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Consolidated Investment Products (Tables)
 12 Months Ended
Dec. 31, 2014
Consolidated Investment Products [Abstract]  
Balances Related To CIP
The following table presents the balances related to CIP that are included on the Consolidated Balance Sheets as well as Invesco's net interest in the CIP for each period presented.

 
As of
$ in millions
December 31, 2014
 
December 31, 2013
Cash and cash equivalents of CIP
404.0

 
583.6

Accounts receivable and other assets of CIP
161.3

 
58.3

Investments of CIP
5,762.8

 
4,734.7

Less: Debt of CIP
(5,149.6
)
 
(4,181.7
)
Less: Other liabilities of CIP
(280.9
)
 
(461.8
)
Less: Retained earnings (1)
(20.3
)
 
(12.5
)
Less: Retained earnings appropriated for investors in CIP
(17.6
)
 
(104.3
)
Less: Accumulated other comprehensive income, net of tax (1)
20.2

 
12.7

Less: Equity attributable to nonredeemable noncontrolling interests
(781.2
)
 
(570.3
)
Invesco's net interests in CIP
98.7

 
58.7

Invesco's net interests as a percentage of investments of CIP
1.7
%
 
1.2
%
Company's Maximum Risk Of Loss In Significant VIE's
At December 31, 2014, the company's maximum risk of loss in significant VIEs in which the company is not the primary beneficiary is presented in the table below.
$ in millions
Footnote Reference
 
Carrying Value
 
Company's Maximum Risk of Loss
CLO investments
3

 
3.4

 
3.4

Partnership and trust investments
—

 
16.0

 
16.0

Investments in Invesco Mortgage Capital Inc.
—

 
29.7

 
29.7

Total
 
49.1
VIE Balance Sheets Consolidated In Period
Balance Sheet
 
 
For the year ended December 31, 2014
 
For the year ended December 31, 2013
$ in millions
 
CLOs - VIEs
 
CLOs - VIEs
 
VOEs
Cash and cash equivalents of CIP
 
30.5

 
1.9

 
6.6

Accounts receivable and other assets of CIP
 
17.6

 
4.2

 
12.1

Investments of CIP
 
346.5

 
260.5

 
76.1

Total assets
 
394.6

 
266.6

 
94.8

 
 
 
 
 
 
 
Debt of CIP
 
347.9

 
241.1

 
25.0

Other liabilities of CIP
 
45.7

 
2.4

 
36.0

Total liabilities
 
393.6

 
243.5

 
61.0

Total equity
 
1.0

 
23.1

 
33.8

Total liabilities and equity
 
394.6

 
266.6

 
94.8

Balance Sheet
 
 
For the year ended December 31, 2014
 
For the year ended December 31, 2013
$ in millions
 
VIEs
 
VOEs
 
VIEs
 
VOEs
Cash and cash equivalents of CIP
 
816.5

 
—

 
967.3

 
6.6

Accounts receivable and other assets of CIP
 
11.3

 
9.0

 
13.5

 
2.6

Investments of CIP
 
1,751.4

 
40.1

 
1,091.9

 
52.2

Total assets
 
2,579.2

 
49.1

 
2,072.7

 
61.4

 
 
 
 
 
 
 
 
 
Debt of CIP
 
1,913.7

 
—

 
1,346.5

 
25.0

Other liabilities of CIP
 
674.7

 
11.8

 
728.7

 
36.0

Total liabilities
 
2,588.4

 
11.8

 
2,075.2

 
61.0

Total equity
 
(9.2
)
 
37.3

 
(2.5
)
 
0.4

Total liabilities and equity
 
2,579.2

 
49.1

 
2,072.7

 
61.4
Condensed Consolidating Balance Sheet [Table Text Block]
Summary of Balance Sheet Impact of CIP
 
 
As of December 31, 2014
$ in millions
 
CLOs - VIEs
 
Other VIEs
 
VOEs
 
Adjustments(1)
 
Impact of CIP
Accounts receivable
 
—

 
—

 
—

 
(3.8
)
 
(3.8
)
Investments
 
—

 
—

 
—

 
(94.9
)
 
(94.9
)
Cash and cash equivalents of CIP
 
378.8

 
5.0

 
21.5

 
(1.3
)
 
404.0

Accounts receivable of CIP
 
155.7

 
0.1

 
5.5

 
—

 
161.3

Investments of CIP
 
5,063.5

 
53.4

 
730.2

 
(84.3
)
 
5,762.8

Total assets
 
5,598.0

 
58.5

 
757.2

 
(184.3
)
 
6,229.4

 
 
 
 
 
 
 
 
 
 
 
Debt of CIP
 
5,302.9

 
—

 
—

 
(153.3
)
 
5,149.6

Other liabilities of CIP
 
277.4

 
0.4

 
6.9

 
(3.8
)
 
280.9

Total liabilities
 
5,580.3

 
0.4

 
6.9

 
(157.1
)
 
5,430.5

Retained earnings
 
20.3

 
—

 
—

 
—

 
20.3

Retained earnings appropriated for investors in CIP
 
17.6

 
—

 
—

 
—

 
17.6

Accumulated other comprehensive income, net of tax
 
(20.2
)
 
—

 
—

 
—

 
(20.2
)
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
 
—

 
58.1

 
750.3

 
(27.2
)
 
781.2

Total liabilities and equity
 
5,598.0

 
58.5

 
757.2

 
(184.3
)
 
6,229.4

____________

(1)
See footnote (1) to the Summary Balance Sheet Impact of CIP table as of December 31, 2013.

 
 
As of December 31, 2013
$ in millions
 
CLOs - VIEs
 
Other VIEs
 
VOEs
 
Adjustments(1)
 
Impact of CIP
Accounts receivable
 
—

 
—

 
—

 
(3.4
)
 
(3.4
)
Investments
 
—

 
—

 
—

 
(55.3
)
 
(55.3
)
Cash and cash equivalents of CIP
 
542.3

 
5.6

 
35.7

 
—

 
583.6

Accounts receivable of CIP
 
56.3

 
0.2

 
1.8

 
—

 
58.3

Investments of CIP
 
4,237.3

 
40.4

 
512.2

 
(55.2
)
 
4,734.7

Total assets
 
4,835.9

 
46.2

 
549.7

 
(113.9
)
 
5,317.9

 
 
 
 
 
 
 
 
 
 
 
Debt of CIP
 
4,270.4

 
—

 
—

 
(88.7
)
 
4,181.7

Other liabilities of CIP
 
461.4

 
0.9

 
3.0

 
(3.5
)
 
461.8

Total liabilities
 
4,731.8

 
0.9

 
3.0

 
(92.2
)
 
4,643.5

Retained Earnings
 
12.5

 
—

 
—

 
—

 
12.5

Retained earnings appropriated for investors in CIP
 
104.3

 
—

 
—

 
—

 
104.3

Accumulated other comprehensive income, net of tax
 
(12.7
)
 
—

 
—

 
—

 
(12.7
)
Equity attributable to nonredeemable noncontrolling interests in consolidated entities
 
—

 
45.3

 
546.7

 
(21.7
)
 
570.3

Total liabilities and equity
 
4,835.9

 
46.2

 
549.7

 
(113.9
)
 
5,317.9

____________

(1)
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of the company's equity at risk recorded as investments by the company (before consolidation) against either equity (private equity and real estate partnership funds) or subordinated debt (CLOs) of the funds.
Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income
Summary of Income Statement Impact of CIP
 
 
Year ended December 31, 2014
$ in millions
 
CLOs - VIEs
 
Other VIEs
 
VOEs
 
Adjustments(2)
 
Impact of CIP
Total operating revenues
 
—

 
0.2

 
0.4

 
(35.8
)
 
(35.2
)
Total operating expenses
 
61.5

 
1.1

 
7.8

 
(35.8
)
 
34.6

Operating income
 
(61.5
)
 
(0.9
)
 
(7.4
)
 
—

 
(69.8
)
Equity in earnings of unconsolidated affiliates
 
—

 
—

 
—

 
(4.0
)
 
(4.0
)
Interest and dividend income
 
—

 
—

 
—

 
(3.3
)
 
(3.3
)
Other gains and losses, net
 
—

 
—

 
—

 
(4.8
)
 
(4.8
)
Interest and dividend income of CIP
 
220.4

 
—

 
—

 
(13.9
)
 
206.5

Interest expense of CIP
 
(151.2
)
 
—

 
—

 
17.3

 
(133.9
)
Other gains/(losses) of CIP, net
 
(93.2
)
 
(1.0
)
 
102.3

 
12.3

 
20.4

Income from continuing operations before income taxes
 
(85.5
)
 
(1.9
)
 
94.9

 
3.6

 
11.1

Income tax provision
 
—

 
—

 
—

 
—

 
—

Income from continuing operations, net of income taxes
 
(85.5
)
 
(1.9
)
 
94.9

 
3.6

 
11.1

Income from discontinued operations, net of income taxes
 
—

 
—

 
—

 
—

 
—

Net income
 
(85.5
)
 
(1.9
)
 
94.9

 
3.6

 
11.1

(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
 
85.7

 
2.2

 
(91.2
)
 
—

 
(3.3
)
Net income attributable to common shareholders
 
0.2

 
0.3

 
3.7

 
3.6

 
7.8


 
 
Year ended December 31, 2013
$ in millions
 
CLOs - VIEs
 
Other VIEs
 
VOEs
 
Adjustments(2)
 
Impact of CIP
Total operating revenues
 
—

 
—

 
0.5

 
(38.4
)
 
(37.9
)
Total operating expenses
 
65.8

 
0.8

 
6.7

 
(38.4
)
 
34.9

Operating income
 
(65.8
)
 
(0.8
)
 
(6.2
)
 
—

 
(72.8
)
Equity in earnings of unconsolidated affiliates
 
—

 
—

 
—

 
(2.5
)
 
(2.5
)
Interest and dividend income
 
—

 
—

 
—

 
(5.5
)
 
(5.5
)
Other gains and losses, net
 
—

 
—

 
—

 
(11.8
)
 
(11.8
)
Interest and dividend income of CIP
 
199.8

 
—

 
—

 
(9.8
)
 
190.0

Interest expense of CIP
 
(138.6
)
 
—

 
—

 
15.3

 
(123.3
)
Other gains/ (losses) of CIP, net
 
3.0

 
1.7

 
54.3

 
2.9

 
61.9

Income from continuing operations before income taxes
 
(1.6
)
 
0.9

 
48.1

 
(11.4
)
 
36.0

Income tax provision
 
—

 
—

 
—

 
—

 
—

Income from continuing operations, net of income taxes
 
(1.6
)
 
0.9

 
48.1

 
(11.4
)
 
36.0

Income from discontinued operations, net of income taxes
 
—

 
—

 
—

 
—

 
—

Net income
 
(1.6
)
 
0.9

 
48.1

 
(11.4
)
 
36.0

(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
 
1.4

 
(0.9
)
 
(45.2
)
 
—

 
(44.7
)
Net income attributable to common shareholders
 
(0.2
)
 
—

 
2.9

 
(11.4
)
 
(8.7
)
____________

(2)    See footnote (2) to the Summary of Income Statement Impact of CIP Year-ended December 31, 2012 table.

 
 
Year ended December 31, 2012
$ in millions
 
CLOs - VIEs
 
VIEs
 
VOEs
 
Adjustments(2)
 
Impact of CIP
Total operating revenues
 
—

 
—

 
—

 
(41.0
)
 
(41.0
)
Total operating expenses
 
48.2

 
0.9

 
23.4

 
(41.0
)
 
31.5

Operating income
 
(48.2
)
 
(0.9
)
 
(23.4
)
 
—

 
(72.5
)
Equity in earnings of unconsolidated affiliates
 
—

 
—

 
—

 
0.5

 
0.5

Interest and dividend income
 
—

 
—

 
—

 
(12.3
)
 
(12.3
)
Other gains and losses, net
 
—

 
—

 
—

 
(8.7
)
 
(8.7
)
Interest and dividend income of CIP
 
260.7

 
—

 
—

 
(2.2
)
 
258.5

Interest expense of CIP
 
(182.8
)
 
—

 
—

 
14.5

 
(168.3
)
Other gains and losses of CIP, net
 
(112.2
)
 
2.4

 
13.7

 
(1.6
)
 
(97.7
)
Income from continuing operations, net of income taxes
 
(82.5
)
 
1.5

 
(9.7
)
 
(9.8
)
 
(100.5
)
Income tax provision
 
—

 
—

 
—

 
—

 
—

Income from continuing operations, net of income taxes
 
(82.5
)
 
1.5

 
(9.7
)
 
(9.8
)
 
(100.5
)
Income from discontinued operations, net of income taxes
 
—

 
—

 
—

 
—

 
—

Net income/(loss)
 
(82.5
)
 
1.5

 
(9.7
)
 
(9.8
)
 
(100.5
)
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net
 
82.2

 
(1.5
)
 
9.1

 
—

 
89.8

Net income attributable to common shareholders
 
(0.3
)
 
—

 
(0.6
)
 
(9.8
)
 
(10.7
)
____________

(2)
Adjustments include the elimination of intercompany transactions between the company and its CIP, primarily the elimination of management fees expensed by the funds and recorded as operating revenues (before consolidation) by the company. These also include the reclassification of the company's gain or loss (representing the changes in the market value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses upon consolidation.
Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products
The following tables present the fair value hierarchy levels of investments held and notes issued by CIP, which are measured at fair value as of December 31, 2014 and December 31, 2013:
 
As of December 31, 2014
$ in millions
Fair Value Measurements
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
CLO collateral assets:
 
 
 
 
 
 
 
Bank loans
4,883.9

 
—

 
4,883.9

 
—

Bonds
88.9

 
—

 
88.9

 
—

Equity securities
6.4

 
—

 
6.4

 
—

Private equity fund assets:

 

 

 

Equity securities
337.9

 
9.7

 
—

 
328.2

Debt securities
35.7

 
—

 
—

 
35.7

Investments in other private equity funds
410.0

 
—

 
—

 
410.0

Total assets at fair value
5,762.8

 
9.7

 
4,979.2

 
773.9

Liabilities:
 
 
 

 
 

 
 

CLO notes
(5,149.6
)
 
—

 
—

 
(5,149.6
)
Total liabilities at fair value
(5,149.6
)
 
—

 
—

 
(5,149.6
)

 
As of December 31, 2013
$ in millions
Fair Value Measurements
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Assets:
 
 
 
 
 
 
 
CLO collateral assets:
 
 
 
 
 
 
 
Bank loans
4,035.8

 
—

 
4,035.8

 
—

Bonds
133.1

 
—

 
133.1

 
—

Equity securities
14.1

 
—

 
14.1

 
—

Private equity fund assets:

 

 

 

Equity securities
106.0

 
47.3

 
—

 
58.7

Investments in other private equity funds
442.2

 
—

 
—

 
442.2

Debt securities issued by the U.S. Treasury
3.5

 
3.5

 
—

 
—

Total assets at fair value
4,734.7

 
50.8

 
4,183.0

 
500.9

Liabilities:
 
 
 
 
 
 
 
CLO notes
(4,181.7
)
 
—

 
—

 
(4,181.7
)
Total liabilities at fair value
(4,181.7
)
 
—

 
—

 
(4,181.7
)
Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities
The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities using significant unobservable inputs:
 
Year ended December 31, 2014
 
Year ended December 31, 2013
$ in millions
Level 3 Assets
 
Level 3 Liabilities
 
Level 3 Assets
 
Level 3 Liabilities
Beginning balance
500.9

 
(4,181.7
)
 
602.9

 
(3,899.4
)
Purchases
302.3

 
—

 
31.5

 
—

Sales
(138.7
)
 
—

 
(148.0
)
 
—

Issuances
1.8

 
(1,995.5
)
 
3.8

 
(1,323.9
)
Settlements
—

 
706.8

 
—

 
850.4

Deconsolidation of CIP
—

 
339.0

 
(18.4
)
 
239.5

Gains and losses included in the Consolidated Statements of Income*
107.6

 
(18.2
)
 
35.7

 
(44.3
)
Transfers to Level 2**
—

 
—

 
(6.1
)
 
—

Foreign exchange
—

 
—

 
(0.5
)
 
(4.0
)
Ending balance
773.9

 
(5,149.6
)
 
500.9

 
(4,181.7
)
____________

*
Included in gains and losses of CIP in the Consolidated Statement of Income for the year ended December 31, 2014 are $60.2 million in net unrealized gains attributable to investments still held at December 31, 2014 by CIP (year ended December 31, 2013: $9.6 million net unrealized losses attributable to investments still held at December 31, 2013).

**
During the year ended December 31, 2014, $0.0 million (year ended December 31, 2013: $6.1 million) of equity securities held by consolidated private equity funds were transferred from Level 3 to Level 2 due to the legal lock up requirements of public offering of securities in the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security on the offering date.
Fair Value Inputs, Assets and Liabilities, Quantitative Information, Consolidated Investment Products
The following tables show significant unobservable inputs used in the fair value measurement of level 3 assets and liabilities at December 31, 2014 and December 31, 2013:
Assets and Liabilities *
 
Fair Value at December 31, 2014 ($ in millions)
 
Valuation Technique
 
Unobservable Inputs
 
Range
 
Weighted Average (by fair value)
Private Equity Funds --Equity Securities
 
273.2
 
Market Comparable
 
Revenue Multiple
 
2 - 4x
 
4.0x
 
 
 
 
 
 
Discount
 
25 - 36%
 
30.9%
 
 
 
 
 
 
Published valuation and/or broker quotes for similar types of assets
 
$27-104 million
 
$45.9 million
CLO Notes
 
(5,149.6)
 
Discounted Cash Flow- USD
 
Assumed Default Rate**
 
0.4% - 2.3%
 
<1yr: 0.4% >1yr: 2.3%
 
 
 
 
 
 
Spread over Libor ***
 
102 - 801bps
 
228 bps

Assets and Liabilities *
 
Fair Value at December 31, 2013 ($ in millions)
 
Valuation Technique
 
Unobservable Inputs
 
Range
 
Weighted Average (by fair value)
Private Equity Funds --Equity Securities
 
58.7
 
Market Comparable
 
Revenue Multiple
 
1 - 5x
 
3.0x
 
 
 
 
 
 
Discount
 
n/a
 
24.0%
CLO notes
 
(4,181.7)
 
Discounted Cash Flow- USD
 
Assumed Default Rate**
 
1% - 2%
 
<1yr: 1.4% >1yr: 2.0%
 
 
 
 
 
 
Spread over Libor ***
 
123 - 864bps
 
208 bps

____________

*
Certain equity securities held by consolidated private equity funds are valued using recent private market transactions (December 31, 2014: $85.0 million; December 31, 2013: $5.8 million) and third party appraisals (December 31, 2014: 5.7 million ; December 31, 2013: none). At December 31, 2014, certain tranches of the consolidated CLOs are valued using third party pricing information. Quantitative unobservable inputs for such valuations were not developed or adjusted by the company. Investments in other private equity funds as of December 31, 2014 of $410.0 million (as of December 31, 2013: $442.2 million) are also excluded from the table above as they are valued using the NAV practical expedient. The NAVs that have been provided are derived from the fair values of the underlying investments as of the consolidation date.
**
Assumed default rates listed in the table above apply to CLOs established prior to 2012. At December 31, 2014, a default rate of 2.0% was assumed for CLOs established after January 1, 2012 (December 31, 2013: 1.4% assumed rate).
***
Lower spreads relate to the more senior tranches in the CLO note structure; higher spreads relate to the less senior tranches.


The table below summarizes as of December 31, 2014 and December 31, 2013, the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized:
 
 
December 31, 2014
 
December 31, 2013
 
 
Fair Value
(in millions)
 
Total Unfunded Commitments
 
Weighted Average Remaining Term (2)
 
Fair Value
(in millions)
 
Total Unfunded Commitments
 
Weighted Average Remaining Term (2)
Private equity funds (1)
 
$410.0
 
$196.3
 
2.6 years
 
442.2
 
152.2
 
2.8 years
 

(1)
These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds.

(2)
These investments are expected to be returned through distributions as a result of liquidations of the funds' underlying assets over the weighted average periods indicated.