Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VRTS | |
Entity Registrant Name | VIRTUS INVESTMENT PARTNERS, INC. | |
Entity Central Index Key | 883237 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 8,911,866 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $166,031 | $202,847 |
Cash of consolidated sponsored investment products | 2,058 | 457 |
Cash pledged or on deposit of consolidated sponsored investment products | 9,554 | 8,230 |
Investments | 56,995 | 63,448 |
Investments of consolidated sponsored investment products | 254,481 | 236,652 |
Accounts receivable, net | 52,792 | 49,721 |
Furniture, equipment, and leasehold improvements, net | 8,578 | 7,193 |
Intangible assets, net | 40,946 | 41,783 |
Goodwill | 5,260 | 5,260 |
Deferred taxes, net | 57,958 | 60,162 |
Other assets | 17,092 | 16,060 |
Other assets of consolidated sponsored investment products | 8,629 | 6,960 |
Total assets | 680,374 | 698,773 |
Liabilities: | ||
Accrued compensation and benefits | 17,343 | 54,815 |
Accounts payable and accrued liabilities | 32,627 | 31,627 |
Dividends payable | 4,236 | 4,270 |
Other liabilities | 9,556 | 9,082 |
Liabilities of consolidated sponsored investment products | 16,491 | 12,556 |
Total liabilities | 80,253 | 112,350 |
Commitments and Contingencies (Note 11) | ||
Redeemable noncontrolling interests | 34,977 | 23,071 |
Equity attributable to stockholders: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 9,591,125 shares issued and 8,911,866 shares outstanding at March 31, 2015 and 9,551,274 shares issued and 8,975,833 shares outstanding at December 31, 2014 | 96 | 96 |
Additional paid-in capital | 1,145,659 | 1,148,908 |
Accumulated deficit | -488,179 | -507,521 |
Accumulated other comprehensive loss | -509 | -242 |
Treasury stock, at cost, 679,259 and 575,441 shares at March 31, 2015 and December 31, 2014, respectively | -91,699 | -77,699 |
Total equity attributable to stockholders | 565,368 | 563,542 |
Noncontrolling interests | -224 | -190 |
Total equity | 565,144 | 563,352 |
Total liabilities and equity | $680,374 | $698,773 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 9,591,125 | 9,551,274 |
Common stock, shares outstanding | 8,911,866 | 8,975,833 |
Treasury stock, shares | 679,259 | 575,441 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | ||
Investment management fees | $70,496 | $71,792 |
Distribution and service fees | 19,598 | 22,438 |
Administration and transfer agent fees | 13,042 | 13,073 |
Other income and fees | 695 | 568 |
Total revenues | 103,831 | 107,871 |
Operating Expenses | ||
Employment expenses | 35,622 | 35,029 |
Distribution and administration expenses | 24,507 | 27,737 |
Other operating expenses | 16,726 | 10,534 |
Other operating expenses of consolidated sponsored investment products | 818 | 331 |
Depreciation and other amortization | 779 | 657 |
Amortization expense | 837 | 957 |
Total operating expenses | 79,289 | 75,245 |
Operating Income | 24,542 | 32,626 |
Other Income (Expense) | ||
Realized and unrealized gain on investments, net | 545 | 1,846 |
Realized and unrealized gain on investments of consolidated sponsored investment products, net | 2,590 | 36 |
Other income, net | 435 | 151 |
Total other income, net | 3,570 | 2,033 |
Interest Income (Expense) | ||
Interest expense | -123 | -138 |
Interest and dividend income | 280 | 383 |
Interest and dividend income of investments of consolidated sponsored investment products | 2,324 | 873 |
Total interest income, net | 2,481 | 1,118 |
Income Before Income Taxes | 30,593 | 35,777 |
Income tax expense | 10,868 | 14,010 |
Net Income | 19,725 | 21,767 |
Noncontrolling interests | -383 | 171 |
Net Income Attributable to Common Stockholders | $19,342 | $21,938 |
Earnings per share-Basic | $2.16 | $2.41 |
Earnings per share-Diluted | $2.11 | $2.34 |
Cash dividends declared per share | $0.45 | |
Weighted Average Shares Outstanding-Basic (in thousands) | 8,964 | 9,116 |
Weighted Average Shares Outstanding-Diluted (in thousands) | 9,151 | 9,361 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $19,725 | $21,767 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax of $165 and ($15) for the three months ended March 31,2015 and 2014, respectively | -271 | 24 |
Unrealized gains on available-for-sale securities, net of tax of ($1) and $($40) for the three months ended March 31, 2015 and 2014, respectively | 4 | 63 |
Other comprehensive (loss) income | -267 | 87 |
Comprehensive income | 19,458 | 21,854 |
Comprehensive (income) loss attributable to noncontrolling interests | -383 | 171 |
Comprehensive income attributable to common stockholders | $19,075 | $22,025 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $165 | ($15) |
Unrealized gains on available-for-sale securities, tax | ($1) | ($40) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net Income | $19,725 | $21,767 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation expense, intangible asset and other amortization | 1,671 | 1,675 |
Stock-based compensation | 3,063 | 1,629 |
Excess tax benefits from stock-based compensation | -1,314 | -263 |
Amortization of deferred commissions | 3,064 | 4,794 |
Payments of deferred commissions | -1,168 | -4,559 |
Equity in earnings of equity method investments | -425 | -134 |
Realized and unrealized gains on trading securities, net | -545 | -1,846 |
Realized and unrealized gains on investments of consolidated sponsored investment products, net | -1,659 | -36 |
Sales (purchases) of trading securities, net | 8,710 | -18,223 |
Purchases of investments by consolidated sponsored investment products, net | -19,550 | -12,481 |
Sales of securities sold short by consolidated sponsored investment products, net | 1,533 | |
Deferred taxes, net | 2,368 | 7,925 |
Changes in operating assets and liabilities: | ||
Cash pledged or on deposit of consolidated sponsored investment products | -2,245 | |
Accounts receivable, net and other assets | -6,054 | -4,833 |
Other assets of consolidated sponsored investment products | 137 | 6,480 |
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities | -35,020 | -31,052 |
Liabilities of consolidated sponsored investment products | 2,857 | -4,074 |
Net cash used in operating activities | -24,852 | -33,231 |
Cash Flows from Investing Activities: | ||
Capital expenditures | -1,397 | -439 |
Change in cash and cash equivalents of consolidated sponsored investment products due to deconsolidation | -366 | |
Purchases of available-for-sale securities | -43 | -53 |
Net cash used in investing activities | -1,440 | -858 |
Cash Flows from Financing Activities: | ||
Borrowings of proceeds from short sales by consolidated sponsored investment products | 921 | |
Dividends paid | -4,129 | |
Repurchases of common shares | -14,000 | |
Proceeds from exercise of stock options | 54 | 105 |
Taxes paid related to net share settlement of restricted stock units | -4,122 | -7,401 |
Excess tax benefits from stock-based compensation | 1,314 | 263 |
Contributions of noncontrolling interests, net | 11,039 | 6,915 |
Net cash used in financing activities | -8,923 | -118 |
Net decrease in cash and cash equivalents | -35,215 | -34,207 |
Cash and cash equivalents, beginning of period | 203,304 | 271,545 |
Cash and Cash Equivalents, end of period | 168,089 | 237,338 |
Non-Cash Investing Activities: | ||
Accrual for capital expenditures | 458 | 99 |
Non-Cash Financing Activities: | ||
Increase (decrease) to noncontrolling interest due to consolidation (deconsolidation) of consolidated sponsored investment products, net | 450 | -45,075 |
Dividends payable | $4,095 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total Attributed To Shareholders [Member] | Non-controlling Interests [Member] | Redeemable Non-controlling Interests [Member] |
In Thousands, except Share data | |||||||||
Beginning Balance at Dec. 31, 2013 | $492,868 | $95 | $1,135,644 | ($605,221) | ($150) | ($37,438) | $492,930 | ($62) | $42,186 |
Balance, Shares at Dec. 31, 2013 | 9,105,521 | 350,000 | |||||||
Net income (loss) | 21,928 | 21,938 | 21,938 | -10 | -161 | ||||
Net unrealized gains on securities available-for-sale | 63 | 63 | 63 | ||||||
Foreign currency translation adjustments | 24 | 24 | 24 | ||||||
Activity of noncontrolling interests, net | -38,158 | ||||||||
Issuance of common stock related to employee stock transactions | 105 | 105 | 105 | ||||||
Issuance of common stock related to employee stock transactions, Shares | 57,619 | ||||||||
Taxes paid on stock-based compensation | -7,401 | -7,401 | -7,401 | ||||||
Stock-based compensation | 2,246 | 2,246 | 2,246 | ||||||
Excess tax benefits from stock-based compensation | 263 | 263 | 263 | ||||||
Ending Balance at Mar. 31, 2014 | 510,096 | 95 | 1,130,857 | -583,283 | -63 | -37,438 | 510,168 | -72 | 3,867 |
Balance, Shares at Mar. 31, 2014 | 9,163,140 | 350,000 | |||||||
Beginning Balance at Dec. 31, 2014 | 563,352 | 96 | 1,148,908 | -507,521 | -242 | -77,699 | 563,542 | -190 | 23,071 |
Balance, Shares at Dec. 31, 2014 | 8,975,833 | 8,975,833 | 575,441 | ||||||
Net income (loss) | 19,308 | 19,342 | 19,342 | -34 | 417 | ||||
Net unrealized gains on securities available-for-sale | 4 | 4 | 4 | ||||||
Foreign currency translation adjustments | -271 | -271 | -271 | ||||||
Activity of noncontrolling interests, net | 11,489 | ||||||||
Cash dividends declared ($0.45 per common share) | -4,095 | -4,095 | -4,095 | ||||||
Repurchases of common shares | -14,000 | -14,000 | -14,000 | ||||||
Repurchases of common shares, Shares | 103,818 | -103,818 | 103,818 | ||||||
Issuance of common stock related to employee stock transactions | 54 | 54 | 54 | ||||||
Issuance of common stock related to employee stock transactions, Shares | 39,851 | ||||||||
Taxes paid on stock-based compensation | -4,122 | -4,122 | -4,122 | ||||||
Stock-based compensation | 3,784 | 3,784 | 3,784 | ||||||
Excess tax benefits from stock-based compensation | 1,130 | 1,130 | 1,130 | ||||||
Ending Balance at Mar. 31, 2015 | $565,144 | $96 | $1,145,659 | ($488,179) | ($509) | ($91,699) | $565,368 | ($224) | $34,977 |
Balance, Shares at Mar. 31, 2015 | 8,911,866 | 8,911,866 | 679,259 |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 0 Months Ended | 3 Months Ended |
Feb. 18, 2015 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per share | $0.45 | $0.45 |
Organization_and_Business
Organization and Business | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Business | 1. Organization and Business |
Virtus Investment Partners, Inc. (the “Company,” “we,” “us,” “our” or “Virtus”), a Delaware corporation, operates in the investment management industry through its subsidiaries. | |
The Company provides investment management and related services to individuals and institutions throughout the United States of America. The Company’s retail investment management services are provided to individuals through products consisting of open-end mutual funds, closed-end funds, variable insurance funds and separately managed accounts. Separately managed accounts are offered through intermediary programs that are sponsored and distributed by unaffiliated broker-dealers and individual direct managed account investment services that are provided by the Company. Institutional investment management services are provided primarily to corporations, multi-employer retirement funds, employee retirement systems, foundations, endowments and subadvisory accounts. |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial condition and results of operations. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
The condensed consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest. Intercompany accounts and transactions have been eliminated. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Note 12 for additional information related to the consolidation of sponsored investment products. The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. | |
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. The Company’s significant accounting policies, which have been consistently applied, are summarized in the 2014 Annual Report on Form 10-K. |
Intangible_Assets_Net
Intangible Assets, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets, Net | 3. Intangible Assets, Net | ||||||||
Intangible assets, net are summarized as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
($ in thousands) | |||||||||
Definite-lived intangible assets: | |||||||||
Investment contracts | $ | 158,747 | $ | 158,747 | |||||
Accumulated amortization | (150,217 | ) | (149,380 | ) | |||||
Definite-lived intangible assets, net | 8,530 | 9,367 | |||||||
Indefinite-lived intangible assets | 32,416 | 32,416 | |||||||
Total intangible assets, net | $ | 40,946 | $ | 41,783 | |||||
Activity in intangible assets, net is as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
($ in thousands) | |||||||||
Intangible assets, net | |||||||||
Balance, beginning of period | $ | 41,783 | $ | 44,633 | |||||
Amortization | (837 | ) | (1,105 | ) | |||||
Balance, end of period | $ | 40,946 | $ | 43,528 | |||||
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
Investments | 4. Investments | ||||||||||||||||
Investments consist primarily of investments in our sponsored mutual funds. The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 12, at March 31, 2015 and December 31, 2014 were as follows: | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Marketable securities | $ | 43,703 | $ | 50,251 | |||||||||||||
Equity method investments | 7,199 | 7,209 | |||||||||||||||
Nonqualified retirement plan assets | 5,168 | 5,063 | |||||||||||||||
Other investments | 925 | 925 | |||||||||||||||
Total investments | $ | 56,995 | $ | 63,448 | |||||||||||||
Marketable Securities | |||||||||||||||||
The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 31,365 | $ | (844 | ) | $ | 690 | $ | 31,211 | ||||||||
Equity securities | 9,064 | — | 179 | 9,243 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,173 | (161 | ) | 237 | 3,249 | ||||||||||||
Total marketable securities | $ | 43,602 | $ | (1,005 | ) | $ | 1,106 | $ | 43,703 | ||||||||
December 31, 2014 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 39,079 | $ | (1,190 | ) | $ | 423 | $ | 38,312 | ||||||||
Equity securities | 8,421 | — | 319 | 8,740 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,129 | (163 | ) | 233 | 3,199 | ||||||||||||
Total marketable securities | $ | 50,629 | $ | (1,353 | ) | $ | 975 | $ | 50,251 | ||||||||
For the three months ended March 31, 2015 and 2014, the Company recognized a realized gain of $0.4 million and $0.9 million, respectively, on trading securities. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 5. Fair Value Measurements | ||||||||||||||||
The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products discussed in Note 12, as of March 31, 2015 and December 31, 2014 by fair value hierarchy level were as follows: | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 123,565 | $ | — | $ | — | $ | 123,565 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 31,211 | — | — | 31,211 | |||||||||||||
Equity securities | 9,243 | — | — | 9,243 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,249 | — | — | 3,249 | |||||||||||||
Other investments: | |||||||||||||||||
Nonqualified retirement plan assets | 5,168 | — | — | 5,168 | |||||||||||||
Total assets measured at fair value | $ | 172,436 | $ | — | $ | — | $ | 172,436 | |||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 202,054 | $ | — | $ | — | $ | 202,054 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 38,312 | — | — | 38,312 | |||||||||||||
Equity securities | 8,740 | — | — | 8,740 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,199 | — | — | 3,199 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 5,063 | — | — | 5,063 | |||||||||||||
Total assets measured at fair value | $ | 257,368 | $ | — | $ | — | $ | 257,368 | |||||||||
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value. | |||||||||||||||||
Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1. | |||||||||||||||||
Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price of the exchange they are traded on and are categorized as Level 1. | |||||||||||||||||
Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1. | |||||||||||||||||
Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1. | |||||||||||||||||
Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. Marketable securities are reflected in the condensed consolidated financial statements at fair value based upon publicly quoted market prices. | |||||||||||||||||
Transfers into and out of levels are reflected when significant inputs used for the fair value measurement, including market inputs or performance attributes, become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value no longer represents fair value. There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2015 and 2014. |
Equity_Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Equity Transactions | 6. Equity Transactions |
During the three months ended March 31, 2015, the Company repurchased 103,818 common shares, at a weighted average price of $134.81 for a total cost of $14.0 million. The Company has repurchased a total of 679,259 shares of common stock at a weighted average price of $134.96 per share for a total cost of $91.7 million under its share repurchase program. At March 31, 2015, there were 520,741 shares of common stock available for repurchase under the Company’s share repurchase program. | |
On February 18, 2015, the Company declared a quarterly cash dividend of $0.45 per common share to be paid on May 13, 2015 to shareholders of record at the close of business on April 30, 2015. The total dividend to be paid is approximately $4.1 million and is included in dividends payable in the condensed consolidated balance sheet at March 31, 2015. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Accumulated Other Comprehensive Income (Loss) | 7. Accumulated Other Comprehensive Income (Loss) | ||||||||
The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2015 and 2014 were as follows: | |||||||||
Unrealized Gains | Foreign Currency | ||||||||
and (Losses) | Translation | ||||||||
on Securities | Adjustments | ||||||||
Available-for- | |||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) | |||
Unrealized net gains on investments, net of tax of $(1) | 4 | — | |||||||
Foreign currency translation adjustments, net of tax of $165 | — | (271 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 4 | (271 | ) | ||||||
Balance March 31, 2015 | $ | (103 | ) | $ | (406 | ) | |||
Unrealized Gains | Foreign Currency | ||||||||
and (Losses) | Translation | ||||||||
on Securities | Adjustments | ||||||||
Available-for- | |||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Unrealized net gains on investments, net of tax of ($40) | 63 | — | |||||||
Foreign currency translation adjustments, net of tax of ($15) | — | 24 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 63 | 24 | |||||||
Balance March 31, 2014 | $ | (168 | ) | $ | 105 | ||||
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-based Compensation | 8. Stock-based Compensation | ||||||||
The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At March 31, 2015, 356,836 shares of common stock remained available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent. Stock options generally cliff vest after three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Shares that are issued upon exercise of stock options and vesting of RSUs are newly issued shares from the Plan and are not issued from treasury stock. | |||||||||
Restricted Stock Units | |||||||||
RSU activity for the three months ended March 31, 2015 is summarized as follows: | |||||||||
Number | Weighted | ||||||||
of Shares | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Outstanding at December 31, 2014 | 179,936 | $ | 143.25 | ||||||
Granted | 70,961 | $ | 141.7 | ||||||
Forfeited | (16 | ) | $ | 77.08 | |||||
Settled | (65,831 | ) | $ | 100.54 | |||||
Outstanding at March 31, 2015 | 185,050 | $ | 157.85 | ||||||
For the three months ended March 31, 2015 and 2014, a total of 29,295 and 42,021 RSUs, respectively, were withheld by the Company as a result of net share settlements to settle minimum employee tax withholding obligations. The Company paid $4.1 million and $7.4 million for the three months ended March 31, 2015 and 2014, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting. | |||||||||
During the three months ended March 31, 2015 and 2014, the Company granted 33,632 and 20,826 RSUs, respectively, each of which contain two performance based metrics in addition to a service condition. The two performance metrics are based on the Company’s growth in operating income, as adjusted, relative to peers, over a one-year period and total shareholder return (“TSR”) relative to peers over a three-year period. For the three months ended March 31, 2015 and 2014, total stock-based compensation expense included $0.6 and $0.1 million for these performance contingent RSUs, respectively. | |||||||||
During the three months ended March 31, 2015 and 2014, the Company recognized $3.1 million and $1.6 million, respectively, in total stock-based compensation expense. As of March 31, 2015, unamortized stock-based compensation expense for unvested RSUs was $18.7 million, with a weighted-average remaining amortization period of 1.9 years. | |||||||||
Stock Options | |||||||||
Stock option activity for the three months ended March 31, 2015 is summarized as follows: | |||||||||
Number | Weighted | ||||||||
of Shares | Average | ||||||||
Exercise Price | |||||||||
Outstanding at December 31, 2014 | 162,824 | $ | 18.79 | ||||||
Granted | — | $ | — | ||||||
Exercised | (3,315 | ) | $ | 16.47 | |||||
Forfeited | — | $ | — | ||||||
Outstanding at March 31, 2015 | 159,509 | $ | 18.84 | ||||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Share | 9. Earnings per Share | ||||||||
Basic earnings per share (“EPS”) excludes dilution for potential common stock issuances and is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted-average number of shares is increased by the dilutive effect of RSUs and common stock options using the treasury stock method. | |||||||||
The computation of basic and diluted EPS is as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
($ in thousands, except per share amounts) | |||||||||
Net Income | $ | 19,725 | $ | 21,767 | |||||
Noncontrolling interests | (383 | ) | 171 | ||||||
Net Income Attributable to Common Stockholders | $ | 19,342 | $ | 21,938 | |||||
Shares (in thousands): | |||||||||
Basic: Weighted-average number of shares outstanding | 8,964 | 9,116 | |||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 187 | 245 | |||||||
Diluted: Weighted-average number of shares outstanding | 9,151 | 9,361 | |||||||
Earnings per share - basic | $ | 2.16 | $ | 2.41 | |||||
Earnings per share - diluted | $ | 2.11 | $ | 2.34 | |||||
For the three months ended March 31, 2015, there were 6,085 instruments excluded from the above computations of weighted-average shares for diluted EPS and at March 31, 2014 there were no instruments excluded from the above computations of weighted- average shares for diluted EPS, because the effect would be anti-dilutive. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes |
In calculating the provision for income taxes, the Company uses an estimate of the annual effective tax rate based upon the facts and circumstances at each interim period. On a quarterly basis, the estimated annual effective tax rate is adjusted, as appropriate, based upon changes in facts and circumstances, if any, as compared to those forecasted at the beginning of the fiscal year and each interim period thereafter. | |
The provision for income taxes reflects U.S. federal, state and local taxes at an estimated effective tax rate of 35.5% and 39.2% for the three months ended March 31, 2015 and 2014, respectively. The decrease in the estimated effective tax rate was primarily related to a release of valuation allowances related to market adjustments on the Company’s marketable securities. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies |
Legal Matters | |
The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions. | |
The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with Accounting Standards Codification 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. Other than as described herein, the Company believes, based on its current knowledge, that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on the Company’s results of operations, cash flows or its consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. | |
Regulatory Matter | |
As previously disclosed, in December 2014 the SEC announced a settlement with F-Squared Investments (“F-Squared”), an unaffiliated former subadviser (see Note 14), which settled charges that F-Squared had violated the federal securities laws as described in Investment Advisers Act Release No. 3988. The settlement related to F-Squared’s inaccurate performance information for the period of April 2001 through September 2008, including indices that certain Virtus mutual funds tracked beginning in September 2009 and January 2011. As part of the SEC’s non-public, confidential investigation of this matter, the SEC staff informed the Company that it was inquiring into whether the Company had violated securities laws or regulations with respect to F-Squared’s historical performance information. Although the Company has not received a Wells Notice in connection with the investigation, the Company is in active discussions with the SEC staff with the objective of promptly resolving this matter. | |
Based upon these circumstances, the Company has recorded a loss contingency pursuant to ASC 450 – Contingencies, of approximately $5.2 million in the first quarter 2015, in other operating expenses along with a related potential income tax benefit as a component of the Company’s income tax expense. The Company believes that it is reasonably possible that a loss greater than the amount accrued may be incurred, but the Company is unable to estimate the amount at this time. The discussions are ongoing, and the Company cannot provide any assurance that a resolution will be reached. | |
Tom Cummins v. Virtus Investment Partners Inc. et al | |
On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers (the “the defendants”) in the United States District Court for the Southern District of New York. The complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between May 28, 2013 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that, during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared Investments. The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages on behalf of the class members. The Company believes that the suit is without merit and intends to defend it vigorously. On April 21, 2015, three plaintiffs, including the original plaintiff, filed motions to be appointed lead plaintiff. One of the motions has been withdrawn and on May 7, 2015 the other applicant filed a statement of non-opposition to the motion of Arkansas Teachers Retirement System to be appointed lead plaintiff. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim. | |
Mark Youngers v. Virtus Investment Partners, Inc. et al | |
On May 8, 2015, a putative class action complaint alleging violations of certain provisions of the federal securities laws was filed in the United States District Court for the Central District of California by an individual who alleges he is a former shareholder of one of the Virtus mutual funds formerly subadvised by F-Squared Investments and formerly known as the AlphaSector Funds. The complaint purports to allege claims against the Company, certain of the Company’s officers and affiliates, and certain other parties (the “defendants”). The complaint was purportedly filed on behalf of purchasers of the AlphaSector Funds between May 8, 2010 and December 22, 2014, inclusive (the “Class Period’). The complaint alleges that during the Class Period the defendants disseminated materially false and misleading statements and concealed or omitted material facts necessary to make the statements made not misleading. The Company has not been served with the complaint. The Company believes the plaintiff’s claims asserted in the complaint are without merit and intends to defend it vigorously. |
Consolidated_Sponsored_Investm
Consolidated Sponsored Investment Products | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Consolidated Sponsored Investment Products | 12. Consolidated Sponsored Investment Products | ||||||||||||||||
In the normal course of its business, the Company sponsors various investment products. The Company consolidates an investment product when it owns a majority of the voting interest in the entity or it is the primary beneficiary of an investment product that is a VIE. The consolidation and deconsolidation of these investment products has no impact on net income attributable to stockholders. The Company’s risk with respect to these investments is limited to its investment in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products, beyond the Company’s investments in, and fees generated from these products. The Company does not consider cash and investments held by consolidated sponsored investment products to be assets of the Company other than its direct investment in these products. | |||||||||||||||||
As of March 31, 2015 and December 31, 2014, the Company consolidated 12 sponsored investment products, respectively. During the three months ended March 31, 2015, the Company consolidated one additional sponsored investment product and deconsolidated one sponsored investment product because it no longer had a majority voting interest. | |||||||||||||||||
The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014: | |||||||||||||||||
As of | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 11,612 | $ | 8,687 | |||||||||||||
Total investments | 254,481 | 236,652 | |||||||||||||||
All other assets | 8,629 | 6,960 | |||||||||||||||
Total liabilities | (16,491 | ) | (12,556 | ) | |||||||||||||
Redeemable noncontrolling interests | (34,977 | ) | (23,071 | ) | |||||||||||||
The Company’s net interests in consolidated sponsored investment products | $ | 223,254 | $ | 216,672 | |||||||||||||
Consolidation | |||||||||||||||||
The following tables reflect the impact of the consolidated sponsored investment products in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014, respectively: | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Balance Sheet | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 166,031 | $ | 11,612 | $ | — | $ | 177,643 | |||||||||
Total investments | 277,471 | 254,481 | (220,476 | ) | 311,476 | ||||||||||||
All other assets | 185,404 | 8,629 | (2,778 | ) | 191,255 | ||||||||||||
Total assets | $ | 628,906 | $ | 274,722 | $ | (223,254 | ) | $ | 680,374 | ||||||||
Total liabilities | $ | 63,762 | $ | 19,269 | $ | (2,778 | ) | $ | 80,253 | ||||||||
Redeemable noncontrolling interest | — | — | 34,977 | 34,977 | |||||||||||||
Equity attributable to stockholders of the Company | 565,368 | 255,453 | (255,453 | ) | 565,368 | ||||||||||||
Non-redeemable noncontrolling interest | (224 | ) | — | — | (224 | ) | |||||||||||
Total liabilities and equity | $ | 628,906 | $ | 274,722 | $ | (223,254 | ) | $ | 680,374 | ||||||||
As of December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Balance Sheet | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 202,847 | $ | 8,687 | $ | — | $ | 211,534 | |||||||||
Total investments | 279,863 | 236,652 | (216,415 | ) | 300,100 | ||||||||||||
All other assets | 180,436 | 6,960 | (257 | ) | 187,139 | ||||||||||||
Total assets | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
Total liabilities | $ | 99,794 | $ | 12,813 | $ | (257 | ) | $ | 112,350 | ||||||||
Redeemable noncontrolling interest | — | — | 23,071 | 23,071 | |||||||||||||
Equity attributable to stockholders of the Company | 563,542 | 239,486 | (239,486 | ) | 563,542 | ||||||||||||
Non-redeemable noncontrolling interest | (190 | ) | — | — | (190 | ) | |||||||||||
Total liabilities and equity | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest. | ||||||||||||||||
The following table reflects the impact of the consolidated sponsored investment products in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2015 and 2014: | |||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Statement of | |||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 104,232 | $ | — | $ | (401 | ) | $ | 103,831 | ||||||||
Total operating expenses | 78,471 | 1,219 | (401 | ) | 79,289 | ||||||||||||
Operating income (loss) | 25,761 | (1,219 | ) | — | 24,542 | ||||||||||||
Total other non-operating income (expense) | 4,415 | 4,914 | (3,278 | ) | 6,051 | ||||||||||||
Income (loss) before income tax expense | 30,176 | 3,695 | (3,278 | ) | 30,593 | ||||||||||||
Income tax expense | 10,868 | — | — | 10,868 | |||||||||||||
Net income (loss) | 19,308 | 3,695 | (3,278 | ) | 19,725 | ||||||||||||
Noncontrolling interests | 34 | — | (417 | ) | (383 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 19,342 | $ | 3,695 | $ | (3,695 | ) | $ | 19,342 | ||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Statement of | |||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 107,855 | $ | — | $ | 16 | $ | 107,871 | |||||||||
Total operating expenses | 74,914 | 315 | 16 | 75,245 | |||||||||||||
Operating income (loss) | 32,941 | (315 | ) | — | 32,626 | ||||||||||||
Total other non-operating income (expense) | 2,997 | 910 | (756 | ) | 3,151 | ||||||||||||
Income (loss) before income tax expense | 35,938 | 595 | (756 | ) | 35,777 | ||||||||||||
Income tax expense | 14,010 | — | — | 14,010 | |||||||||||||
Net income (loss) | 21,928 | 595 | (756 | ) | 21,767 | ||||||||||||
Noncontrolling interests | 10 | — | 161 | 171 | |||||||||||||
Net income (loss) attributable to the Company | $ | 21,938 | $ | 595 | $ | (595 | ) | $ | 21,938 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest. | ||||||||||||||||
Fair Value Measurements of Consolidated Sponsored Investment Products | |||||||||||||||||
The assets of the consolidated sponsored investment products measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by fair value hierarchy level were as follows: | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 144,391 | $ | 913 | $ | 145,304 | |||||||||
Equity securities | 108,408 | 769 | — | 109,177 | |||||||||||||
Derivatives | 88 | 179 | — | 267 | |||||||||||||
Total Assets Measured at Fair Value | $ | 108,496 | $ | 145,339 | $ | 913 | $ | 254,748 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 129 | $ | 43 | $ | — | $ | 172 | |||||||||
Short sales | 8,975 | 538 | — | 9,513 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 9,104 | $ | 581 | $ | — | $ | 9,685 | |||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 135,050 | $ | 1,065 | $ | 136,115 | |||||||||
Equity securities | 82,417 | 18,120 | — | 100,537 | |||||||||||||
Derivatives | 154 | 227 | — | 381 | |||||||||||||
Total Assets Measured at Fair Value | $ | 82,571 | $ | 153,397 | $ | 1,065 | $ | 237,033 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 191 | $ | — | $ | — | $ | 191 | |||||||||
Short sales | 7,491 | 674 | — | 8,165 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 7,682 | $ | 674 | $ | — | $ | 8,356 | |||||||||
The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value. | |||||||||||||||||
Investments of consolidated sponsored investment products represent the underlying debt, equity and other securities held in sponsored products which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities and certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid or are priced by dealers based on pricing models used by market makers in the security. | |||||||||||||||||
The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value. | |||||||||||||||||
For the Three | |||||||||||||||||
Months Ended | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 3 Debt securities (a) | |||||||||||||||||
Balance at beginning of period | $ | 1,065 | |||||||||||||||
Paydowns | (1 | ) | |||||||||||||||
Transferred to Level 2 | (152 | ) | |||||||||||||||
Change in unrealized gain/loss | 1 | ||||||||||||||||
Balance at end of period | $ | 913 | |||||||||||||||
(a) | None of the securities in the above table were internally fair valued at March 31, 2015. | ||||||||||||||||
For the three months ended March 31, 2015, securities held by consolidated sponsored investment products with an end of period value of less than $0.1 million were transferred from Level 1 to Level 2 because certain non-US securities’ quoted market prices were adjusted based on third-party factors derived from model-based valuation techniques for which the significant assumptions were observable in the market. For the three months ended March 31, 2015, securities held by consolidated sponsored investment products with an end of period value of $15.3 million were transferred from Level 2 to Level 1 because certain non-US securities’ quoted market prices were no longer adjusted. There were no assets or liabilities with a Level 3 fair value at March 31, 2014. There were no transfers between Level 1, Level 2, or Level 3 during the three months ended March 31, 2014. | |||||||||||||||||
Derivatives | |||||||||||||||||
Beginning in the second quarter of 2014, the Company consolidated investment products which include derivative instruments as part of their investment strategies. These derivatives may include futures contracts, options contracts and forward contracts. The fair value of such derivatives at March 31, 2015 and December 31, 2014 was immaterial. The change in fair value of such derivatives, which is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, in the Condensed Consolidated Statement of Operations was immaterial for the three months ended March 31, 2015. There were no derivatives held by consolidated sponsored investment products at March 31, 2014. In connection with entering into these derivative contracts, these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Condensed Consolidated Balance Sheet of the Company as Cash pledged or on deposit of consolidated sponsored investment products. | |||||||||||||||||
Short Sales | |||||||||||||||||
Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a security is sold which is not owned or is owned but there is no intention to deliver, in anticipation that the price of the security will decline. Short sales are recorded in the Condensed Consolidated Balance Sheet within Other liabilities of consolidated sponsored investment products. | |||||||||||||||||
Borrowings | |||||||||||||||||
One of the Company’s consolidated sponsored investment products employs leverage in the form of using proceeds from short sales, which allows it to use its long positions as collateral in order to purchase additional securities. The use of these proceeds from short sales is secured by the assets of the consolidated sponsored investment product which are held with the custodian in a separate account. This consolidated sponsored investment product is permitted to borrow up to 33.33% of its total assets. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | 13. New Accounting Standards |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods. | |
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. As of March 31, 2015, the Company has not yet adopted ASU 2014-13 but does not expect this standard to have a material effect on its financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events |
On April 10, 2015, the Company invested approximately $4.8 million to acquire a majority interest in ETF Issuer Solutions (“ETFis”), a New York City-based company that operates a platform for listing, operating, and distributing exchange-traded funds. | |
On May 11, 2015, the Company gave the required contractual 30-day notice of termination to F-Squared Investments, an unaffiliated former subadviser to five Virtus open-end mutual funds previously known as the AlphaSector funds which have been renamed “Virtus Trend” funds. |
New_Accounting_Standards_Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015 and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods. |
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015 and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. As of March 31, 2015, the Company has not yet adopted ASU 2014-13 but does not expect this standard to have a material effect on its financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. |
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Summary of Intangible Assets, Net | Intangible assets, net are summarized as follows: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
($ in thousands) | |||||||||
Definite-lived intangible assets: | |||||||||
Investment contracts | $ | 158,747 | $ | 158,747 | |||||
Accumulated amortization | (150,217 | ) | (149,380 | ) | |||||
Definite-lived intangible assets, net | 8,530 | 9,367 | |||||||
Indefinite-lived intangible assets | 32,416 | 32,416 | |||||||
Total intangible assets, net | $ | 40,946 | $ | 41,783 | |||||
Schedule of Activity in Intangible Assets, Net | Activity in intangible assets, net is as follows: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
($ in thousands) | |||||||||
Intangible assets, net | |||||||||
Balance, beginning of period | $ | 41,783 | $ | 44,633 | |||||
Amortization | (837 | ) | (1,105 | ) | |||||
Balance, end of period | $ | 40,946 | $ | 43,528 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
Summary of Investments | The Company’s investments, excluding the assets of consolidated sponsored investment products discussed in Note 12, at March 31, 2015 and December 31, 2014 were as follows: | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Marketable securities | $ | 43,703 | $ | 50,251 | |||||||||||||
Equity method investments | 7,199 | 7,209 | |||||||||||||||
Nonqualified retirement plan assets | 5,168 | 5,063 | |||||||||||||||
Other investments | 925 | 925 | |||||||||||||||
Total investments | $ | 56,995 | $ | 63,448 | |||||||||||||
Schedule of Marketable Securities | The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows: | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 31,365 | $ | (844 | ) | $ | 690 | $ | 31,211 | ||||||||
Equity securities | 9,064 | — | 179 | 9,243 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,173 | (161 | ) | 237 | 3,249 | ||||||||||||
Total marketable securities | $ | 43,602 | $ | (1,005 | ) | $ | 1,106 | $ | 43,703 | ||||||||
December 31, 2014 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 39,079 | $ | (1,190 | ) | $ | 423 | $ | 38,312 | ||||||||
Equity securities | 8,421 | — | 319 | 8,740 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,129 | (163 | ) | 233 | 3,199 | ||||||||||||
Total marketable securities | $ | 50,629 | $ | (1,353 | ) | $ | 975 | $ | 50,251 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value on a recurring basis, excluding the assets and liabilities of consolidated sponsored investment products discussed in Note 12, as of March 31, 2015 and December 31, 2014 by fair value hierarchy level were as follows: | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 123,565 | $ | — | $ | — | $ | 123,565 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 31,211 | — | — | 31,211 | |||||||||||||
Equity securities | 9,243 | — | — | 9,243 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,249 | — | — | 3,249 | |||||||||||||
Other investments: | |||||||||||||||||
Nonqualified retirement plan assets | 5,168 | — | — | 5,168 | |||||||||||||
Total assets measured at fair value | $ | 172,436 | $ | — | $ | — | $ | 172,436 | |||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 202,054 | $ | — | $ | — | $ | 202,054 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 38,312 | — | — | 38,312 | |||||||||||||
Equity securities | 8,740 | — | — | 8,740 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,199 | — | — | 3,199 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 5,063 | — | — | 5,063 | |||||||||||||
Total assets measured at fair value | $ | 257,368 | $ | — | $ | — | $ | 257,368 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Equity [Abstract] | |||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2015 and 2014 were as follows: | ||||||||
Unrealized Gains | Foreign Currency | ||||||||
and (Losses) | Translation | ||||||||
on Securities | Adjustments | ||||||||
Available-for- | |||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) | |||
Unrealized net gains on investments, net of tax of $(1) | 4 | — | |||||||
Foreign currency translation adjustments, net of tax of $165 | — | (271 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 4 | (271 | ) | ||||||
Balance March 31, 2015 | $ | (103 | ) | $ | (406 | ) | |||
Unrealized Gains | Foreign Currency | ||||||||
and (Losses) | Translation | ||||||||
on Securities | Adjustments | ||||||||
Available-for- | |||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Unrealized net gains on investments, net of tax of ($40) | 63 | — | |||||||
Foreign currency translation adjustments, net of tax of ($15) | — | 24 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 63 | 24 | |||||||
Balance March 31, 2014 | $ | (168 | ) | $ | 105 | ||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Restricted Stock Units Activity | RSU activity for the three months ended March 31, 2015 is summarized as follows: | ||||||||
Number | Weighted | ||||||||
of Shares | Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Outstanding at December 31, 2014 | 179,936 | $ | 143.25 | ||||||
Granted | 70,961 | $ | 141.7 | ||||||
Forfeited | (16 | ) | $ | 77.08 | |||||
Settled | (65,831 | ) | $ | 100.54 | |||||
Outstanding at March 31, 2015 | 185,050 | $ | 157.85 | ||||||
Summary of Stock Option Activity | Stock option activity for the three months ended March 31, 2015 is summarized as follows: | ||||||||
Number | Weighted | ||||||||
of Shares | Average | ||||||||
Exercise Price | |||||||||
Outstanding at December 31, 2014 | 162,824 | $ | 18.79 | ||||||
Granted | — | $ | — | ||||||
Exercised | (3,315 | ) | $ | 16.47 | |||||
Forfeited | — | $ | — | ||||||
Outstanding at March 31, 2015 | 159,509 | $ | 18.84 | ||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted EPS is as follows: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
($ in thousands, except per share amounts) | |||||||||
Net Income | $ | 19,725 | $ | 21,767 | |||||
Noncontrolling interests | (383 | ) | 171 | ||||||
Net Income Attributable to Common Stockholders | $ | 19,342 | $ | 21,938 | |||||
Shares (in thousands): | |||||||||
Basic: Weighted-average number of shares outstanding | 8,964 | 9,116 | |||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 187 | 245 | |||||||
Diluted: Weighted-average number of shares outstanding | 9,151 | 9,361 | |||||||
Earnings per share - basic | $ | 2.16 | $ | 2.41 | |||||
Earnings per share - diluted | $ | 2.11 | $ | 2.34 |
Consolidated_Sponsored_Investm1
Consolidated Sponsored Investment Products (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Balances of Consolidated Sponsored Investment Products | The following table presents the balances of the consolidated sponsored investment products that were reflected in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||
As of | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 11,612 | $ | 8,687 | |||||||||||||
Total investments | 254,481 | 236,652 | |||||||||||||||
All other assets | 8,629 | 6,960 | |||||||||||||||
Total liabilities | (16,491 | ) | (12,556 | ) | |||||||||||||
Redeemable noncontrolling interests | (34,977 | ) | (23,071 | ) | |||||||||||||
The Company’s net interests in consolidated sponsored investment products | $ | 223,254 | $ | 216,672 | |||||||||||||
Condensed Consolidated Balance Sheets | The following tables reflect the impact of the consolidated sponsored investment products in the Condensed Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014, respectively: | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Balance Sheet | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 166,031 | $ | 11,612 | $ | — | $ | 177,643 | |||||||||
Total investments | 277,471 | 254,481 | (220,476 | ) | 311,476 | ||||||||||||
All other assets | 185,404 | 8,629 | (2,778 | ) | 191,255 | ||||||||||||
Total assets | $ | 628,906 | $ | 274,722 | $ | (223,254 | ) | $ | 680,374 | ||||||||
Total liabilities | $ | 63,762 | $ | 19,269 | $ | (2,778 | ) | $ | 80,253 | ||||||||
Redeemable noncontrolling interest | — | — | 34,977 | 34,977 | |||||||||||||
Equity attributable to stockholders of the Company | 565,368 | 255,453 | (255,453 | ) | 565,368 | ||||||||||||
Non-redeemable noncontrolling interest | (224 | ) | — | — | (224 | ) | |||||||||||
Total liabilities and equity | $ | 628,906 | $ | 274,722 | $ | (223,254 | ) | $ | 680,374 | ||||||||
As of December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Balance Sheet | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 202,847 | $ | 8,687 | $ | — | $ | 211,534 | |||||||||
Total investments | 279,863 | 236,652 | (216,415 | ) | 300,100 | ||||||||||||
All other assets | 180,436 | 6,960 | (257 | ) | 187,139 | ||||||||||||
Total assets | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
Total liabilities | $ | 99,794 | $ | 12,813 | $ | (257 | ) | $ | 112,350 | ||||||||
Redeemable noncontrolling interest | — | — | 23,071 | 23,071 | |||||||||||||
Equity attributable to stockholders of the Company | 563,542 | 239,486 | (239,486 | ) | 563,542 | ||||||||||||
Non-redeemable noncontrolling interest | (190 | ) | — | — | (190 | ) | |||||||||||
Total liabilities and equity | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest. | ||||||||||||||||
Condensed Consolidated Statement of Operations | The following table reflects the impact of the consolidated sponsored investment products in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2015 and 2014: | ||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Statement of | |||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 104,232 | $ | — | $ | (401 | ) | $ | 103,831 | ||||||||
Total operating expenses | 78,471 | 1,219 | (401 | ) | 79,289 | ||||||||||||
Operating income (loss) | 25,761 | (1,219 | ) | — | 24,542 | ||||||||||||
Total other non-operating income (expense) | 4,415 | 4,914 | (3,278 | ) | 6,051 | ||||||||||||
Income (loss) before income tax expense | 30,176 | 3,695 | (3,278 | ) | 30,593 | ||||||||||||
Income tax expense | 10,868 | — | — | 10,868 | |||||||||||||
Net income (loss) | 19,308 | 3,695 | (3,278 | ) | 19,725 | ||||||||||||
Noncontrolling interests | 34 | — | (417 | ) | (383 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 19,342 | $ | 3,695 | $ | (3,695 | ) | $ | 19,342 | ||||||||
For the Three Months Ended March 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Condensed | ||||||||||||||
Products | Consolidated | ||||||||||||||||
Statement of | |||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 107,855 | $ | — | $ | 16 | $ | 107,871 | |||||||||
Total operating expenses | 74,914 | 315 | 16 | 75,245 | |||||||||||||
Operating income (loss) | 32,941 | (315 | ) | — | 32,626 | ||||||||||||
Total other non-operating income (expense) | 2,997 | 910 | (756 | ) | 3,151 | ||||||||||||
Income (loss) before income tax expense | 35,938 | 595 | (756 | ) | 35,777 | ||||||||||||
Income tax expense | 14,010 | — | — | 14,010 | |||||||||||||
Net income (loss) | 21,928 | 595 | (756 | ) | 21,767 | ||||||||||||
Noncontrolling interests | 10 | — | 161 | 171 | |||||||||||||
Net income (loss) attributable to the Company | $ | 21,938 | $ | 595 | $ | (595 | ) | $ | 21,938 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and consolidated sponsored investment product equity and recording of any noncontrolling interest. | ||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The assets of the consolidated sponsored investment products measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 by fair value hierarchy level were as follows: | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 144,391 | $ | 913 | $ | 145,304 | |||||||||
Equity securities | 108,408 | 769 | — | 109,177 | |||||||||||||
Derivatives | 88 | 179 | — | 267 | |||||||||||||
Total Assets Measured at Fair Value | $ | 108,496 | $ | 145,339 | $ | 913 | $ | 254,748 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 129 | $ | 43 | $ | — | $ | 172 | |||||||||
Short sales | 8,975 | 538 | — | 9,513 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 9,104 | $ | 581 | $ | — | $ | 9,685 | |||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 135,050 | $ | 1,065 | $ | 136,115 | |||||||||
Equity securities | 82,417 | 18,120 | — | 100,537 | |||||||||||||
Derivatives | 154 | 227 | — | 381 | |||||||||||||
Total Assets Measured at Fair Value | $ | 82,571 | $ | 153,397 | $ | 1,065 | $ | 237,033 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 191 | $ | — | $ | — | $ | 191 | |||||||||
Short sales | 7,491 | 674 | — | 8,165 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 7,682 | $ | 674 | $ | — | $ | 8,356 | |||||||||
Consolidated Sponsored Investment Products [Member] | |||||||||||||||||
Reconciliation of Assets Related to Consolidated Sponsored Investment Products | The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value. | ||||||||||||||||
For the Three | |||||||||||||||||
Months Ended | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 3 Debt securities (a) | |||||||||||||||||
Balance at beginning of period | $ | 1,065 | |||||||||||||||
Paydowns | (1 | ) | |||||||||||||||
Transferred to Level 2 | (152 | ) | |||||||||||||||
Change in unrealized gain/loss | 1 | ||||||||||||||||
Balance at end of period | $ | 913 | |||||||||||||||
(a) | None of the securities in the above table were internally fair valued at March 31, 2015. |
Intangible_Assets_Net_Summary_
Intangible Assets, Net - Summary of Intangible Assets, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Definite-lived intangible assets: | ||||
Investment contracts | $158,747 | $158,747 | ||
Accumulated amortization | -150,217 | -149,380 | ||
Definite-lived intangible assets, net | 8,530 | 9,367 | ||
Indefinite-lived intangible assets | 32,416 | 32,416 | ||
Total intangible assets, net | $40,946 | $41,783 | $43,528 | $44,633 |
Intangible_Assets_Net_Schedule
Intangible Assets, Net - Schedule of Activity in Intangible Assets, Net (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, net, beginning of period | $41,783 | $44,633 |
Amortization | -837 | -1,105 |
Intangible assets, net, end of period | $40,946 | $43,528 |
Investments_Summary_of_Investm
Investments - Summary of Investments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments Schedule [Abstract] | ||
Marketable securities | $43,703 | $50,251 |
Equity method investments | 7,199 | 7,209 |
Nonqualified retirement plan assets | 5,168 | 5,063 |
Other investments | 925 | 925 |
Total investments | $56,995 | $63,448 |
Investments_Schedule_of_Market
Investments - Schedule of Marketable Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Marketable Securities [Abstract] | ||
Cost | $43,602 | $50,629 |
Unrealized Loss | -1,005 | -1,353 |
Unrealized Gain | 1,106 | 975 |
Fair Value | 43,703 | 50,251 |
Sponsored Funds [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 31,365 | 39,079 |
Unrealized Loss | -844 | -1,190 |
Unrealized Gain | 690 | 423 |
Fair Value | 31,211 | 38,312 |
Equity Securities [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 9,064 | 8,421 |
Unrealized Gain | 179 | 319 |
Fair Value | 9,243 | 8,740 |
Sponsored Closed-End Funds [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 3,173 | 3,129 |
Unrealized Loss | -161 | -163 |
Unrealized Gain | 237 | 233 |
Fair Value | $3,249 | $3,199 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments Schedule [Abstract] | ||
Realized gain on trading securities | $0.40 | $0.90 |
Fair_Value_Measurements_Change
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | $123,565 | $202,054 |
Total assets measured at fair value | 172,436 | 257,368 |
Other investments, nonqualified retirement plan assets | 5,168 | 5,063 |
Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 31,211 | 38,312 |
Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 9,243 | 8,740 |
Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 3,249 | 3,199 |
Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | 5,168 | 5,063 |
Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | 123,565 | 202,054 |
Total assets measured at fair value | 172,436 | 257,368 |
Level 1 [Member] | Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 31,211 | 38,312 |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 9,243 | 8,740 |
Level 1 [Member] | Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 3,249 | 3,199 |
Level 1 [Member] | Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | $5,168 | $5,063 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Fair value, equity, Level 1 to Level 2 transfers, amount | $0 | $0 |
Equity_Transactions_Additional
Equity Transactions - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 54 Months Ended |
Feb. 18, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Equity [Abstract] | |||
Treasury stock, shares acquired | 103,818 | 679,259 | |
Weighted average purchase price per share | $134.81 | $134.96 | |
Total cost of treasury shares acquired | $14,000,000 | $91,700,000 | |
Common stock available for repurchase | 520,741 | 520,741 | |
Cash dividends declared per share | $0.45 | $0.45 | |
Dividend, to be paid date | 13-May-15 | ||
Dividend, record date | 30-Apr-15 | ||
Dividends payable | $4,095,000 | $4,095,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | ($242) | |
Other comprehensive income (loss) before reclassifications, net of tax | 4 | 63 |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments, net of tax | -271 | 24 |
Other comprehensive (loss) income | -267 | 87 |
Ending Balance | -509 | |
Unrealized Gains and (Losses) on Securities Available-for-Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -107 | -231 |
Other comprehensive income (loss) before reclassifications, net of tax | 4 | 63 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive (loss) income | 4 | 63 |
Ending Balance | -103 | -168 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | -135 | 81 |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments, net of tax | -271 | 24 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other comprehensive (loss) income | -271 | 24 |
Ending Balance | ($406) | $105 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, tax | ($1) | ($40) |
Other comprehensive income (loss) before reclassifications, tax | 165 | -15 |
Unrealized Gains and (Losses) on Securities Available-for-Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, tax | -1 | -40 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, tax | $165 | ($15) |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares of common stock reserved for issuance | 1,800,000 | |
Shares of common stock available for issuance | 356,836 | |
Vesting period of stock options in years | 3 years | |
Cash used for employee withholding tax payments | $4.10 | $7.40 |
Share settlement under RSUs | 29,295 | 42,021 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unamortized stock-based compensation expense | 18.7 | |
Weighted-average remaining amortization period | 1 year 10 months 24 days | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual life in years | 10 years | |
Stock-based compensation expense | 3.1 | 1.6 |
RSU and Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Company granted performance contingent RSU | 33,632 | 20,826 |
Stock-based compensation expense | $0.60 | $0.10 |
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual life in years | 1 year | |
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual life in years | 3 years |
Stockbased_Compensation_Summar
Stock-based Compensation - Summary of Restricted Stock Units Activity (Detail) (Restricted Stock Units [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares, Beginning Balance | 179,936 |
Number of shares, Granted | 70,961 |
Number of shares, Forfeited | -16 |
Number of shares, Settled | -65,831 |
Number of shares, Ending Balance | 185,050 |
Weighted Average Grant Date Fair Value, Beginning Balance | $143.25 |
Weighted Average Grant Date Fair Value, Granted | $141.70 |
Weighted Average Grant Date Fair Value, Forfeited | $77.08 |
Weighted Average Grant Date Fair Value, Settled | $100.54 |
Weighted Average Grant Date Fair Value, Ending Balance | $157.85 |
Stockbased_Compensation_Summar1
Stock-based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of Shares, Beginning Balance | 162,824 |
Number of Shares, Granted | 0 |
Number of Shares, Exercised | -3,315 |
Number of Shares, Forfeited | 0 |
Number of Shares, Ending Balance | 159,509 |
Weighted Average Exercise Price, Beginning Balance | $18.79 |
Weighted Average Exercise Price, Granted | $0 |
Weighted Average Exercise Price, Exercised | $16.47 |
Weighted Average Exercise Price, Forfeited | $0 |
Weighted Average Exercise Price, Ending Balance | $18.84 |
Earnings_per_Share_Schedule_of
Earnings per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net Income | $19,725 | $21,767 |
Noncontrolling interests | -383 | 171 |
Net Income Attributable to Common Stockholders | $19,342 | $21,938 |
Shares: | ||
Basic: Weighted-average number of shares outstanding | 8,964 | 9,116 |
Plus: Incremental shares from assumed conversion of dilutive instruments | 187 | 245 |
Diluted: Weighted-average number of shares outstanding | 9,151 | 9,361 |
Earnings per share - basic | $2.16 | $2.41 |
Earnings per share - diluted | $2.11 | $2.34 |
Earnings_per_Share_Additional_
Earnings per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Number of anti-dilutive instruments excluded from computation of weighted-average shares for diluted earnings per share | 6,085 | 0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Estimated effective income tax rate | 35.50% | 39.20% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 21, 2015 | 8-May-15 |
Plaintiff | Complaints | |||
Loss Contingencies [Line Items] | ||||
Increase in accrued liabilities | ($35,020) | ($31,052) | ||
Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of plaintiffs | 3 | |||
Central District of California [Member] | Subsequent Event [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of putative class action complaints filed | 1 | |||
Other Operating Expenses [Member] | ||||
Loss Contingencies [Line Items] | ||||
Increase in accrued liabilities | $5,200 |
Consolidated_Sponsored_Investm2
Consolidated Sponsored Investment Products - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
Product | Product | ||
Condensed Financial Statements, Captions [Line Items] | |||
Number of consolidated sponsored investment products | 12 | 12 | |
Number of additional consolidated sponsored investment product | 1 | ||
Number of deconsolidated sponsored investment products | 1 | ||
Fair value, securities, Level 1 to Level 2 transfers, amount | $0 | $0 | |
Fair value, securities, Level 2 to Level 1 transfers, amount | 15,300,000 | 0 | |
Maximum [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Fair value, securities, Level 1 to Level 2 transfers, amount | 100,000 | 0 | |
Percentage of permitted borrowings | 33.33% | ||
Level 3 [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Assets with level 3 fair value | 0 | ||
Liabilities with level 3 fair value | $0 |
Consolidated_Sponsored_Investm3
Consolidated Sponsored Investment Products - Balances of Consolidated Sponsored Investment Products (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Total cash | $11,612 | $8,687 |
Total investments | 254,481 | 236,652 |
All other assets | 8,629 | 6,960 |
Total liabilities | -16,491 | -12,556 |
Redeemable noncontrolling interests | -34,977 | -23,071 |
Company's net interests in consolidated sponsored investment products | $223,254 | $216,672 |
Consolidated_Sponsored_Investm4
Consolidated Sponsored Investment Products - Condensed Consolidated Balance Sheets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | $166,031 | $202,847 |
Total investments | 56,995 | 63,448 |
All other assets | 17,092 | 16,060 |
Total assets | 680,374 | 698,773 |
Total liabilities | 80,253 | 112,350 |
Redeemable noncontrolling interest | 34,977 | 23,071 |
Equity attributable to stockholders of the Company | 565,368 | 563,542 |
Non-redeemable noncontrolling interest | -224 | -190 |
Total liabilities and equity | 680,374 | 698,773 |
Balances as Reported in Consolidated Balance Sheet [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 177,643 | 211,534 |
Total investments | 311,476 | 300,100 |
All other assets | 191,255 | 187,139 |
Total assets | 680,374 | 698,773 |
Total liabilities | 80,253 | 112,350 |
Redeemable noncontrolling interest | 34,977 | 23,071 |
Equity attributable to stockholders of the Company | 565,368 | 563,542 |
Non-redeemable noncontrolling interest | -224 | -190 |
Total liabilities and equity | 680,374 | 698,773 |
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 166,031 | 202,847 |
Total investments | 277,471 | 279,863 |
All other assets | 185,404 | 180,436 |
Total assets | 628,906 | 663,146 |
Total liabilities | 63,762 | 99,794 |
Redeemable noncontrolling interest | 0 | |
Equity attributable to stockholders of the Company | 565,368 | 563,542 |
Non-redeemable noncontrolling interest | -224 | -190 |
Total liabilities and equity | 628,906 | 663,146 |
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 11,612 | 8,687 |
Total investments | 254,481 | 236,652 |
All other assets | 8,629 | 6,960 |
Total assets | 274,722 | 252,299 |
Total liabilities | 19,269 | 12,813 |
Redeemable noncontrolling interest | 0 | |
Equity attributable to stockholders of the Company | 255,453 | 239,486 |
Non-redeemable noncontrolling interest | 0 | |
Total liabilities and equity | 274,722 | 252,299 |
Eliminations and Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 0 | |
Total investments | -220,476 | -216,415 |
All other assets | -2,778 | -257 |
Total assets | -223,254 | -216,672 |
Total liabilities | -2,778 | -257 |
Redeemable noncontrolling interest | 34,977 | 23,071 |
Equity attributable to stockholders of the Company | -255,453 | -239,486 |
Non-redeemable noncontrolling interest | 0 | |
Total liabilities and equity | ($223,254) | ($216,672) |
Consolidated_Sponsored_Investm5
Consolidated Sponsored Investment Products - Condensed Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | $103,831 | $107,871 |
Total operating expenses | 79,289 | 75,245 |
Operating income (loss) | 24,542 | 32,626 |
Total other non-operating income (expense) | 6,051 | 3,151 |
Income Before Income Taxes | 30,593 | 35,777 |
Income tax expense | 10,868 | 14,010 |
Net income (loss) | 19,725 | 21,767 |
Noncontrolling interests | -383 | 171 |
Net income (loss) attributable to the Company | 19,342 | 21,938 |
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 104,232 | 107,855 |
Total operating expenses | 78,471 | 74,914 |
Operating income (loss) | 25,761 | 32,941 |
Total other non-operating income (expense) | 4,415 | 2,997 |
Income Before Income Taxes | 30,176 | 35,938 |
Income tax expense | 10,868 | 14,010 |
Net income (loss) | 19,308 | 21,928 |
Noncontrolling interests | 34 | 10 |
Net income (loss) attributable to the Company | 19,342 | 21,938 |
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | 0 | |
Total operating expenses | 1,219 | 315 |
Operating income (loss) | -1,219 | -315 |
Total other non-operating income (expense) | 4,914 | 910 |
Income Before Income Taxes | 3,695 | 595 |
Income tax expense | 0 | |
Net income (loss) | 3,695 | 595 |
Noncontrolling interests | 0 | |
Net income (loss) attributable to the Company | 3,695 | 595 |
Eliminations and Adjustments [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total operating revenues | -401 | 16 |
Total operating expenses | -401 | 16 |
Operating income (loss) | 0 | |
Total other non-operating income (expense) | -3,278 | -756 |
Income Before Income Taxes | -3,278 | -756 |
Income tax expense | 0 | |
Net income (loss) | -3,278 | -756 |
Noncontrolling interests | -417 | 161 |
Net income (loss) attributable to the Company | ($3,695) | ($595) |
Consolidated_Sponsored_Investm6
Consolidated Sponsored Investment Products - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | $254,481 | $236,652 |
Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 9,685 | 8,356 |
Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 172 | 191 |
Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 9,513 | 8,165 |
Level 1 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 9,104 | 7,682 |
Level 1 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 129 | 191 |
Level 1 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 8,975 | 7,491 |
Level 2 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 581 | 674 |
Level 2 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 43 | |
Level 2 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 538 | 674 |
Level 3 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Level 3 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Level 3 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 254,748 | 237,033 |
Assets [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 145,304 | 136,115 |
Assets [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 109,177 | 100,537 |
Assets [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 267 | 381 |
Assets [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 108,496 | 82,571 |
Assets [Member] | Level 1 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | Level 1 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 108,408 | 82,417 |
Assets [Member] | Level 1 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 88 | 154 |
Assets [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 145,339 | 153,397 |
Assets [Member] | Level 2 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 144,391 | 135,050 |
Assets [Member] | Level 2 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 769 | 18,120 |
Assets [Member] | Level 2 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 179 | 227 |
Assets [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 913 | 1,065 |
Assets [Member] | Level 3 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 913 | 1,065 |
Assets [Member] | Level 3 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | Level 3 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | $0 |
Consolidated_Sponsored_Investm7
Consolidated Sponsored Investment Products - Reconciliation of Assets Related to Consolidated Sponsored Investment Products (Detail) (Debt Securities [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $1,065,000 |
Paydowns | -1,000 |
Transferred to Level 2 | -152,000 |
Change in unrealized gain/loss | 1,000 |
Ending balance | $913,000 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | 11-May-15 | Apr. 10, 2015 |
MutualFund | ||
Subsequent Event [Line Items] | ||
Number of open-end mutual funds | 5 | |
ETF Issuer Solutions [Member] | ||
Subsequent Event [Line Items] | ||
Investment to acquire majority interest | $4.80 |