19. Consolidation of Sponsored Investment Products

In the normal course of its business, the Company sponsors and is the manager of various types of investment products. During the year ended December 31, 2012, the Company sponsored and consolidated several mutual funds in which it had a majority voting interest. The consolidation 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, nor does it bear the risks associated with, these investment products, beyond the Company’s investments in, and fees generated from them. If the Company were to liquidate, these investments would not be available to the general creditors of the Company. The Company does not consider cash and cash equivalents and investments held by consolidated sponsored investment products to be assets of the Company other than its direct investment in these products.

The following tables reflect the impact of the consolidated sponsored investment products in the Consolidated Balance Sheet as of December 31, 2012 and the Consolidated Statements of Income for the year ended December 31, 2012, respectively:


As of December 31, 2012
	Balance Before Consolidation of Investment Products			Consolidated Investment Products		Eliminations and Adjustments (1)			Balances as Reported in Consolidated Balance Sheet
*($ in thousands)*
Current assets	$	161,286		$	43,924	$	(40,384	)	$	164,826
Non-current assets		167,923			—		—			167,923

Total assets	$	329,209		$	43,924	$	(40,384	)	$	332,749

Current liabilities	$	62,034		$	364	$	13		$	62,411
Other non-current liabilities		22,704			—		—			22,704

Total liabilities		84,738			364		13			85,115

Redeemable noncontrolling interest		—			—		3,163			3,163
Equity attributable to stockholders of the Company		244,474			43,560		(43,560	)		244,474
Non-redeemable noncontrolling interest		(3	)		—		—			(3	)

Total liabilities and equity	$	329,209		$	43,924	$	(40,384	)	$	332,749


For the Year Ended December 31, 2012
	Balance Before Consolidation of Investment Products			Consolidated Investment Products			Eliminations and Adjustments (1)			Balances as Reported in Consolidated Statement of Operations
*($ in thousands)*
Total operating revenues	$	279,919		$	—		$	167		$	280,086
Total operating expenses		219,326			148			167			219,641

Operating income (loss)		60,593			(148	)		—			60,445

Total other non-operating income (expense)		4,106			2,649			(2,397	)		4,358
Income (loss) before income tax expense		64,699			2,501			(2,397	)		64,803
Income tax expense		27,030			—			—			27,030

Net income (loss)		37,669			2,501			(2,397	)		37,773
Noncontrolling interests		3			—			(104	)		(101	)
Allocation of earnings to preferred stockholders		(64	)		—			—			(64	)

Net income (loss) attributable to the Company	$	37,608		$	2,501		$	(2,501	)	$	37,608

(1)

Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest.