’s management fee revenue is calculated based upon levels of assets under management multiplied by a fee rate. Management fee revenue is typically calculated on a monthly or quarterly basis, but is earned continuously as performance obligations are fulfilled. The transaction price is variable in contracts which calculate AUM on an average basis over a specified period and this variability is resolved at the end of the period, when the actual average AUM for the contract period may be calculated. The Company is able to resolve the variability and calculate the most likely amount to be recognized for any given period by estimating revenue based upon a daily average AUM. All of the Company’s performance obligations are satisfied ratably over time and there is no distinction in the methodology used to recognize management fee revenue in instances where there is more than one performance obligation. Typically, revenue is recognized over time using a time-based output measure to measure progress. Management fees are recognized monthly as services are rendered. Affiliates that manage tangible property may also earn transaction fees at the time the underlying property is bought and sold. Dividend income received is recorded on the ex-dividend date. Performance fees are generally assessed as a percentage of the investment performance realized on a client’s account. Additionally, separate accounts or other products which primarily earn management fees are potentially subject to performance adjustments up or down based on investment performance versus benchmark. Performance fees, including those that are subject to clawback, are recognized when they (i) become billable to customers (based on contractual terms of agreements) and (ii) are not subject to contingent repayment. The Company is required to capitalize certain costs directly related to the acquisition or fulfillment of a contract with a customer. The Company has noted no instances where sales-based compensation or similar costs met the definition of an incremental cost to acquire a contract with a customer in accordance with revenue recognition guidance. There are no instances where the Company has incurred costs to fulfill a contract with a customer, therefore no assets related to contract acquisition or fulfillment have been recognized. For each one of its contracts with customers, the Company identifies one or more performance obligations within the contract and then, for each performance obligation, determines if it is a principal (where the nature of its promise is to provide a specified good or service itself) or an agent (where the nature of its promise is to arrange for a good or service to be provided by another party). In instances where a customer reimburses the Company for a cost paid on the customer’s behalf, if the Company is acting as a principal, the reimbursement is recorded on a gross basis and if the Company is acting as an agent, the reimbursement is recorded on a net basis. Certain Funds reimburse the Company’s Affiliates for certain expenses where the Affiliate is acting as a principal, primarily for compensation expense for field office personnel at several Timber Funds, where revenue is recognized from log and fiber sales upon delivery to the customer. Revenue from expense reimbursement is accrued at cost as the corresponding reimbursable expenses are incurred and is recorded in other revenue in the Company’s Consolidated Statements of Operations. Revenue from other sources Other revenue also includes interest income on cash and cash equivalents and revenue from administration and consulting services. |
Compensation arrangements | Compensation arrangements The Company operates short term variable compensation arrangements where generally, a percentage of each Affiliate’s annual pre-variable compensation earnings, as defined in each arrangement, is allocated to a “pool” of each respective Affiliate’s key employees, and subsequently distributed to individuals subject to recommendation and approval of a remuneration committee comprised of both the Company’s and each respective Affiliate’s management. Additionally, a contractual percentage of Affiliate performance fee revenues and post-bonus profits are included in a deferred compensation pool. The deferred compensation pool is allocated to Affiliate key employees and is subject to a three-year vesting period. Variable compensation expense is accrued and recognized in the Consolidated Statements of Operations as services are provided by individual employees. The Company operates longer term profit-interest plans whereby certain Affiliate key employees are granted (or have a right to purchase) awards representing a profits interest in their respective Affiliate, as distinct from an equity interest due to the lack of pari passu voting rights. Under these plans, the Company may award a portion of the aforementioned variable compensation arrangement through issuance of a profits interest in the Affiliate. The awards generally have a three In addition, under certain circumstances, Affiliate key employees are eligible to receive repurchase payments upon exiting the plans based on a multiple of the last twelve months profits of their respective Affiliate, as defined. Profits allocated and movements in the potential repurchase value, determined based on a fixed multiple times trailing twelve month profits, as defined, are recognized as compensation expense. Profit interests compensation liabilities are re-measured at each reporting date at the twelve month earnings multiple, with movements treated as compensation expense in the Company’s Consolidated Statements of Operations. |
Share-based compensation plans | Share-based compensation plans The Company recognizes the cost of all share-based payments to directors, senior management and employees, including grants of restricted stock and stock options, as compensation expense in the Consolidated Statements of Operations over the respective vesting periods. Awards made under the Company’s equity plans are accounted for as equity settled, and the grant date fair value is recognized as compensation expense over the requisite service period, with a corresponding contribution to additional paid-in capital. Valuation of restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) is determined based on the Company’s closing share price as quoted on the New York Stock Exchange on the measurement date. For performance-based awards and stock options, a Monte-Carlo simulation model is used to determine the fair value. Key inputs for the model include: assumed reinvestment of dividends, risk-free interest rate, expected volatility and term. All excess tax benefits and deficiencies on share-based payment awards are recognized as income tax expense or benefit in the Consolidated Statements of Operations. In addition, the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur and excess tax benefits or deficiencies are classified with other income tax cash flows as an operating activity in the Consolidated Statements of Cash Flows. The Company recognizes forfeitures as they occur. The Company has compensation arrangements with certain of its Affiliates whereby in exchange for continued service, Affiliate equity is either purchased by, or granted to Affiliate key employees and may be repurchased either by Affiliate key employees or by the Company at a future date, subject to service requirements having been met. Awards of equity made to Affiliate key employees are accounted for as cash settled, with the fair value recognized as compensation expense over the requisite service period, with a corresponding liability carried within other compensation liabilities on the Consolidated Balance Sheets until the award is settled. The fair value of the liabilities are determined with the assistance of third party valuation specialists using discounted cash flow analyses which incorporate assumptions for the forecasted earnings information, market risk adjustments, discount rates and post-vesting restrictions. The liabilities are revalued at each reporting period, with any movements recorded within compensation expense. |
Consolidation | Consolidation Affiliates The Company evaluates each of its Affiliates and other operating entities to determine the appropriate method of accounting. Generally, majority-owned entities or otherwise controlled investments in which the Company holds a controlling financial interest as the principal shareholder, managing member, or general partner are consolidated. Funds In the normal course of business, the Company’s Affiliates sponsor and manage certain investment vehicles (the “Funds”). The Company assesses consolidation requirements with respect to its Funds. In evaluating whether or not a legal entity must be consolidated, the Company determines if such entity is a variable interest entity (“VIE”) or a voting interest entity (“VOE”). A VOE is considered an entity in which (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns, and the right to direct the activities of the entity that most significantly impact the entity’s economic performance. A VIE is an entity that lacks one or more of the characteristics of a VOE. Assessing whether an entity is a VIE or VOE involves judgment and analysis. Factors considered in this assessment include the entity’s legal organization, the entity’s capital structure and equity ownership and any related party or de-facto agent implications of the Company’s involvement with the entity. Investments that are determined to be VIEs are consolidated if the Company or a consolidated Affiliate is the primary beneficiary of the investment. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly by the Company or indirectly through related parties on a proportional basis. The primary beneficiary of the VIE is defined as the variable interest holder that has a controlling financial interest. A controlling financial interest is defined as (i) the power to direct the activities of the VIE that most significantly impacts its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. If no single party satisfies both criteria, but the Company and its related parties satisfy the criteria on a combined basis, then the primary beneficiary is the entity out of the related party group that is most closely associated to the VIE. The consolidation analysis can generally be performed qualitatively, however, if it is not readily apparent that the Company is not the primary beneficiary, a quantitative analysis may also be performed. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest in the fund, including interests of related parties on a proportional basis, is significant. The Company consolidates VOEs when it has control over significant operating, financial and investing decisions of the entity or holds the majority voting interest. Upon the occurrence of certain events (such as contributions and redemptions, either by the Company, its Affiliates, or third parties, or amendments to the governing documents of the Company’s investees or sponsored Funds) management reviews and reconsiders its previous conclusion regarding the status of an entity as a VIE or a VOE. Additionally, management continually reconsiders whether the Company is deemed to be a VIE’s primary beneficiary who consolidates such entity. |
Investments and Investment Transactions | Investments and Investment Transactions Valuation of investments held at fair value Valuation of Fund investments, including Timber Funds, is evaluated pursuant to the fair value methodology discussed below. Other investments are categorized as trading and recorded at estimated fair value. Realized and unrealized gains and losses arising from changes in fair value of investments are reported within net consolidated funds’ investment gains and losses in the Consolidated Statements of Operations. See Note 5 for a summary of the inputs utilized to determine the fair value of other investments held at fair value. Security transactions The Company generally records securities transactions on a trade-date basis. Realized gains and losses on securities transactions are generally determined on the average-cost method (net of foreign capital gain taxes) and for certain transactions determined based on the specific identification method. Income and expense recognition The Company records interest income on an accrual basis and includes amortization of premiums and accretion of discounts. Dividend income is recorded on the ex-dividend date, net of applicable withholding taxes. Expenses are recorded on an accrual basis. Short sales Certain Funds may sell a security they do not own in anticipation of a decline in the fair value of that security. When a Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The short sales are secured by the long portfolio and available cash. The Fund records a gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, upon the termination of a short sale. The amount of the gain or loss will be equal to the proceeds received in entering into the short sale less the cost of buying back the short security to close the short position. While the transaction is open, the Fund will incur an expense for any accrued dividends or interest which is paid to the lender of the securities. These short sales may involve a level of risk in excess of the liability recognized in the accompanying Consolidated Balance Sheets. The extent of such risk cannot be quantified. |
Foreign currency translation and transactions | Foreign currency translation and transactions Assets and liabilities of non-U.S. entities for which the local currency is the functional currency are translated at current exchange rates as of the end of the accounting period. The related revenues and expenses are translated at average exchange rates in effect during the period. Net exchange gains and losses resulting from translation are excluded from income and are recorded as part of accumulated other comprehensive income (loss). Transactions denominated in a foreign currency are revalued at the current exchange rate at the transaction date and any related gains and losses are recognized in earnings. |
Equity method investments | Equity method investments The Company uses the equity method of accounting for investments that provide the Company with the ability to exercise significant influence over an entity, but that do not meet the requirements for consolidation. Equity method investments includes the Company’s former Affiliate, ICM, as well as all unconsolidated Funds over which the Company exercises significant influence. Equity-accounted investments in consolidated Funds is comprised of investments in partnership interests where a portion of the return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures |
Fair value measurements | Fair value measurements In accordance with the accounting standards for fair value measurements, fair value is the price that the Company expects to be paid upon the sale of an asset or expects to pay upon the transfer of a liability in an orderly transaction between market participants. There is a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect the Company’s own conclusions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: • Level I—Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities and listed derivatives. As required by U.S. GAAP, the Company does not adjust the quoted price for these investments. • Level II—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies utilizing observable market inputs other than quoted prices. Investments which are generally included in this category include corporate bonds and loans, less liquid and restricted equity securities and certain over-the-counter derivatives. • Level III—Pricing inputs are unobservable for the asset or liability and include assets and liabilities where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Investments that are included in this category generally include general and limited partner interests in timber funds. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. In cases in which the fair value of an investment is established using the net asset value (or its equivalent) as a practical expedient, the investment is not categorized within the fair value hierarchy. |
Use of estimates | Use of estimates The preparation of these Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. The years ended December 31, 2021 and 2020 were characterized by heightened uncertainty due to the COVID-19 pandemic which could impact estimates and assumptions made by management. Actual results could differ significantly from those estimates. |
Operating segment | Operating segmentThe Company currently operates in one reportable segment that provides investment management services and products primarily to institutional clients. |
Derivatives and Hedging | Derivatives and Hedging The Company may utilize derivative financial instruments to hedge the risk of movement of interest rates and foreign currency on financial assets and liabilities. These derivative financial instruments may or may not qualify as hedges for accounting purposes. The Company records all derivative financial instruments as either assets or liabilities on its Consolidated Balance Sheets and measures these instruments at fair value. For a derivative financial instrument that qualifies as a hedge for accounting purposes and is designated as a hedging instrument, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income (loss) and subsequently reclassified into earnings over the life of the hedge. The ineffective portion of the gain or loss is recognized in earnings immediately. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments, including money market mutual funds, with original maturities of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates market value due to the short-term maturity of these investments. Restricted cash at December 31, 2020 represents amounts held in escrow related to the Company's disposition of a former affiliate, Barrow, Hanley, Mewhinney & Strauss (“Barrow Hanley”). Cash held by consolidated Funds is not available to fund general liquidity needs of the Company and is therefore also classified as restricted cash. |
Investment advisory fees receivable | Investment advisory fees receivableThe Company earns management and performance fees which are billed monthly, quarterly and annually, according to the terms of the relevant investment management agreement. Management and performance fees that have been earned, but have not yet been collected are presented as investment advisory fees receivable on the Consolidated Balance Sheets. Due to the short-term nature and liquidity of these receivables, the carrying amounts approximate their fair values. The Company typically does not record an allowance for doubtful accounts or bad debt expense, or any amounts recorded have been immaterial. |
Fixed assets | Fixed assets Fixed assets are recorded at historical cost and depreciated using the straight-line method over their estimated useful lives. The estimated useful lives of office equipment and furniture and fixtures range from three |
Goodwill | Goodwill The Company records goodwill when the consideration paid in a business acquisition exceeds the fair value of the net total of tangible assets acquired, identifiable intangible assets acquired and liabilities assumed. Goodwill is not amortized, but rather is tested for impairment annually or more frequently if events or circumstances occur that indicate impairment may exist. Factors that could trigger an impairment review include significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of the acquired assets in a business combination or the strategy for the Company’s overall business, and significant negative industry or economic trends. |
Assets Held for Sale | Assets Held for Sale The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. |
Discontinued Operations | Discontinued Operations The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs only when the disposal of a component or a group of components of the Company (i) meets the held-for-sale classification criteria, is disposed of by sale, or other than by sale, and (ii) represents a strategic shift that will have a major effect on the Company's operations and financial results. The results of operations and cash flows of a |
Leases | Leases Contracts are evaluated at inception to determine whether such contract is or contains a lease. The Company leases certain office space and equipment under non-cancelable operating leases. As leases expire, they are normally renewed or replaced in the ordinary course of business. Lease agreements may contain renewal options exercisable by the Company, rent escalation clauses and/or other incentives provided by the landlord. Renewal options that have been determined to be reasonably certain to be exercised are included in the lease term. Rights and obligations attributable to identified leases with a term in excess of twelve months are recognized on the Company’s Consolidated Balance Sheets in the form of right‐of‐use (ROU) assets and lease liabilities are recognized as of the date the underlying assets are available for use, which may be the date the Company gains access to begin leasehold improvements. Lease payments related to short‐term leases with a term of twelve months or less are recognized on a straight‐line basis as short‐term lease expense. Lease liabilities are initially and subsequently measured as the present value of future lease payments over the lease term. For the purposes of this calculation, lease payments consist of fixed monthly lease payments related to use of the underlying assets. As the Company's leases generally do not have a readily determinable implicit rate, the company uses its incremental borrowing rate to determine the present value of fixed lease payments based on information available at the lease commencement date. ROU assets are initially valued equal to the corresponding lease liabilities, adjusted for any lease incentives payable to the Company. Subsequently, the amortization of ROU assets is recognized as a component of operating lease expense. The total cost of operating leases is recognized on a straight‐line basis over the life of the related leases, and is composed of imputed interest on lease liabilities measured using the effective interest method and amortization of the ROU asset. Variable lease payments are primarily related to services such as common‐area maintenance and utilities, property taxes and insurance, and are recognized as variable lease expense when incurred. |
Earnings per share | Earnings per share The Company calculates basic and diluted earnings per share (“EPS”) by dividing net income by its shares outstanding as outlined below. Basic EPS attributable to the Company’s shareholders is calculated by dividing “Net income attributable to controlling interests” by the weighted-average number of shares outstanding. Diluted EPS is similar to basic EPS, but adjusts for the effect of potential shares of common stock unless they are antidilutive. For periods with a net loss, potential shares of common stock are considered antidilutive. |
Deferred financing costs | Deferred financing costs The Company records debt issuance costs of term loans as a direct deduction from the carrying amount of the associated debt liability. For debt issuance costs of revolving credit loans, the Company presents debt issuance costs as an asset and subsequently amortizes the deferred costs ratably over the term of the agreement. |
Income taxes | Income taxes Deferred income taxes are recognized for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the Consolidated Financial Statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company’s deferred tax assets have been attributable to interest deductions, investment in partnerships, and employee compensation. Deferred income tax assets are subject to a valuation allowance if, in management’s opinion, it is not more-likely-than-not that these benefits will be realized. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including its past operating results, the existence of cumulative earnings or losses in the most recent years and its forecast of future taxable income. In estimating future taxable income, the Company develops assumptions including the amount of future pre-tax operating income and the reversal of temporary differences. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company is using to manage the underlying businesses. The Company’s accounting policy is to treat the global intangible low-taxed income taxes which became effective January 1, 2018 as a result of the Tax Cuts and Jobs Act as period costs in the accounting and tax periods in which they are incurred. A tax benefit should only be recognized if it is more-likely-than-not that the position will be sustained based on its technical merits. The Company recognizes the financial statement benefit of a tax position only after considering the probability that a tax authority would uphold the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest cumulative amount of benefit greater than 50% likely of being sustained. The more-likely-than-not threshold must continue to be met in each reporting period to support continued recognition of the benefit. Unrecognized tax benefits and related interest and penalties, are adjusted periodically to reflect changing facts and circumstances. The Company’s accounting policy is to classify interest and related charges as a component of income tax expense. |
Non-controlling interests | Non-controlling interests For certain entities that are consolidated, but not 100% owned, the Company reports non-controlling interests as equity on its Consolidated Balance Sheets. The Company's consolidated net income on the Consolidated Statements of Operations includes the income (loss) attributable to non-controlling interest holders of the Company's consolidated Affiliates and Funds. Ownership interests held by Affiliate key employees are categorized as liabilities on the Consolidated Balance Sheets and are revalued each reporting date, with movements treated as compensation expense in the Consolidated Statements of Operations. |
Redeemable non-controlling interests | Redeemable non-controlling interests The Company includes redeemable non-controlling interests related to certain consolidated Funds as temporary equity on the Consolidated Balance Sheets. Non-controlling interests in certain consolidated Funds are subject to monthly or quarterly redemption by the investors. When redeemable amounts become legally payable to investors, they are classified as a liability and included in total liabilities of consolidated Funds on the Consolidated Balance Sheets. |
Other comprehensive income (loss) | Other comprehensive income (loss) Other comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income (loss) represents net income (loss), as presented in the accompanying Consolidated Statements of Operations, adjusted for net foreign currency translation adjustments and adjustments to the valuation and amortization of certain derivative securities, net of tax. |
Restructuring costs | Restructuring costsA liability for restructuring is recognized only after management has developed a formal plan, approved by the Board of Directors, to which it has committed. The costs included in a restructuring liability are those costs that are either incremental or incurred as a direct result of the plan, or are the result of a continuing contractual obligation with no continuing economic benefit to the Company, or a penalty incurred to cancel the contractual obligation. |
Recently adopted accounting standards/Accounting standards not yet adopted | Recently adopted accounting standards In December 2019, the FASB issued Accounting Standard Update (“ASU”) 2019-12, ASC 740, “ Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes ”, which is intended to simplify various aspects related to accounting for income taxes.” ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The guidance is effective for all public business entities for fiscal years beginning after December 15, 2020, including interim periods therein. The Company adopted the standard on January 1, 2021. The Company has determined that the adoption of this standard did not have a material impact on its Consolidated Financial Statements and related disclosures. New accounting standards not yet adopted On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (“LIBOR”) or other reference rates expected to be discontinued because of reference rate reform. This ASU is effective as of March 12, 2020 through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions as of December 31, 2021, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period to determine the impact on its Consolidated Financial Statements and related disclosures. The Company has considered all other newly issued accounting guidance that is applicable to the Company’s operations and the preparation of the Consolidated Financial Statements, including those that have not yet been adopted. The Company does not believe that any such guidance has or will have a material effect on its Consolidated Financial Statements and related disclosures. |
Variable Interest Entities | The Company, through its Affiliates, sponsors the formation of various entities considered to be variable interest entities (“VIEs”). These VIEs are primarily Funds managed by Affiliates and other partnership interests typically owned entirely by third-party investors. Certain Funds may be capitalized with seed capital investments from the Company and may be owned partially by Affiliate key employees and/or individuals that own minority interests in an Affiliate. The Company’s determination of whether it is the primary beneficiary of a Fund that is a VIE is based in part on an assessment of whether or not the Company and its related parties are exposed to absorb more than an insignificant amount of the risks and rewards of the entity. Typically the Fund’s investors are entitled to substantially all of the economics of these VIEs with the exception of the management fees and performance fees, if any, earned by the Company or any investment the Company has made into the Funds. The Company generally is not the primary beneficiary of Fund VIEs created to manage assets for clients unless the Company’s ownership interest, including interests of related parties, is substantial. In connection with the sale of Landmark on June 2, 2021, the Company transferred its co-investment interests in Landmark funds to Ares for $31.5 million. The redemption resulted in the de-consolidation of consolidated Funds that were considered to be VIEs as of June 2, 2021 upon consummation of the sale. The Company reclassified assets of consolidated Funds as “Consolidated Funds’ assets held for sale” in the Consolidated Balance Sheets as of December 31, 2020. See Note 3, Divestitures, Held for Sale and Discontinued Operations, in these Notes for additional information. To the extent the Company has consolidated Funds that are not VIEs, the assets and liabilities of those Funds are not included in the table above. The assets of consolidated VIEs presented in the table above belong to the investors in those Funds, are available for use only by the Fund to which they belong, and are not available for use by the Company to the extent they are held by non-controlling interests. The Company’s involvement with Funds that are VIEs and not consolidated by the Company is generally limited to that of an investment manager and its investment in the unconsolidated VIE, if any. The Company’s investment in any unconsolidated VIE generally represents an insignificant interest of the Fund’s net assets and assets under management, such that the majority of the VIE’s results are attributable to third parties. The Company’s exposure to risk in these entities is generally limited to any capital contribution it has made or is required to make and any earned but uncollected management fees. The Company has not issued any investment performance guarantees to these VIEs or their investors. |
Divestitures, Held for Sale a_2
Divestitures, Held for Sale and Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of gain (loss) from discontinued operations | The major classes of assets and liabilities held for sale consisted of the following at December 31 (in millions): 2021 2020 Cash and cash equivalents $ — $ 30.6 Investment advisory fees receivable — 12.2 Fixed assets, net — 8.8 Right of use assets — 12.1 Investments — 25.1 Intangible assets, net — 58.2 Goodwill — 161.8 Other assets — 17.5 Deferred tax assets — 0.5 Assets of discontinued operations classified as held for sale (1) $ — $ 326.8 Accounts payable and accrued expenses $ — $ 2.2 Accrued incentive compensation — 42.5 Other compensation liabilities — 254.2 Operating lease liabilities — 13.1 Other liabilities — 1.3 Liabilities of discontinued operations classified as held for sale (1) $ — $ 313.3 (1) Includes assets and liabilities of discontinued operations of Landmark and TSW as of December 31, 2020. The major classes of revenue and expenses constituting net income from discontinued operations attributable to controlling interests for Landmark and TSW in the Consolidated Statements of Operations for the years ended December 31 are as follows (in millions): 2021 2020 2019 Revenues $ 115.1 $ 219.0 $ 224.9 Operating expenses: Compensation and benefits 91.2 145.6 167.6 General and administrative expenses 8.1 18.0 21.7 Amortization of intangibles 2.7 6.4 6.4 Depreciation and amortization 0.5 1.2 1.0 Consolidated Funds’ expense 0.1 0.1 0.1 Total operating expenses 102.6 171.3 196.8 Operating income 12.5 47.7 28.1 Investment gains of consolidated Funds 68.1 35.1 16.7 Income from discontinued operations before taxes 80.6 82.8 44.8 Income tax expense 3.3 15.0 7.5 Income from discontinued operations, net of tax 77.3 67.8 37.3 Gain on disposal, net of tax of $253.4 691.0 — — Total discontinued operations 768.3 67.8 37.3 Income from discontinued operations attributable to non-controlling interests 68.0 28.4 10.3 Net income from discontinued operations attributable to controlling interests $ 700.3 $ 39.4 $ 27.0 The major classes of assets comprising the consolidated Funds classified as held for sale are as follows at December 31 (in millions): 2021 2020 Cash and cash equivalents $ — $ 0.6 Equity-accounted investments (1) — 113.7 Consolidated Funds’ assets held for sale $ — $ 114.3 (1) Equity-accounted investments in consolidated Funds is comprised of Investments in partnership interests where a portion of return includes carried interest. These investments are accounted for within the scope of ASC 323, Investments - Equity Method and Joint Ventures because the Company has determined it has significant influence. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Components of investments | Investments are comprised of the following at December 31 (in millions): 2021 2020 Other investments held at fair value 9.5 40.0 Investments related to long-term incentive compensation plans held at fair value 45.0 48.0 Total investments held at fair value $ 54.5 $ 88.0 Equity-accounted investment in Affiliate — 2.0 Total investments per Consolidated Balance Sheets $ 54.5 $ 90.0 |
Investment income and investment gains (losses) on net consolidated funds | Investment income is comprised of the following for the years ended December 31 (in millions): 2021 2020 2019 Realized and unrealized gains (losses) on other investments held at fair value 5.7 2.0 14.0 Earnings from equity-accounted investment in Affiliate 2.6 2.9 2.8 Total investment income per Consolidated Statements of Operations $ 8.3 $ 4.9 $ 16.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of the assets and liabilities that are measured at fair value on a recurring basis | The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2021 (in millions): Quoted prices Significant Significant Uncategorized Total value, Assets (1) Investments in separate accounts (2) 4.6 — — — 4.6 Investments related to long-term incentive compensation plans (3) 45.0 — — — 45.0 Investments in unconsolidated Funds (4) — — — 4.9 4.9 Total fair value assets $ 49.6 $ — $ — $ 4.9 $ 54.5 The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020 (in millions): Quoted prices Significant Significant Uncategorized Total value, Assets (1) Investments in separate accounts (2) 9.7 11.6 — — 21.3 Investments related to long-term incentive compensation plans (3) 48.0 — — — 48.0 Investments in unconsolidated Funds (4) — — 2.6 16.1 18.7 Total fair value assets $ 57.7 $ 11.6 $ 2.6 $ 16.1 $ 88.0 (1) Assets measured at fair value are comprised of financial investments managed by the Company’s Affiliates. Equity securities, including common and preferred stock, and short-term investment funds which are traded on a national securities exchange are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they are classified as Level I. The securities that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs obtained by the Company from independent pricing services are classified as Level II. The Company obtains prices from independent pricing services that may utilize broker quotes, but generally the independent pricing services will use various other pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data. The Company has not made adjustments to the prices provided. If the pricing services are only able to (a) obtain a single broker quote or (b) utilize a pricing model, such securities are classified as Level III. If the pricing services are unable to provide prices, the Company attempts to obtain one or more broker quotes directly from a dealer or values such securities at the last bid price obtained. In either case, such securities are classified as Level III. The Company performs due diligence procedures over third party pricing vendors to understand their methodology and controls to support their use in the valuation process to ensure compliance with required accounting disclosures. (2) Investments in separate accounts of $4.6 million at December 31, 2021 consist of approximately 100% of e quity securities and other investments. Investments in separate accounts of $21.3 million at December 31, 2020, consist of approximately 11% of cash equivalents and 89% of equity securities, fixed income securities, and other investments. The Company values these using the published price of the underlying securities (classified as Level I) or quoted price supported by observable inputs as of the measurement date (classified as Level II). (3) Investments related to long-term incentive compensation plans of $45.0 million and $48.0 million at December 31, 2021 and December 31, 2020, respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. (4) The uncategorized amounts of $4.9 million and $16.1 million at December 31, 2021 and December 31, 2020, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investments Funds, UCITS and other investment vehicles. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. UCITS and other investment vehicles are not subject to redemption restrictions. The real estate investment Funds of $4.8 million and $6.2 million at December 31, 2021 and December 31, 2020, respectively, are subject to longer than monthly or quarterly redemption restrictions, and due to their nature, distributions are received only as cash flows are generated from underlying assets over the life of the Funds. The range of time over which the underlying assets are expected to be liquidated by the investees is approximately one year to two years from December 31, 2021. The valuation process for the underlying real estate investments held by the real estate investment Funds begins with each property or loan being valued by the investment teams. The valuations are then reviewed and approved by the valuation committee, which consists of senior members of the portfolio management, acquisitions, and research teams. For certain properties and loans, the valuation process may also include a valuation by independent appraisers. In connection with this process, changes in fair-value measurements from period to period are evaluated for reasonableness, considering items such as market rents, capitalization and discount rates, and general economic and market conditions. Investments in unconsolidated Funds categorized as Level III of $0.0 million and $2.6 million at December 31, 2021 and December 31, 2020, respectively, related to investments in Forestry Funds advised by Affiliates and are valued by the general partner of those Funds. Determination of estimated fair value involves subjective judgment because the actual fair value can be determined only through negotiation between parties in a sale transaction and amounts ultimately realized may vary significantly from the fair value presented. |
Level Three Investment Reconciliation | The following table reconciles the opening balances of Level III financial assets to closing balances at December 31 (in millions): Investments in unconsolidated Funds 2021 2020 Level III financial assets At beginning of the period $ 2.6 $ 3.0 Redemptions (0.1) (0.3) Disposals (2.8) — Total net fair value gains/(losses) recognized in net income 0.3 (0.1) Total Level III financial assets $ — $ 2.6 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities | |
Schedule of assets and liabilities and information pertains to VIEs | The following table presents the assets and liabilities of Funds that are VIEs and consolidated by the Company (in millions): 2021 2020 Assets Consolidated Funds’ assets held for sale (Note 3) $ — $ 114.3 Total Assets $ — $ 114.3 The following information pertains to unconsolidated VIEs for which the Company holds a variable interest at December 31 (in millions): 2021 2020 Unconsolidated VIE assets $ 795.5 $ 6,437.1 Unconsolidated VIE liabilities $ 323.6 $ 4,332.1 Equity interests on the Consolidated Balance Sheets $ 4.8 $ 14.3 Maximum risk of loss (1) $ 5.0 $ 19.3 (1) Includes equity investments the Company has made or is required to make and any earned but uncollected management and incentive fees. The Company does not record performance or incentive allocations until the respective measurement period has ended. |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of fixed assets | Fixed assets consisted of the following at December 31 (in millions): 2021 2020 Leasehold improvements $ 30.4 $ 31.6 Office equipment 8.4 14.6 Furniture and fixtures 6.2 10.9 Software and web development 103.2 97.8 Fixed assets, at cost 148.2 154.9 Accumulated depreciation and amortization (98.0) (92.1) Fixed assets, net $ 50.2 $ 62.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summarized Information about Operating Leases | The following table summarizes information about the Company’s operating leases for the years ended December 31 (in millions): 2021 2020 Operating lease cost $ 11.2 $ 13.2 Variable lease cost 0.1 0.1 Sublease income (0.5) $ (0.2) Total operating lease expense $ 10.8 $ 13.1 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.1 $ 11.9 ROU asset obtained in exchange for new operating lease liabilities 3.0 74.9 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows (in millions): Operating Leases Year Ending December 31, 2022 $ 6.2 2023 8.6 2024 8.0 2025 7.7 2026 7.6 Thereafter 56.4 Total lease payments 94.5 Less imputed interest (16.9) Total $ 77.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following table presents the changes in goodwill in 2021 and 2020 (in millions): Quant & Solutions Alternatives Liquid Alpha Total Goodwill $ 22.1 $ 5.0 $ 118.4 $ 145.5 Accumulated impairment (1.8) (5.0) (25.9) (32.7) December 31, 2019 $ 20.3 $ — $ 92.5 $ 112.8 Additions — — — — Impairments — — (16.4) (16.4) Disposals (1) — — (76.1) (76.1) Goodwill 22.1 5.0 — 27.1 Accumulated impairment (1.8) (5.0) — (6.8) December 31, 2020 $ 20.3 $ — $ — $ 20.3 Additions — — — — Impairments — — — — Disposals — — — — Goodwill 22.1 — — 22.1 Accumulated impairment (1.8) — — (1.8) December 31, 2021 $ 20.3 $ — $ — $ 20.3 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Due from Related Party, Investment in Related Party, and Related Party Revenues | Amounts due for investment advisory fee receivables from related parties were comprised of the following at December 31 (in millions): 2021 2020 Investment advisory fee receivable from unconsolidated Funds (1) $ 14.1 $ 7.6 Total amounts due for investment advisory fee receivables from related parties $ 14.1 $ 7.6 Related party transactions included in the Company’s Consolidated Statements of Operations for the years ended December 31 consisted of (in millions): Revenues: 2021 2020 2019 Management fees from unconsolidated Funds (1) $ 52.7 $ 52.8 $ 59.0 Performance fees from unconsolidated Funds (1) 2.0 1.6 1.2 Total related party revenues $ 54.7 $ 54.4 $ 60.2 (1) Transactions with unconsolidated Affiliate-sponsored Funds are considered related party items on the basis of the Company’s significant influence over the activities of such entities in its capacity as investment advisor thereto. These transactions are comprised of fees for advisory services and investments in unconsolidated funds. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consisted of the following at December 31 (in millions): 2021 2020 Accounts payable 5.0 6.7 Accrued expenses 23.4 17.8 Accrued interest payable 6.8 6.8 Total accounts payable and accrued expenses $ 35.2 $ 31.3 |
Other Compensation Liabilities
Other Compensation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components of other compensation liabilities | Other compensation liabilities consisted of the following at December 31 (in millions): 2021 2020 Share-based payments liability (Note 19) $ 28.1 $ 25.0 Profit interests compensation liability 30.6 0.8 Voluntary deferral plan liability (Note 18) 45.0 48.0 Total other compensation liabilities $ 103.7 $ 73.8 |
Borrowings and Debt (Tables)
Borrowings and Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | The Company’s borrowings were comprised of the following as of the dates indicated (in millions): December 31, 2021 December 31, 2020 (in millions) Carrying value Fair Value Fair Value Level Carrying value Fair Value Fair Value Level Revolving credit facility: $125 million revolving credit facility expiring August 22, 2022 (1)(2) $ — $ — $ — $ — Total revolving credit facility $ — $ — $ — $ — Third party borrowings: $275 million 4.80% Senior Notes Due July 27, 2026 (3) 273.1 286.5 2 272.8 298.9 2 $125 million 5.125% Senior Notes Due August 1, 2031 (3) 121.8 126.4 2 121.5 126.0 2 Total third party borrowings $ 394.9 $ 412.9 $ 394.3 $ 424.9 (1) Fair value approximates carrying value because the credit facility has variable interest rates based on selected short term market rates. (2) On February 23, 2021, the Company’s $150 million revolving credit facility was assigned to Acadian and amended to reduce the facility to $125 million. (3) The difference between the principal amounts and the carrying values of the senior notes in the table above reflects the unamortized debt issuance costs and discounts. |
Schedule of aggregate maturities of debt commitments | As of December 31, 2021, the aggregate maturities of debt commitments, based on their contractual terms, are as follows: Future minimum 2022 $ — 2023 — 2024 — 2025 — 2026 275.0 Thereafter 125.0 Total $ 400.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax | Income from continuing operations before income taxes consisted of the following for the years ended December 31 (in millions): 2021 2020 2019 Domestic $ 171.3 $ 340.9 $ 193.0 Foreign 6.8 3.9 20.2 Total $ 178.1 $ 344.8 $ 213.2 |
Components of income tax expense (benefit) from continuing operations | The components of income tax expense from continuing operations for the years ended December 31 are as follows (in millions): 2021 2020 2019 Current: Federal $ 36.4 $ 16.1 $ (28.4) State 16.3 9.6 4.1 Foreign 2.3 (0.2) 3.5 Total current expense (benefit) 55.0 25.5 (20.8) Deferred: Federal (3.4) 57.7 26.9 State (1.3) 13.4 2.9 Foreign (0.3) 0.5 1.5 Total deferred expense (benefit) (5.0) 71.6 31.3 Total tax expense (benefit) $ 50.0 $ 97.1 $ 10.5 |
Reconciliation of statutory and effective income tax rates for continuing operations | The reconciliation of the difference between the Company’s U.S. Federal statutory income tax rate and the effective income tax rate for continuing operations for the years ended December 31 is as follows: 2021 2020 2019 Tax at U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 6.8 % 6.4 % 6.1 % Non-deductible expenses 0.2 % 0.2 % 0.3 % Executive Compensation 1.6 % 0.1 % 0.4 % Adjustment to liabilities for uncertain tax positions (1.7) % (2.5) % (19.2) % Effect of foreign operations 0.7 % 0.2 % 0.3 % Effect of changes in tax law — % — % (0.4) % Effect of disposal of Affiliates (0.1) % 3.6 % — % Effect of income from non-controlling interest — % — % (0.6) % Impact of increased state tax obligations to deferred tax assets (0.4) % (0.4) % (1.6) % Impact of Redomestication to deferred tax assets — % — % (1.1) % Other — % (0.4) % (0.3) % Effective income tax rate for continuing operations 28.1 % 28.2 % 4.9 % |
Significant components of deferred tax assets and deferred tax liabilities | The significant components of deferred tax assets and deferred tax liabilities for the years ended December 31 are as follows (in millions): 2021 2020 Deferred tax assets: Interest expense $ 0.2 $ 5.2 Federal net operating loss 0.1 0.5 Investment in partnerships 62.4 156.1 Intangible assets — 0.1 Employee compensation 2.7 3.9 Other 2.6 2.8 Cash flow hedge 4.9 5.5 Total deferred tax assets 72.9 174.1 Valuation allowance — — Deferred tax assets, net of valuation allowance 72.9 174.1 Deferred tax liabilities: Right of use assets 0.5 0.8 Investments — 3.0 Total deferred tax liabilities 0.5 3.8 Net deferred tax assets $ 72.4 $ 170.3 |
Reconciliation of change in gross unrecognized tax benefits | A reconciliation of the change in gross unrecognized tax benefits for the years ended December 31 is as follows (in millions): 2021 2020 2019 Balance as of January 1 $ 3.6 $ 11.3 $ 46.9 Additions based on current year tax positions 0.1 0.1 0.1 Reductions related to lapses of statutes of limitations (2.7) (7.8) (35.7) Balance as of December 31 $ 1.0 $ 3.6 $ 11.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of pro forma basic and diluted earnings per share | The calculation of basic and diluted earnings per share of common stock for the years ended December 31, 2021, 2020 and 2019 is as follows (dollars in millions, except per share data): 2021 2020 2019 Numerator: Income from continuing operations attributable to controlling interests 128.1 247.3 196.9 Income from discontinued operations attributable to controlling interests (Note 3) 700.3 39.4 27.0 Net income attributable to controlling interests 828.4 286.7 223.9 Less: Total income available to participating unvested securities (1) (0.1) (0.1) (0.1) Total net income attributable to common stock 828.3 286.6 223.8 Denominator: Weighted-average shares of common stock outstanding—basic 77,213,010 81,259,778 91,205,412 Potential shares of common stock: Restricted stock units 33,175 60,276 63,540 Employee stock options 3,239,739 716,149 — Weighted-average shares of common stock outstanding—diluted 80,485,924 82,036,203 91,268,952 Earnings per share of common stock attributable to controlling interests: Basic: Continuing operations $ 1.66 $ 3.04 $ 2.16 Discontinued operations $ 9.07 $ 0.49 $ 0.29 Basic earnings per share of common stock attributable to controlling interests $ 10.73 $ 3.53 $ 2.45 Diluted Continuing operations $ 1.59 $ 3.01 $ 2.16 Discontinued operations $ 8.70 $ 0.48 $ 0.29 Diluted earnings per share of common stock attributable to controlling interests $ 10.29 $ 3.49 $ 2.45 (1) Income available to participating unvested securities includes dividends paid on unvested restricted shares and their proportionate share of undistributed earnings. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The geographic disaggregation of management fee revenue for the years ended December 31 (in millions) is presented below: 2021 2020 2019 Quant & Solutions U.S. $ 313.1 $ 249.7 $ 261.4 Non-U.S. 106.3 97.1 109.4 Liquid Alpha (1) U.S. — 82.0 145.5 Non-U.S. — 26.3 42.2 Other (2) U.S. 10.2 17.1 18.2 Non-U.S. 3.7 6.7 5.4 Management fee revenue $ 433.3 $ 478.9 $ 582.1 (1) Prior to June 30, 2021, the Company had a Liquid Alpha reportable segment which was comprised of TSW and ICM. On May 9, 2021, the Company entered into an agreement to sell all of the Company’s interests in TSW and completed the sale on July 22, 2021. As a result of this transaction, TSW was reclassified to discontinued operations and the Liquid Alpha no longer constitutes a reportable segment of the Company. The ICM operating segment was reclassified to “Other” within the Company’s segment reporting for the year ended December 31, 2021. On July 19, 2021, the Company completed the sale of all its equity interests in ICM. See Note 3, Divestitures, Held for Sale and Discontinued Operations for further discussion and Note 23, Segments for further discussion. (2) Prior to March 31, 2021, the Company had an Alternatives reportable segment which consisted of Landmark and Campbell Global operating segments. On March 30, 2021, the Company entered into an agreement to sell of all of the Company’s interests in Landmark and completed the sale on June 2, 2021. As a result of this transaction, Landmark was reclassified to discontinued operations and the Alternatives segment no longer constitutes a reportable segment of the Company. The Campbell Global operating segment was reclassified to “Other” within the Company’s segment reporting. On August 31, 2021 the Company sold all of its equity interests in Campbell Global. See Note 3, Divestitures, Held for Sale and Discontinued Operations and Note 23, Segments for further discussion. |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Changes in the share-based payments liability | The following table presents the changes in the share-based payments liability for the years ended December 31 (in millions): 2021 2020 2019 Balance, beginning of period $ 25.0 $ 33.2 $ 35.4 Amortization and revaluation of granted awards 5.4 2.0 (0.4) Affiliate disposals (0.8) — — Repurchases (cash-settled) (1.5) (10.2) (1.8) Balance, end of period $ 28.1 $ 25.0 $ 33.2 |
Summary of activity of share-based compensation | The following summarizes the grant date fair value of the instruments granted by the Company during the year ended December 31: 2021 2020 2019 BrightSphere Investment Group Inc. awards Shares granted Weighted average fair value Shares granted Weighted average fair value Shares granted Weighted average fair value RSAs — $ — — $ — 18,000 $ 10.09 RSUs 15,548 22.06 105,678 10.20 88,980 12.40 Performance-based RSUs — — — — 9,013 14.62 Stock options — — 2,820,000 0.65 2,070,000 2.48 Grants of restricted stock in BrightSphere Investment Group Inc. The following table summarizes the activity related to restricted stock awards: 2021 2020 2019 BrightSphere Investment Group Inc. RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 14,010 $ 13.26 77,217 $ 14.43 325,976 $ 14.83 Granted during the year — — — — 18,000 10.09 Forfeited during the year (1,500) 10.09 (6,447) 14.19 (47,453) 15.43 Vested during the year (10,010) 14.53 (56,760) 14.75 (219,306) 14.45 Outstanding at end of the year 2,500 $ 10.09 14,010 $ 13.26 77,217 $ 14.43 The following table summarizes the activity related to restricted stock units: 2021 2020 2019 BrightSphere Investment Group Inc. RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 60,364 $ 10.53 62,899 $ 11.79 47,191 $ 14.46 Granted during the year 15,548 22.06 105,678 10.20 88,980 12.40 Forfeited during the year (2,345) 10.30 (30,927) 10.83 (24,591) 14.46 Vested during the year (34,864) 10.35 (77,286) 10.99 (48,681) 14.14 Outstanding at end of the year 38,703 $ 15.33 60,364 $ 10.53 62,899 $ 11.79 The following table summarizes the activity related to performance-based restricted stock awards: 2021 2020 2019 BrightSphere Investment Group Inc. Performance-based RSAs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 83,092 $ 9.78 258,678 $ 10.11 258,678 $ 10.11 Vested during the year (36,007) 9.78 — — — — Other movements (47,085) 9.78 (175,586) 10.26 — — Outstanding at end of the year — $ — 83,092 $ 9.78 258,678 $ 10.11 The following table summarizes the activity related to performance-based restricted stock units: 2021 2020 2019 BrightSphere Investment Group Inc. Performance-based RSUs Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Number of shares Weighted average grant date fair value per share Outstanding at beginning of the year 9,013 $ 14.62 9,013 $ 14.62 189,335 $ 10.92 Granted during the year — — — — 9,013 14.62 Vested during the year — — — — (193,125) 10.98 Other movements — — — — 3,790 14.15 Outstanding at end of the year 9,013 $ 14.62 9,013 $ 14.62 9,013 $ 14.62 The following tables summarizes the activity related to the Company’s stock option awards: 2021 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 7,375,000 $ 11.38 3.4 Granted during the year — — Forfeited during the year — — Exercised during the year (4,405,037) 11.57 Outstanding at end of the year 2,969,963 $ 11.09 2.5 $ 43,091,497 Exercisable at end of the year 911,963 $ 11.56 2.3 $ 12,802,697 2020 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 8,970,000 $ 12.00 4.0 Granted during the year 2,820,000 10.37 4.8 Forfeited during the year (4,396,000) 12.00 Exercised during the year (19,000) 12.00 Outstanding at end of the year 7,375,000 $ 11.38 3.4 $ 58,290,000 Exercisable at end of the year 4,288,000 $ 11.73 3.2 $ 32,366,640 2019 Stock Options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at beginning of the year 6,900,000 $ 12.00 5.0 Granted during the year 2,070,000 12.00 5.0 Forfeited during the year — — Exercised during the year — — Outstanding at end of the year 8,970,000 $ 12.00 4.0 $ — Exercisable at end of the year 3,174,000 $ 12.00 4.0 $ — |
Schedule of Weighed Average Fair Value Valuation Inputs | The fair value of the stock options grant was estimated on the grant date using a Monte-Carlo simulation valuation model. The weighted average fair value of stock options granted during the years ended December 31, 2020 and 2019 was $0.65 and $2.48 per option, respectively, based on the grant date assumptions stated below. 2021 2020 2019 Weighted-average grant date fair value per option $ — $ 0.65 $ 2.48 Assumptions: Dividend yield (1) —% 3.9% to 7.4% 3.4 % Expected volatility (2) —% 29.7% to 41.3% 28.4 % Risk-free interest rate (3) —% 1.4% to 0.3% 2.6 % Expected life of options (4) 0 4.7 years to 5.0 years 5.0 years (1) Dividend yield assumption represents the Company’s expected dividend yield based on its historical dividend payouts and the stock price at the date of grant. (2) Expected volatility is based upon historical BSIG stock price volatility. (3) The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve at the time of grant. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) for the years ended December 31, 2021, 2020 and 2019 were as follows (in millions): Foreign currency translation adjustment Valuation and amortization of derivative securities Total Balance, as of December 31, 2018 $ 1.8 $ (22.7) $ (20.9) Foreign currency translation adjustment 1.0 — 1.0 Amortization related to derivatives securities, before tax — 3.0 3.0 Tax impact — (0.6) (0.6) Other comprehensive income 1.0 2.4 3.4 Balance, as of December 31, 2019 $ 2.8 $ (20.3) $ (17.5) Foreign currency translation adjustment 1.6 — 1.6 Amortization related to derivatives securities, before tax — 3.1 3.1 Tax impact — (0.8) (0.8) Other comprehensive income (loss) 1.6 2.3 3.9 Balance, as of December 31, 2020 $ 4.4 (18.0) $ (13.6) Foreign currency translation adjustment 0.4 — 0.4 Amortization related to derivatives securities, before tax — 3.3 3.3 Tax impact — (0.9) (0.9) Other comprehensive income 0.4 2.4 2.8 Balance, as of December 31, 2021 $ 4.8 $ (15.6) $ (10.8) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summarized Operating Results by Segment | The following tables set forth summarized operating results for the Company’s segments and related adjustments necessary to reconcile the segment economic net income to arrive at the Company's consolidated U.S. GAAP net income (loss) for the year ended December 31, 2021 (in millions): Quant & Solutions Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 488.1 $ 35.4 $ 0.3 (a) $ 523.8 ENI operating expenses 160.8 32.0 41.3 (b) 234.1 Earnings before variable compensation 327.3 3.4 (41.0) 289.7 Variable compensation 100.8 28.8 0.9 (c) 130.5 ENI operating earnings (after variable comp) 226.5 (25.4) (41.9) 159.2 Affiliate key employee distributions 12.4 1.0 — 13.4 Earnings after Affiliate key employee distributions 214.1 (26.4) (41.9) 145.8 Net interest expense — (22.3) (2.3) (d) (24.6) Net investment income — — 8.3 (e) 8.3 Gain on sale of subsidiaries — — 48.6 (e) 48.6 Net income attributable to non-controlling interests in consolidated Funds — — (68.0) (e) (68.0) Income tax expense — (47.1) (2.9) (f) (50.0) Income from discontinued operations, net of tax — — 77.3 (g) 77.3 Gain on disposal of discontinued operations, net of tax — — 691.0 (h) 691.0 Economic net income $ 214.1 $ (95.8) $ 710.1 $ 828.4 The following table presents the financial data for the Company’s segments for the year ended December 31, 2020 (in millions): Quant & Solutions Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 354.8 $ 111.1 $ 26.4 $ 7.2 (a) $ 499.5 ENI operating expenses 149.0 39.4 45.1 13.7 (b) 247.2 Earnings before variable compensation 205.8 71.7 (18.7) (6.5) 252.3 Variable compensation 72.8 29.0 6.1 4.2 (c) 112.1 ENI operating earnings (after variable comp) 133.0 42.7 (24.8) (10.7) 140.2 Affiliate key employee distributions 4.3 3.9 0.3 — 8.5 Earnings after Affiliate key employee distributions 128.7 38.8 (25.1) (10.7) 131.7 Net interest income expense — — (21.6) (6.3) (d) (27.9) Net investment income — — — (0.3) (e) (0.3) Gain on sale of Affiliates — — — 241.3 (e) 241.3 Net income attributable to non-controlling interests in consolidated Funds — — — (28.8) (e) (28.8) Income tax (expense) benefit — — (32.5) (64.6) (f) (97.1) Income from discontinued operations, net of tax — — — 67.8 (g) 67.8 Economic net income $ 128.7 $ 38.8 $ (79.2) $ 198.4 $ 286.7 The following table presents the financial data for the Company’s segments for the year ended December 31, 2019 (in millions): Quant & Solutions Liquid Alpha Other Reconciling Adjustments Total U.S. GAAP (1) ENI revenue $ 380.6 $ 180.3 $ 25.5 $ 8.2 (a) $ 594.6 ENI operating expenses 160.6 54.1 57.4 (57.8) (b) 214.3 Earnings before variable compensation 220.0 126.2 (31.9) 66.0 380.3 Variable compensation 75.6 43.7 12.0 6.7 (c) 138.0 ENI operating earnings (after variable comp) 144.4 82.5 (43.9) 59.3 242.3 Affiliate key employee distributions 6.4 13.7 — — 20.1 Earnings after Affiliate key employee distributions 138.0 68.8 (43.9) 59.3 222.2 Net interest income (expense) — — (21.0) (9.0) (d) (30.0) Net investment income — — — 21.0 (e) 21.0 Net income attributable to non-controlling interests in consolidated Funds — — — (16.1) (e) (16.1) Income tax (expense) benefit — — (37.7) 27.2 (f) (10.5) Income from discontinued operations, net of tax — — — 37.3 (g) 37.3 Economic net income $ 138.0 $ 68.8 $ (102.6) $ 119.7 $ 223.9 (1) The most directly comparable U.S. GAAP measure of ENI revenue is U.S. GAAP revenue. The most directly comparable U.S. GAAP measure of ENI operating expenses is U.S. GAAP operating expenses, which is comprised of ENI operating expenses, variable compensation and Affiliate key employee distributions above. The most directly comparable U.S. GAAP measure of earnings after Affiliate key employee distributions is U.S. GAAP operating income. The most directly comparable U.S. GAAP measure of ENI is U.S. GAAP net income attributable to controlling interests. Reconciling Adjustments: (a) Adjusted to exclude earnings from equity-accounted Affiliate, which are included in U.S. GAAP investment income, and to include consolidated Funds revenues and the separate revenues recorded for certain Fund expenses reimbursed by customers, which are included in U.S. GAAP revenue. (b) Adjusted to include non-cash expenses for key employee equity and profit interest revaluations, capital transaction costs, goodwill impairment and amortization of acquired intangible assets, restructuring costs, consolidated Funds’ operating expenses and the Fund expenses reimbursed by customers, each of which are included in U.S. GAAP operating expenses. (c) Adjusted to include restructuring costs which are included in U.S. GAAP compensation expense. (d) Adjusted to include the cost of seed financing, and amortization of debt issuance costs, which is included in U.S. GAAP interest expense. (e) Adjusted to include net investment income (loss), net income (loss) attributable to non-controlling interests in consolidated Funds, and the gain on sale of Affiliates, all of which are included in U.S. GAAP net income attributable to controlling interests. (f) Adjusted to include the impact of deferred tax attributable to the amortization of goodwill and acquired intangibles. Adjusted to include tax expense or benefits relating to uncertain tax positions, the tax impact of certain ENI adjustments and other unusual items that are not included in current operating results for ENI purposes. (g) Adjusted to include the results of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests. (h) Adjusted to include the gain on disposal of discontinued operations, net of tax, which is included in U.S. GAAP net income attributable to controlling interests. |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of the quarterly results of operations | The following is a summary of the quarterly results of operations of the Company for the years ended December 31, 2021 and 2020 ($ in millions, unless otherwise noted): 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 109.7 $ 133.3 $ 117.9 $ 162.9 Operating income 32.5 36.1 28.7 48.5 Income from continuing operations before income taxes 27.6 34.6 57.4 58.5 Income from discontinued operations, net of tax 21.9 53.4 1.2 0.8 Gain (Loss) on disposal of discontinued operations, net of tax — 509.2 185.4 (3.6) Net income 40.4 587.3 229.5 39.2 Net income attributable to controlling interests 27.0 532.7 229.5 39.2 Basic earnings per share ($) $ 0.34 $ 6.71 $ 2.88 $ 0.55 Diluted earnings per share ($) $ 0.33 $ 6.42 $ 2.76 $ 0.53 Continuing operations basic earnings per share ($) $ 0.23 $ 0.31 $ 0.54 $ 0.59 Continuing operations diluted earnings per share ($) $ 0.22 $ 0.29 $ 0.52 $ 0.57 Basic shares outstanding (in millions) 79.3 79.4 79.6 70.6 Diluted shares outstanding (in millions) 82.3 82.9 83.2 73.5 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenue $ 128.6 $ 122.6 $ 127.5 $ 120.8 Operating income 40.7 29.9 34.2 26.9 Income from continuing operations before income taxes 2.3 36.0 41.2 265.3 Income from discontinued operations, net of tax 23.3 26.7 2.1 15.7 Net income 22.1 53.9 34.0 205.5 Net income attributable to controlling interests 32.6 18.9 37.2 198.0 Basic earnings per share ($) $ 0.38 $ 0.23 $ 0.46 $ 2.49 Diluted earnings per share ($) $ 0.38 $ 0.23 $ 0.46 $ 2.42 Continuing operations basic earnings per share ($) $ 0.06 $ 0.26 $ 0.36 $ 2.36 Continuing operations diluted earnings per share ($) $ 0.09 $ 0.26 $ 0.36 $ 2.30 Basic shares outstanding (in millions) 85.1 80.4 80.0 79.6 Diluted shares outstanding (in millions) 85.1 80.4 80.9 81.8 |
Organization and Description _2
Organization and Description of the Business - Narrative (Details) - USD ($) | Dec. 21, 2021 | Feb. 25, 2019 | Mar. 25, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 04, 2021 | Nov. 03, 2021 |
Organization and description of the business | ||||||||
Tender offer, number of shares authorized to be repurchased (in shares) | 33,300,000 | |||||||
Tender offer, price per share (in dollars per share) | $ 31.50 | |||||||
Tender offer, number of shares sold (in shares) | 34,917,532 | |||||||
Tender offer, accepted total cost | $ 1,100,000,000 | |||||||
Tender offer, shares purchased | 1,617,532 | |||||||
Tender offer, maximum shares available for purchase (percent) | 2.00% | |||||||
Ownership percentage not to exceed | 19.99% | |||||||
Tender offer, percent of total shares | 41.70% | |||||||
Repurchase of ordinary shares | $ 1,121,700,000 | $ 46,000,000 | $ 236,500,000 | |||||
Average price of common stock repurchased (in dollars per share) | $ 31.50 | $ 7.15 | $ 12.08 | |||||
Repurchase of common stock (in shares) | 0 | 6,412,663 | 19,479,945 | |||||
Stock repurchased, net of commissions | $ 46,000,000 | $ 235,400,000 | ||||||
Parent Company | ||||||||
Organization and description of the business | ||||||||
Percent of interest sold | 24.95% | |||||||
Paulson | ||||||||
Organization and description of the business | ||||||||
Percent ownership after sale of stock transaction | 21.70% | |||||||
Repurchase of ordinary shares | $ 690,000 | |||||||
Paulson | Brightsphere Investment Group | ||||||||
Organization and description of the business | ||||||||
Noncontrolling interest, percentage ownership | 19.99% |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2021reporting_unitsegment | |
Property and equipment | |
Vesting period | 3 years |
Minimum vesting period of long term profit-interest plan | 3 years |
Maximum vesting period of long term profit-interest plan | 5 years |
Period of earnings on which multiple for redemption of long term profit-interest compensation awards is based | 12 months |
Number of reportable segments | segment | 1 |
Number of reporting units | reporting_unit | 1 |
Office Equipment and Furniture and Fixtures | Minimum | |
Property and equipment | |
Property and equipment useful life | 3 years |
Office Equipment and Furniture and Fixtures | Maximum | |
Property and equipment | |
Property and equipment useful life | 5 years |
Software and web development | Maximum | |
Property and equipment | |
Property and equipment useful life | 7 years |
Divestitures, Held for Sale a_3
Divestitures, Held for Sale and Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 02, 2021 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 14, 2021 | Jul. 22, 2021 | Jul. 19, 2021 |
Discontinued Operations and Restructuring | |||||||||||||||
Gain on disposal of discontinued operations, net of tax | $ (3.6) | $ 185.4 | $ 509.2 | $ 0 | $ 691 | $ 0 | $ 0 | ||||||||
Income from discontinued operations, net of tax | 0.8 | $ 1.2 | $ 53.4 | $ 21.9 | $ 15.7 | $ 2.1 | $ 26.7 | $ 23.3 | 77.3 | 67.8 | 37.3 | ||||
Operating income (loss) held for sale | 12.5 | 47.7 | 28.1 | ||||||||||||
Seed investments held for sale | $ 0 | $ 25.1 | 0 | 25.1 | |||||||||||
Consolidated Entity Excluding Consolidated Funds | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Gain on disposal of discontinued operations, net of tax | 0 | ||||||||||||||
Barrow, Hanley, Mewhinney & Strauss LLC | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Consideration | $ 15.8 | ||||||||||||||
Discontinued Operations, Disposed of by Sale | Interests In Landmark | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Consideration | $ 690 | ||||||||||||||
Gain on disposal of discontinued operations, net of tax | 505.8 | ||||||||||||||
Tax effect | 179.5 | ||||||||||||||
Deferred tax asset, disposal group | 88.2 | ||||||||||||||
Redemption of co-investments | 31.5 | ||||||||||||||
Discontinued Operations, Disposed of by Sale | Thompson Siegel & Walmsley, LLC | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Consideration | $ 240 | ||||||||||||||
Gain on disposal of discontinued operations, net of tax | 185.2 | ||||||||||||||
Tax effect | 73.9 | ||||||||||||||
Deferred tax asset, disposal group | $ 10.2 | ||||||||||||||
Discontinued Operations, Held-for-sale | Landmark Partners, LLC, Carried Interest and Co-Investments | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Consideration | $ 31.5 | ||||||||||||||
Income from discontinued operations, net of tax | $ 0 | $ 6.6 | $ 6.3 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Investment Counselors of Maryland | |||||||||||||||
Discontinued Operations and Restructuring | |||||||||||||||
Consideration | $ 18.5 |
Divestitures, Held for Sale a_4
Divestitures, Held for Sale and Discontinued Operations - Assets and liabilities of affiliate held for sale (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Restructuring | |||||||||||
Cash and cash equivalents | $ 0 | $ 30.6 | $ 0 | $ 30.6 | |||||||
Investment advisory fees receivable | 0 | 12.2 | 0 | 12.2 | |||||||
Fixed assets, net | 0 | 8.8 | 0 | 8.8 | |||||||
Right of use assets | 0 | 12.1 | 0 | 12.1 | |||||||
Investments | 0 | 25.1 | 0 | 25.1 | |||||||
Intangible assets, net | 0 | 58.2 | 0 | 58.2 | |||||||
Goodwill | 0 | 161.8 | 0 | 161.8 | |||||||
Other assets | 0 | 17.5 | 0 | 17.5 | |||||||
Deferred tax assets | 0 | 0.5 | 0 | 0.5 | |||||||
Accounts payable and accrued expenses | 0 | 2.2 | 0 | 2.2 | |||||||
Accrued incentive compensation | 0 | 42.5 | 0 | 42.5 | |||||||
Other compensation liabilities | 0 | 254.2 | 0 | 254.2 | |||||||
Operating lease liabilities | 0 | 13.1 | 0 | 13.1 | |||||||
Other liabilities | 0 | 1.3 | 0 | 1.3 | |||||||
Liabilities of discontinued operations classified as held for sale | 0 | 313.3 | 0 | 313.3 | |||||||
Revenues | 115.1 | 219 | $ 224.9 | ||||||||
Compensation and benefits | 91.2 | 145.6 | 167.6 | ||||||||
General and administrative expenses | 8.1 | 18 | 21.7 | ||||||||
Amortization of intangibles | 2.7 | 6.4 | 6.4 | ||||||||
Depreciation and amortization | 0.5 | 1.2 | 1 | ||||||||
Consolidated Funds’ expense | 0.1 | 0.1 | 0.1 | ||||||||
Total operating expenses | 102.6 | 171.3 | 196.8 | ||||||||
Operating income | 12.5 | 47.7 | 28.1 | ||||||||
Investment gains of consolidated Funds | 68.1 | 35.1 | 16.7 | ||||||||
Income from discontinued operations before taxes | 80.6 | 82.8 | 44.8 | ||||||||
Income tax expense | 3.3 | 15 | 7.5 | ||||||||
Income from discontinued operations, net of tax | 0.8 | $ 1.2 | $ 53.4 | $ 21.9 | 15.7 | $ 2.1 | $ 26.7 | $ 23.3 | 77.3 | 67.8 | 37.3 |
Tax on gain on disposal | 253.4 | ||||||||||
Gain on disposal of discontinued operations, net of tax | (3.6) | $ 185.4 | $ 509.2 | $ 0 | 691 | 0 | 0 | ||||
Total discontinued operations | 768.3 | 67.8 | 37.3 | ||||||||
Income from discontinued operations attributable to non-controlling interests | 68 | 28.4 | 10.3 | ||||||||
Net income from discontinued operations attributable to controlling interests | 700.3 | 39.4 | 27 | ||||||||
Consolidated Entity Excluding Consolidated Funds | |||||||||||
Discontinued Operations and Restructuring | |||||||||||
Assets of discontinued operations classified as held for sale | 0 | 326.8 | 0 | 326.8 | |||||||
Liabilities of discontinued operations classified as held for sale | 0 | 313.3 | 0 | 313.3 | |||||||
Gain on disposal of discontinued operations, net of tax | 0 | ||||||||||
Consolidated Funds | |||||||||||
Discontinued Operations and Restructuring | |||||||||||
Cash and cash equivalents | 0 | 0.6 | 0 | 0.6 | |||||||
Investments | 0 | 113.7 | 0 | 113.7 | |||||||
Assets of discontinued operations classified as held for sale | $ 0 | $ 114.3 | 0 | 114.3 | |||||||
Income from discontinued operations, net of tax | $ 77.3 | $ 67.8 | $ 37.3 |
Investments - Components of Inv
Investments - Components of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Holdings [Line Items] | ||
Investments at fair value | $ 54.5 | $ 88 |
Equity-accounted investment in Affiliate | 0 | 2 |
Total investments per Consolidated Balance Sheets | 54.5 | 90 |
Consolidated Entity Excluding Consolidated Funds | ||
Investment Holdings [Line Items] | ||
Investments at fair value | 54.5 | 88 |
Total investments per Consolidated Balance Sheets | 54.5 | 90 |
Other investments held at fair value | Consolidated Entity Excluding Consolidated Funds | ||
Investment Holdings [Line Items] | ||
Investments at fair value | 9.5 | 40 |
Investments related to long-term incentive compensation plans held at fair value | Consolidated Entity Excluding Consolidated Funds | ||
Investment Holdings [Line Items] | ||
Investments at fair value | $ 45 | $ 48 |
Investments - Investment Income
Investments - Investment Income and Investment Gains (Losses) on Net Consolidated Funds (Details) - Consolidated Entity Excluding Consolidated Funds - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | |||
Investment income | $ 8.3 | $ 4.9 | $ 16.8 |
Realized and unrealized gains (losses) on other investments held at fair value | |||
Net Investment Income [Line Items] | |||
Investment income | 5.7 | 2 | 14 |
Earnings from equity-accounted investment in Affiliate | |||
Net Investment Income [Line Items] | |||
Investment income | $ 2.6 | $ 2.9 | $ 2.8 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets of BSIG and consolidated Funds | ||
Investments in unconsolidated Funds | $ 54.5 | $ 88 |
Total fair value assets | 54.5 | 88 |
Real Estate Funds | ||
Assets of BSIG and consolidated Funds | ||
Uncategorized | $ 4.9 | 16.1 |
Minimum | ||
Assets of BSIG and consolidated Funds | ||
Term over which the underlying assets are expected to be liquidated by the investees | 1 year | |
Maximum | ||
Assets of BSIG and consolidated Funds | ||
Term over which the underlying assets are expected to be liquidated by the investees | 2 years | |
Consolidated Entity Excluding Consolidated Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in separate accounts | $ 4.6 | 21.3 |
Investments related to long-term incentive compensation plans | 45 | 48 |
Uncategorized | 4.8 | 6.2 |
Investments in unconsolidated Funds | 54.5 | 88 |
Consolidated Entity Excluding Consolidated Funds | Real Estate Funds | ||
Assets of BSIG and consolidated Funds | ||
Uncategorized | 4.9 | 16.1 |
Investments in unconsolidated Funds | 4.9 | 18.7 |
Consolidated Entity Excluding Consolidated Funds | Uncategorized | ||
Assets of BSIG and consolidated Funds | ||
Uncategorized | 4.9 | 16.1 |
Quoted prices in active markets (Level I) | ||
Assets of BSIG and consolidated Funds | ||
Total fair value assets | 49.6 | 57.7 |
Quoted prices in active markets (Level I) | Consolidated Entity Excluding Consolidated Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in separate accounts | 4.6 | 9.7 |
Investments related to long-term incentive compensation plans | $ 45 | $ 48 |
Investment, fair value disclosure, percentage of investment held in cash | 11.00% | |
Investment, fair value disclosure, percentage of investment held in equity securities | 100.00% | 89.00% |
Quoted prices in active markets (Level I) | Consolidated Entity Excluding Consolidated Funds | Real Estate Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in unconsolidated Funds | $ 0 | $ 0 |
Significant other observable inputs (Level II) | ||
Assets of BSIG and consolidated Funds | ||
Total fair value assets | 0 | 11.6 |
Significant other observable inputs (Level II) | Consolidated Entity Excluding Consolidated Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in separate accounts | 0 | 11.6 |
Investments related to long-term incentive compensation plans | 0 | 0 |
Significant other observable inputs (Level II) | Consolidated Entity Excluding Consolidated Funds | Real Estate Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in unconsolidated Funds | 0 | 0 |
Significant unobservable inputs (Level III) | ||
Assets of BSIG and consolidated Funds | ||
Total fair value assets | 0 | 2.6 |
Significant unobservable inputs (Level III) | Consolidated Entity Excluding Consolidated Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in separate accounts | 0 | 0 |
Investments related to long-term incentive compensation plans | 0 | 0 |
Significant unobservable inputs (Level III) | Consolidated Entity Excluding Consolidated Funds | Real Estate Funds | ||
Assets of BSIG and consolidated Funds | ||
Investments in unconsolidated Funds | $ 0 | $ 2.6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Level Three Investment Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers into Level III | $ 0 | |
Consolidated Entity Excluding Consolidated Funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
At beginning of the period | 2,600,000 | $ 3,000,000 |
Redemptions | (100,000) | (300,000) |
Disposals | (2,800,000) | 0 |
Total net fair value gains/(losses) recognized in net income | 300,000 | (100,000) |
Total Level III financial assets | $ 0 | $ 2,600,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 02, 2021 | Dec. 31, 2020 |
Variable Interest Entities | |||
Assets | $ 714.8 | $ 1,379.2 | |
Unconsolidated VIE [Abstract] | |||
Assets | 714.8 | 1,379.2 | |
Liabilities | 732.4 | 994.8 | |
Discontinued Operations, Held-for-sale | Landmark Partners, LLC, Carried Interest and Co-Investments | |||
Variable Interest Entities | |||
Consideration | $ 31.5 | ||
Consolidated VIEs | |||
Variable Interest Entities | |||
Consolidated Funds’ assets held for sale (Note 3) | 0 | 114.3 | |
Assets | 0 | 114.3 | |
Unconsolidated VIE [Abstract] | |||
Assets | 0 | 114.3 | |
Unconsolidated VIEs | |||
Variable Interest Entities | |||
Assets | 795.5 | 6,437.1 | |
Unconsolidated VIE [Abstract] | |||
Assets | 795.5 | 6,437.1 | |
Liabilities | 323.6 | 4,332.1 | |
Equity interests on the Consolidated Balance Sheets | 4.8 | 14.3 | |
Maximum risk of loss | $ 5 | $ 19.3 |
Fixed Assets - Components of Fi
Fixed Assets - Components of Fixed Assets (Details) - Consolidated Entity Excluding Consolidated Funds - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 148.2 | $ 154.9 |
Accumulated depreciation and amortization | (98) | (92.1) |
Fixed assets, net | 50.2 | 62.8 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 30.4 | 31.6 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 8.4 | 14.6 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | 6.2 | 10.9 |
Software and web development | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, at cost | $ 103.2 | $ 97.8 |
Fixed Assets - Narrative (Detai
Fixed Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 22.1 | ||
Consolidated Entity Excluding Consolidated Funds | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 22.1 | $ 19.8 | $ 16.2 |
Fixed asset disposals | 13.6 | ||
Accumulated depreciation | (13.6) | ||
Consolidated Entity Excluding Consolidated Funds | Campbell Global | |||
Property, Plant and Equipment [Line Items] | |||
Fixed asset disposals | 8.1 | ||
Accumulated depreciation | $ (2.6) |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 5 years | |
Options to terminate, term | 1 year | |
Weighted average remaining lease term (in years) | 11 years 3 months 18 days | 10 years |
Weighted average discount rate | 3.35% | 3.35% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 12 years |
Leases - Summarized Information
Leases - Summarized Information about Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 11.2 | $ 13.2 |
Variable lease cost | 0.1 | 0.1 |
Sublease income | (0.5) | (0.2) |
Total operating lease expense | 10.8 | 13.1 |
Operating cash flows from operating leases | 11.1 | 11.9 |
ROU asset obtained in exchange for new operating lease liabilities | $ 3 | $ 74.9 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 6.2 |
2023 | 8.6 |
2024 | 8 |
2025 | 7.7 |
2026 | 7.6 |
Thereafter | 56.4 |
Total lease payments | 94.5 |
Less imputed interest | (16.9) |
Total | $ 77.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2020 | |
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | $ 27,100,000 | $ 145,500,000 | ||
Accumulated impairment, beginning balance | (6,800,000) | (32,700,000) | ||
Goodwill, beginning balance | 20,300,000 | 112,800,000 | ||
Additions | 0 | 0 | ||
Impairments | 0 | (16,400,000) | ||
Disposals (1) | 0 | (76,100,000) | ||
Goodwill gross, ending balance | 22,100,000 | 27,100,000 | $ 145,500,000 | |
Accumulated impairment, ending balance | (1,800,000) | (6,800,000) | (32,700,000) | |
Goodwill, ending balance | 20,300,000 | 20,300,000 | 112,800,000 | |
Goodwill | 0 | 161,800,000 | ||
Copper Rock | ||||
Goodwill [Roll Forward] | ||||
Impairments | 0 | (16,400,000) | ||
Consolidated Entity Excluding Consolidated Funds | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | 20,300,000 | |||
Impairments | 0 | (16,400,000) | 0 | |
Goodwill, ending balance | 20,300,000 | 20,300,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Barrow, Hanley, Mewhinney & Strauss LLC | Consolidated Entity Excluding Consolidated Funds | ||||
Goodwill [Roll Forward] | ||||
Goodwill | $ 76,100,000 | |||
Quant & Solutions | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 22,100,000 | 22,100,000 | ||
Accumulated impairment, beginning balance | (1,800,000) | (1,800,000) | ||
Goodwill, beginning balance | 20,300,000 | 20,300,000 | ||
Additions | 0 | 0 | ||
Impairments | 0 | 0 | ||
Disposals (1) | 0 | 0 | ||
Goodwill gross, ending balance | 22,100,000 | 22,100,000 | 22,100,000 | |
Accumulated impairment, ending balance | (1,800,000) | (1,800,000) | (1,800,000) | |
Goodwill, ending balance | 20,300,000 | 20,300,000 | 20,300,000 | |
Alternatives | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 5,000,000 | 5,000,000 | ||
Accumulated impairment, beginning balance | (5,000,000) | (5,000,000) | ||
Goodwill, beginning balance | 0 | 0 | ||
Additions | 0 | 0 | ||
Impairments | 0 | 0 | ||
Disposals (1) | 0 | 0 | ||
Goodwill gross, ending balance | 0 | 5,000,000 | 5,000,000 | |
Accumulated impairment, ending balance | 0 | (5,000,000) | (5,000,000) | |
Goodwill, ending balance | 0 | 0 | 0 | |
Liquid Alpha | ||||
Goodwill [Roll Forward] | ||||
Goodwill gross, beginning balance | 0 | 118,400,000 | ||
Accumulated impairment, beginning balance | 0 | (25,900,000) | ||
Goodwill, beginning balance | 0 | 92,500,000 | ||
Additions | 0 | 0 | ||
Impairments | 0 | (16,400,000) | ||
Disposals (1) | 0 | (76,100,000) | ||
Goodwill gross, ending balance | 0 | 0 | 118,400,000 | |
Accumulated impairment, ending balance | 0 | 0 | (25,900,000) | |
Goodwill, ending balance | $ 0 | $ 0 | $ 92,500,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 0 | $ 16,400,000 |
Landmark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill disposed of in sale | 148,100,000 | 148,100,000 |
Intangible assets disposed of in sale | 55,500,000 | |
Increase in assets held for sale pertaining to divestiture | 58,200,000 | |
Thompson Siegel & Walmsley, LLC | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill disposed of in sale | 13,700,000 | 13,700,000 |
Copper Rock | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of goodwill | $ 0 | $ 16,400,000 |
Related Party Transactions - Du
Related Party Transactions - Due from Related Party, Investment in Related Party, and Related Party Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related party transactions | |||
Total amounts due for investment advisory fee receivables from related parties | $ 14.1 | $ 7.6 | |
Related party revenues | 54.7 | 54.4 | $ 60.2 |
Unconsolidated Funds | |||
Related party transactions | |||
Investment advisory fee receivable from unconsolidated Funds | 14.1 | 7.6 | |
Unconsolidated Funds | Management fees | |||
Related party transactions | |||
Related party revenues | 52.7 | 52.8 | 59 |
Unconsolidated Funds | Performance fees collected (performance penalties paid) | |||
Related party transactions | |||
Related party revenues | $ 2 | $ 1.6 | $ 1.2 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - Consolidated Entity Excluding Consolidated Funds - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable | $ 5 | $ 6.7 |
Accrued expenses | 23.4 | 17.8 |
Accrued interest payable | 6.8 | 6.8 |
Total accounts payable and accrued expenses | $ 35.2 | $ 31.3 |
Other Compensation Liabilitie_2
Other Compensation Liabilities - Components of Other Compensation Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Payment Arrangement [Abstract] | ||
Share-based payments liability | $ 28.1 | $ 25 |
Profit interests compensation liability | 30.6 | 0.8 |
Voluntary deferral plan liability | 45 | 48 |
Total other compensation liabilities | $ 103.7 | $ 73.8 |
Other Compensation Liabilitie_3
Other Compensation Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |||
Profit interests compensation expense (income) | $ 31.8 | $ (7.5) | $ (56.4) |
Redemption of profit sharing interests for cash | $ 0 | $ 4.3 | $ 9.5 |
Borrowings and Debt - Schedule
Borrowings and Debt - Schedule of Long-Term Debt (Details) - USD ($) | Dec. 31, 2021 | Dec. 17, 2021 | Feb. 23, 2021 | Dec. 31, 2020 | Nov. 17, 2020 | Sep. 03, 2020 | Jul. 31, 2016 |
Borrowings and debt | |||||||
Borrowings | $ 400,000,000 | ||||||
Significant other observable inputs (Level II) | |||||||
Borrowings and debt | |||||||
Borrowings | 394,900,000 | $ 394,300,000 | |||||
Fair Value | 412,900,000 | 424,900,000 | |||||
Line of Credit | Revolving credit facility | |||||||
Borrowings and debt | |||||||
Face amount | 125,000,000 | $ 125,000,000 | 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||
Line of Credit | Revolving credit facility | Significant other observable inputs (Level II) | |||||||
Borrowings and debt | |||||||
Borrowings | 0 | 0 | |||||
Fair Value | 0 | 0 | |||||
Line of Credit | Revolving credit facility | Revolving Credit Facility Expiring August 22, 2022 | Significant other observable inputs (Level II) | |||||||
Borrowings and debt | |||||||
Borrowings | 0 | 0 | |||||
Fair Value | 0 | 0 | |||||
Senior notes | 4.80% Senior Notes Due July 27, 2026 | |||||||
Borrowings and debt | |||||||
Face amount | $ 275,000,000 | $ 275,000,000 | |||||
Interest rate (as a percent) | 4.80% | ||||||
Senior notes | 4.80% Senior Notes Due July 27, 2026 | Significant other observable inputs (Level II) | |||||||
Borrowings and debt | |||||||
Borrowings | $ 273,100,000 | 272,800,000 | |||||
Fair Value | 286,500,000 | 298,900,000 | |||||
Senior notes | 5.125% Senior Notes Due August 1, 2031 | |||||||
Borrowings and debt | |||||||
Face amount | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||||
Senior notes | 5.125% Senior Notes Due August 1, 2031 | Significant other observable inputs (Level II) | |||||||
Borrowings and debt | |||||||
Borrowings | $ 121,800,000 | 121,500,000 | |||||
Fair Value | $ 126,400,000 | $ 126,000,000 |
Borrowings and Debt - Narrative
Borrowings and Debt - Narrative (Details) - USD ($) | Jan. 18, 2022 | Feb. 23, 2021 | Jul. 31, 2016 | Dec. 31, 2021 | Dec. 17, 2021 | Dec. 31, 2020 | Nov. 17, 2020 | Sep. 03, 2020 | Dec. 31, 2019 |
Consolidated Entity Excluding Consolidated Funds | |||||||||
Borrowings and debt | |||||||||
Weighted average interest rate | 1.60% | 2.27% | 3.54% | ||||||
4.80% Senior Notes Due July 27, 2026 | Senior notes | |||||||||
Borrowings and debt | |||||||||
Contractual face amount | $ 275,000,000 | $ 275,000,000 | |||||||
Interest rate (as a percent) | 4.80% | ||||||||
Debt instrument, unamortized discount | (500,000) | ||||||||
Debt issuance costs | $ (3,000,000) | ||||||||
Contractual term | 10 years | ||||||||
Debt instrument, redemption price, percentage | 100.00% | ||||||||
Debt instrument, redemption price, percentage of accrued or unpaid interest | 0.50% | ||||||||
5.125% Senior Notes Due August 1, 2031 | Senior notes | |||||||||
Borrowings and debt | |||||||||
Contractual face amount | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | ||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||||||
Debt issuance costs | $ (4,300,000) | ||||||||
Contractual term | 15 years | ||||||||
Debt instrument, redemption price, percentage | 100.00% | ||||||||
5.125% Senior Notes Due August 1, 2031 | Senior notes | Subsequent Event | |||||||||
Borrowings and debt | |||||||||
Debt instrument, redemption price, percentage | 101.153% | ||||||||
Debt instrument, percentage of principal amount redeemed | 100.00% | ||||||||
Interest expense | $ 1,400,000 | ||||||||
Revolving credit facility | Line of Credit | |||||||||
Borrowings and debt | |||||||||
Contractual face amount | $ 125,000,000 | $ 125,000,000 | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | ||||
Revolving credit facility | Line of Credit | Federal Funds Effective Swap Rate | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 50.00% | ||||||||
Revolving credit facility | Line of Credit | LIBOR | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 1.00% | ||||||||
Revolving credit facility | Line of Credit | Minimum | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 0.25% | ||||||||
Revolving credit facility | Line of Credit | Minimum | LIBOR | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 150.00% | ||||||||
Revolving credit facility | Line of Credit | Maximum | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 0.375% | ||||||||
Revolving credit facility | Line of Credit | Maximum | LIBOR | |||||||||
Borrowings and debt | |||||||||
Variable rate margin (as a percent) | 200.00% | ||||||||
Revolving credit facility | Amended Credit Agreement | Line of Credit | Consolidated Entity Excluding Consolidated Funds | |||||||||
Borrowings and debt | |||||||||
Interest coverage ratio | 4 |
Borrowings and Debt - Aggregate
Borrowings and Debt - Aggregate Maturities of Debt Commitments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 275 |
Thereafter | 125 |
Total | $ 400 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 171.3 | $ 340.9 | $ 193 |
Foreign | 6.8 | 3.9 | 20.2 |
Income from continuing operations before taxes | $ 178.1 | $ 344.8 | $ 213.2 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 36.4 | $ 16.1 | $ (28.4) |
State | 16.3 | 9.6 | 4.1 |
Foreign | 2.3 | (0.2) | 3.5 |
Total current expense (benefit) | 55 | 25.5 | (20.8) |
Deferred: | |||
Federal | (3.4) | 57.7 | 26.9 |
State | (1.3) | 13.4 | 2.9 |
Foreign | (0.3) | 0.5 | 1.5 |
Total deferred expense (benefit) | (5) | 71.6 | 31.3 |
Total tax expense (benefit) | $ 50 | $ 97.1 | $ 10.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Income tax expense (benefit) recognized related to derivative securities within other comprehensive income | $ 0.9 | $ 0.8 | $ 0.6 |
Net operating loss carryforwards utilized | 0.5 | 0.4 | 0.4 |
Tax expense recorded in connection with disposal of Affiliates | 9.4 | 77.6 | 0 |
Income tax expense in discontinued operations | 256.7 | ||
Reductions related to lapses of statutes of limitations | 3.4 | 9.1 | 40.8 |
Tax expense related to GILTI tax | 0.9 | 0.8 | 0.5 |
Liability for unrecognized tax benefits that would affect the effective tax rate if recognized | 0.9 | 3.4 | |
Interest and penalties related to income tax provision | (0.5) | (0.9) | (5.3) |
Accrued interest and penalties relating to unrecognized tax benefits | 0.1 | $ 0.5 | $ 1.4 |
Amount of decrease to unrecognized tax benefits reasonably possible within next 12 months | 0.4 | ||
Federal | |||
Valuation Allowance [Line Items] | |||
Operating loss carryforwards | $ 0.3 | ||
Federal | Minimum | |||
Valuation Allowance [Line Items] | |||
Expiration period of operating loss carryforwards | 3 years | ||
Federal | Maximum | |||
Valuation Allowance [Line Items] | |||
Expiration period of operating loss carryforwards | 5 years |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Effective Income Tax Rates for Continuing Operations (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 6.80% | 6.40% | 6.10% |
Non-deductible expenses | 0.20% | 0.20% | 0.30% |
Executive Compensation | 1.60% | 0.10% | 0.40% |
Adjustment to liabilities for uncertain tax positions | (1.70%) | (2.50%) | (19.20%) |
Effect of foreign operations | 0.70% | 0.20% | 0.30% |
Effect of changes in tax law | 0.00% | 0.00% | (0.40%) |
Effect of disposal of Affiliates | (0.10%) | 3.60% | 0.00% |
Effect of income from non-controlling interest | 0.00% | 0.00% | (0.60%) |
Impact of increased state tax obligations to deferred tax assets | (0.40%) | (0.40%) | (1.60%) |
Impact of Redomestication to deferred tax assets | 0.00% | 0.00% | (1.10%) |
Other | 0.00% | (0.40%) | (0.30%) |
Effective income tax rate for continuing operations | 28.10% | 28.20% | 4.90% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities and Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Interest expense | $ 0.2 | $ 5.2 |
Federal net operating loss | 0.1 | 0.5 |
Investment in partnerships | 62.4 | 156.1 |
Intangible assets | 0 | 0.1 |
Employee compensation | 2.7 | 3.9 |
Other | 2.6 | 2.8 |
Cash flow hedge | 4.9 | 5.5 |
Total deferred tax assets | 72.9 | 174.1 |
Valuation allowance | 0 | 0 |
Deferred tax assets, net of valuation allowance | 72.9 | 174.1 |
Deferred tax liabilities: | ||
Right of use assets | 0.5 | 0.8 |
Investments | 0 | 3 |
Total deferred tax liabilities | 0.5 | 3.8 |
Net deferred tax assets | $ 72.4 | $ 170.3 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Change in Gross Unrecognized Tax Benefits and Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the change in gross unrecognized tax benefits | |||
Balance as of January 1 | $ 3.6 | $ 11.3 | $ 46.9 |
Additions based on current year tax positions | 0.1 | 0.1 | 0.1 |
Reductions related to lapses of statutes of limitations | (2.7) | (7.8) | (35.7) |
Balance as of December 31 | $ 1 | $ 3.6 | $ 11.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | |||
Commitments to invest with an Affiliate (up to) | $ 200,000 | ||
Cash and cash equivalents pertaining to wind-down | 1,500,000 | ||
Deposit guaranty on behalf of an Affiliate | $ 2,500,000 | ||
Guaranty liabilities | 0 | $ 0 | |
Cash and cash equivalents in money market funds | $ 176,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||||||||||
Income from continuing operations attributable to controlling interests | $ 128.1 | $ 247.3 | $ 196.9 | ||||||||
Income from discontinued operations attributable to controlling interests (Note 3) | 700.3 | 39.4 | 27 | ||||||||
Net income attributable to controlling interests | 828.4 | 286.7 | 223.9 | ||||||||
Less: Total income available to participating unvested securities | (0.1) | (0.1) | (0.1) | ||||||||
Total net income attributable to common stock | $ 828.3 | $ 286.6 | $ 223.8 | ||||||||
Denominator: | |||||||||||
Weighted-average shares outstanding—basic (in shares) | 70,600,000 | 79,600,000 | 79,400,000 | 79,300,000 | 79,600,000 | 80,000,000 | 80,400,000 | 85,100,000 | 77,213,010 | 81,259,778 | 91,205,412 |
Potential shares of common stock: | |||||||||||
Weighted-average shares outstanding—diluted (in shares) | 73,500,000 | 83,200,000 | 82,900,000 | 82,300,000 | 81,800,000 | 80,900,000 | 80,400,000 | 85,100,000 | 80,485,924 | 82,036,203 | 91,268,952 |
Basic: | |||||||||||
Continuing operations earnings per share (basic) attributable to controlling interests (in dollars per share) | $ 0.59 | $ 0.54 | $ 0.31 | $ 0.23 | $ 2.36 | $ 0.36 | $ 0.26 | $ 0.06 | $ 1.66 | $ 3.04 | $ 2.16 |
Discontinued operations earnings per share (basic) attributable to controlling interests (in dollars per share) | 9.07 | 0.49 | 0.29 | ||||||||
Earnings per ordinary share attributable to controlling interest - Basic (in dollars per share) | 0.55 | 2.88 | 6.71 | 0.34 | 2.49 | 0.46 | 0.23 | 0.38 | 10.73 | 3.53 | 2.45 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Continuing operations earnings per share (diluted) attributable to controlling interests (in dollars per share) | 0.57 | 0.52 | 0.29 | 0.22 | 2.30 | 0.36 | 0.26 | 0.09 | 1.59 | 3.01 | 2.16 |
Discontinued operations earnings per share (diluted) attributable to controlling interests (in dollars per share) | 8.70 | 0.48 | 0.29 | ||||||||
Earnings per ordinary share attributable to controlling interests - Diluted (in dollars per share) | $ 0.53 | $ 2.76 | $ 6.42 | $ 0.33 | $ 2.42 | $ 0.46 | $ 0.23 | $ 0.38 | $ 10.29 | $ 3.49 | $ 2.45 |
Employee options excluded from computation of earnings per share (in shares) | 8,970,000 | ||||||||||
Restricted stock units | |||||||||||
Potential shares of common stock: | |||||||||||
Share-based payment arrangements (in shares) | 33,175 | 60,276 | 63,540 | ||||||||
Employee stock options | |||||||||||
Potential shares of common stock: | |||||||||||
Share-based payment arrangements (in shares) | 3,239,739 | 716,149 | 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue from expense reimbursements | $ 2.9 | $ 4.6 | $ 4.4 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregation of Revenue (Details) - Management fees - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | $ 433.3 | $ 478.9 | $ 582.1 |
Quant & Solutions | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | 313.1 | 249.7 | 261.4 |
Quant & Solutions | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | 106.3 | 97.1 | 109.4 |
Liquid Alpha | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | 0 | 82 | 145.5 |
Liquid Alpha | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | 0 | 26.3 | 42.2 |
Other Segments | U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | 10.2 | 17.1 | 18.2 |
Other Segments | Non-U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Management fee revenue | $ 3.7 | $ 6.7 | $ 5.4 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Other compensation liabilities | $ 45 | $ 48 | |
Assets invested in defined contribution plans | 45 | 48 | |
Increase in deferred compensation liability | 3.5 | 7.6 | $ 7.6 |
Increase in defined contribution plan assets | 3.5 | 7 | 7.9 |
Expenses in relation to qualified & non-qualified plans | $ 8.5 | $ 9 | $ 12 |
Equity-based Compensation - Nar
Equity-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance (in shares) | 4,600,000 | ||
Unrecognized share based compensation expense | $ 2.7 | ||
Unrecognized share based compensation expense recognition period | 1 year 4 months 24 days | ||
Compensation costs to be recognized next year | $ 0.8 | ||
Amount received related to the exercise of options | 2.7 | $ 0.2 | |
Tax benefit related to exercise of options | 0.6 | 0 | |
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.48% | ||
Expected volatility rate | 26.11% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Risk-free interest rate | 2.60% | ||
Expected volatility rate | 28.40% | ||
Options granted fair value | 1.8 | $ 5.1 | |
Fair value options vested | $ 1.3 | $ 1.5 | $ 4.3 |
Weighed average fair value (in dollars per share) | $ 0 | $ 0.65 | $ 2.48 |
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years 8 months 12 days | ||
Risk-free interest rate | 1.40% | ||
Expected volatility rate | 29.70% | ||
Stock options | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Risk-free interest rate | 0.00% | 0.30% | |
Expected volatility rate | 0.00% | 41.30% | |
Brightsphere Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1.9 | $ 2.5 | $ 6.2 |
Income tax benefit | $ 0.3 | $ 0.4 | $ 0.5 |
Brightsphere Equity Incentive Plan | Restricted shares (RSA) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year (in shares) | 0 | 0 | 18,000 |
Brightsphere Equity Incentive Plan | Restricted shares (RSA) | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Brightsphere Equity Incentive Plan | Restricted shares (RSA) | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Brightsphere Equity Incentive Plan | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year (in shares) | 15,548 | 105,678 | 88,980 |
Brightsphere Equity Incentive Plan | Restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Brightsphere Equity Incentive Plan | Restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Brightsphere Equity Incentive Plan | Performance-based RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year (in shares) | 0 | 0 | 0 |
Brightsphere Equity Incentive Plan | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted during the year (in shares) | 0 | 0 | 9,013 |
Vesting period | 3 years | ||
Brightsphere Equity Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighed average fair value (in dollars per share) | $ 0 | $ 0.65 | $ 2.48 |
Equity-based Compensation - Sch
Equity-based Compensation - Schedule of Share-based Payments Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Compensation, Share-based Arrangements Rollforward [Roll Forward] | |||
Balance, beginning of period | $ 25 | ||
Affiliate disposals | (0.8) | $ 0 | $ 0 |
Balance, end of period | 28.1 | 25 | |
Cash Settled Awards | |||
Deferred Compensation, Share-based Arrangements Rollforward [Roll Forward] | |||
Balance, beginning of period | 25 | 33.2 | 35.4 |
Amortization and revaluation of granted awards | 5.4 | 2 | (0.4) |
Repurchases (cash-settled) | (1.5) | (10.2) | (1.8) |
Balance, end of period | $ 28.1 | $ 25 | $ 33.2 |
Equity-based Compensation - S_2
Equity-based Compensation - Schedule of Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 0 | 2,820,000 | 2,070,000 |
Weighed average fair value (in dollars per share) | $ 0 | $ 0.65 | $ 2.48 |
Brightsphere Equity Incentive Plan | Restricted shares (RSA) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 0 | 0 | 18,000 |
Granted during the year (in dollars per share) | $ 0 | $ 0 | $ 10.09 |
Brightsphere Equity Incentive Plan | Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 15,548 | 105,678 | 88,980 |
Granted during the year (in dollars per share) | $ 22.06 | $ 10.20 | $ 12.40 |
Brightsphere Equity Incentive Plan | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 0 | 0 | 9,013 |
Granted during the year (in dollars per share) | $ 0 | $ 0 | $ 14.62 |
Brightsphere Equity Incentive Plan | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (in shares) | 0 | 2,820,000 | 2,070,000 |
Weighed average fair value (in dollars per share) | $ 0 | $ 0.65 | $ 2.48 |
Equity-based Compensation - OM
Equity-based Compensation - OM Asset Management Equity Incentive Plan Other Than Options (Details) - Brightsphere Equity Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted shares (RSA) | |||
Number of shares | |||
Outstanding at beginning of year (in shares) | 14,010 | 77,217 | 325,976 |
Granted during the year (in shares) | 0 | 0 | 18,000 |
Forfeited during the year (in shares) | (1,500) | (6,447) | (47,453) |
Vested during the year (in shares) | (10,010) | (56,760) | (219,306) |
Outstanding at end of year (in shares) | 2,500 | 14,010 | 77,217 |
Weighted average grant date fair value per share | |||
Outstanding at beginning of period, (in dollars per share) | $ 13.26 | $ 14.43 | $ 14.83 |
Granted during the year (in dollars per share) | 0 | 0 | 10.09 |
Forfeited during the year (in dollars per share) | 10.09 | 14.19 | 15.43 |
Vested during the year (in dollars per share) | 14.53 | 14.75 | 14.45 |
Outstanding at end of period, (in dollars per share) | $ 10.09 | $ 13.26 | $ 14.43 |
Restricted stock units | |||
Number of shares | |||
Outstanding at beginning of year (in shares) | 60,364 | 62,899 | 47,191 |
Granted during the year (in shares) | 15,548 | 105,678 | 88,980 |
Forfeited during the year (in shares) | (2,345) | (30,927) | (24,591) |
Vested during the year (in shares) | (34,864) | (77,286) | (48,681) |
Outstanding at end of year (in shares) | 38,703 | 60,364 | 62,899 |
Weighted average grant date fair value per share | |||
Outstanding at beginning of period, (in dollars per share) | $ 10.53 | $ 11.79 | $ 14.46 |
Granted during the year (in dollars per share) | 22.06 | 10.20 | 12.40 |
Forfeited during the year (in dollars per share) | 10.30 | 10.83 | 14.46 |
Vested during the year (in dollars per share) | 10.35 | 10.99 | 14.14 |
Outstanding at end of period, (in dollars per share) | $ 15.33 | $ 10.53 | $ 11.79 |
Performance-based RSAs | |||
Number of shares | |||
Outstanding at beginning of year (in shares) | 83,092 | 258,678 | 258,678 |
Granted during the year (in shares) | 0 | 0 | 0 |
Vested during the year (in shares) | (36,007) | 0 | 0 |
Other movements (in shares) | (47,085) | (175,586) | 0 |
Outstanding at end of year (in shares) | 0 | 83,092 | 258,678 |
Weighted average grant date fair value per share | |||
Outstanding at beginning of period, (in dollars per share) | $ 9.78 | $ 10.11 | $ 10.11 |
Vested during the year (in dollars per share) | 9.78 | 0 | 0 |
Other movements (in dollars per share) | 9.78 | 10.26 | 0 |
Outstanding at end of period, (in dollars per share) | $ 0 | $ 9.78 | $ 10.11 |
Performance-based RSUs | |||
Number of shares | |||
Outstanding at beginning of year (in shares) | 9,013 | 9,013 | 189,335 |
Granted during the year (in shares) | 0 | 0 | 9,013 |
Vested during the year (in shares) | 0 | 0 | (193,125) |
Other movements (in shares) | 0 | 0 | 3,790 |
Outstanding at end of year (in shares) | 9,013 | 9,013 | 9,013 |
Weighted average grant date fair value per share | |||
Outstanding at beginning of period, (in dollars per share) | $ 14.62 | $ 14.62 | $ 10.92 |
Granted during the year (in dollars per share) | 0 | 0 | 14.62 |
Vested during the year (in dollars per share) | 0 | 0 | 10.98 |
Other movements (in dollars per share) | 0 | 0 | 14.15 |
Outstanding at end of period, (in dollars per share) | $ 14.62 | $ 14.62 | $ 14.62 |
Equity-based Compensation - S_3
Equity-based Compensation - Schedule of Stock Option Activity (Details) - Stock options - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of the year (in shares) | 7,375,000 | 8,970,000 | 6,900,000 | |
Granted during the year (in shares) | 0 | 2,820,000 | 2,070,000 | |
Forfeited during the year (in shares) | 0 | (4,396,000) | 0 | |
Exercised during the year (in shares) | (4,405,037) | (19,000) | 0 | |
Outstanding at end of the year (in shares) | 2,969,963 | 7,375,000 | 8,970,000 | 6,900,000 |
Exercisable at end of the year (in shares) | 911,963 | 4,288,000 | 3,174,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted average exercise price, beginning (in dollars per share) | $ 11.38 | $ 12 | $ 12 | |
Granted during the year (in dollars per share) | 0 | 10.37 | 12 | |
Forfeited during the year (in dollars per share) | 0 | 12 | 0 | |
Exercised during the year (in dollars per share) | 11.57 | 12 | 0 | |
Weighted average exercise price, ending (in dollars per share) | 11.09 | 11.38 | 12 | $ 12 |
Exercisable at end of year (in dollars per share) | $ 11.56 | $ 11.73 | $ 12 | |
Weighted average remaining contractual term, outstanding | 2 years 6 months | 3 years 4 months 24 days | 4 years | 5 years |
Weighted average remaining contractual term, granted during the year | 4 years 9 months 18 days | 5 years | ||
Weighted average remaining contractual term, exercisable at end of year | 2 years 3 months 18 days | 3 years 2 months 12 days | 4 years | |
Aggregate intrinsic value, outstanding | $ 43,091,497 | $ 58,290,000 | $ 0 | |
Aggregate intrinsic value, exercisable at end of year | $ 12,802,697 | $ 32,366,640 | $ 0 |
Equity-based Compensation - S_4
Equity-based Compensation - Schedule of Weighted Average Fair Value Valuation Inputs (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighed average fair value (in dollars per share) | $ 0 | $ 0.65 | $ 2.48 |
Assumptions: | |||
Dividend yield | 3.40% | ||
Expected volatility | 28.40% | ||
Risk-free interest rate | 2.60% | ||
Expected life of options | 5 years | ||
Minimum | |||
Assumptions: | |||
Dividend yield | 3.90% | ||
Expected volatility | 29.70% | ||
Risk-free interest rate | 1.40% | ||
Expected life of options | 4 years 8 months 12 days | ||
Maximum | |||
Assumptions: | |||
Dividend yield | 0.00% | 7.40% | |
Expected volatility | 0.00% | 41.30% | |
Risk-free interest rate | 0.00% | 0.30% | |
Expected life of options | 5 years |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 384.4 | $ 114.5 | $ 134.2 |
Foreign currency translation adjustment | 0.4 | 1.6 | 1 |
Amortization related to derivatives securities, before tax | 3.3 | 3.1 | 3 |
Tax impact | (0.9) | (0.8) | (0.6) |
Other comprehensive income | 2.8 | 3.9 | 3.4 |
Ending balance | (17.6) | 384.4 | 114.5 |
Foreign currency translation adjustment | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 4.4 | 2.8 | 1.8 |
Foreign currency translation adjustment | 0.4 | 1.6 | 1 |
Amortization related to derivatives securities, before tax | 0 | 0 | 0 |
Tax impact | 0 | 0 | 0 |
Other comprehensive income | 0.4 | 1.6 | 1 |
Ending balance | 4.8 | 4.4 | 2.8 |
Valuation and amortization of derivative securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (18) | (20.3) | (22.7) |
Foreign currency translation adjustment | 0 | 0 | 0 |
Amortization related to derivatives securities, before tax | 3.3 | ||
Tax impact | (0.9) | (0.8) | (0.6) |
Other comprehensive income | 2.4 | 2.3 | 2.4 |
Ending balance | (15.6) | (18) | (20.3) |
AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (13.6) | (17.5) | (20.9) |
Ending balance | $ (10.8) | $ (13.6) | $ (17.5) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income | AOCI | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Interest expense | $ 3.3 | $ 3.1 | $ 3 |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Net income (loss) attributable to controlling interests | $ 68 | $ 28.8 | $ 16.1 |
Consolidated Funds | |||
Noncontrolling Interest [Line Items] | |||
Non-controlling interests | 0 | 80.3 | |
Net income (loss) attributable to controlling interests | 68 | 28.8 | $ 16.1 |
Consolidated Entity Excluding Consolidated Funds | |||
Noncontrolling Interest [Line Items] | |||
Non-controlling interests | $ 0 | $ 1.7 |
Derivatives and Hedging (Detail
Derivatives and Hedging (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2016 | Jul. 31, 2015 | |
Derivative fair values | ||||||
Income tax expense (benefit) recognized related to derivative securities within other comprehensive income | $ 0.9 | $ 0.8 | $ 0.6 | |||
Stockholders' equity | (17.6) | 384.4 | 114.5 | $ 134.2 | ||
Interest Expense | ||||||
Derivative fair values | ||||||
Hedge amount to be reclassified | 3.5 | |||||
Accumulated other comprehensive income | ||||||
Derivative fair values | ||||||
Income tax expense (benefit) recognized related to derivative securities within other comprehensive income | 0.9 | |||||
Stockholders' equity | (15.6) | (18) | (20.3) | $ (22.7) | ||
Treasury rate lock | Accumulated other comprehensive income | ||||||
Derivative fair values | ||||||
Stockholders' equity | (15.6) | |||||
Treasury rate lock | Designated as a hedge | ||||||
Derivative fair values | ||||||
Derivative notional amount | $ 300 | |||||
Derivative securities | $ (34.4) | |||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated other comprehensive income | ||||||
Derivative fair values | ||||||
Interest expense | $ 3.3 | $ 3.1 | $ 3 |
Segment Information - Summarize
Segment Information - Summarized Operating Results by Segment (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment information | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
ENI revenue | $ 162.9 | $ 117.9 | $ 133.3 | $ 109.7 | $ 120.8 | $ 127.5 | $ 122.6 | $ 128.6 | $ 523.8 | $ 499.5 | $ 594.6 |
ENI operating expenses | 234.1 | 247.2 | 214.3 | ||||||||
Earnings before variable compensation | 289.7 | 252.3 | 380.3 | ||||||||
Variable compensation | 130.5 | 112.1 | 138 | ||||||||
ENI operating earnings (after variable comp) | 159.2 | 140.2 | 242.3 | ||||||||
Affiliate key employee distributions | 13.4 | 8.5 | 20.1 | ||||||||
Operating income | 48.5 | 28.7 | 36.1 | 32.5 | 26.9 | 34.2 | 29.9 | 40.7 | 145.8 | 131.7 | 222.2 |
Net interest expense | (24.6) | (27.9) | (30) | ||||||||
Net investment income | 8.3 | (0.3) | 21 | ||||||||
Gain on sale of subsidiaries | 48.6 | 241.3 | |||||||||
Net income attributable to non-controlling interests in consolidated Funds | (68) | (28.8) | (16.1) | ||||||||
Income tax (expense) benefit | (50) | (97.1) | (10.5) | ||||||||
Income from discontinued operations, net of tax | 0.8 | 1.2 | 53.4 | 21.9 | $ 15.7 | $ 2.1 | $ 26.7 | $ 23.3 | 77.3 | 67.8 | 37.3 |
Gain on disposal of discontinued operations, net of tax | $ (3.6) | $ 185.4 | $ 509.2 | $ 0 | 691 | 0 | 0 | ||||
Net income attributable to controlling interests | 828.4 | 286.7 | 223.9 | ||||||||
Operating Segments | Quant & Solutions | |||||||||||
Segment information | |||||||||||
ENI revenue | 488.1 | 354.8 | 380.6 | ||||||||
ENI operating expenses | 160.8 | 149 | 160.6 | ||||||||
Earnings before variable compensation | 327.3 | 205.8 | 220 | ||||||||
Variable compensation | 100.8 | 72.8 | 75.6 | ||||||||
ENI operating earnings (after variable comp) | 226.5 | 133 | 144.4 | ||||||||
Affiliate key employee distributions | 12.4 | 4.3 | 6.4 | ||||||||
Operating income | 214.1 | 128.7 | 138 | ||||||||
Net interest expense | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Gain on sale of subsidiaries | 0 | 0 | |||||||||
Net income attributable to non-controlling interests in consolidated Funds | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Gain on disposal of discontinued operations, net of tax | 0 | ||||||||||
Net income attributable to controlling interests | 214.1 | 128.7 | 138 | ||||||||
Operating Segments | Liquid Alpha | |||||||||||
Segment information | |||||||||||
ENI revenue | 111.1 | 180.3 | |||||||||
ENI operating expenses | 39.4 | 54.1 | |||||||||
Earnings before variable compensation | 71.7 | 126.2 | |||||||||
Variable compensation | 29 | 43.7 | |||||||||
ENI operating earnings (after variable comp) | 42.7 | 82.5 | |||||||||
Affiliate key employee distributions | 3.9 | 13.7 | |||||||||
Operating income | 38.8 | 68.8 | |||||||||
Net interest expense | 0 | 0 | |||||||||
Net investment income | 0 | 0 | |||||||||
Gain on sale of subsidiaries | 0 | ||||||||||
Net income attributable to non-controlling interests in consolidated Funds | 0 | 0 | |||||||||
Income tax (expense) benefit | 0 | 0 | |||||||||
Income from discontinued operations, net of tax | 0 | 0 | |||||||||
Net income attributable to controlling interests | 38.8 | 68.8 | |||||||||
Other | |||||||||||
Segment information | |||||||||||
ENI revenue | 35.4 | 26.4 | 25.5 | ||||||||
ENI operating expenses | 32 | 45.1 | 57.4 | ||||||||
Earnings before variable compensation | 3.4 | (18.7) | (31.9) | ||||||||
Variable compensation | 28.8 | 6.1 | 12 | ||||||||
ENI operating earnings (after variable comp) | (25.4) | (24.8) | (43.9) | ||||||||
Affiliate key employee distributions | 1 | 0.3 | 0 | ||||||||
Operating income | (26.4) | (25.1) | (43.9) | ||||||||
Net interest expense | (22.3) | (21.6) | (21) | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Gain on sale of subsidiaries | 0 | 0 | |||||||||
Net income attributable to non-controlling interests in consolidated Funds | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | (47.1) | (32.5) | (37.7) | ||||||||
Income from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Gain on disposal of discontinued operations, net of tax | 0 | ||||||||||
Net income attributable to controlling interests | (95.8) | (79.2) | (102.6) | ||||||||
Reconciling Adjustments | |||||||||||
Segment information | |||||||||||
ENI revenue | 0.3 | 7.2 | 8.2 | ||||||||
ENI operating expenses | 41.3 | 13.7 | (57.8) | ||||||||
Earnings before variable compensation | (41) | (6.5) | 66 | ||||||||
Variable compensation | 0.9 | 4.2 | 6.7 | ||||||||
ENI operating earnings (after variable comp) | (41.9) | (10.7) | 59.3 | ||||||||
Affiliate key employee distributions | 0 | 0 | 0 | ||||||||
Operating income | (41.9) | (10.7) | 59.3 | ||||||||
Net interest expense | (2.3) | (6.3) | (9) | ||||||||
Net investment income | 8.3 | (0.3) | 21 | ||||||||
Gain on sale of subsidiaries | 48.6 | 241.3 | |||||||||
Net income attributable to non-controlling interests in consolidated Funds | (68) | (28.8) | (16.1) | ||||||||
Income tax (expense) benefit | (2.9) | (64.6) | 27.2 | ||||||||
Income from discontinued operations, net of tax | 77.3 | 67.8 | 37.3 | ||||||||
Gain on disposal of discontinued operations, net of tax | 691 | ||||||||||
Net income attributable to controlling interests | $ 710.1 | $ 198.4 | $ 119.7 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 162.9 | $ 117.9 | $ 133.3 | $ 109.7 | $ 120.8 | $ 127.5 | $ 122.6 | $ 128.6 | $ 523.8 | $ 499.5 | $ 594.6 |
Operating income | 48.5 | 28.7 | 36.1 | 32.5 | 26.9 | 34.2 | 29.9 | 40.7 | 145.8 | 131.7 | 222.2 |
Income from continuing operations before income taxes | 58.5 | 57.4 | 34.6 | 27.6 | 265.3 | 41.2 | 36 | 2.3 | |||
Income from discontinued operations, net of tax | 0.8 | 1.2 | 53.4 | 21.9 | 15.7 | 2.1 | 26.7 | 23.3 | 77.3 | 67.8 | 37.3 |
Gain on disposal of discontinued operations, net of tax | (3.6) | 185.4 | 509.2 | 0 | 691 | 0 | 0 | ||||
Net income | 39.2 | 229.5 | 587.3 | 40.4 | 205.5 | 34 | 53.9 | 22.1 | $ 896.4 | $ 315.5 | $ 240 |
Net income attributable to controlling interests | $ 39.2 | $ 229.5 | $ 532.7 | $ 27 | $ 198 | $ 37.2 | $ 18.9 | $ 32.6 | |||
Earnings per share (basic) attributable to controlling interests (in dollars per share) | $ 0.55 | $ 2.88 | $ 6.71 | $ 0.34 | $ 2.49 | $ 0.46 | $ 0.23 | $ 0.38 | $ 10.73 | $ 3.53 | $ 2.45 |
Earnings per share (diluted) attributable to controlling interests (in dollars per share) | 0.53 | 2.76 | 6.42 | 0.33 | 2.42 | 0.46 | 0.23 | 0.38 | 10.29 | 3.49 | 2.45 |
Continuing operations earnings per share (basic) attributable to controlling interests (in dollars per share) | 0.59 | 0.54 | 0.31 | 0.23 | 2.36 | 0.36 | 0.26 | 0.06 | 1.66 | 3.04 | 2.16 |
Continuing operations earnings per share (diluted) attributable to controlling interests (in dollars per share) | $ 0.57 | $ 0.52 | $ 0.29 | $ 0.22 | $ 2.30 | $ 0.36 | $ 0.26 | $ 0.09 | $ 1.59 | $ 3.01 | $ 2.16 |
Weighted average shares outstanding (in shares) | 70,600,000 | 79,600,000 | 79,400,000 | 79,300,000 | 79,600,000 | 80,000,000 | 80,400,000 | 85,100,000 | 77,213,010 | 81,259,778 | 91,205,412 |
Weighted average diluted shares outstanding (in shares) | 73,500,000 | 83,200,000 | 82,900,000 | 82,300,000 | 81,800,000 | 80,900,000 | 80,400,000 | 85,100,000 | 80,485,924 | 82,036,203 | 91,268,952 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 21, 2021 | Feb. 24, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||
Repurchase of common stock (in shares) | 0 | 6,412,663 | 19,479,945 | ||
Average price of common stock repurchased (in dollars per share) | $ 31.50 | $ 7.15 | $ 12.08 | ||
Repurchase of ordinary shares | $ 1,121.7 | $ 46 | $ 236.5 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repurchase of common stock (in shares) | 1,630,691 | ||||
Average price of common stock repurchased (in dollars per share) | $ 24.51 | ||||
Repurchase of ordinary shares | $ 40 |