12. 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 three months ended March 31, 2013 and 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 these products. 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.

During the three months ended March 31, 2013, the Company deconsolidated three mutual funds because it no longer had a majority voting interest.

The following tables reflect the impact of the consolidated sponsored investment products in the Condensed Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012 respectively:


As of March 31, 2013
	Balance Before Consolidation of Investment Products			Consolidated Investment Products		Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Balance Sheet
*($ in thousands)*
Current assets	$	151,452		$	37,872	$	(35,113	)	$	154,211
Non-current assets		160,521			—		—			160,521

Total assets	$	311,973		$	37,872	$	(35,113	)	$	314,732

Current liabilities	$	44,302		$	622	$	(5	)	$	44,919
Non-current liabilities		22,544			—		—			22,544

Total liabilities		66,846			622		(5	)		67,463

Redeemable noncontrolling interest		—			—		2,142			2,142
Equity attributable to stockholders of the Company		245,148			37,250		(37,250	)		245,148
Non-redeemable noncontrolling interest		(21	)		—		—			(21	)

Total liabilities and equity	$	311,973		$	37,872	$	(35,113	)	$	314,732


As of December 31, 2012
	Balance Before Consolidation of Investment Products			Consolidated Investment Products		Eliminations and Adjustments (a)			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

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, 2013:


For the Three Months Ended March 31, 2013
	Balance Before Consolidation of Investment Products		Consolidated Investment Products			Eliminations and Adjustments (a)			Balances as Reported in Condensed Consolidated Statement of Operations
*($ in thousands)*
Total operating revenues	$	86,120	$	—		$	48		$	86,168
Total operating expenses		64,884		136			48			65,068

Operating income (loss)		21,236		(136	)		—			21,100

Total other non-operating income (expense)		1,156		851			(472	)		1,535
Income (loss) before income tax expense		22,392		715			(472	)		22,635
Income tax expense		8,450		—			—			8,450

Net income (loss)		13,942		715			(472	)		14,185
Less: Net income (loss) attributable to noncontrolling interest		18		—			(243	)		(225	)

Net income (loss) attributable to the Company	$	13,960	$	715		$	(715	)	$	13,960

(a)

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.