þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Bermuda (State or Other Jurisdiction of Incorporation or Organization) | 98-0557567 (I.R.S. Employer Identification No.) | |
1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA (Address of Principal Executive Offices) | 30309 (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | |
TABLE OF CONTENTS | |
As of | |||||
$ in millions, except per share data | June 30, 2016 | December 31, 2015 | |||
ASSETS | |||||
Cash and cash equivalents | 1,446.2 | 1,851.4 | |||
Unsettled fund receivables | 1,202.9 | 566.3 | |||
Accounts receivable | 516.2 | 528.1 | |||
Investments | 892.0 | 1,019.1 | |||
Assets of consolidated sponsored investment products (CSIP) | — | 319.1 | |||
Assets of consolidated investment products (CIP): | |||||
Cash and cash equivalents of CIP | 257.9 | 363.3 | |||
Accounts receivable and other assets of CIP | 182.2 | 173.5 | |||
Investments of CIP | 4,036.9 | 6,016.1 | |||
Assets held for policyholders | 6,620.4 | 6,051.5 | |||
Prepaid assets | 127.8 | 121.2 | |||
Other assets | 68.8 | 107.0 | |||
Property, equipment and software, net | 432.1 | 426.9 | |||
Intangible assets, net | 1,480.3 | 1,354.0 | |||
Goodwill | 6,239.1 | 6,175.7 | |||
Total assets | 23,502.8 | 25,073.2 | |||
LIABILITIES | |||||
Accrued compensation and benefits | 412.1 | 661.3 | |||
Accounts payable and accrued expenses | 928.4 | 863.1 | |||
Liabilities of CIP: | |||||
Debt of CIP | 3,529.6 | 5,437.0 | |||
Other liabilities of CIP | 314.0 | 273.7 | |||
Policyholder payables | 6,620.4 | 6,051.5 | |||
Unsettled fund payables | 1,192.8 | 561.9 | |||
Long-term debt | 2,072.7 | 2,072.8 | |||
Deferred tax liabilities, net | 390.1 | 288.9 | |||
Total liabilities | 15,460.1 | 16,210.2 | |||
Commitments and contingencies (See Note 11) | |||||
TEMPORARY EQUITY | |||||
Redeemable noncontrolling interests in consolidated entities | 312.6 | 167.3 | |||
PERMANENT EQUITY | |||||
Equity attributable to Invesco Ltd.: | |||||
Common shares ($0.20 par value; 1,050.0 million authorized; 490.4 million shares issued as of June 30, 2016 and December 31, 2015) | 98.1 | 98.1 | |||
Additional paid-in-capital | 6,149.4 | 6,197.7 | |||
Treasury shares | (2,673.2 | ) | (2,404.1 | ) | |
Retained earnings | 4,595.5 | 4,439.6 | |||
Accumulated other comprehensive income/(loss), net of tax | (513.9 | ) | (446.0 | ) | |
Total equity attributable to Invesco Ltd. | 7,655.9 | 7,885.3 | |||
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 74.2 | 810.4 | |||
Total permanent equity | 7,730.1 | 8,695.7 | |||
Total liabilities, temporary and permanent equity | 23,502.8 | 25,073.2 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
$ in millions, except per share data | 2016 | 2015 | 2016 | 2015 | |||||||||||
Operating revenues: | |||||||||||||||
Investment management fees | 946.7 | 1,055.7 | 1,860.3 | 2,057.1 | |||||||||||
Service and distribution fees | 203.4 | 219.6 | 401.1 | 433.0 | |||||||||||
Performance fees | 8.9 | 6.7 | 23.4 | 53.5 | |||||||||||
Other | 30.4 | 36.1 | 53.3 | 66.1 | |||||||||||
Total operating revenues | 1,189.4 | 1,318.1 | 2,338.1 | 2,609.7 | |||||||||||
Operating expenses: | |||||||||||||||
Third-party distribution, service and advisory | 348.4 | 413.3 | 695.6 | 812.4 | |||||||||||
Employee compensation | 350.3 | 347.2 | 694.7 | 708.1 | |||||||||||
Marketing | 28.3 | 29.7 | 53.2 | 56.4 | |||||||||||
Property, office and technology | 82.3 | 74.8 | 162.2 | 151.7 | |||||||||||
General and administrative | 78.6 | 89.1 | 156.5 | 179.0 | |||||||||||
Total operating expenses | 887.9 | 954.1 | 1,762.2 | 1,907.6 | |||||||||||
Operating income | 301.5 | 364.0 | 575.9 | 702.1 | |||||||||||
Other income/(expense): | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 4.6 | 12.0 | (7.6 | ) | 23.8 | ||||||||||
Interest and dividend income | 2.5 | 2.6 | 6.1 | 5.1 | |||||||||||
Interest expense | (22.1 | ) | (19.6 | ) | (46.0 | ) | (38.3 | ) | |||||||
Other gains and losses, net | (4.2 | ) | (8.8 | ) | (8.9 | ) | (6.1 | ) | |||||||
Other income/(expense) of CIP, net | 37.9 | (1.9 | ) | 30.4 | 37.6 | ||||||||||
Other income/(expense) of CSIP, net | — | 5.1 | — | 14.5 | |||||||||||
Income before income taxes | 320.2 | 353.4 | 549.9 | 738.7 | |||||||||||
Income tax provision | (83.7 | ) | (109.4 | ) | (155.6 | ) | (210.7 | ) | |||||||
Net income | 236.5 | 244.0 | 394.3 | 528.0 | |||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (11.0 | ) | 13.3 | (7.8 | ) | (11.1 | ) | ||||||||
Net income attributable to Invesco Ltd. | 225.5 | 257.3 | 386.5 | 516.9 | |||||||||||
Earnings per share: | |||||||||||||||
-basic | $0.54 | $0.60 | $0.92 | $1.20 | |||||||||||
-diluted | $0.54 | $0.60 | $0.92 | $1.20 | |||||||||||
Dividends declared per share | $0.28 | $0.27 | $0.55 | $0.52 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Net income | 236.5 | 244.0 | 394.3 | 528.0 | |||||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | (166.6 | ) | 162.6 | (69.4 | ) | (140.3 | ) | ||||
Actuarial (loss)/gain related to employee benefit plans, net of tax | — | — | (0.4 | ) | — | ||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | (1.8 | ) | (1.2 | ) | (3.4 | ) | (3.0 | ) | |||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | 0.5 | 0.6 | 0.8 | 1.1 | |||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | 0.9 | 0.2 | 0.6 | 1.3 | |||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | (0.6 | ) | (3.0 | ) | 1.7 | (1.8 | ) | ||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | (0.1 | ) | (0.4 | ) | (0.3 | ) | (0.9 | ) | |||
Other comprehensive income/(loss), net of tax | (167.7 | ) | 158.8 | (70.4 | ) | (143.6 | ) | ||||
Total comprehensive income/(loss) | 68.8 | 402.8 | 323.9 | 384.4 | |||||||
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities | (8.5 | ) | 13.3 | (5.3 | ) | (11.1 | ) | ||||
Comprehensive income/(loss) attributable to Invesco Ltd. | 60.3 | 416.1 | 318.6 | 373.3 |
Six months ended June 30, | |||||
$ in millions | 2016 | 2015 | |||
Operating activities: | |||||
Net income | 394.3 | 528.0 | |||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||
Amortization and depreciation | 49.9 | 46.0 | |||
Share-based compensation expense | 79.1 | 76.7 | |||
Other (gains)/losses, net | 8.9 | 6.1 | |||
Other (gains)/losses of CSIP, net | — | (8.2 | ) | ||
Other (gains)/losses of CIP, net | (0.4 | ) | (4.7 | ) | |
Equity in earnings of unconsolidated affiliates | 7.6 | (23.8 | ) | ||
Dividends from unconsolidated affiliates | 0.9 | 1.4 | |||
Changes in operating assets and liabilities: | |||||
(Increase)/decrease in cash held by CIP | (8.9 | ) | 88.3 | ||
(Increase)/decrease in cash held by CSIP | — | (4.9 | ) | ||
(Purchase)/sale of investments by CIP, net | (118.5 | ) | — | ||
(Purchase)/sale of trading investments, net | (14.7 | ) | (55.1 | ) | |
(Increase)/decrease in receivables | (1,823.9 | ) | (2,049.9 | ) | |
Increase/(decrease) in payables | 1,600.3 | 1,858.6 | |||
Net cash provided by/(used in) operating activities | 174.6 | 458.5 | |||
Investing activities: | |||||
Purchase of property, equipment and software | (65.3 | ) | (50.4 | ) | |
Purchase of available-for-sale investments | (4.1 | ) | (35.6 | ) | |
Sale of available-for-sale investments | 5.7 | 18.0 | |||
Purchase of investments by CIP | (1,220.1 | ) | (1,927.1 | ) | |
Sale of investments by CIP | 908.4 | 1,591.1 | |||
Purchase of investments by CSIP | — | (273.2 | ) | ||
Sale of investments by CSIP | — | 274.7 | |||
Purchase of other investments | (61.6 | ) | (89.4 | ) | |
Sale of other investments | 53.3 | 59.7 | |||
Returns of capital and distributions from unconsolidated partnership investments | 22.8 | 34.4 | |||
Purchase of business | (121.9 | ) | — | ||
Net cash provided by/(used in) investing activities | (482.8 | ) | (397.8 | ) | |
Financing activities: | |||||
Proceeds from exercises of share options | — | 1.2 | |||
Purchases of treasury shares | (205.0 | ) | (158.1 | ) | |
Dividends paid | (230.6 | ) | (224.6 | ) | |
Excess tax benefits from share-based compensation | (3.1 | ) | 18.3 | ||
Third-party capital invested into CIP | 141.1 | 17.9 | |||
Third-party capital distributed by CIP | (44.8 | ) | (64.1 | ) | |
Third-party capital invested into CSIP | — | 1.7 | |||
Borrowings of debt by CIP | 387.3 | 945.9 | |||
Repayments of debt by CIP | (75.9 | ) | (650.1 | ) | |
Net borrowings/(repayments) under credit facility | — | 7.9 | |||
Payment of contingent consideration | (6.2 | ) | — | ||
Net cash provided by/(used in) financing activities | (37.2 | ) | (104.0 | ) | |
Increase/(decrease) in cash and cash equivalents | (345.4 | ) | (43.3 | ) | |
Foreign exchange movement on cash and cash equivalents | (59.8 | ) | (5.2 | ) | |
Cash and cash equivalents, beginning of period | 1,851.4 | 1,514.2 | |||
Cash and cash equivalents, end of period | 1,446.2 | 1,465.7 | |||
Supplemental Cash Flow Information: | |||||
Interest paid | (33.3 | ) | (33.8 | ) | |
Interest received | 3.3 | 4.4 | |||
Taxes paid | (98.6 | ) | (140.1 | ) |
Equity Attributable to Invesco Ltd. | ||||||||||||||||||||||||||
$ in millions | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total Equity Attributable to Invesco Ltd. | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity | |||||||||||||||||
January 1, 2016 | 98.1 | 6,197.7 | (2,404.1 | ) | 4,439.6 | (446.0 | ) | 7,885.3 | 810.4 | 8,695.7 | 167.3 | |||||||||||||||
Adjustment for adoption of ASU 2015-02 | — | — | — | — | — | — | (733.5 | ) | (733.5 | ) | 226.6 | |||||||||||||||
January 1, 2016, as adjusted | 98.1 | 6,197.7 | (2,404.1 | ) | 4,439.6 | (446.0 | ) | 7,885.3 | 76.9 | 7,962.2 | 393.9 | |||||||||||||||
Net income | — | — | — | 386.5 | — | 386.5 | (2.3 | ) | 384.2 | 10.1 | ||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | (67.9 | ) | (67.9 | ) | — | (67.9 | ) | (2.5 | ) | |||||||||||||
Change in noncontrolling interests in consolidated entities, net | — | — | — | — | — | — | (0.4 | ) | (0.4 | ) | (88.9 | ) | ||||||||||||||
Dividends | — | — | — | (230.6 | ) | — | (230.6 | ) | — | (230.6 | ) | — | ||||||||||||||
Employee share plans: | ||||||||||||||||||||||||||
Share-based compensation | — | 79.1 | — | — | — | 79.1 | — | 79.1 | — | |||||||||||||||||
Vested shares | — | (94.5 | ) | 94.5 | — | — | — | — | — | — | ||||||||||||||||
Other share awards | — | 0.2 | 0.4 | — | — | 0.6 | — | 0.6 | — | |||||||||||||||||
Tax impact of share-based payment | — | (3.1 | ) | — | — | — | (3.1 | ) | — | (3.1 | ) | — | ||||||||||||||
Purchase of shares | — | (30.0 | ) | (364.0 | ) | — | — | (394.0 | ) | — | (394.0 | ) | — | |||||||||||||
June 30, 2016 | 98.1 | 6,149.4 | (2,673.2 | ) | 4,595.5 | (513.9 | ) | 7,655.9 | 74.2 | 7,730.1 | 312.6 |
Equity Attributable to Invesco Ltd. | |||||||||||||||||||||||||||||
$ in millions | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Retained Earnings Appropriated for Investors in CIP | Accumulated Other Comprehensive Income | Total Equity Attributable to Invesco Ltd. | Nonredeemable Noncontrolling Interests in Consolidated Entities | Total Permanent Equity | Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity | |||||||||||||||||||
January 1, 2015 | 98.1 | 6,133.6 | (1,898.1 | ) | 3,926.0 | 17.6 | 48.8 | 8,326.0 | 793.8 | 9,119.8 | 165.5 | ||||||||||||||||||
Adjustment for adoption of ASU 2014-13 | — | — | — | — | (17.6 | ) | — | (17.6 | ) | — | (17.6 | ) | — | ||||||||||||||||
January 1, 2015, as adjusted | 98.1 | 6,133.6 | (1,898.1 | ) | 3,926.0 | — | 48.8 | 8,308.4 | 793.8 | 9,102.2 | 165.5 | ||||||||||||||||||
Net income | — | — | — | 516.9 | — | — | 516.9 | 7.5 | 524.4 | 3.6 | |||||||||||||||||||
Other comprehensive income/(loss) | — | — | — | — | — | (143.6 | ) | (143.6 | ) | — | (143.6 | ) | — | ||||||||||||||||
Change in noncontrolling interests in consolidated entities, net | — | — | — | — | — | — | — | (44.5 | ) | (44.5 | ) | — | |||||||||||||||||
Dividends | — | — | — | (224.6 | ) | — | — | (224.6 | ) | — | (224.6 | ) | — | ||||||||||||||||
Employee share plans: | |||||||||||||||||||||||||||||
Share-based compensation | — | 76.7 | — | — | — | — | 76.7 | — | 76.7 | — | |||||||||||||||||||
Vested shares | — | (97.5 | ) | 97.5 | — | — | — | — | — | — | — | ||||||||||||||||||
Exercise of options | — | (0.1 | ) | 1.3 | — | — | — | 1.2 | — | 1.2 | — | ||||||||||||||||||
Tax impact of share-based payment | — | 18.3 | — | — | — | — | 18.3 | — | 18.3 | — | |||||||||||||||||||
Purchase of shares | — | — | (225.0 | ) | — | — | — | (225.0 | ) | — | (225.0 | ) | — | ||||||||||||||||
June 30, 2015 | 98.1 | 6,131.0 | (2,024.3 | ) | 4,218.3 | — | (94.8 | ) | 8,328.3 | 756.8 | 9,085.1 | 169.1 |
June 30, 2016 | December 31, 2015 | ||||||||||||
$ in millions | Footnote Reference | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||
Cash and cash equivalents | 1,446.2 | 1,446.2 | 1,851.4 | 1,851.4 | |||||||||
Available-for-sale investments | 3 | 188.5 | 188.5 | 233.2 | 233.2 | ||||||||
Trading investments | 3 | 396.8 | 396.8 | 402.7 | 402.7 | ||||||||
Foreign time deposits * | 3 | 15.0 | 15.0 | 24.7 | 24.7 | ||||||||
Assets held for policyholders | 6,620.4 | 6,620.4 | 6,051.5 | 6,051.5 | |||||||||
Policyholder payables * | (6,620.4 | ) | (6,620.4 | ) | (6,051.5 | ) | (6,051.5 | ) | |||||
Put option contracts | 14.1 | 14.1 | 1.4 | 1.4 | |||||||||
UIT-related financial instruments sold, not yet purchased | (1.5 | ) | (1.5 | ) | (2.5 | ) | (2.5 | ) | |||||
Contingent consideration liability | (89.3 | ) | (89.3 | ) | (83.9 | ) | (83.9 | ) | |||||
Long-term debt * | 4 | (2,072.7 | ) | (2,266.9 | ) | (2,072.8 | ) | (2,161.3 | ) |
* | These financial instruments are not measured at fair value on a recurring basis. See the indicated footnotes or most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities. |
• | Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
• | Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
• | Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
As of June 30, 2016 | |||||||||||
$ 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: | |||||||||||
Cash equivalents: | |||||||||||
Money market funds | 328.1 | 328.1 | — | — | |||||||
Investments:* | |||||||||||
Available-for-sale: | |||||||||||
Seed money | 173.7 | 173.7 | — | — | |||||||
CLOs | 11.5 | — | — | 11.5 | |||||||
Other debt securities | 3.3 | — | — | 3.3 | |||||||
Trading investments: | |||||||||||
Investments related to deferred compensation plans | 168.5 | 168.5 | — | — | |||||||
Seed money | 193.1 | 193.1 | — | — | |||||||
Other equity securities | 31.4 | 31.4 | — | — | |||||||
UIT-related equity and debt securities: | |||||||||||
Corporate equities | 1.7 | 1.7 | — | — | |||||||
UITs | 0.3 | 0.3 | — | — | |||||||
Municipal securities | 1.8 | — | 1.8 | — | |||||||
Assets held for policyholders | 6,620.4 | 6,620.4 | — | — | |||||||
Put option contracts | 14.1 | — | 14.1 | — | |||||||
Total | 7,547.9 | 7,517.2 | 15.9 | 14.8 | |||||||
Liabilities: | |||||||||||
UIT-related financial instruments sold, not yet purchased: | |||||||||||
Corporate equities | (1.5 | ) | (1.5 | ) | — | — | |||||
Contingent consideration liability | (89.3 | ) | — | — | (89.3 | ) | |||||
Total | (90.8 | ) | (1.5 | ) | — | (89.3 | ) |
* | Foreign time deposits of $15.0 million are excluded from this table. Equity method and other investments of $286.0 million and $5.7 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards. |
As of December 31, 2015 | |||||||||||
$ 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: | |||||||||||
Cash equivalents: | |||||||||||
Money market funds | 383.3 | 383.3 | — | — | |||||||
Investments:* | |||||||||||
Available-for-sale: | |||||||||||
Seed money | 225.9 | 225.9 | — | — | |||||||
CLOs | 1.4 | — | — | 1.4 | |||||||
Other debt securities | 5.9 | — | — | 5.9 | |||||||
Trading investments: | |||||||||||
Investments related to deferred compensation plans | 158.8 | 158.8 | — | — | |||||||
Seed Money | 191.2 | 191.2 | — | — | |||||||
Other equity securities | 48.1 | 48.1 | — | — | |||||||
UIT-related equity and debt securities: | |||||||||||
Corporate equities | 1.8 | 1.8 | — | — | |||||||
UITs | 1.5 | 1.5 | — | — | |||||||
Municipal securities | 1.3 | — | 1.3 | — | |||||||
Assets held for policyholders | 6,051.5 | 6,051.5 | — | — | |||||||
Put option contracts | 1.4 | — | 1.4 | — | |||||||
Total | 7,072.1 | 7,062.1 | 2.7 | 7.3 | |||||||
Liabilities: | |||||||||||
UIT-related financial instruments sold, not yet purchased: | |||||||||||
Corporate equities | (2.5 | ) | (2.5 | ) | — | — | |||||
Contingent consideration liability | (83.9 | ) | — | — | (83.9 | ) | |||||
Total | (86.4 | ) | (2.5 | ) | — | (83.9 | ) |
* | Foreign time deposits of $24.7 million are excluded from this table. Equity method and other investments of $352.8 million and $5.7 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards. |
Three months ended June 30, 2016 | Six months ended June 30, 2016 | ||||||||||||||||
$ in millions | Contingent Consideration Liability | CLOs | Other Debt Securities | Contingent Consideration Liability | CLOs | Other Debt Securities | |||||||||||
Beginning balance | (77.2 | ) | 11.8 | 4.3 | (83.9 | ) | 1.4 | 5.9 | |||||||||
Adjustment for adoption of ASU 2015-02 | — | — | — | — | 11.5 | — | |||||||||||
Beginning balance, as adjusted | (77.2 | ) | 11.8 | 4.3 | (83.9 | ) | 12.9 | 5.9 | |||||||||
Returns of capital | — | (0.8 | ) | (1.0 | ) | — | (1.3 | ) | (2.6 | ) | |||||||
Net unrealized gains and losses included in other gains and losses, net* | (15.1 | ) | — | — | (11.6 | ) | — | — | |||||||||
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)* | — | 0.5 | — | — | (0.1 | ) | — | ||||||||||
Disposition/settlements | 3.0 | — | — | 6.2 | — | — | |||||||||||
Ending balance | (89.3 | ) | 11.5 | 3.3 | (89.3 | ) | 11.5 | 3.3 |
Three months ended June 30, 2015 | Six months ended June 30, 2015 | ||||||||||||||||
$ in millions | Contingent Consideration Liability | CLOs | Other Debt Securities | Contingent Consideration Liability | CLOs | Other Debt Securities | |||||||||||
Beginning balance | (119.3 | ) | 2.5 | 6.3 | — | 3.4 | 6.3 | ||||||||||
Acquisition | — | — | — | (119.3 | ) | — | — | ||||||||||
Returns of capital | — | — | — | — | (0.1 | ) | — | ||||||||||
Disposition/settlements | 1.5 | (1.2 | ) | — | 1.5 | (2.0 | ) | — | |||||||||
Ending balance | (117.8 | ) | 1.3 | 6.3 | (117.8 | ) | 1.3 | 6.3 |
* | These unrealized gains and losses are attributable to balances still held at the respective period ends. |
$ in millions | June 30, 2016 | December 31, 2015 | |||
Available-for-sale investments: | |||||
Seed money | 173.7 | 225.9 | |||
CLOs | 11.5 | 1.4 | |||
Other debt securities | 3.3 | 5.9 | |||
Trading investments: | |||||
Investments related to deferred compensation plans | 168.5 | 158.8 | |||
Seed money | 193.1 | 191.2 | |||
Other equity securities | 31.4 | 48.1 | |||
UIT-related equity and debt securities | 3.8 | 4.6 | |||
Equity method investments | 286.0 | 352.8 | |||
Foreign time deposits | 15.0 | 24.7 | |||
Other | 5.7 | 5.7 | |||
Total investments | 892.0 | 1,019.1 |
For the three months ended June 30, 2016 | For the six months ended June 30, 2016 | ||||||||||||||||
$ in millions | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | |||||||||||
Seed money | 0.6 | 0.1 | — | 1.8 | 0.4 | — | |||||||||||
CLOs | 0.8 | — | — | 1.3 | — | — | |||||||||||
Other debt securities | 1.0 | — | — | 2.6 | — | — | |||||||||||
2.4 | 0.1 | — | 5.7 | 0.4 | — |
For the three months ended June 30, 2015 | For the six months ended June 30, 2015 | ||||||||||||||||
$ in millions | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | Proceeds from Sales | Gross Realized Gains | Gross Realized Losses | |||||||||||
Seed money | 6.8 | 0.4 | — | 15.7 | 1.0 | — | |||||||||||
CLOs | 1.4 | 0.1 | — | 2.3 | 0.2 | — | |||||||||||
8.2 | 0.5 | — | 18.0 | 1.2 | — |
June 30, 2016 | December 31, 2015 | ||||||||||||||||||||||
$ in millions | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | Cost | Gross Unrealized Holding Gains | Gross Unrealized Holding Losses | Fair Value | |||||||||||||||
Seed money | 173.9 | 6.2 | (6.4 | ) | 173.7 | 227.6 | 7.6 | (9.3 | ) | 225.9 | |||||||||||||
CLOs | 10.8 | 1.2 | (0.5 | ) | 11.5 | 1.3 | 0.1 | — | 1.4 | ||||||||||||||
Other debt securities | 3.1 | 0.2 | — | 3.3 | 5.9 | — | — | 5.9 | |||||||||||||||
187.8 | 7.6 | (6.9 | ) | 188.5 | 234.8 | 7.7 | (9.3 | ) | 233.2 |
June 30, 2016 | December 31, 2015 | ||||||||||
$ in millions | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||
Less than 12 months | 23.1 | (0.3 | ) | 93.0 | (3.0 | ) | |||||
12 months or greater | 80.3 | (6.1 | ) | 65.5 | (6.3 | ) | |||||
Total | 103.4 | (6.4 | ) | 158.5 | (9.3 | ) |
Available-for-Sale (Fair Value) | ||
Less than one year | 1.7 | |
One to five years | 1.5 | |
Five to ten years | 8.7 | |
Greater than ten years | 2.9 | |
Total available-for-sale | 14.8 |
June 30, 2016 | December 31, 2015 | ||||||||||
$ in millions | Carrying Value** | Fair Value | Carrying Value** | Fair Value | |||||||
Floating rate credit facility expiring August 7, 2020 | — | — | — | — | |||||||
Unsecured Senior Notes*: | |||||||||||
$600 million 3.125% - due November 30, 2022 | 596.1 | 623.4 | 596.1 | 601.4 | |||||||
$600 million 4.000% - due January 30, 2024 | 592.8 | 647.7 | 592.7 | 628.3 | |||||||
$500 million 3.750% - due January 15, 2026 | 494.3 | 531.4 | 494.2 | 503.0 | |||||||
$400 million 5.375% - due November 30, 2043 | 389.5 | 464.4 | 389.8 | 428.6 | |||||||
Long-term debt | 2,072.7 | 2,266.9 | 2,072.8 | 2,161.3 |
* | The company's senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures. |
** | The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts. |
As of | |||||
In millions | June 30, 2016 | December 31, 2015 | |||
Common shares issued | 490.4 | 490.4 | |||
Less: Treasury shares for which dividend and voting rights do not apply | (80.5 | ) | (72.9 | ) | |
Common shares outstanding | 409.9 | 417.5 |
For the three months ended June 30, 2016 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | (166.6 | ) | — | — | — | (166.6 | ) | |||||||
Actuarial (loss)/gain related to employee benefit plans, net of tax | — | — | — | — | — | |||||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (1.8 | ) | — | — | (1.8 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 0.5 | — | — | 0.5 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 0.9 | — | 0.9 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | (0.6 | ) | (0.6 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.1 | ) | (0.1 | ) | |||||||
Other comprehensive income/(loss), net of tax | (166.6 | ) | (1.3 | ) | 0.9 | (0.7 | ) | (167.7 | ) | |||||
Beginning balance | (268.6 | ) | (87.3 | ) | 5.6 | 1.6 | (348.7 | ) | ||||||
Other comprehensive income/(loss), net of tax | (166.6 | ) | (1.3 | ) | 0.9 | (0.7 | ) | (167.7 | ) | |||||
Other comprehensive (income)/loss attributable to noncontrolling interests | 2.5 | — | — | — | 2.5 | |||||||||
Ending balance | (432.7 | ) | (88.6 | ) | 6.5 | 0.9 | (513.9 | ) |
For the six months ended June 30, 2016 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | (69.4 | ) | — | — | — | (69.4 | ) | |||||||
Actuarial (loss)/gain related to employee benefit plans, net of tax | — | (0.4 | ) | — | — | (0.4 | ) | |||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (3.4 | ) | — | — | (3.4 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 0.8 | — | — | 0.8 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 0.6 | — | 0.6 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | 1.7 | 1.7 | |||||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.3 | ) | (0.3 | ) | |||||||
Other comprehensive income/(loss), net of tax | (69.4 | ) | (3.0 | ) | 0.6 | 1.4 | (70.4 | ) | ||||||
Beginning balance | (365.8 | ) | (85.6 | ) | 5.9 | (0.5 | ) | (446.0 | ) | |||||
Other comprehensive income/(loss), net of tax | (69.4 | ) | (3.0 | ) | 0.6 | 1.4 | (70.4 | ) | ||||||
Other comprehensive (income)/loss attributable to noncontrolling interests | 2.5 | — | — | — | 2.5 | |||||||||
Ending balance | (432.7 | ) | (88.6 | ) | 6.5 | 0.9 | (513.9 | ) |
For the three months ended June 30, 2015 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | 162.6 | — | — | — | 162.6 | |||||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (1.2 | ) | — | — | (1.2 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 0.6 | — | — | 0.6 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 0.2 | — | 0.2 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | (3.0 | ) | (3.0 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.4 | ) | (0.4 | ) | |||||||
Other comprehensive income/(loss), net of tax | 162.6 | (0.6 | ) | 0.2 | (3.4 | ) | 158.8 | |||||||
Beginning balance | (174.8 | ) | (93.0 | ) | 7.6 | 6.6 | (253.6 | ) | ||||||
Other comprehensive income/(loss), net of tax | 162.6 | (0.6 | ) | 0.2 | (3.4 | ) | 158.8 | |||||||
Ending balance | (12.2 | ) | (93.6 | ) | 7.8 | 3.2 | (94.8 | ) |
For the six months ended June 30, 2015 | ||||||||||||||
$ in millions | Foreign currency translation | Employee benefit plans | Equity method investments | Available-for-sale investments | Total | |||||||||
Other comprehensive income/(loss) net of tax: | ||||||||||||||
Currency translation differences on investments in foreign subsidiaries, net of tax | (140.3 | ) | — | — | — | (140.3 | ) | |||||||
Reclassification of prior service cost/(credit) into employee compensation expense, net of tax | — | (3.0 | ) | — | — | (3.0 | ) | |||||||
Reclassification of actuarial (gain)/loss into employee compensation expense, net of tax | — | 1.1 | — | — | 1.1 | |||||||||
Share of other comprehensive income/(loss) of equity method investments, net of tax | — | — | 1.3 | — | 1.3 | |||||||||
Unrealized (losses)/gains on available-for-sale investments, net of tax | — | — | — | (1.8 | ) | (1.8 | ) | |||||||
Reclassification of net (gains)/losses realized on available-for-sale investments included in other gains and losses, net, net of tax | — | — | — | (0.9 | ) | (0.9 | ) | |||||||
Other comprehensive income/(loss), net of tax | (140.3 | ) | (1.9 | ) | 1.3 | (2.7 | ) | (143.6 | ) | |||||
Beginning balance | 128.1 | (91.7 | ) | 6.5 | 5.9 | 48.8 | ||||||||
Other comprehensive income/(loss), net of tax | (140.3 | ) | (1.9 | ) | 1.3 | (2.7 | ) | (143.6 | ) | |||||
Ending balance | (12.2 | ) | (93.6 | ) | 7.8 | 3.2 | (94.8 | ) |
For the six months ended June 30, 2016 | For the six months ended June 30, 2015 | |||||||||||||
Millions of shares, except fair values | Time- Vested | Performance- Vested | Weighted Average Grant Date Fair Value ($) | Time- Vested | Performance- Vested | |||||||||
Unvested at the beginning of period | 10.4 | 0.6 | 33.62 | 11.5 | 0.5 | |||||||||
Granted during the period | 6.3 | 0.4 | 27.39 | 3.9 | 0.3 | |||||||||
Forfeited during the period | (0.1 | ) | — | 31.81 | (0.1 | ) | — | |||||||
Vested and distributed during the period | (4.1 | ) | (0.2 | ) | 31.35 | (4.4 | ) | (0.2 | ) | |||||
Unvested at the end of the period | 12.5 | 0.8 | 31.21 | 10.9 | 0.6 |
Retirement Plans | Medical Plan | ||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Service cost | 1.4 | 1.3 | 2.8 | 2.5 | — | — | — | — | |||||||||||||||
Interest cost | 4.4 | 5.2 | 8.8 | 10.5 | — | — | — | — | |||||||||||||||
Expected return on plan assets | (5.7 | ) | (6.1 | ) | (11.4 | ) | (12.3 | ) | — | (0.1 | ) | — | (0.2 | ) | |||||||||
Amortization of prior service cost/(credit) | — | 0.1 | — | 0.1 | (2.9 | ) | (2.5 | ) | (4.9 | ) | (4.7 | ) | |||||||||||
Amortization of net actuarial (gain)/loss | 0.5 | 0.7 | 1.0 | 1.3 | — | — | — | — | |||||||||||||||
Net periodic benefit cost/(benefit) | 0.6 | 1.2 | 1.2 | 2.1 | (2.9 | ) | (2.6 | ) | (4.9 | ) | (4.9 | ) |
For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
In millions, except per share data | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income | $236.5 | $244.0 | $394.3 | $528.0 | |||||||||||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (11.0 | ) | 13.3 | (7.8 | ) | (11.1 | ) | ||||||||
Net income attributable to Invesco Ltd. | 225.5 | 257.3 | 386.5 | 516.9 | |||||||||||
Less: Allocation of earnings to restricted shares | (6.7 | ) | (6.6 | ) | (10.9 | ) | (13.3 | ) | |||||||
Net income attributable to common shareholders | $218.8 | $250.7 | $375.6 | $503.6 | |||||||||||
Invesco Ltd: | |||||||||||||||
Weighted average shares outstanding - basic | 418.9 | 431.9 | 418.8 | 432.0 | |||||||||||
Dilutive effect of non-participating share-based awards | 0.2 | 0.3 | 0.3 | 0.3 | |||||||||||
Weighted average shares outstanding - diluted | 419.1 | 432.2 | 419.1 | 432.3 | |||||||||||
Common shareholders: | |||||||||||||||
Weighted average shares outstanding - basic | 418.9 | 431.9 | 418.8 | 432.0 | |||||||||||
Less: Weighted average restricted shares | (12.5 | ) | (11.0 | ) | (11.8 | ) | (11.1 | ) | |||||||
Weighted average common shares outstanding - basic | 406.4 | 420.9 | 407.0 | 420.9 | |||||||||||
Dilutive effect of non-participating share-based awards | 0.2 | 0.3 | 0.3 | 0.3 | |||||||||||
Weighted average common shares outstanding - diluted | 406.6 | 421.2 | 407.3 | 421.2 | |||||||||||
Earnings per share: | |||||||||||||||
Basic earnings per share | $0.54 | $0.60 | $0.92 | $1.20 | |||||||||||
Diluted earnings per share | $0.54 | $0.60 | $0.92 | $1.20 |
$ in millions | December 31, 2015 | ||
Investments of CSIP | 290.3 | ||
Cash and cash equivalents of CSIP | 21.9 | ||
Accounts receivable and other assets of CSIP | 6.9 | ||
Assets of CSIP | 319.1 | ||
Other liabilities of CSIP | (4.4 | ) | |
Equity attributable to redeemable noncontrolling interests | (167.3 | ) | |
Equity attributable to nonredeemable noncontrolling interests | (40.8 | ) | |
Invesco's net interests in CSIP | 106.6 |
As of December 31, 2015 | ||||||||||||||
$ in millions | Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level2) | Significant Unobservable Inputs (Level 3) | Investments Measured at NAV as a practical expedient | |||||||||
Investments: | ||||||||||||||
Fixed income securities | 204.2 | — | 204.2 | — | — | |||||||||
Equity securities | 0.7 | 0.7 | — | — | — | |||||||||
Investments in fixed income funds | 35.0 | — | — | — | 35.0 | |||||||||
Investments in other private equity funds | 50.4 | — | — | — | 50.4 | |||||||||
Total investments at fair value | 290.3 | 0.7 | 204.2 | — | 85.4 |
As of December 31, 2015 | ||||||||||||
Fair Value ($ in millions) | Total Unfunded Commitments ($ in millions) | Weighted Average Remaining Term (1) | Redemption Frequency | Redemption Notice Period | ||||||||
Fixed income funds | 35.0 | — | n/a | Monthly | 10 days | |||||||
Private equity fund of funds | 50.4 | 33.2 | 7.9 years | n/a (2) | n/a (2) |
As of | |||||
$ in millions | June 30, 2016 | December 31, 2015 | |||
Cash and cash equivalents of CIP | 257.9 | 363.3 | |||
Accounts receivable and other assets of CIP | 182.2 | 173.5 | |||
Investments of CIP | 4,036.9 | 6,016.1 | |||
Less: Debt of CIP | (3,529.6 | ) | (5,437.0 | ) | |
Less: Other liabilities of CIP | (314.0 | ) | (273.7 | ) | |
Less: Retained earnings | 22.4 | 20.1 | |||
Less: Accumulated other comprehensive income, net of tax | (18.9 | ) | (20.1 | ) | |
Less: Equity attributable to redeemable noncontrolling interests | (312.6 | ) | — | ||
Less: Equity attributable to nonredeemable noncontrolling interests | (73.3 | ) | (768.8 | ) | |
Invesco's net interests in CIP | 251.0 | 73.4 |
Three months ended June 30, | |||||
$ in millions | 2016 | 2015 | |||
Total operating revenues | (5.1 | ) | (10.4 | ) | |
Total operating expenses | 7.9 | 1.5 | |||
Operating income | (13.0 | ) | (11.9 | ) | |
Equity in earnings of unconsolidated affiliates | (5.1 | ) | 0.5 | ||
Interest and dividend income | — | (0.8 | ) | ||
Other gains and losses, net | (0.8 | ) | (1.2 | ) | |
Interest and dividend income of CIP | 46.2 | 65.1 | |||
Interest expense of CIP | (33.3 | ) | (47.3 | ) | |
Other gains/(losses) of CIP, net | 25.0 | (19.7 | ) | ||
Income before income taxes | 19.0 | (15.3 | ) | ||
Income tax provision | — | — | |||
Net income | 19.0 | (15.3 | ) | ||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (11.0 | ) | 15.7 | ||
Net income attributable to Invesco Ltd. | 8.0 | 0.4 |
Six months ended June 30, | |||||
$ in millions | 2016 | 2015 | |||
Total operating revenues | (10.6 | ) | (19.7 | ) | |
Total operating expenses | 9.7 | 13.7 | |||
Operating income | (20.3 | ) | (33.4 | ) | |
Equity in earnings of unconsolidated affiliates | (1.6 | ) | (1.2 | ) | |
Interest and dividend income | (0.2 | ) | (2.2 | ) | |
Other gains and losses, net | (0.9 | ) | (3.9 | ) | |
Interest and dividend income of CIP | 90.6 | 125.3 | |||
Interest expense of CIP | (60.6 | ) | (92.4 | ) | |
Other gains/(losses) of CIP, net | 0.4 | 4.7 | |||
Income before income taxes | 7.4 | (3.1 | ) | ||
Income tax provision | — | — | |||
Net income | 7.4 | (3.1 | ) | ||
Net (income)/loss attributable to noncontrolling interests in consolidated entities | (7.8 | ) | (4.7 | ) | |
Net income attributable to Invesco Ltd. | (0.4 | ) | (7.8 | ) |
Transition date impact | |||||
$ in millions | Consolidated | Deconsolidated | |||
Cash and cash equivalents of CIP | 33.8 | 163.8 | |||
Accounts receivable and other assets of CIP | 105.4 | 68.8 | |||
Investments of CIP | 319.3 | 2,938.0 | |||
Total assets | 458.5 | 3,170.6 | |||
Debt of CIP | — | 2,259.2 | |||
Other liabilities of CIP | 102.4 | 110.4 | |||
Total liabilities | 102.4 | 2,369.6 | |||
Total equity | 356.1 | 801.0 | |||
Total liabilities and equity | 458.5 | 3,170.6 |
For the six months ended June 30, 2016 | For the six months ended June 30, 2015 | |||||||
$ in millions | VIEs | VIEs | VOEs | |||||
Cash and cash equivalents of CIP | 151.0 | 209.2 | 10.0 | |||||
Accounts receivable and other assets of CIP | 3.6 | 1.5 | — | |||||
Investments of CIP | 311.0 | 567.0 | — | |||||
Total assets | 465.6 | 777.7 | 10.0 | |||||
Debt of CIP | 414.4 | 601.4 | — | |||||
Other liabilities of CIP | 17.4 | 176.3 | — | |||||
Total liabilities | 431.8 | 777.7 | — | |||||
Total equity | 33.8 | — | 10.0 | |||||
Total liabilities and equity | 465.6 | 777.7 | 10.0 |
For the six months ended June 30, 2016 | ||
$ in millions | VIEs | |
Cash and cash equivalents of CIP | 23.6 | |
Accounts receivable and other assets of CIP | 12.2 | |
Investments of CIP | 196.1 | |
Total assets | 231.9 | |
Debt of CIP | — | |
Other liabilities of CIP | 13.1 | |
Total liabilities | 13.1 | |
Total equity | 218.8 | |
Total liabilities and equity | 231.9 |
As of June 30, 2016 | ||||||||||||||
$ 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) | Investments Measured at NAV as a practical expedient | |||||||||
Assets: | ||||||||||||||
Bank loans | 3,485.3 | — | 3,485.3 | — | — | |||||||||
Bonds | 354.7 | — | 354.7 | — | — | |||||||||
Equity securities | 67.9 | 66.2 | 1.7 | — | — | |||||||||
Equity and fixed income mutual funds | 49.2 | 49.2 | — | — | — | |||||||||
Investments in other private equity funds | 55.9 | — | — | — | 55.9 | |||||||||
Real estate investments | 23.9 | — | — | 23.9 | — | |||||||||
Total assets at fair value | 4,036.9 | 115.4 | 3,841.7 | 23.9 | 55.9 |
As of December 31, 2015 | ||||||||||||||
$ 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) | Investments Measured at NAV as a practical expedient | |||||||||
Assets: | ||||||||||||||
CLO collateral assets: | ||||||||||||||
Bank loans | 5,179.6 | — | 5,179.6 | — | — | |||||||||
Bonds | 71.1 | — | 71.1 | — | — | |||||||||
Equity securities | 0.9 | — | 0.9 | — | — | |||||||||
Private equity fund assets: | ||||||||||||||
Equity securities | 364.6 | 7.7 | — | 356.9 | — | |||||||||
Debt Securities | 31.7 | — | — | 31.7 | — | |||||||||
Investments in other private equity funds | 368.2 | — | — | — | 368.2 | |||||||||
Total assets at fair value | 6,016.1 | 7.7 | 5,251.6 | 388.6 | 368.2 |
Three months ended June 30, 2016 | Six months ended June 30, 2016 | ||||||||||
$ in millions | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | |||||||
Beginning balance | — | — | 388.6 | — | |||||||
Adjustment for adoption of ASU 2014-13 | — | — | — | — | |||||||
Adjustment for adoption of ASU 2015-02 | — | — | (388.6 | ) | — | ||||||
Purchases | 23.9 | — | 23.9 | — | |||||||
Sales | — | — | — | — | |||||||
Gains and losses included in the Condensed Consolidated Statements of Income* | — | — | — | — | |||||||
Transfers to Levels 1 and 2 | — | — | — | — | |||||||
Ending balance | 23.9 | — | 23.9 | — |
Three months ended June 30, 2015 | Six months ended June 30, 2015 | ||||||||||
$ in millions | Level 3 Assets | Level 3 Liabilities | Level 3 Assets | Level 3 Liabilities | |||||||
Beginning balance | 343.1 | — | 363.9 | (5,149.6 | ) | ||||||
Adjustment for adoption of ASU 2014-13 | — | — | — | — | |||||||
Adjustment for adoption of ASU 2015-02 | — | — | — | 5,149.6 | |||||||
Purchases | 2.1 | — | 19.2 | — | |||||||
Sales | (14.2 | ) | — | (41.2 | ) | — | |||||
Gains and losses included in the Condensed Consolidated Statements of Income* | (22.9 | ) | — | (25.4 | ) | — | |||||
Transfers to Levels 1 and 2** | — | — | (8.4 | ) | — | ||||||
Ending balance | 308.1 | — | 308.1 | — |
* | Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2015 are $22.9 million and $25.4 million respectively, in net unrealized losses attributable to investments still held at June 30, 2015 by CIP. |
** | During the six months ended June 30, 2015, $7.8 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 of securities following the public offering of the underlying companies. During the six months ended June 30, 2015, $0.6 million of equity securities held by consolidated private equity funds were transferred from level 3 to level 1 following the public offering of the underlying companies. For transfers due to public offerings, the company's policy is to use the fair value of the transferred security at the end of the period. |
Assets and Liabilities * | Fair Value at December 31, 2015 ($ in millions) | Valuation Technique | Unobservable Inputs | Range | Weighted Average (by fair value) | |||||
Private Equity Funds --Equity Securities | 320.0 | Market Comparable | Revenue Multiple | NA | 3.2x | |||||
Discount | 25% - 50% | 25.0% | ||||||||
Published valuation and/or broker quotes for similar types of assets | $25-101 million | $44.4 million |
* | Excluded from the table above are certain equity and debt securities held by consolidated private equity funds valued using recent private market transactions (December 31, 2015: $61.2 million) and third party appraisals (December 31, 2015: $7.3 million). |
June 30, 2016 | December 31, 2015 | |||||||||||||||
in millions, except term data | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | Fair Value | Total Unfunded Commitments | Weighted Average Remaining Term (2) | ||||||||||
Private equity funds (1) | $55.9 | $52.5 | 6.7 years | $368.2 | $218.1 | 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. |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Affiliated operating revenues: | |||||||||||
Investment management fees | 820.1 | 927.7 | 1,617.0 | 1,809.1 | |||||||
Service and distribution fees | 203.1 | 219.6 | 400.6 | 431.6 | |||||||
Performance fees | 6.4 | 1.5 | 16.8 | 12.3 | |||||||
Other | 24.7 | 30.4 | 46.5 | 58.0 | |||||||
Total affiliated operating revenues | 1,054.3 | 1,179.2 | 2,080.9 | 2,311.0 |
$ in millions | June 30, 2016 | December 31, 2015 | |||
Affiliated asset balances: | |||||
Cash and cash equivalents | 328.1 | 383.3 | |||
Unsettled fund receivables | 321.8 | 166.7 | |||
Accounts receivable | 310.6 | 317.7 | |||
Investments | 847.3 | 982.7 | |||
Assets held for policyholders | 6,620.1 | 6,051.2 | |||
Other assets | 2.1 | 3.4 | |||
Total affiliated asset balances | 8,430.0 | 7,905.0 | |||
Affiliated liability balances: | |||||
Accrued compensation and benefits | 82.6 | 105.0 | |||
Accounts payable and accrued expenses | 94.6 | 82.9 | |||
Unsettled fund payables | 799.9 | 248.2 | |||
Total affiliated liability balances | 977.1 | 436.1 |
Index expressed in currency | Three months ended June 30, | Six months ended June 30, | ||||||||||
Equity Index | 2016 | 2015 | 2016 | 2015 | ||||||||
S&P 500 | U.S. Dollar | 1.9 | % | (0.2 | )% | 2.7 | % | 0.2 | % | |||
FTSE 100 | British Pound | 5.3 | % | (3.7 | )% | 4.2 | % | (0.7 | )% | |||
FTSE 100 | U.S. Dollar | (2.9 | )% | 2.0 | % | (6.2 | )% | 20.0 | % | |||
Nikkei 225 | Japanese Yen | (7.1 | )% | 5.4 | % | (18.2 | )% | 16.0 | % | |||
Nikkei 225 | U.S. Dollar | 1.3 | % | 3.5 | % | (4.3 | )% | 13.4 | % | |||
MSCI Emerging Markets | U.S. Dollar | (0.3 | )% | (0.2 | )% | 5.0 | % | 1.7 | % | |||
Bond Index | ||||||||||||
Barclays U.S. Aggregate Bond | U.S. Dollar | 2.2 | % | (1.7 | )% | 5.3 | % | (0.1 | )% |
• | Invesco's Asia Pacific region was announced the winner of two marquee awards, "Asset Manager of the Year" and "Best Business Development", at the AsianInvestor Asset Management Awards 2016. The Asset Manager of the Year award recognizes the best overall asset management firm in Asia Pacific that demonstrates the best combination of business strategy, execution, investment performance, asset gathering, innovation and success. The Best Business Development award acknowledges the firm that raises assets from Asian clients based on superior organization, product, performance and execution. |
• | Invesco received three awards at the Thomson Reuters Lipper Fund Awards ceremony. The Invesco Perpetual Global Financial Capital fund received an award for their performance over three years, with the Invesco Global Leisure fund and the Invesco Korean Equity fund gaining recognition for their performance over three and five years. |
• | Invesco was named in the 2016 Newsweek Green Rankings as one of the top 100 U.S. headquartered publicly-traded companies for environmental performance. |
• | Results of Operations (three and six months ended June 30, 2016 compared to three and six months ended June 30, 2015); |
• | Schedule of Non-GAAP Information; |
• | Balance Sheet Discussion; and |
• | Liquidity and Capital Resources. |
$ in millions, other than per share amounts, operating margins, ratios and AUM | Three months ended June 30, | Six months ended June 30, | |||||||||
U.S. GAAP Financial Measures Summary | 2016 | 2015 | 2016 | 2015 | |||||||
Operating revenues | 1,189.4 | 1,318.1 | 2,338.1 | 2,609.7 | |||||||
Operating income | 301.5 | 364.0 | 575.9 | 702.1 | |||||||
Operating margin | 25.3 | % | 27.6 | % | 24.6 | % | 26.9 | % | |||
Net income attributable to Invesco Ltd. | 225.5 | 257.3 | 386.5 | 516.9 | |||||||
Diluted EPS | 0.54 | 0.60 | 0.92 | 1.20 | |||||||
Non-GAAP Financial Measures Summary | |||||||||||
Net revenues (1) | 856.6 | 936.6 | 1,674.7 | 1,854.1 | |||||||
Adjusted operating income (2) | 330.4 | 390.2 | 637.5 | 764.5 | |||||||
Adjusted operating margin (2) | 38.6 | % | 41.7 | % | 38.1 | % | 41.2 | % | |||
Adjusted net income attributable to Invesco Ltd. (3) | 233.0 | 271.4 | 437.8 | 543.5 | |||||||
Adjusted diluted EPS (3) | 0.56 | 0.63 | 1.04 | 1.26 | |||||||
Assets Under Management | |||||||||||
Ending AUM (billions) | 779.6 | 803.6 | 779.6 | 803.6 | |||||||
Average AUM (billions) | 784.5 | 810.9 | 766.0 | 803.2 |
(1) | Net revenues is a non-GAAP financial measure. Net revenues are operating revenues plus our proportional share of the net revenues of our joint venture investments, less third-party distribution, service and advisory expenses, plus management and performance fees earned from CIP, less other revenue recorded by CIP. See "Schedule of Non-GAAP Information," for the reconciliation of operating revenues to net revenues. |
(2) | Adjusted operating income and adjusted operating margin are non-GAAP financial measures. Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the net operating income of our joint venture investments, the operating income impact of the consolidation of investment products, business combination-related adjustments, compensation expense related to market valuation changes in deferred compensation plans, and other reconciling items. See "Schedule of Non-GAAP Information," for the reconciliation of operating income to adjusted operating income. |
(3) | Adjusted net income attributable to Invesco Ltd. and adjusted diluted EPS are non-GAAP financial measures. Adjusted net income attributable to Invesco Ltd. is net income attributable to Invesco Ltd. adjusted to exclude the impact of CIP on net income attributable to Invesco Ltd., add back business combination-related adjustments, the net income impact of deferred compensation plans and other reconciling items. Adjustments made to net income attributable to Invesco Ltd. are tax-effected in arriving at adjusted net income attributable to Invesco Ltd. By calculation, adjusted diluted EPS is adjusted net income attributable to Invesco Ltd. divided by the weighted average number of shares outstanding (for diluted EPS). See "Schedule of Non-GAAP Information," for the reconciliation of net income attributable to Invesco Ltd. to adjusted net income attributable to Invesco Ltd. |
Benchmark Comparison | Peer Group Comparison | ||||||||||||
% of AUM Ahead of Benchmark | % of AUM In Top Half of Peer Group | ||||||||||||
1yr | 3yr | 5yr | 1yr | 3yr | 5yr | ||||||||
Equities | |||||||||||||
U.S. Core | 3 | % | 0 | % | 0 | % | 4 | % | 6 | % | 17 | % | |
U.S. Growth | 28 | % | 28 | % | 28 | % | 37 | % | 95 | % | 36 | % | |
U.S. Value | 30 | % | 34 | % | 35 | % | 33 | % | 33 | % | 33 | % | |
Sector Funds | 1 | % | 3 | % | 3 | % | 6 | % | 5 | % | 16 | % | |
U.K. | 65 | % | 100 | % | 100 | % | 92 | % | 93 | % | 100 | % | |
Canadian | 29 | % | 21 | % | 48 | % | 21 | % | 21 | % | 46 | % | |
Asian | 93 | % | 90 | % | 89 | % | 77 | % | 78 | % | 78 | % | |
European | 51 | % | 77 | % | 100 | % | 54 | % | 79 | % | 74 | % | |
Global | 39 | % | 53 | % | 66 | % | 48 | % | 67 | % | 80 | % | |
Global Ex U.S. and Emerging Markets | 86 | % | 98 | % | 98 | % | 99 | % | 99 | % | 98 | % | |
Fixed Income | |||||||||||||
Money Market | 96 | % | 68 | % | 68 | % | 97 | % | 98 | % | 98 | % | |
U.S. Fixed Income | 62 | % | 95 | % | 96 | % | 93 | % | 90 | % | 98 | % | |
Global Fixed Income | 23 | % | 43 | % | 54 | % | 18 | % | 16 | % | 65 | % | |
Stable Value | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |
Other | |||||||||||||
Alternatives | 56 | % | 28 | % | 52 | % | 62 | % | 11 | % | 26 | % | |
Balanced | 56 | % | 54 | % | 59 | % | 40 | % | 95 | % | 100 | % |
(1) | AUM measured in the one-, three-, and five-year peer group rankings represents 59%, 58%, and 57% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents 74%, 70%, and 68% of total Invesco AUM, respectively, as of June 30, 2016. Peer group rankings are sourced from a widely-used third party ranking agency in each fund's market (Lipper, Morningstar, IA, Russell, Mercer, eVestment Alliance, SITCA, Value Research) and are asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and preceding month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each Global Investment Performance Standard (GIPS) composite are applied to all products within each GIPS composite. Excludes passive products, closed-end funds, private equity limited partnerships, non-discretionary direct real estate, unit investment trusts, fund-of-funds with component funds managed by Invesco, stable value building block funds, and CDOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor's experience. |
For the three months ended June 30, | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
$ in billions | Total AUM | Active | Passive | Total AUM | Active | Passive | |||||||||||
December 31 | 771.5 | 640.4 | 131.1 | 798.3 | 655.3 | 143.0 | |||||||||||
Long-term inflows | 45.8 | 33.5 | 12.3 | 52.1 | 43.1 | 9.0 | |||||||||||
Long-term outflows | (41.3 | ) | (33.5 | ) | (7.8 | ) | (46.2 | ) | (37.7 | ) | (8.5 | ) | |||||
Long-term net flows | 4.5 | — | 4.5 | 5.9 | 5.4 | 0.5 | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | — | (3.8 | ) | (0.3 | ) | — | (0.3 | ) | |||||||
Net flows in institutional money market funds | 2.0 | 1.9 | 0.1 | (2.6 | ) | (2.6 | ) | — | |||||||||
Total net flows | 2.7 | 1.9 | 0.8 | 3.0 | 2.8 | 0.2 | |||||||||||
Market gains and losses/reinvestment | 10.7 | 9.2 | 1.5 | (6.2 | ) | (4.6 | ) | (1.6 | ) | ||||||||
Acquisitions/dispositions, net | 2.4 | 2.4 | — | — | — | — | |||||||||||
Foreign currency translation | (7.7 | ) | (7.8 | ) | 0.1 | 8.5 | 8.5 | — | |||||||||
June 30 | 779.6 | 646.1 | 133.5 | 803.6 | 662.0 | 141.6 | |||||||||||
Average AUM | |||||||||||||||||
Average long-term AUM | 681.8 | 586.7 | 95.1 | 706.1 | 601.2 | 104.9 | |||||||||||
Average AUM | 784.5 | 652.8 | 131.7 | 810.9 | 666.7 | 144.2 | |||||||||||
Revenue yield | |||||||||||||||||
Gross revenue yield on AUM (1) | 61.3 | 70.9 | 14.6 | 65.6 | 76.6 | 15.3 | |||||||||||
Gross revenue yield on AUM before performance fees (1) | 60.9 | 70.3 | 14.6 | 65.2 | 76.2 | 15.3 | |||||||||||
Net revenue yield on AUM (2) | 43.7 | 49.5 | 14.6 | 46.2 | 52.9 | 15.3 | |||||||||||
Net revenue yield on AUM before performance fees (2) | 43.2 | 49.0 | 14.6 | 45.6 | 52.1 | 15.3 |
For the six months ended June 30, | |||||||||||||||||
2016 | 2015 | ||||||||||||||||
$ in billions | Total AUM | Active | Passive | Total AUM | Active | Passive | |||||||||||
December 31 | 775.6 | 636.5 | 139.1 | 792.4 | 651.0 | 141.4 | |||||||||||
Long-term inflows | 88.6 | 66.4 | 22.2 | 102.6 | 83.7 | 18.9 | |||||||||||
Long-term outflows | (85.4 | ) | (65.9 | ) | (19.5 | ) | (86.4 | ) | (71.5 | ) | (14.9 | ) | |||||
Long-term net flows | 3.2 | 0.5 | 2.7 | 16.2 | 12.2 | 4.0 | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | — | (6.4 | ) | (2.9 | ) | — | (2.9 | ) | |||||||
Net flows in institutional money market funds | 5.8 | 6.0 | (0.2 | ) | (8.6 | ) | (8.6 | ) | — | ||||||||
Total net flows | 2.6 | 6.5 | (3.9 | ) | 4.7 | 3.6 | 1.1 | ||||||||||
Market gains and losses/reinvestment | 7.7 | 6.4 | 1.3 | 12.0 | 12.2 | (0.2 | ) | ||||||||||
Acquisitions/dispositions, net | (1.2 | ) | 2.0 | (3.2 | ) | (0.7 | ) | — | (0.7 | ) | |||||||
Foreign currency translation | (5.1 | ) | (5.3 | ) | 0.2 | (4.8 | ) | (4.8 | ) | — | |||||||
June 30 | 779.6 | 646.1 | 133.5 | 803.6 | 662.0 | 141.6 | |||||||||||
Average AUM | |||||||||||||||||
Average long-term AUM | 665.5 | 573.3 | 92.2 | 695.5 | 591.4 | 104.1 | |||||||||||
Average AUM | 766.0 | 636.7 | 129.3 | 803.2 | 659.7 | 143.5 | |||||||||||
Revenue yield | |||||||||||||||||
Gross revenue yield on AUM (1) | 61.7 | 71.5 | 14.2 | 65.5 | 76.7 | 14.3 | |||||||||||
Gross revenue yield on AUM before performance fees (1) | 61.1 | 70.7 | 14.2 | 64.1 | 75.1 | 14.3 | |||||||||||
Net revenue yield on AUM (2) | 43.7 | 49.7 | 14.2 | 46.2 | 53.1 | 14.3 | |||||||||||
Net revenue yield on AUM before performance fees (2) | 43.1 | 48.9 | 14.2 | 44.6 | 51.1 | 14.3 |
(1) | Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the three months ended June 30, 2016 for our JVs in China was $8.6 billion (three months ended June 30, 2015: $6.9 billion). Our share of the average AUM in the six months ended June 30, 2016 for our JVs in China was $8.1 billion (six months ended June 30, 2015: $6.0 billion). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the net income of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income. Additionally, the numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from CIP; however, the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company's true effective fee rate from AUM. |
(2) | Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues. |
Foreign Exchange Rates | June 30, 2016 | March 31, 2016 | December 31, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||
Pound Sterling ($ per £) | 1.337 | 1.438 | 1.474 | 1.572 | 1.485 | 1.559 | |||||||||||
Canadian Dollar (CAD per $) | 1.300 | 1.293 | 1.389 | 1.247 | 1.267 | 1.158 | |||||||||||
Japan (¥ per $) | 102.533 | 112.355 | 120.275 | 122.145 | 119.905 | 119.880 | |||||||||||
Euro ($ per Euro) | 1.111 | 1.139 | 1.086 | 1.115 | 1.074 | 1.210 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2016 | 771.5 | 507.7 | 263.8 | |||||
Long-term inflows | 45.8 | 34.8 | 11.0 | |||||
Long-term outflows | (41.3 | ) | (35.3 | ) | (6.0 | ) | ||
Long-term net flows | 4.5 | (0.5 | ) | 5.0 | ||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | |||
Net flows in institutional money market funds | 2.0 | — | 2.0 | |||||
Total net flows | 2.7 | (4.3 | ) | 7.0 | ||||
Market gains and losses/reinvestment | 10.7 | 7.8 | 2.9 | |||||
Acquisitions/dispositions, net | 2.4 | 0.4 | 2.0 | |||||
Foreign currency translation | (7.7 | ) | (7.3 | ) | (0.4 | ) | ||
June 30, 2016 | 779.6 | 504.3 | 275.3 | |||||
March 31, 2015 | 798.3 | 540.7 | 257.6 | |||||
Long-term inflows | 52.1 | 34.2 | 17.9 | |||||
Long-term outflows | (46.2 | ) | (34.7 | ) | (11.5 | ) | ||
Long-term net flows | 5.9 | (0.5 | ) | 6.4 | ||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | |||
Net flows in institutional money market funds | (2.6 | ) | — | (2.6 | ) | |||
Total net flows | 3.0 | (0.8 | ) | 3.8 | ||||
Market gains and losses/reinvestment | (6.2 | ) | (6.1 | ) | (0.1 | ) | ||
Acquisitions/dispositions, net | — | — | — | |||||
Foreign currency translation | 8.5 | 7.5 | 1.0 | |||||
June 30, 2015 | 803.6 | 541.3 | 262.3 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2015 | 775.6 | 514.8 | 260.8 | |||||
Long-term inflows | 88.6 | 67.9 | 20.7 | |||||
Long-term outflows | (85.4 | ) | (71.1 | ) | (14.3 | ) | ||
Long-term net flows | 3.2 | (3.2 | ) | 6.4 | ||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | |||
Net flows in institutional money market funds | 5.8 | — | 5.8 | |||||
Total net flows | 2.6 | (9.6 | ) | 12.2 | ||||
Market gains and losses/reinvestment | 7.7 | 4.7 | 3.0 | |||||
Acquisitions/dispositions, net | (1.2 | ) | 0.4 | (1.6 | ) | |||
Foreign currency translation | (5.1 | ) | (6.0 | ) | 0.9 | |||
June 30, 2016 | 779.6 | 504.3 | 275.3 | |||||
December 31, 2014 | 792.4 | 532.5 | 259.9 | |||||
Long-term inflows | 102.6 | 74.5 | 28.1 | |||||
Long-term outflows | (86.4 | ) | (67.5 | ) | (18.9 | ) | ||
Long-term net flows | 16.2 | 7.0 | 9.2 | |||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | |||
Net flows in institutional money market funds | (8.6 | ) | — | (8.6 | ) | |||
Total net flows | 4.7 | 4.1 | 0.6 | |||||
Market gains and losses/reinvestment | 12.0 | 8.8 | 3.2 | |||||
Acquisitions/dispositions, net | (0.7 | ) | (0.7 | ) | — | |||
Foreign currency translation | (4.8 | ) | (3.4 | ) | (1.4 | ) | ||
June 30, 2015 | 803.6 | 541.3 | 262.3 |
$ in billions | Total | Retail | Institutional | |||||
March 31, 2016 | 131.1 | 115.7 | 15.4 | |||||
Long-term inflows | 12.3 | 11.3 | 1.0 | |||||
Long-term outflows | (7.8 | ) | (7.7 | ) | (0.1 | ) | ||
Long-term net flows | 4.5 | 3.6 | 0.9 | |||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | |||
Net flows in institutional money market funds | 0.1 | — | 0.1 | |||||
Total net flows | 0.8 | (0.2 | ) | 1.0 | ||||
Market gains and losses/reinvestment | 1.5 | 1.5 | — | |||||
Acquisitions/dispositions, net | — | — | — | |||||
Foreign currency translation | 0.1 | — | 0.1 | |||||
June 30, 2016 | 133.5 | 117.0 | 16.5 | |||||
March 31, 2015 | 143.0 | 120.8 | 22.2 | |||||
Long-term inflows | 9.0 | 7.6 | 1.4 | |||||
Long-term outflows | (8.5 | ) | (7.6 | ) | (0.9 | ) | ||
Long-term net flows | 0.5 | — | 0.5 | |||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 0.2 | (0.3 | ) | 0.5 | ||||
Market gains and losses/reinvestment | (1.6 | ) | (0.8 | ) | (0.8 | ) | ||
Acquisitions/dispositions, net | — | — | — | |||||
Foreign currency translation | — | — | — | |||||
June 30, 2015 | 141.6 | 119.7 | 21.9 |
$ in billions | Total | Retail | Institutional | |||||
December 31, 2015 | 139.1 | 118.7 | 20.4 | |||||
Long-term inflows | 22.2 | 21.2 | 1.0 | |||||
Long-term outflows | (19.5 | ) | (17.9 | ) | (1.6 | ) | ||
Long-term net flows | 2.7 | 3.3 | (0.6 | ) | ||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | |||
Net flows in institutional money market funds | (0.2 | ) | — | (0.2 | ) | |||
Total net flows | (3.9 | ) | (3.1 | ) | (0.8 | ) | ||
Market gains and losses/reinvestment | 1.3 | 1.4 | (0.1 | ) | ||||
Acquisitions/dispositions, net | (3.2 | ) | — | (3.2 | ) | |||
Foreign currency translation | 0.2 | — | 0.2 | |||||
June 30, 2016 | 133.5 | 117.0 | 16.5 | |||||
December 31, 2014 | 141.4 | 119.7 | 21.7 | |||||
Long-term inflows | 18.9 | 16.5 | 2.4 | |||||
Long-term outflows | (14.9 | ) | (13.4 | ) | (1.5 | ) | ||
Long-term net flows | 4.0 | 3.1 | 0.9 | |||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | |||
Net flows in institutional money market funds | — | — | — | |||||
Total net flows | 1.1 | 0.2 | 0.9 | |||||
Market gains and losses/reinvestment | (0.2 | ) | 0.5 | (0.7 | ) | |||
Acquisitions/dispositions, net | (0.7 | ) | (0.7 | ) | — | |||
June 30, 2015 | 141.6 | 119.7 | 21.9 |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2016 | 771.5 | 359.5 | 187.1 | 46.8 | 68.6 | 109.5 | |||||||||||
Long-term inflows | 45.8 | 20.5 | 12.0 | 3.2 | 1.0 | 9.1 | |||||||||||
Long-term outflows | (41.3 | ) | (27.0 | ) | (6.4 | ) | (3.0 | ) | (0.8 | ) | (4.1 | ) | |||||
Long-term net flows | 4.5 | (6.5 | ) | 5.6 | 0.2 | 0.2 | 5.0 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 2.0 | — | — | — | 2.0 | — | |||||||||||
Total net flows | 2.7 | (10.3 | ) | 5.6 | 0.2 | 2.2 | 5.0 | ||||||||||
Market gains and losses/reinvestment | 10.7 | 3.5 | 3.4 | 1.6 | — | 2.2 | |||||||||||
Acquisitions/dispositions, net | 2.4 | 0.4 | 1.6 | — | 0.4 | — | |||||||||||
Foreign currency translation | (7.7 | ) | (4.3 | ) | (1.4 | ) | (1.2 | ) | (0.1 | ) | (0.7 | ) | |||||
June 30, 2016 | 779.6 | 348.8 | 196.3 | 47.4 | 71.1 | (4) | 116.0 | ||||||||||
Average AUM | 784.5 | 357.0 | 193.7 | 47.7 | 72.8 | 113.3 | |||||||||||
% of total average AUM | 100.0 | % | 45.5 | % | 24.7 | % | 6.1 | % | 9.3 | % | 14.4 | % | |||||
March 31, 2015 | 798.3 | 392.8 | 184.4 | 50.6 | 70.2 | 100.3 | |||||||||||
Long-term inflows | 52.1 | 23.8 | 13.2 | 6.0 | 1.0 | 8.1 | |||||||||||
Long-term outflows | (46.2 | ) | (26.4 | ) | (8.7 | ) | (3.1 | ) | (1.0 | ) | (7.0 | ) | |||||
Long-term net flows | 5.9 | (2.6 | ) | 4.5 | 2.9 | — | 1.1 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (2.6 | ) | — | — | — | (2.6 | ) | — | |||||||||
Total net flows | 3.0 | (2.9 | ) | 4.5 | 2.9 | (2.6 | ) | 1.1 | |||||||||
Market gains and losses/reinvestment | (6.2 | ) | (0.3 | ) | (3.0 | ) | (1.2 | ) | 0.3 | (2.0 | ) | ||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 8.5 | 5.1 | 1.6 | 1.3 | — | 0.5 | |||||||||||
June 30, 2015 | 803.6 | 394.7 | 187.5 | 53.6 | 67.9 | (4) | 99.9 | ||||||||||
Average AUM | 810.9 | 403.7 | 184.7 | 53.3 | 69.5 | 99.7 | |||||||||||
% of total average AUM | 100.0 | % | 49.8 | % | 22.8 | % | 6.6 | % | 8.6 | % | 12.3 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2015 | 775.6 | 370.9 | 187.9 | 48.1 | 64.6 | 104.1 | |||||||||||
Long-term inflows | 88.6 | 40.9 | 21.7 | 5.2 | 2.0 | 18.8 | |||||||||||
Long-term outflows | (85.4 | ) | (51.6 | ) | (16.5 | ) | (6.6 | ) | (1.8 | ) | (8.9 | ) | |||||
Long-term net flows | 3.2 | (10.7 | ) | 5.2 | (1.4 | ) | 0.2 | 9.9 | |||||||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 5.8 | — | — | — | 5.8 | — | |||||||||||
Total net flows | 2.6 | (17.1 | ) | 5.2 | (1.4 | ) | 6.0 | 9.9 | |||||||||
Market gains and losses/reinvestment | 7.7 | (2.0 | ) | 5.4 | 1.0 | 0.2 | 3.1 | ||||||||||
Acquisitions/dispositions, net | (1.2 | ) | 0.4 | (1.1 | ) | — | 0.4 | (0.9 | ) | ||||||||
Foreign currency translation | (5.1 | ) | (3.4 | ) | (1.1 | ) | (0.3 | ) | (0.1 | ) | (0.2 | ) | |||||
June 30, 2016 | 779.6 | 348.8 | 196.3 | 47.4 | 71.1 | 116.0 | |||||||||||
Average AUM | 766.0 | 350.7 | 189.5 | 46.7 | 70.0 | 109.1 | |||||||||||
% of total average AUM | 100.0 | % | 45.8 | % | 24.7 | % | 6.1 | % | 9.1 | % | 14.2 | % | |||||
December 31, 2014 | 792.4 | 384.4 | 181.6 | 50.6 | 76.5 | 99.3 | |||||||||||
Long-term inflows | 102.6 | 48.3 | 24.0 | 10.1 | 1.7 | 18.5 | |||||||||||
Long-term outflows | (86.4 | ) | (47.9 | ) | (15.9 | ) | (6.3 | ) | (1.9 | ) | (14.4 | ) | |||||
Long-term net flows | 16.2 | 0.4 | 8.1 | 3.8 | (0.2 | ) | 4.1 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (8.6 | ) | — | — | — | (8.6 | ) | — | |||||||||
Total net flows | 4.7 | (2.5 | ) | 8.1 | 3.8 | (8.8 | ) | 4.1 | |||||||||
Market gains and losses/reinvestment | 12.0 | 14.6 | (1.4 | ) | 0.7 | 0.2 | (2.1 | ) | |||||||||
Acquisitions/dispositions, net | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
Foreign currency translation | (4.8 | ) | (1.8 | ) | (0.8 | ) | (1.5 | ) | — | (0.7 | ) | ||||||
June 30, 2015 | 803.6 | 394.7 | 187.5 | 53.6 | 67.9 | 99.9 | |||||||||||
Average AUM | 803.2 | 395.9 | 183.8 | 51.5 | 72.3 | 99.7 | |||||||||||
% of total average AUM | 100.0 | % | 49.3 | % | 22.9 | % | 6.4 | % | 9.0 | % | 12.4 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
March 31, 2016 | 131.1 | 87.1 | 35.6 | — | 0.1 | 8.3 | |||||||||||
Long-term inflows | 12.3 | 7.7 | 3.5 | — | — | 1.1 | |||||||||||
Long-term outflows | (7.8 | ) | (6.5 | ) | (0.7 | ) | — | — | (0.6 | ) | |||||||
Long-term net flows | 4.5 | 1.2 | 2.8 | — | — | 0.5 | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | 0.1 | — | |||||||||||
Total net flows | 0.8 | (2.6 | ) | 2.8 | — | 0.1 | 0.5 | ||||||||||
Market gains and losses/reinvestment | 1.5 | 0.4 | 0.5 | — | — | 0.6 | |||||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 0.1 | — | — | — | — | 0.1 | |||||||||||
June 30, 2016 | 133.5 | 84.9 | 38.9 | — | 0.2 | 9.5 | |||||||||||
Average AUM | 131.7 | 85.4 | 37.4 | — | 0.1 | 8.8 | |||||||||||
% of total average AUM | 100.0 | % | 64.8 | % | 28.4 | % | — | % | 0.1 | % | 6.7 | % | |||||
March 31, 2015 | 143.0 | 90.0 | 42.0 | — | — | 11.0 | |||||||||||
Long-term inflows | 9.0 | 6.3 | 1.6 | — | — | 1.1 | |||||||||||
Long-term outflows | (8.5 | ) | (6.2 | ) | (1.0 | ) | — | — | (1.3 | ) | |||||||
Long-term net flows | 0.5 | 0.1 | 0.6 | — | — | (0.2 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.2 | (0.2 | ) | 0.6 | — | — | (0.2 | ) | |||||||||
Market gains and losses/reinvestment | (1.6 | ) | (0.4 | ) | (1.4 | ) | — | — | 0.2 | ||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 89.4 | 41.2 | — | — | 11.0 | |||||||||||
Average AUM | 144.2 | 90.9 | 42.1 | — | — | 11.2 | |||||||||||
% of total average AUM | 100.0 | % | 63.0 | % | 29.2 | % | — | % | — | % | 7.8 | % |
$ in billions | Total | Equity | Fixed Income | Balanced | Money Market | Alternatives(3) | |||||||||||
December 31, 2015 | 139.1 | 91.0 | 38.6 | — | 0.4 | 9.1 | |||||||||||
Long-term inflows | 22.2 | 14.8 | 5.6 | — | — | 1.8 | |||||||||||
Long-term outflows | (19.5 | ) | (14.8 | ) | (3.3 | ) | — | — | (1.4 | ) | |||||||
Long-term net flows | 2.7 | — | 2.3 | — | — | 0.4 | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (0.2 | ) | — | — | — | (0.2 | ) | — | |||||||||
Total net flows | (3.9 | ) | (6.4 | ) | 2.3 | — | (0.2 | ) | 0.4 | ||||||||
Market gains and losses/reinvestment | 1.3 | 0.3 | 0.7 | — | — | 0.3 | |||||||||||
Acquisitions/dispositions, net | (3.2 | ) | — | (2.7 | ) | — | — | (0.5 | ) | ||||||||
Foreign currency translation | 0.2 | — | — | — | — | 0.2 | |||||||||||
June 30, 2016 | 133.5 | 84.9 | 38.9 | — | 0.2 | 9.5 | |||||||||||
Average AUM | 129.3 | 84.1 | 36.4 | — | 0.2 | 8.6 | |||||||||||
% of total average AUM | 100.0 | % | 65.0% | 28.2% | —% | 0.2% | 6.7% | ||||||||||
December 31, 2014 | 141.4 | 88.2 | 41.1 | — | — | 12.1 | |||||||||||
Long-term inflows | 18.9 | 12.8 | 3.6 | — | — | 2.5 | |||||||||||
Long-term outflows | (14.9 | ) | (9.7 | ) | (2.2 | ) | — | — | (3.0 | ) | |||||||
Long-term net flows | 4.0 | 3.1 | 1.4 | — | — | (0.5 | ) | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 1.1 | 0.2 | 1.4 | — | — | (0.5 | ) | ||||||||||
Market gains and losses/reinvestment | (0.2 | ) | 1.0 | (1.3 | ) | — | — | 0.1 | |||||||||
Acquisitions/dispositions, net | (0.7 | ) | — | — | — | — | (0.7 | ) | |||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 89.4 | 41.2 | — | — | 11.0 | |||||||||||
Average AUM | 143.5 | 90.0 | 42.1 | — | — | 11.4 | |||||||||||
% of total average AUM | 100.0 | % | 62.7 | % | 29.3 | % | — | % | — | % | 7.9 | % |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
March 31, 2016 | 771.5 | 507.5 | 22.9 | 99.2 | 74.9 | 67.0 | |||||||||||
Long-term inflows | 45.8 | 27.7 | 0.8 | 3.2 | 6.1 | 8.0 | |||||||||||
Long-term outflows | (41.3 | ) | (25.6 | ) | (1.0 | ) | (3.8 | ) | (7.0 | ) | (3.9 | ) | |||||
Long-term net flows | 4.5 | 2.1 | (0.2 | ) | (0.6 | ) | (0.9 | ) | 4.1 | ||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 2.0 | (1.1 | ) | 0.4 | — | — | 2.7 | ||||||||||
Total net flows | 2.7 | (2.8 | ) | 0.2 | (0.6 | ) | (0.9 | ) | 6.8 | ||||||||
Market gains and losses/reinvestment | 10.7 | 7.9 | 0.1 | 1.7 | 0.3 | 0.7 | |||||||||||
Acquisitions/dispositions, net | 2.4 | — | — | — | — | 2.4 | |||||||||||
Foreign currency translation | (7.7 | ) | (0.1 | ) | (0.1 | ) | (6.5 | ) | (1.5 | ) | 0.5 | ||||||
June 30, 2016 | 779.6 | 512.5 | 23.1 | 93.8 | 72.8 | 77.4 | |||||||||||
March 31, 2015 | 798.3 | 532.6 | 24.9 | 106.3 | 74.2 | 60.3 | |||||||||||
Long-term inflows | 52.1 | 27.4 | 1.0 | 4.5 | 9.7 | 9.5 | |||||||||||
Long-term outflows | (46.2 | ) | (24.5 | ) | (1.1 | ) | (4.3 | ) | (8.1 | ) | (8.2 | ) | |||||
Long-term net flows | 5.9 | 2.9 | (0.1 | ) | 0.2 | 1.6 | 1.3 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (2.6 | ) | (3.4 | ) | — | 0.9 | (0.2 | ) | 0.1 | ||||||||
Total net flows | 3.0 | (0.8 | ) | (0.1 | ) | 1.1 | 1.4 | 1.4 | |||||||||
Market gains and losses/reinvestment | (6.2 | ) | (1.0 | ) | (0.3 | ) | (2.7 | ) | (0.7 | ) | (1.5 | ) | |||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 8.5 | — | 0.4 | 6.0 | 2.1 | — | |||||||||||
June 30, 2015 | 803.6 | 530.8 | 24.9 | 110.7 | 77.0 | 60.2 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2015 | 775.6 | 510.7 | 21.7 | 104.2 | 75.4 | 63.6 | |||||||||||
Long-term inflows | 88.6 | 52.1 | 1.8 | 7.4 | 12.7 | 14.6 | |||||||||||
Long-term outflows | (85.4 | ) | (52.3 | ) | (2.2 | ) | (8.8 | ) | (15.2 | ) | (6.9 | ) | |||||
Long-term net flows | 3.2 | (0.2 | ) | (0.4 | ) | (1.4 | ) | (2.5 | ) | 7.7 | |||||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 5.8 | 3.9 | 0.4 | (0.8 | ) | — | 2.3 | ||||||||||
Total net flows | 2.6 | (2.7 | ) | — | (2.2 | ) | (2.5 | ) | 10.0 | ||||||||
Market gains and losses/reinvestment | 7.7 | 8.2 | (0.1 | ) | 0.7 | (1.0 | ) | (0.1 | ) | ||||||||
Acquisitions/dispositions, net | (1.2 | ) | (3.6 | ) | — | — | — | 2.4 | |||||||||
Foreign currency translation | (5.1 | ) | (0.1 | ) | 1.5 | (8.9 | ) | 0.9 | 1.5 | ||||||||
June 30, 2016 | 779.6 | 512.5 | 23.1 | 93.8 | 72.8 | 77.4 | |||||||||||
December 31, 2014 | 792.4 | 532.1 | 25.8 | 105.1 | 71.1 | 58.3 | |||||||||||
Long-term inflows | 102.6 | 53.5 | 2.0 | 9.4 | 21.9 | 15.8 | |||||||||||
Long-term outflows | (86.4 | ) | (46.5 | ) | (2.1 | ) | (8.6 | ) | (15.3 | ) | (13.9 | ) | |||||
Long-term net flows | 16.2 | 7.0 | (0.1 | ) | 0.8 | 6.6 | 1.9 | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (8.6 | ) | (9.0 | ) | (0.1 | ) | 0.8 | (0.2 | ) | (0.1 | ) | ||||||
Total net flows | 4.7 | (4.9 | ) | (0.2 | ) | 1.6 | 6.4 | 1.8 | |||||||||
Market gains and losses/reinvestment | 12.0 | 4.3 | 1.2 | 2.9 | 3.0 | 0.6 | |||||||||||
Acquisitions/dispositions, net | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||
Foreign currency translation | (4.8 | ) | — | (1.9 | ) | 1.1 | (3.5 | ) | (0.5 | ) | |||||||
June 30, 2015 | 803.6 | 530.8 | 24.9 | 110.7 | 77.0 | 60.2 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
March 31, 2016 | 131.1 | 126.7 | 0.4 | — | 1.8 | 2.2 | |||||||||||
Long-term inflows | 12.3 | 12.1 | 0.1 | — | 0.1 | — | |||||||||||
Long-term outflows | (7.8 | ) | (7.6 | ) | — | — | (0.2 | ) | — | ||||||||
Long-term net flows | 4.5 | 4.5 | 0.1 | — | (0.1 | ) | — | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (3.8 | ) | (3.8 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | 0.1 | — | — | — | — | 0.1 | |||||||||||
Total net flows | 0.8 | 0.7 | 0.1 | — | (0.1 | ) | 0.1 | ||||||||||
Market gains and losses/reinvestment | 1.5 | 1.5 | — | — | — | — | |||||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | 0.1 | — | — | — | — | 0.1 | |||||||||||
June 30, 2016 | 133.5 | 128.9 | 0.5 | — | 1.7 | 2.4 | |||||||||||
March 31, 2015 | 143.0 | 139.0 | 0.3 | — | 1.8 | 1.9 | |||||||||||
Long-term inflows | 9.0 | 8.1 | 0.1 | — | 0.1 | 0.7 | |||||||||||
Long-term outflows | (8.5 | ) | (7.7 | ) | — | — | (0.1 | ) | (0.7 | ) | |||||||
Long-term net flows | 0.5 | 0.4 | 0.1 | — | — | — | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (0.3 | ) | (0.3 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 0.2 | 0.1 | 0.1 | — | — | — | |||||||||||
Market gains and losses/reinvestment | (1.6 | ) | (1.7 | ) | — | — | — | 0.1 | |||||||||
Acquisitions/dispositions, net | — | — | — | — | — | — | |||||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 137.4 | 0.4 | — | 1.8 | 2.0 |
$ in billions | Total | U.S. | Canada | U.K. | Continental Europe | Asia | |||||||||||
December 31, 2015 | 139.1 | 134.4 | 0.4 | — | 1.9 | 2.4 | |||||||||||
Long-term inflows | 22.2 | 21.8 | 0.2 | — | 0.2 | — | |||||||||||
Long-term outflows | (19.5 | ) | (19.0 | ) | (0.1 | ) | — | (0.4 | ) | — | |||||||
Long-term net flows | 2.7 | 2.8 | 0.1 | — | (0.2 | ) | — | ||||||||||
Net flows in Invesco PowerShares QQQ fund | (6.4 | ) | (6.4 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | (0.2 | ) | — | — | — | — | (0.2 | ) | |||||||||
Total net flows | (3.9 | ) | (3.6 | ) | 0.1 | — | (0.2 | ) | (0.2 | ) | |||||||
Market gains and losses/reinvestment | 1.3 | 1.3 | — | — | — | — | |||||||||||
Acquisitions/dispositions, net | (3.2 | ) | (3.2 | ) | — | — | — | — | |||||||||
Foreign currency translation | 0.2 | — | — | — | — | 0.2 | |||||||||||
June 30, 2016 | 133.5 | 128.9 | 0.5 | — | 1.7 | 2.4 | |||||||||||
December 31, 2014 | 141.4 | 137.6 | 0.2 | — | 1.8 | 1.8 | |||||||||||
Long-term inflows | 18.9 | 17.7 | 0.1 | — | 0.3 | 0.8 | |||||||||||
Long-term outflows | (14.9 | ) | (13.8 | ) | — | — | (0.3 | ) | (0.8 | ) | |||||||
Long-term net flows | 4.0 | 3.9 | 0.1 | — | — | — | |||||||||||
Net flows in Invesco PowerShares QQQ fund | (2.9 | ) | (2.9 | ) | — | — | — | — | |||||||||
Net flows in institutional money market funds | — | — | — | — | — | — | |||||||||||
Total net flows | 1.1 | 1.0 | 0.1 | — | — | — | |||||||||||
Market gains and losses/reinvestment | (0.2 | ) | (0.5 | ) | 0.1 | — | — | 0.2 | |||||||||
Acquisitions/dispositions, net | (0.7 | ) | (0.7 | ) | — | — | — | — | |||||||||
Foreign currency translation | — | — | — | — | — | — | |||||||||||
June 30, 2015 | 141.6 | 137.4 | 0.4 | — | 1.8 | 2.0 |
1) | Channel refers to the internal distribution channel from which the AUM originated. Retail AUM represents AUM distributed by the company's retail sales team. Institutional AUM represents AUM distributed by our institutional sales team. This aggregation is viewed as a proxy for presenting AUM in the retail and institutional markets in which the company operates. |
(2) | Asset classes are descriptive groupings of AUM by common type of underlying investments. |
(3) | There have been no significant changes to the managed objectives under the Alternatives asset class, which are disclosed in our most recent Form 10-K for the year ended December 31, 2015. |
(4) | Ending Money Market AUM includes $63.1 billion in institutional money market AUM and $8.0 billion in retail money market AUM. |
(5) | Client domicile disclosure groups AUM by the domicile of the underlying clients. |
Variance | Variance | ||||||||||||||||||||||
Three months ended June 30, | 2016 vs 2015 | Six months ended June 30, | 2016 vs 2015 | ||||||||||||||||||||
$ in millions | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | |||||||||||||||
Investment management fees | 946.7 | 1,055.7 | (109.0 | ) | (10.3 | )% | 1,860.3 | 2,057.1 | (196.8 | ) | (9.6 | )% | |||||||||||
Service and distribution fees | 203.4 | 219.6 | (16.2 | ) | (7.4 | )% | 401.1 | 433.0 | (31.9 | ) | (7.4 | )% | |||||||||||
Performance fees | 8.9 | 6.7 | 2.2 | 32.8 | % | 23.4 | 53.5 | (30.1 | ) | (56.3 | )% | ||||||||||||
Other | 30.4 | 36.1 | (5.7 | ) | (15.8 | )% | 53.3 | 66.1 | (12.8 | ) | (19.4 | )% | |||||||||||
Total operating revenues | 1,189.4 | 1,318.1 | (128.7 | ) | (9.8 | )% | 2,338.1 | 2,609.7 | (271.6 | ) | (10.4 | )% | |||||||||||
Third-party distribution, service and advisory expenses | (348.4 | ) | (413.3 | ) | 64.9 | (15.7 | )% | (695.6 | ) | (812.4 | ) | 116.8 | (14.4 | )% | |||||||||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments | 10.5 | 21.4 | (10.9 | ) | (50.9 | )% | 21.6 | 37.1 | (15.5 | ) | (41.8 | )% | |||||||||||
CIP | 5.1 | 10.4 | (5.3 | ) | (51.0 | )% | 10.6 | 19.7 | (9.1 | ) | (46.2 | )% | |||||||||||
Net revenues | 856.6 | 936.6 | (80.0 | ) | (8.5 | )% | 1,674.7 | 1,854.1 | (179.4 | ) | (9.7 | )% |
Variance | Variance | ||||||||||||||||||||||
Three months ended June 30, | 2016 vs 2015 | Six months ended June 30, | 2016 vs 2015 | ||||||||||||||||||||
$ in millions | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | |||||||||||||||
Third-party distribution, service and advisory | 348.4 | 413.3 | (64.9 | ) | (15.7 | )% | 695.6 | 812.4 | (116.8 | ) | (14.4 | )% | |||||||||||
Employee compensation | 350.3 | 347.2 | 3.1 | 0.9 | % | 694.7 | 708.1 | (13.4 | ) | (1.9 | )% | ||||||||||||
Marketing | 28.3 | 29.7 | (1.4 | ) | (4.7 | )% | 53.2 | 56.4 | (3.2 | ) | (5.7 | )% | |||||||||||
Property, office and technology | 82.3 | 74.8 | 7.5 | 10.0 | % | 162.2 | 151.7 | 10.5 | 6.9 | % | |||||||||||||
General and administrative | 78.6 | 89.1 | (10.5 | ) | (11.8 | )% | 156.5 | 179.0 | (22.5 | ) | (12.6 | )% | |||||||||||
Total operating expenses | 887.9 | 954.1 | (66.2 | ) | (6.9 | )% | 1,762.2 | 1,907.6 | (145.4 | ) | (7.6 | )% |
$ in millions | Three months ended June 30, 2016 | % of Total Operating Expenses | % of Operating Revenues | Three months ended June 30, 2015 | % of Total Operating Expenses | % of Operating Revenues | |||||||||||
Third-party distribution, service and advisory | 348.4 | 39.2 | % | 29.3 | % | 413.3 | 43.3 | % | 31.4 | % | |||||||
Employee compensation | 350.3 | 39.5 | % | 29.5 | % | 347.2 | 36.5 | % | 26.3 | % | |||||||
Marketing | 28.3 | 3.2 | % | 2.4 | % | 29.7 | 3.1 | % | 2.3 | % | |||||||
Property, office and technology | 82.3 | 9.3 | % | 6.9 | % | 74.8 | 7.8 | % | 5.7 | % | |||||||
General and administrative | 78.6 | 8.8 | % | 6.6 | % | 89.1 | 9.3 | % | 6.8 | % | |||||||
Total operating expenses | 887.9 | 100.0 | % | 74.7 | % | 954.1 | 100.0 | % | 72.4 | % | |||||||
$ in millions | Six months ended June 30, 2016 | % of Total Operating Expenses | % of Operating Revenues | Six months ended June 30, 2015 | % of Total Operating Expenses | % of Operating Revenues | |||||||||||
Third-party distribution, service and advisory | 695.6 | 39.5 | % | 29.8 | % | 812.4 | 42.5 | % | 31.1 | % | |||||||
Employee compensation | 694.7 | 39.4 | % | 29.7 | % | 708.1 | 37.1 | % | 27.1 | % | |||||||
Marketing | 53.2 | 3.0 | % | 2.3 | % | 56.4 | 3.0 | % | 2.2 | % | |||||||
Property, office and technology | 162.2 | 9.2 | % | 6.9 | % | 151.7 | 8.0 | % | 5.8 | % | |||||||
General and administrative | 156.5 | 8.9 | % | 6.7 | % | 179.0 | 9.4 | % | 6.9 | % | |||||||
Total operating expenses | 1,762.2 | 100.0 | % | 75.4 | % | 1,907.6 | 100.0 | % | 73.1 | % | |||||||
Variance | Variance | ||||||||||||||||||||||
Three months ended June 30, | 2016 vs 2015 | Six months ended June 30, | 2016 vs 2015 | ||||||||||||||||||||
$ in millions | 2016 | 2015 | $ Change | % Change | 2016 | 2015 | $ Change | % Change | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 4.6 | 12.0 | (7.4 | ) | (61.7 | )% | (7.6 | ) | 23.8 | (31.4 | ) | N/A | |||||||||||
Interest and dividend income | 2.5 | 2.6 | (0.1 | ) | (3.8 | )% | 6.1 | 5.1 | 1.0 | 19.6 | % | ||||||||||||
Interest expense | (22.1 | ) | (19.6 | ) | (2.5 | ) | 12.8 | % | (46.0 | ) | (38.3 | ) | (7.7 | ) | 20.1 | % | |||||||
Other gains and losses, net | (4.2 | ) | (8.8 | ) | 4.6 | (52.3 | )% | (8.9 | ) | (6.1 | ) | (2.8 | ) | 45.9 | % | ||||||||
Other income/(expense) of CIP, net | 37.9 | (1.9 | ) | 39.8 | N/A | 30.4 | 37.6 | (7.2 | ) | (19.1 | )% | ||||||||||||
Other income/(expense) of CSIP, net | — | 5.1 | (5.1 | ) | N/A | — | 14.5 | (14.5 | ) | N/A | |||||||||||||
Total other income and expenses | 18.7 | (10.6 | ) | 29.3 | N/A | (26.0 | ) | 36.6 | (62.6 | ) | N/A |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Operating revenues, U.S. GAAP basis | 1,189.4 | 1,318.1 | 2,338.1 | 2,609.7 | |||||||
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments (1) | 10.5 | 21.4 | 21.6 | 37.1 | |||||||
Third party distribution, service and advisory expenses (2) | (348.4 | ) | (413.3 | ) | (695.6 | ) | (812.4 | ) | |||
CIP (3) | 5.1 | 10.4 | 10.6 | 19.7 | |||||||
Net revenues | 856.6 | 936.6 | 1,674.7 | 1,854.1 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Operating income, U.S. GAAP basis | 301.5 | 364.0 | 575.9 | 702.1 | |||||||
Proportional share of net operating income from joint venture investments (1) | 4.2 | 12.1 | 7.5 | 19.1 | |||||||
CIP (3) | 13.0 | 11.9 | 20.3 | 33.4 | |||||||
Business combinations (4) | 4.5 | 2.6 | 14.0 | 6.5 | |||||||
Compensation expense related to market valuation changes in deferred compensation plans (5) | 1.8 | 1.3 | 1.6 | 5.1 | |||||||
Other reconciling items (6) | 5.4 | (1.7 | ) | 18.2 | (1.7 | ) | |||||
Adjusted operating income | 330.4 | 390.2 | 637.5 | 764.5 | |||||||
Operating margin* | 25.3 | % | 27.6 | % | 24.6 | % | 26.9 | % | |||
Adjusted operating margin** | 38.6 | % | 41.7 | % | 38.1 | % | 41.2 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
$ in millions, except per share data | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net income attributable to Invesco Ltd., U.S. GAAP basis | 225.5 | 257.3 | 386.5 | 516.9 | |||||||||||
CIP, eliminated upon consolidation (3) | (8.0 | ) | (0.4 | ) | 0.4 | 7.8 | |||||||||
Business combinations, net of tax (4) | 17.9 | 7.4 | 45.2 | 15.7 | |||||||||||
Deferred compensation plan market valuation changes and dividend income less compensation expense, net of tax (5) | (1.3 | ) | 3.1 | (0.2 | ) | 2.2 | |||||||||
Other reconciling items, net of tax (6) | (1.1 | ) | 4.0 | 5.9 | 0.9 | ||||||||||
Adjusted net income attributable to Invesco Ltd. | 233.0 | 271.4 | 437.8 | 543.5 | |||||||||||
Average shares outstanding - diluted | 419.1 | 432.2 | 419.1 | 432.3 | |||||||||||
Diluted EPS | $0.54 | $0.60 | $0.92 | $1.20 | |||||||||||
Adjusted diluted EPS*** | $0.56 | $0.63 | $1.04 | $1.26 |
* | Operating margin is equal to operating income divided by operating revenues. |
** | Adjusted operating margin is equal to adjusted operating income divided by net revenues. |
*** | Adjusted diluted EPS is equal to adjusted net income attributable to Invesco Ltd. divided by the weighted average number of common and restricted shares outstanding. There is no difference between the calculated earnings per share amounts presented above and the calculated earnings per share amounts under the two class method. |
(1) | Proportional share of net revenues and operating income from joint venture investments |
(2) | Third-party distribution, service and advisory expenses |
(3) | CIP |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions, except per share data | 2016 | 2015 | 2016 | 2015 | |||||||
Management fees earned from CIP, eliminated upon consolidation | 4.7 | 8.0 | 9.7 | 14.9 | |||||||
Performance fees earned from CIP, eliminated upon consolidation | 0.4 | 2.4 | 0.9 | 4.8 | |||||||
CIP related adjustments in arriving at net revenues | 5.1 | 10.4 | 10.6 | 19.7 |
(4) | Business combinations |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Business combinations: | |||||||||||
Intangible amortization expense | 3.4 | 2.6 | 6.9 | 5.3 | |||||||
Employee compensation expense | 0.3 | — | 5.7 | — | |||||||
Other business combination-related items | 0.8 | — | 1.4 | 1.2 | |||||||
Adjustments to operating income | 4.5 | 2.6 | 14.0 | 6.5 | |||||||
Changes in the fair value of contingent consideration | 15.1 | — | 11.6 | — | |||||||
Other-than-temporary impairment | — | — | 17.8 | — | |||||||
Taxation: | |||||||||||
Taxation on amortization | (0.3 | ) | (0.3 | ) | (0.7 | ) | 4.4 | ||||
Taxation on employee compensation expense | (0.1 | ) | — | (2.1 | ) | — | |||||
Deferred taxation | 4.7 | 5.1 | 9.6 | 5.3 | |||||||
Taxation on other business combination-related items | (0.3 | ) | — | (0.6 | ) | (0.5 | ) | ||||
Taxation on changes in the fair value of contingent consideration | (5.7 | ) | — | (4.4 | ) | — | |||||
Adjustments to net income attributable to Invesco Ltd. | 17.9 | 7.4 | 45.2 | 15.7 |
(5) | Market movement on deferred compensation plan liabilities |
(6) | Other reconciling items |
Three months ended June 30, | Six months ended June 30, | ||||||||||
$ in millions | 2016 | 2015 | 2016 | 2015 | |||||||
Other non-GAAP adjustments: | |||||||||||
Business optimization charges: (a) | |||||||||||
Employee compensation | 4.4 | — | 8.4 | — | |||||||
Consulting and temporary labor | 5.5 | — | 8.6 | — | |||||||
Property, office and technology | 0.4 | (6.4 | ) | 0.1 | (6.4 | ) | |||||
Regulatory charge (b) | (4.9 | ) | — | 1.1 | — | ||||||
Legal fees for regulatory charge (b) | — | — | |||||||||
Fund reimbursement expense (c) | — | 4.7 | — | 4.7 | |||||||
Adjustments to operating income | 5.4 | (1.7 | ) | 18.2 | (1.7 | ) | |||||
Foreign exchange hedge (gain)/loss (d) | (8.4 | ) | 6.2 | (9.8 | ) | 3.1 | |||||
Taxation: | |||||||||||
Taxation on business optimization charges (a) | (3.2 | ) | 1.3 | (5.5 | ) | 1.3 | |||||
Taxation on regulatory-related charges (b) | 1.9 | — | (0.4 | ) | — | ||||||
Taxation on fund reimbursement expense (c) | — | (1.8 | ) | — | (1.8 | ) | |||||
Taxation on foreign exchange hedge amortization (d) | 3.2 | — | 3.4 | — | |||||||
Adjustments to net income attributable to Invesco Ltd. | (1.1 | ) | 4.0 | 5.9 | 0.9 |
(a) | Business optimization: Operating expense for the three and six months ended June 30, 2016 include costs associated with a business transformation initiative that include severance costs of $4.4 million and $8.4 million, respectively (three and six months ended June 30, 2015: zero), consulting and temporary labor costs of $5.5 million and $8.6 million, respectively (three and six months ended June 30, 2015: zero) and a property related costs of $0.4 million and $0.1 million, respectively, (three and six months ended June 30, 2015: $6.4 million credit) associated with vacating leased properties. |
(b) | General and administrative expense for the three and six months ended June 30, 2016 include a settlement credit of $4.9 million, and a net settlement charge of $1.1 million, respectively (three and six months ended June 30, 2015: zero) pertaining to regulatory actions. |
(c) | General and administrative expenses for the three and six months ended June 30, 2015 included a charge of $4.7 million multi-year fund reimbursement expense associated with historical private equity management fees and related professional services fees. The charge resulted primarily from using a more appropriate methodology regarding the calculation of offsets to management fees. |
(d) | Included within other gains and losses, net is the mark-to-market of foreign exchange put option contracts intended to provide protection against the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. These contracts provide coverage through March 31, 2017. The adjustment from U.S. GAAP to non-GAAP earnings removes the impact of market volatility; therefore, the company's non-GAAP results include only the amortization of the cost of the contracts during the contract period. |
Six months ended June 30, 2016 | Six months ended June 30, 2015 | ||||||||||
$ in millions | Impact of CIP | Invesco Ltd. Consolidated | Impact of CIP | Invesco Ltd. Consolidated | |||||||
Operating activities: | |||||||||||
Net income | 7.4 | 394.3 | (3.1 | ) | 528.0 | ||||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||||||
Amortization and depreciation | — | 49.9 | — | 46.0 | |||||||
Share-based compensation expense | — | 79.1 | — | 76.7 | |||||||
Other (gains)/losses, net | 0.9 | 8.9 | 3.9 | 6.1 | |||||||
Other (gains)/losses of CSIP, net | — | — | — | (8.2 | ) | ||||||
Other (gains)/losses of CIP, net | (0.4 | ) | (0.4 | ) | (4.7 | ) | (4.7 | ) | |||
Equity in earnings of unconsolidated affiliates | 1.6 | 7.6 | 1.2 | (23.8 | ) | ||||||
Dividends from unconsolidated affiliates | — | 0.9 | — | 1.4 | |||||||
Changes in operating assets and liabilities: | |||||||||||
(Increase)/decrease in cash held by CIP | (8.9 | ) | (8.9 | ) | 88.3 | 88.3 | |||||
(Increase)/decrease in cash held by CSIP | — | — | — | (4.9 | ) | ||||||
(Purchase)/sale of investments by CIP, net | (118.5 | ) | (118.5 | ) | — | — | |||||
(Purchase)/sale of trading investments, net | (3.5 | ) | (14.7 | ) | — | (55.1 | ) | ||||
(Increase)/decrease in receivables | (7.8 | ) | (1,823.9 | ) | (18.1 | ) | (2,049.9 | ) | |||
Increase/(decrease) in payables | 19.4 | 1,600.3 | 5.9 | 1,858.6 | |||||||
Net cash provided by/(used in) operating activities | (109.8 | ) | 174.6 | 73.4 | 458.5 | ||||||
Investing activities: | |||||||||||
Purchase of property, equipment and software | — | (65.3 | ) | — | (50.4 | ) | |||||
Purchase of available-for-sale investments | 5.0 | (4.1 | ) | 45.1 | (35.6 | ) | |||||
Sale of available-for-sale investments | (4.6 | ) | 5.7 | (32.5 | ) | 18.0 | |||||
Purchase of investments by CIP | (1,220.1 | ) | (1,220.1 | ) | (1,927.1 | ) | (1,927.1 | ) | |||
Sale of investments by CIP | 908.4 | 908.4 | 1,591.1 | 1,591.1 | |||||||
Purchase of investments by CSIP | — | — | — | (273.2 | ) | ||||||
Sale of investments by CSIP | — | — | — | 274.7 | |||||||
Purchase of other investments | 16.8 | (61.6 | ) | 0.5 | (89.4 | ) | |||||
Sale of other investments | — | 53.3 | — | 59.7 | |||||||
Returns of capital and distributions from unconsolidated partnership investments | (3.4 | ) | 22.8 | (0.1 | ) | 34.4 | |||||
Purchase of business | — | (121.9 | ) | — | — | ||||||
Net cash provided by/(used in) investing activities | (297.9 | ) | (482.8 | ) | (323.0 | ) | (397.8 | ) | |||
Financing activities: | |||||||||||
Proceeds from exercises of share options | — | — | — | 1.2 | |||||||
Purchases of treasury shares | — | (205.0 | ) | — | (158.1 | ) | |||||
Dividends paid | — | (230.6 | ) | — | (224.6 | ) | |||||
Excess tax benefits from share-based compensation | — | (3.1 | ) | — | 18.3 | ||||||
Third-party capital invested into CIP | 141.1 | 141.1 | 17.9 | 17.9 | |||||||
Third-party capital distributed by CIP | (44.8 | ) | (44.8 | ) | (64.1 | ) | (64.1 | ) | |||
Third-party capital invested into CSIP | — | — | — | 1.7 | |||||||
Borrowings of debt by CIP | 387.3 | 387.3 | 945.9 | 945.9 | |||||||
Repayments of debt by CIP | (75.9 | ) | (75.9 | ) | (650.1 | ) | (650.1 | ) | |||
Net borrowings/(repayments) under credit facility | — | — | — | 7.9 | |||||||
Payment of contingent consideration | — | (6.2 | ) | — | — | ||||||
Net cash provided by/(used in) financing activities | 407.7 | (37.2 | ) | 249.6 | (104.0 | ) | |||||
Increase/(decrease) in cash and cash equivalents | — | (345.4 | ) | — | (43.3 | ) | |||||
Foreign exchange movement on cash and cash equivalents | — | (59.8 | ) | — | (5.2 | ) | |||||
Cash and cash equivalents, beginning of period | — | 1,851.4 | — | 1,514.2 | |||||||
Cash and cash equivalents, end of period | — | 1,446.2 | — | 1,465.7 |
$ in millions | June 30, 2016 | December 31, 2015 | |||
Floating rate credit facility expiring August 7, 2020 | — | — | |||
Unsecured Senior Notes: | |||||
$600 million 3.125% - due November 30, 2022 | 596.1 | 596.1 | |||
$600 million 4.000% - due January 30, 2024 | 592.8 | 592.7 | |||
$500 million 3.750% - due January 15, 2026 | 494.3 | 494.2 | |||
$400 million 5.375% - due November 30, 2043 | 389.5 | 389.8 | |||
Long-term debt | 2,072.7 | 2,072.8 |
$ millions | Total | Q2 2016 | Q1 2016 | Q4 2015 | Q3 2015 | ||||||||||
Net income attributable to Invesco Ltd. | 837.7 | 225.5 | 161.0 | 201.9 | 249.3 | ||||||||||
Impact of CIP on net income attributable to Invesco Ltd. | 33.0 | (8.0 | ) | 8.4 | 19.4 | 13.2 | |||||||||
Tax expense | 342.9 | 83.7 | 71.9 | 86.9 | 100.4 | ||||||||||
Amortization/depreciation/impairment | 97.5 | 25.2 | 24.7 | 25.0 | 22.6 | ||||||||||
Interest expense | 89.4 | 22.1 | 23.9 | 23.0 | 20.4 | ||||||||||
Share-based compensation expense | 152.7 | 40.4 | 38.7 | 37.4 | 36.2 | ||||||||||
Unrealized gains and losses from investments, net* | 17.3 | 12.1 | 16.4 | (2.4 | ) | (8.8 | ) | ||||||||
EBITDA** | 1,570.5 | 401.0 | 345.0 | 391.2 | 433.3 | ||||||||||
Adjusted debt** | $2,084.4 | ||||||||||||||
Leverage ratio (Debt/EBITDA - maximum 3.25:1.00) | 1.33 | ||||||||||||||
Interest coverage (EBITDA/Interest Expense - minimum 4.00:1.00) | 17.57 |
* | Adjustments for unrealized gains and losses from investments, as defined in our credit facility, may also include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures. |
** | EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBITDA above (a reconciliation from net income attributable to Invesco Ltd.) is defined by our credit agreement, and therefore net income attributable to Invesco Ltd. is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of Adjusted debt is defined in our credit facility and equals total debt of $2,072.7 million plus $11.7 million in letters of credit. |
• | Causing the value of AUM to decrease. |
• | Causing the returns realized on AUM to decrease (impacting performance fees). |
• | Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve. |
• | Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage. |
• | Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues. |
• | In the event of extreme circumstances, including economic, political, or business crises, such as a widespread systemic failure or disruptions in the global financial system or failures of firms that have significant obligations as counterparties on financial instruments, we may suffer significant declines in AUM and severe liquidity or valuation problems in managed investment products in which client and company assets are invested, all of which would adversely affect our operating results, financial condition, liquidity, credit ratings, ability to access capital markets, and retention and ability to attract key employees. Additionally, these factors could impact our ability to realize the carrying value of our goodwill and other intangible assets. |
• | In addition to the impact of the market volatility on client portfolios, illiquidity and/or volatility of the global fixed income and/or equity markets could negatively affect our ability to manage client inflows and outflows or to timely meet client redemption requests. |
• | Our money market funds have always maintained a net asset value (NAV) of $1.00 per share; however, we do not guarantee such level. Market conditions could lead to severe liquidity issues in money market products, which could affect their NAVs. |
• | If the NAV of one of our money market funds were to decline below $1.00 per share, such funds could experience significant redemptions in AUM, loss of shareholder confidence and reputational harm. In the U.S., regulations requiring a variable (“floating”) NAV for institutional money market funds will become effective in 2016. |
• | Even if central bank, legislative or regulatory initiatives or other efforts continue to stabilize the financial markets, we may need to modify our strategies, businesses or operations, and we may incur increased capital requirements and constraints or additional costs in order to satisfy new regulatory requirements or to compete in a changed business environment. |
• | More broadly, uncertainties regarding geopolitical developments can produce volatility in global financial markets. In this regard, the U.K. electorate voted on June 23, 2016 to exit the European Union (“Brexit”). The vote to exit resulted in market volatility that may continue during the Brexit negotiation process. This may impact the levels and composition of our AUM and also negatively impact investor sentiment, which could result in reduced or negative flows. In addition, because the U.K. Pound Sterling is the functional currency for certain of our subsidiaries, any weakening of the U.K. Pound Sterling relative to the U.S. dollar related to a Brexit could negatively impact our reported financial results. |
Month | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Maximum Number at end of period (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs(2) (millions) | |||||||||
April 1-30, 2016 | 22,617 | $ | 29.63 | — | $553.0 | ||||||||
May 1-31, 2016 | 1,898,657 | $ | 29.56 | 1,895,000 | $497.0 | ||||||||
June 1-30, 2016 | 5,491,966 | $ | 26.31 | 5,473,632 | $353.0 | ||||||||
Total | 7,413,240 | 7,368,632 |
(1) | An aggregate of 44,608 shares were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards. |
(2) | In October 2013, our board of directors authorized a $1.5 billion share repurchase plan of our common shares with no stated expiration date. As of June 30, 2016, $353.0 million remained authorized under this plan. On July 22, 2016, the company's board of directors authorized an additional $1.5 billion for the share repurchase plan with no stated expiration date. |
3.1 | Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007 |
3.2 | Second Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including May 15, 2014, incorporated by reference to Exhibit 3.2 to Invesco’s Quarterly Report of Form 10-Q, filed with the Securities and Exchange Commission on July 31, 2014 |
31.1 | Certification of Martin L. Flanagan pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Certification of Loren M. Starr pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1 | Certification of Martin L. Flanagan pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Certification of Loren M. Starr pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB | XBRL Taxonomy Extension Definition Linkbase Document |
101.PRE | XBRL Taxonomy Extension Labels Linkbase Document |
101.DEF | XBRL Taxonomy Extension Presentation Linkbase Document |
INVESCO LTD. | |
July 28, 2016 | /s/ MARTIN L. FLANAGAN |
Martin L. Flanagan | |
President and Chief Executive Officer | |
July 28, 2016 | /s/ LOREN M. STARR |
Loren M. Starr | |
Senior Managing Director and Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
July 28, 2016 | /s/ MARTIN L. FLANAGAN | |
Martin L. Flanagan | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
July 28, 2016 | /s/ LOREN M. STARR | |
Loren M. Starr | ||
Senior Managing Director and Chief Financial Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
July 28, 2016 | /s/ MARTIN L. FLANAGAN | |
Martin L. Flanagan | ||
President and Chief Executive Officer |
1. | the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
July 28, 2016 | /s/ LOREN M. STARR | |
Loren M. Starr | ||
Senior Managing Director and Chief Financial Officer |
9"K>9"
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M_[7%Q0 Z7--%
M?6-3L@$ZUA-;J0>*B\@DMQ=7 Y$)T# '>F)+%!5&3;8/T.$AO$=L F,0H[8H
MM-4 "4"$E9" BZ$ S1!)+6,E5*-Y.F9\S/-V\A47^B
M7E<0(B%4_M$LK3&$(A!9F/\"?$Y86(%6&_8G(8-HCA%B=![7,%^E8Z+3&'NB
MB=[E
Document and Entity Information |
6 Months Ended |
---|---|
Jun. 30, 2016
shares
| |
Document Information [Abstract] | |
Entity Registrant Name | Invesco Ltd. |
Entity Central Index Key | 0000914208 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Document Fiscal Year Focus | 2016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 409,916,128 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.2 | $ 0.2 |
Common stock, shares authorized | 1,050,000,000 | 1,050,000,000.0 |
Common stock, shares issued | 490,400,000 | 490,400,000 |
Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Corporate Information Invesco Ltd. (Parent) and all of its consolidated entities (collectively, the company or Invesco) provide retail and institutional clients with an array of global investment management capabilities. The company operates globally and its sole business is investment management. Certain disclosures included in the company's annual report are not required to be included on an interim basis in the company's quarterly reports on Forms 10-Q. The company has condensed or omitted these disclosures. Therefore, this Form 10-Q (Report) should be read in conjunction with the company's annual report on Form 10-K for the year ended December 31, 2015. Basis of Accounting and Consolidation The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with rules and regulations of the Securities and Exchange Commission and consolidate the financial statements of the Parent and all of its controlled subsidiaries. In the opinion of management, the financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair statement of the financial condition and results of operations for the periods presented. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, CLOs, and other investment products sponsored by the company in the normal course of business for the investment of client assets. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of these products. In addition to consolidating the financial statements of the Parent and all of its controlled subsidiaries, the Condensed Consolidated Financial Statements include the consolidation of certain investment products (“Consolidated Investment Products” or "CIP") that meet the definition of either a voting rights entity (“VOE”), if the company is deemed to have a controlling financial interest in the fund, or a variable interest entity (“VIE”) if the company has been deemed to be the primary beneficiary of the fund. At June 30, 2016, all CIP were VIEs. Certain of these investment products, typically CLOs, funds that are structured as partnership entities (such as private equity funds, real estate funds, and fund-of-funds), and certain non-U.S. mutual funds, are considered, for accounting and consolidation analysis purposes, to be VIEs if the VIE criteria are met. A VIE, in the context of the company and its managed funds, is a fund that does not have sufficient equity to finance its operations without additional subordinated financial support, or a fund for which the risks and rewards of ownership are not directly linked to voting interests. If the company is deemed to have the power to direct the activities of the fund that most significantly impact the fund's economic performance, and the obligation to absorb losses/right to receive benefits from the fund that could potentially be significant to the fund, then the company is deemed to be the fund's primary beneficiary and is required to consolidate the fund. The company's economic risk with respect to each investment in a CIP is limited to its equity ownership and any uncollected management and performance fees. See Note 13, "Consolidated Investment Products," for additional information regarding the impact of CIP. Consolidation Analysis The company inventories its funds by vehicle type on a quarterly basis. The company assesses modifications to existing funds on an ongoing basis to determine if a significant reconsideration event has occurred. The consolidation analysis includes a detailed review of the terms of the fund's governing documents and a comparison of the significant terms against the consolidation criteria in ASC 810, including a determination of whether the fund is a VIE or a VOE. Seed money and co-investments in managed funds in which the company has determined that it is the primary beneficiary or in which the company has a controlling financial interest are consolidated if the impact of doing so is deemed material. Otherwise, these investments are accounted for as described in the “Investments” accounting policy in the Form 10-K for the year-ended December 31, 2015. Upon consolidation of CLOs, the company's and the funds' accounting policies are effectively aligned, resulting in the reclassification of the company's gain or loss (representing the changes in the market value of the company's holding in the consolidated fund) from other comprehensive income into other gains/losses. The company's gain or loss on its investment (before consolidation) eliminates with the company's share of the offsetting loss or gain on the fund. The net impact from consolidation of funds previously carried as available for sale investments to net income attributable to Invesco Ltd. in each period primarily represents the changes in the value of the company's holding in its consolidated CLOs. Consolidation of CLOs A significant portion of VIEs are CLOs. CLOs are investment vehicles created for the sole purpose of issuing collateralized loan instruments that offer investors the opportunity for returns that vary with the risk level of their investment. The notes issued by the CLOs are backed by diversified collateral asset portfolios consisting primarily of loans or structured debt. For managing the collateral of the CLO entities, the company earns investment management fees, including in some cases subordinated management fees, as well as contingent performance fees. The company has invested in certain of the entities, generally taking a portion of the unrated, junior subordinated position. The company's investments in CLOs are generally subordinated to other interests in the entities and entitle the company and other subordinated tranche investors to receive the residual cash flows, if any, from the entities. The company's subordinated interest can take the form of (1) subordinated notes, (2) income notes or (3) preference/preferred shares. The company has determined that, although the junior tranches have certain characteristics of equity, they should be accounted for and disclosed as debt on the company's Condensed Consolidated Balance Sheets, as the subordinated and income notes have a stated maturity indicating a date for which they are mandatorily redeemable. The preference shares are also classified as debt, as redemption is required only upon liquidation or termination of the CLO and not of the company. The company determined that it was the primary beneficiary of certain CLOs, as it has the power to direct the activities of the CLOs that most significantly impact the CLOs' economic performance, and the obligation to absorb losses/right to receive benefits from the CLOs that could potentially be significant to the CLOs. The primary beneficiary assessment includes an analysis of the rights of the company in its capacity as investment manager. In some CLOs, the company's role as investment manager provides that the company contractually has the power, as defined in ASC Topic 810, to direct the activities of the CLOs that most significantly impact the CLOs' economic performance, such as managing the collateral portfolio and the CLO's credit risk. In other CLOs, the company determined that it does not have this power in its role as investment manager due to certain rights held by other investors in the products or restrictions that limit the company's ability to manage the collateral portfolio and its credit risk. Additionally, the primary beneficiary assessment includes an analysis of the company's rights to receive benefits and obligations to absorb losses associated with its first loss position and management/performance fees. The company has elected the fair value option under ASC Topic 825-10-25 to measure the assets of all consolidated CLOs at fair value. All of the investments held by VIEs are presented at fair value in the company's Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015. The company adopted ASU 2014-13 on January 1, 2015, and accordingly the notes issued by consolidated CLOs are no longer carried at fair value but are now measured under the measurement alternative discussed in Accounting Standard Update 2014-13, "Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity" (ASU 2014-13). The measurement alternative requires that the reporting entity measure both the financial assets and the financial liabilities of the CFE by using the more observable of the fair value of the financial assets and the fair value of the financial liabilities, removing any measurement difference previously recorded as net income (loss) attributable to noncontrolling interests in consolidated entities and as an adjustment to retained earnings appropriated for investors in CIP. The company’s subsequent earnings from consolidated CLOs reflect changes in fair value of its own economic interests in the CLOs. Gains or losses on assets and liabilities of the CLOs are not attributed to noncontrolling interests but are offset in other gains/(losses) of CIP. Consolidation of Private Equity, Real Estate, and Fund-of-Funds The company also consolidates certain private equity funds and from time to time real estate funds that are structured as partnerships in which the company is the general partner receiving a management and/or performance fee. Private equity investments made by the underlying funds consist of direct investments in, or fund investments in other private equity funds that hold direct investments in, equity or debt securities in operating companies that are generally not initially publicly traded. Private equity funds are considered investment companies and are therefore accounted for under ASC Topic 946, “Financial Services - Investment Companies.” The company has retained the specialized industry accounting principles of these investment products in its Condensed Consolidated Financial Statements. See Note 13, “Consolidated Investment Products,” for additional details. Consolidation basis The Condensed Consolidated Financial Statements have been prepared primarily on the historical cost basis; however, certain items are presented using other bases such as fair value, where such treatment is required or voluntarily elected, as discussed above. The financial statements of subsidiaries, with the exception of certain CIP, are prepared for the same reporting period as the Parent and use consistent accounting policies, which, where applicable, have been adjusted to U.S. GAAP from local generally accepted accounting principles or reporting regulations. The financial information of certain CIP is included in the company's Condensed Consolidated Financial Statements on a one-month or a three-month lag based upon the availability of fund financial information. Noncontrolling interests in consolidated entities represents the interests in certain entities consolidated by the company either because the company has control over the entity or has determined that it is the primary beneficiary, but of which the company does not own all of the entity's equity. To the extent that noncontrolling interests represent equity which is redeemable or convertible for cash or other assets at the option of the equity holder, these are deemed to represent temporary equity, and are classified as equity attributable to redeemable noncontrolling interests in the Condensed Consolidated Balance Sheets. Nonredeemable noncontrolling interests are classified as a component of permanent equity. Money Market Fee Waivers The company is currently voluntarily providing yield support waivers of its management fees on certain money market funds to ensure that they maintain a minimum level of daily net investment income. During the three and six months ended June 30, 2016, yield support waivers resulted in a reduction of management and service and distribution fees of approximately $4.1 million and $9.0 million, respectively. During the three months ended June 30, 2016, approximately 54% of yield support waivers are offset by a reduction in third party distribution, service and advisory expenses (six months ended June 30, 2015: 50.4%), resulting in a net waiver of $1.9 million (six months ended June 30, 2015: $4.5 million). The company has provided yield support waivers in prior periods and may increase or decrease the level of fee waivers in future periods. Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 was originally effective for fiscal years and interim periods within those years beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 by one year for periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date and requires either a retrospective or a modified retrospective approach to adoption. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Gross versus Net)” (ASU 2016-08). ASU 2016-08 clarified implementation guidance on determining if the entity acts as a principal or agent to the customer when another party is involved in providing goods or services. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (ASU 2016-10). ASU 2016-10 clarifies guidance relating to identifying performance obligations and accounting for an entity’s promise to grant a license. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients” (ASU 2016-12). ASU 2016-12 provides narrow-scope improvements relating to collectibility of consideration, presentation of sales and other similar taxes, noncash consideration, and the definition of completed contracts at transition. ASU 2016-12 also provides a practical expedient for dealing with contract modifications at transition and other technical corrections in applying the retrospective transition method. The company is currently evaluating the potential impact on its Consolidated Financial Statements, as well as the available transition methods. In February 2015, the FASB issued Accounting Standard Update 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The company adopted ASU 2015-02 on January 1, 2016 using the modified retrospective approach, which did not require the restatement of prior periods to conform to the post-adoption presentation. The impacts of the adoption of ASU 2015-02 on January 1, 2016 were as follows: •The company consolidated CIP with total assets and liabilities/equity of $458.5 million. The company deconsolidated CIP with total assets and total liabilities and equity of $3,170.6 million, including CLOs of $2,366.5 million. •VOE partnership entities (consolidated private equity and fund-of-fund entities) became VIEs upon the adoption and were deconsolidated, along with certain VIE partnership entities. •The adoption resulted in the consolidation of certain investment products which became VIEs upon adoption and which were not previously consolidated. •The funds consolidated in prior periods as Consolidated Sponsored Investment Products, "CSIP," became VIEs. Accordingly, with effect from January 1, 2016, the consolidation of all VIEs is presented in the aggregate as part of CIP. See Notes 12, “Consolidated Sponsored Investment Products,” and 13, “Consolidated Investment Products.” In May 2015, the FASB issued Accounting Standards Update 2015-07, "Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)" (ASU 2015-07). ASU 2015-07 removes the requirement to categorize investments within the fair value hierarchy for which fair value is measured using the net asset value (NAV) practical expedient. The company adopted ASU 2015-07 on January 1, 2016; it required retrospective application for each prior period presented. The adoption did not impact the company's financial condition, results of operations or cash flows, as the update relates to financial statement disclosures. See Notes 12, "Consolidated Sponsored Investment Products," and 13, "Consolidated Investment Products." In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01). The standard amends certain aspects of recognition, measurement, presentation, and disclosure of financial assets and liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and, in general, requires a modified retrospective approach to adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets measured at amortized cost and available for sale securities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and requires a modified retrospective approach to adoption. Early adoption in fiscal years, and interim periods within those years, beginning after December 15, 2018 is permitted. The company is currently evaluating the potential impacts of these standards as well as available transition methods. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases” (ASU 2016-02). The standard requires that lessees recognize lease assets and lease liabilities on the balance sheet for all leases with a lease term greater than 12 months. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard. In March 2016, the FASB issued Accounting Standards Update 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). The standard is intended to simplify aspects of the accounting for share-based payment transactions, including income tax impacts, classification on the statement of cash flows, and forfeitures. ASU 2016-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The various amendments within the standard require different approaches to adoption of either retrospective, modified retrospective or prospective. Early adoption is permitted. The company is currently evaluating the potential impact of this standard as well as the available transition methods. |
Fair Value Of Assets And Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | FAIR VALUE OF ASSETS AND LIABILITIES The carrying value and fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CSIP (for the prior period) and CIP are presented in Notes 12, "Consolidated Sponsored Investment Products" and 13, "Consolidated Investment Products," respectively.
A three-level valuation hierarchy exists for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:
An asset or liability's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three types of valuation approaches: a market approach, which uses observable prices and other relevant information that is generated by market transactions involving identical or comparable assets or liabilities; an income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount; and a cost approach, which is based on the amount that currently would be required to replace the service capacity of an asset. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash equivalents Cash investments in money market funds are valued under the market approach through the use of quoted market prices in an active market, which is the net asset value of the underlying funds, and are classified within level 1 of the valuation hierarchy. Available-for-sale investments Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments. At June 30, 2016 and December 31, 2015, investments in CLOs were valued using pricing information obtained by an independent third-party pricing source. Due to liquidity constraints within the market for CLO products that require the use of unobservable inputs, these investments are classified within level 3 of the valuation hierarchy. Other debt securities are valued using a cost valuation technique due to the lack of available cash flow and market data and are accordingly also classified within level 3 of the valuation hierarchy. Trading investments •Investments related to deferred compensation plans Investments related to deferred compensation plans are valued under the market approach through the use of quoted prices in an active market and are classified within level 1 of the valuation hierarchy. •Seed money Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments. •Other equity securities Other equity securities consist of investments in publicly-traded equity securities. These securities are valued under the market approach through the use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. •UIT-related equity and debt securities The company invests in UIT-related equity and debt securities consisting of investments in corporate equities, UITs, and municipal securities. Each is discussed more fully below. Corporate equities The company temporarily holds investments in corporate equities for purposes of creating a UIT. Corporate equities are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. UITs The company may hold units of its sponsored UITs at period-end for sale in the primary market or secondary market. Equity UITs are valued under the market approach through use of quoted prices on an exchange. Fixed income UITs are valued using recently executed transaction prices, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturities as the underlying bonds. If the spread data does not reference the issuers, then data that references comparable issuers is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Municipal securities Municipal securities are valued using recently executed transaction prices, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturities as the underlying bonds. If the spread data does not reference the issuers, then data that references comparable issuers is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Put option contracts The company has purchased several put option contracts to hedge economically foreign currency risk on the translation of a portion of its pound sterling-denominated earnings into U.S. dollars (purchases of zero and $7.0 million in the three and six months ended June 30, 2016, respectively). These were the only contracts entered into during the period to hedge economically foreign currency risk and provide coverage through March 31, 2017. The economic hedge is predominantly triggered upon the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. Open put option contracts are marked-to-market through earnings, which are recorded in the company's Condensed Consolidated Statements of Income in other gains and losses, net. These derivative contracts are valued using option valuation models and are included in other assets in the company's Condensed Consolidated Balance Sheets. The significant inputs in these models (volatility, forward points and swap curves) are readily available in public markets or can be derived from observable market transactions for substantially the full terms of the contracts and are classified within level 2 of the valuation hierarchy. The company recognized a $6.6 million and $9.1 million net gain in the three and six months ended June 30, 2016, respectively (three and six months ended June 30, 2015: $8.4 million and $7.8 million net loss, respectively) related to the change in market value of these put option contracts. Assets held for policyholders Assets held for policyholders are measured at fair value under the market approach based on the quoted prices of the underlying funds in an active market and are classified within level 1 of the valuation hierarchy. The policyholder payables are indexed to the value of the assets held for policyholders and are therefore not included in the tables below. UIT-related financial instruments sold, not yet purchased, and derivative instruments The company uses U.S. Treasury futures, which are types of derivative financial instruments, to hedge economically fixed income UIT inventory and securities in order to mitigate market risk. Open futures contracts are marked-to-market daily through earnings, which are recorded in the company’s Condensed Consolidated Statements of Income in other revenue, along with the mark-to-market on the underlying trading securities held. Fair values of derivative contracts in an asset position are included in other assets in the company’s Condensed Consolidated Balance Sheets. Fair values of derivative contracts in a liability position are included in other liabilities in the company’s Condensed Consolidated Balance Sheets. These derivative contracts are valued under the market approach through use of quoted prices in an active market and are classified within level 1 of the valuation hierarchy. At June 30, 2016 there were 10 futures contracts with a notional value of $1.7 million (December 31, 2015: 15 open futures contracts with a notional value of $1.9 million). Additionally, to hedge economically the market risk associated with equity and debt securities and UITs temporarily held as trading investments, the company will hold short positions in corporate equities, exchange-traded funds, or U.S. treasury security positions. These transactions are recorded as financial instruments sold, not yet purchased and are included in accounts payable and accrued expenses in the company’s Condensed Consolidated Balance Sheets. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. Contingent Consideration Liability During 2015, the company acquired certain investment management contracts from Deutsche Bank. Indefinite-lived intangible assets were valued at $119.3 million. This transaction was a non-cash investing activity during that period. The purchase price was comprised solely of contingent consideration payable in future periods, and is linked to future revenues generated from the contracts. The contingent consideration liability was recorded at fair value as of the date of acquisition using a discounted cash flow model, and is categorized within level 3 of the valuation hierarchy. Anticipated future cash flows were determined using forecast AUM levels and discounted back to the valuation date. The company reassesses significant unobservable inputs during each reporting period. At June 30, 2016 inputs used in the model included assumed growth rates in AUM ranging from 0.69% to 6.67% (weighted average growth rate of 3.41%) and a discount rate of 3.33%. Changes in fair value are recorded in other gains and losses, net in the Condensed Consolidated Statements of Income in the period incurred. An increase in AUM levels and a decrease in the discount rate would increase the fair value of the contingent consideration liability while a decrease in forecasted AUM and an increase in the discount rate would decrease the liability. The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the company's Condensed Consolidated Balance Sheet as of June 30, 2016:
The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the company's Condensed Consolidated Balance Sheet as of December 31, 2015:
The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three and six months ended June 30, 2016 and June 30, 2015, which are valued using significant unobservable inputs:
_______________
|
Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS The disclosures below include details of the company's investments. Investments held by CSIP (for the prior period) and CIP are detailed in Notes 12, "Consolidated Sponsored Investment Products, and 13, "Consolidated Investment Products."
Available for sale investments Realized gains and losses recognized in the Condensed Consolidated Statements of Income during the period from investments classified as available-for-sale are as follows:
Upon the sale of available-for-sale securities, net realized gains of $0.1 million and $0.4 million were transferred from accumulated other comprehensive income into the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2016, (three and six months ended June 30, 2015: $0.5 million and $1.2 million). The specific identification method is used to determine the realized gain or loss on securities sold or otherwise disposed. Gross unrealized holding gains and losses recognized in other accumulated comprehensive income from available-for-sale investments are presented in the table below:
At June 30, 2016, 134 seed money funds (December 31, 2015: 192 seed money funds) had incurred gross unrealized holding losses. The following table provides a breakdown of the unrealized losses.
The company has reviewed investment securities for other-than-temporary impairment (OTTI) in accordance with its accounting policy and has recognized no other-than-temporary impairment charges on available-for-sale investments during the six months ended June 30, 2016 (six months ended June 30, 2015: none). The company reviewed the financial condition and near-term prospects of the underlying securities in the seeded funds as well as the severity and duration of the impairment and concluded that the gross unrealized losses on these securities did not represent other-than-temporary impairments. The securities are expected to recover their value over time and the company has the intent and ability to hold the securities until this recovery occurs. For CLO investments, the company reviewed the estimated future cashflows of each CLO. If the present value of the estimated future cashflows is lower than the carrying value of the investment and there is an adverse change in estimated cashflows, the impairment is considered to be other than temporary. During the six months ended June 30, 2016 and 2015, no other-than-temporary impairment related to credit related factors was recognized. Available-for-sale debt securities as of June 30, 2016 by maturity, are set out below:
Trading investments The portion of trading gains and losses for the three and six months ended June 30, 2016, that relates to trading securities still held at June 30, 2016, was a $3.3 million net gain and $1.6 million net gain, respectively (three and six months ended June 30, 2015: 2.1 million net loss and $1.9 million net loss, respectively). Equity method investments On April 5, 2016, the company purchased the remaining 51% of Invesco Asset Management (India) Private Limited (formerly our joint venture, Religare Invesco Asset Management Company), increasing our interest to 100%, replacing the equity method investment with a fully consolidated subsidiary. At March 31, 2016, Invesco was committed to its plan of acquisition, which under U.S. GAAP requires the company to include any cumulative translation adjustments as part of the carrying value of the investment for the purpose of other-than-temporary impairment testing. As a result, during the three months ended March 31, 2016, the company recorded a non-cash impairment charge of $17.8 million related to its 49% investment in the joint venture. The charge relates entirely to the devaluation of the Indian Rupee against the U.S. Dollar over the period since the 2013 purchase and is included in equity in earnings of unconsolidated affiliates. |
Long-Term Debt |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT The disclosures below include details of the company's debt. Debt of CIP is detailed in Note 13, “Consolidated Investment Products.”
____________
The issuer of the senior notes is an indirect 100% owned finance subsidiary of Invesco Ltd. (the Parent), and the Parent fully and unconditionally guaranteed the securities. The requirement of certain subsidiaries of the Parent to maintain minimum levels of capital and other similar provisions of applicable law may have the effect of limiting withdrawals of capital, repayment of intercompany loans and payment of dividends by such entities. The fair market value of the company's senior notes was determined by market quotes provided by Bloomberg, which is considered a Level 2 valuation input. In the absence of an active market, the company relies upon the average price quoted by brokers for determining the fair market value of the debt. At June 30, 2016, the company's outstanding senior notes of $2,072.7 million mature in periods greater than five years from the balance sheet date. The floating rate credit facility will expire in less than five years. At June 30, 2016, the outstanding balance on the $1.25 billion credit facility was zero (December 31, 2015: zero). Borrowings under the credit facility will bear interest at (i) LIBOR for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month plus 1.00%), plus, in either case, an applicable margin determined with reference to the higher of the available credit ratings of the company or its indirect subsidiary Invesco Finance PLC. Based on credit ratings as of June 30, 2016 of the company, the applicable margin for LIBOR-based loans was 0.875% and for base rate loans was 0.00%. In addition, the company is required to pay the lenders a facility fee on the aggregate commitments of the lenders (whether or not used) at a rate per annum which is based on the higher of the available credit ratings of the company or its indirect subsidiary Invesco Finance PLC. Based on credit ratings as of June 30, 2016, the annual facility fee was equal to 0.125%. The credit agreement governing the credit facility contains customary restrictive covenants on the company and its subsidiaries. Restrictive covenants in the credit agreement include, but are not limited to: prohibitions on creating, incurring or assuming any liens; entering into merger arrangements; selling, leasing, transferring or otherwise disposing of assets; making a material change in the nature of the business; making a significant accounting policy change in certain situations; entering into transactions with affiliates; and incurring indebtedness through the subsidiaries (other than the borrower, Invesco Finance PLC). Many of these restrictions are subject to certain minimum thresholds and exceptions. Financial covenants under the credit agreement include: (i) the quarterly maintenance of a debt/EBITDA leverage ratio, as defined in the credit agreement, of not greater than 3.25:1.00, (ii) a coverage ratio (EBITDA, as defined in the credit agreement/interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00. The credit agreement governing the credit facility also contains customary provisions regarding events of default which could result in an acceleration or increase in amounts due, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain judgments, ERISA matters, cross-default to other debt agreements, governmental action prohibiting or restricting the company or its subsidiaries in a manner that has a material adverse effect and failure of certain guaranty obligations. The company is in compliance with all regulatory minimum net capital requirements. The lenders (and their respective affiliates) may have provided, and may in the future provide, investment banking, cash management, underwriting, lending, commercial banking, leasing, foreign exchange, trust or other advisory services to the company and its subsidiaries and affiliates. These parties may have received, and may in the future receive, customary compensation for these services. The company maintains approximately $11.7 million in letters of credit from a variety of banks. The letters of credit are generally one-year automatically-renewable facilities and are maintained for various commercial reasons. |
Share Capital |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
SHARE CAPITAL | SHARE CAPITAL The number of common shares and common share equivalents issued are represented in the table below:
Total treasury shares at June 30, 2016 were 90.0 million (December 31, 2015: 81.3 million), including 9.5 million unvested restricted stock awards (December 31, 2015: 8.4 million) for which dividend and voting rights apply. The market price of common shares at June 30, 2016 was $25.54. The total market value of the company's 90.0 million treasury shares was $2.3 billion at June 30, 2016. Unsettled market share repurchases during the second quarter of 2016 included 4.7 million shares, included in treasury shares at June 30, 2016, at cost of $120 million under the $150 million Accelerated Share Repurchase program announced on June 30, 2016. |
Other Comprehensive Income/(Loss) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME/(LOSS) | OTHER COMPREHENSIVE INCOME/(LOSS) The components of accumulated other comprehensive income/(loss) were as follows:
Net Investment Hedge During the second quarter 2016, the Company designated certain intercompany debt as a non-derivative net investment hedging instrument against foreign currency exposure related to its net investment in foreign operations. At June 30, 2016, £130 million ($173.9 million) of intercompany debt was designated as a net investment hedge. For the six months ended June 30, 2016, the Company recognized foreign currency gains of $13.3 million resulting from the net investment hedge within currency translation differences on investments in foreign subsidiaries in other comprehensive income. No hedge ineffectiveness was recognized in income. |
Share-Based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The company recognized total expenses of $79.1 million and $76.7 million related to equity-settled share-based payment transactions in the six months ended June 30, 2016 and June 30, 2015, respectively. The company has not granted share option awards under share-based compensation arrangements since 2005. The awards had a ten-year life; all share options expired at December 31, 2015. Cash received from exercise of share options in the six months ended June 30, 2015 was $1.2 million. Share Awards Movements on share awards during the periods ended June 30, are detailed below:
Share awards outstanding at June 30, 2016, had a weighted average remaining contractual life of 1.73 years. The total fair value of shares that vested during the six months ended June 30, 2016 was $118.1 million (six months ended June 30, 2015: $183.5 million). The weighted average grant date fair value of the U.S. Dollar share awards that were granted during the six months ended June 30, 2016 was $27.39 (six months ended June 30, 2015: $40.26). At June 30, 2016, there was $354.1 million of total unrecognized compensation cost related to non-vested share awards; that cost is expected to be recognized over a weighted average period of 2.77 years. |
Retirement Benefit Plans |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT BENEFIT PLANS | RETIREMENT BENEFIT PLANS Defined Contribution Plans The total amounts charged to the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2016 of $15.2 million and $30.4 million, respectively (three and six months ended June 30, 2015: $15.3 million and $30.7 million, respectively) represent contributions paid or payable to these plans by the company at rates specified in the rules of the plans. As of June 30, 2016, accrued contributions of $14.9 million (December 31, 2015: $24.5 million) for the current year will be paid to the plans. Defined Benefit Plans The components of net periodic benefit cost in respect of these defined benefit plans are as follows:
The estimated amounts of contributions expected to be paid to the plans during 2016 are $15.5 million for retirement plans and none for the medical plan. Payments made to the plans during the six months ended June 30, 2016 were $7.8 million to the retirement plan and zero to the medical plan. |
Taxation |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
TAXATION | TAXATION At June 30, 2016, the total amount of gross unrecognized tax benefits was $10.0 million as compared to the December 31, 2015 total of $9.6 million. |
Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The calculation of earnings per share is as follows:
See Note 7, “Share-Based Compensation,” for a summary of share awards outstanding under the company's share-based compensation programs. These programs could result in the issuance of common shares from time to time that would affect the measurement of basic and diluted earnings per share. There were no time-vested based awards that were excluded from the computation of diluted earnings per share during the six months ended June 30, 2016 and 2015, due to their inclusion being anti-dilutive. There were 0.2 million contingently issuable shares excluded from the diluted earnings per share computation during the six months ended June 30, 2016 (six months ended June 30, 2015: 0.4 million), because the necessary performance conditions for the shares to be issuable had not yet been satisfied at the end of the respective period. |
Commitments And Contingencies |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies may arise in the ordinary course of business. Off Balance Sheet Commitments The company has transactions with various private equity, real estate and other investment entities sponsored by the company for the investment of client assets in the normal course of business. Many of the company's investment products are structured as limited partnerships. The company's investment may take the form of the general partner or a limited partner. The entities are structured such that each partner makes capital commitments that are to be drawn down over the life of the partnership as investment opportunities are identified. At June 30, 2016, the company's undrawn capital commitments were $233.9 million (December 31, 2015: $185.6 million). The Parent and various company subsidiaries have entered into agreements with financial institutions to guarantee certain obligations of other company subsidiaries. The company would be required to perform under these guarantees in the event of certain defaults. The company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. Legal Contingencies The company is from time to time involved in litigation relating to claims arising in the ordinary course of its business. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the company. There are many reasons that the company cannot make these assessments, including, among others, one or more of the following: the proceeding is in its early stages; the damages sought are unspecified, unsupportable, unexplained or uncertain; the claimant is seeking relief other than compensatory damages; the matter presents novel legal claims or other meaningful legal uncertainties; discovery has not started or is not complete; there are significant facts in dispute; and there are other parties who may share in any ultimate liability. In management’s opinion, adequate accrual has been made as of June 30, 2016 to provide for any such losses that may arise from matters for which the company could reasonably estimate an amount. Management is of the opinion that the ultimate resolution of such claims will not materially affect the company’s business, financial position, results of operation or liquidity. Furthermore, in management’s opinion, it is not possible to estimate a range of reasonably possible losses with respect to other litigation contingencies. The investment management industry also is subject to extensive levels of ongoing regulatory oversight and examination. In the United States, United Kingdom, and other jurisdictions in which the company operates, governmental authorities regularly make inquiries, hold investigations and administer market conduct examinations with respect to the company's compliance with applicable laws and regulations. Additional lawsuits or regulatory enforcement actions arising out of these inquiries may in the future be filed against the company and related entities and individuals in the United States, United Kingdom, and other jurisdictions in which the company and its affiliates operate. Any material loss of investor and/or client confidence as a result of such inquiries and/or litigation could result in a significant decline in assets under management, which would have an adverse effect on the company’s future financial results and its ability to grow its business. General and administrative expenses in the three and six months ended June 30, 2016 include a settlement credit of $4.9 million and a net settlement charge of $1.1 million, respectively (three and six months ended June 30, 2015: zero) pertaining to regulatory investigations. |
Consolidated Sponsored Investment Products |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED SPONSORED INVESTMENT PRODUCTS | CONSOLIDATED SPONSORED INVESTMENT PRODUCTS Upon the adoption of ASU 2015-02, the funds consolidated in prior periods as CSIP became VIEs. Accordingly, with effect from January 1, 2016, the consolidation of all VIEs is presented in the aggregate as part of CIP. See Note 13, "Consolidated Investment Products." The following table presents the balances related to CSIP that were included on the Condensed Consolidated Balance Sheet at December 31, 2015.
The carrying value of investments held by CSIP is also their fair value. The following table presents the fair value hierarchy levels of investments held by CSIP, which are measured at fair value as of December 31, 2015:
The tables below summarizes as of December 31, 2015 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:
__________________ (1) 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. (2) 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. Equity securities are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. Fixed income securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Refer to Note 13, "Consolidated Investment Products," for additional discussion regarding the fair value of private equity funds. |
Consolidated Investment Products |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Investment Products [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED INVESTMENT PRODUCTS | CONSOLIDATED INVESTMENT PRODUCTS Upon the adoption of ASU 2015-02, the funds consolidated in prior periods as CSIP and certain VOEs became VIEs. Additionally, certain VIEs were deconsolidated on the date of adoption (see Note 1, “Accounting Policies,” and the transition date impact table below). The following table presents the balances related to CIP, consolidated as defined in each period, that are included on the Condensed Consolidated Balance Sheets. At June 30, 2016, all CIP were VIEs.
The following tables reflect the impact of consolidation of investment products into the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015:
The company's risk with respect to each investment in CIP is limited to its equity ownership and any uncollected management and performance fees. The company has no right to the benefits from, nor does it bear the risks associated with, these investments, beyond the company's direct investments in, and management and performance fees generated from, the investment products. If the company were to liquidate, these investments would not be available to the general creditors of the company, and as a result, the company does not consider investments held by CIP to be company assets. Additionally, the collateral assets of consolidated collateralized loan obligations (CLOs) are held solely to satisfy the obligations of the CLOs, and the investors in the consolidated CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. Transition date impact of adoption of ASU 2015-02
Non-consolidated VIEs At June 30, 2016, the company's carrying value and maximum risk of loss with respect to VIEs in which the company is not the primary beneficiary was $277.9 million. Balance Sheet information - newly consolidated VIEs/VOEs During the six months ended June 30, 2016, the company consolidated five new VIEs (June 30, 2015: the company invested in and consolidated one new VIE and one new VOE.) The table below illustrates the summary balance sheet amounts related to these products before consolidation into the company. The balances below are reflective of the balances existing at the consolidation date after the initial funding of the investments by the company and unrelated third-party investors. The current period activity for the consolidated funds, including the initial funding and subsequent investment of initial cash balances into underlying investments of CIP, is reflected in the company’s Condensed Consolidated Financial Statements.
During the six months ended June 30, 2016, the company determined that it was no longer the primary beneficiary of four VIEs. The amounts deconsolidated from the Condensed Consolidated Balance Sheet are illustrated in the table below. There was no net impact to the Condensed Consolidated Statement of Income for the six months ended June 30, 2016 from the deconsolidation of the investment product.
The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of June 30, 2016 and December 31, 2015:
The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities using significant unobservable inputs:
____________
Unforeseen events might occur that would subsequently change the fair values of the investments (and therefore the debt of CLOs, since it is measured as a calculated value based upon the fair value of the assets of CLOs, but the impact of such changes would be limited to the change in the fair values of the company's investments in these products. The impact of any gains or losses resulting from valuation changes in the investments of non-CLO CIP attributable to the interests of third parties are offset by resulting changes in gains and losses attributable to noncontrolling interests in consolidated entities and therefore do not have a material effect on the financial condition, operating results (including earnings per share), liquidity or capital resources of the company's common shareholders. Similarly, any gains or losses resulting from valuation changes in the investments of CLOs attributable to the interests of third parties are offset by the calculated value of the notes issued by the CLOs (offsetting in other gains/(losses) of CIP) and therefore also do not have a material effect on the financial condition, operating results (including earnings per share), liquidity or capital resources of the company's common shareholders. Value of consolidated CLOs The company elected the fair value option for collateral assets held and notes issued by its consolidated CLOs to eliminate the measurement and recognition inconsistency that would otherwise arise from measuring assets and liabilities and recognizing the related gains and losses on different accounting bases. On January 1, 2015 the company adopted ASU 2014-13 and has elected the measurement alternative for the consolidated CLOs under which the notes issued by the CLOs are measured based on the fair value of the assets of the CLOs. The collateral assets held by consolidated CLOs are primarily invested in senior secured bank loans, bonds, and equity securities. Bank loan investments of $3,485.3 million, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans from a variety of industries, including but not limited to the aerospace and defense, broadcasting, technology, utilities, household products, healthcare, oil and gas, and finance industries. Bank loan investments mature at various dates between 2016 and 2024, pay interest at Libor plus a spread of up to 9.5%, and typically range in S&P credit rating categories from BBB down to unrated. Interest income on bank loans and bonds is recognized based on the unpaid principal balance and stated interest rate of these investments on an accrual basis. At June 30, 2016, the unpaid principal balance exceeds the fair value of the senior secured bank loans and bonds by approximately $123.1 million (December 31, 2015: the unpaid principal balance exceeded the fair value of the senior secured bank loans and bonds by approximately $319.9 million). Approximately 0.4% of the collateral assets are in default as of June 30, 2016 (December 31, 2015: less than 0.1% of the collateral assets were in default). CLO investments are valued based on price quotations provided by third party pricing sources. These third party sources aggregate indicative price quotations daily to provide the company with a price for the CLO investments. The company has developed internal controls to review the reasonableness and completeness of these price quotations on a daily basis. If necessary, price quotations are challenged through the third-party pricing source price challenge process. For the six months ended June 30, 2016 and the year ended December 31, 2015, there were no price quotation challenges by the company. In addition, the company's internal valuation committee conducts an annual due diligence review of all independent third-party pricing sources to review the provider's valuation methodology as well as ensure internal controls exist over the valuation of the CLO investments. In the event that the third-party pricing source is unable to price an investment, other relevant factors, data and information are considered, including: i) information relating to the market for the investment, including price quotations for and trading in the investment and interests in similar investments, the market environment, and investor attitudes towards the investment and interests in similar investments; ii) the characteristics of and fundamental analytical data relating to the investment, including, for senior secured corporate loans, the cost, size, current interest rate, period until next interest rate reset, maturity and base lending rate, the terms and conditions of the senior secured corporate loan and any related agreements, and the position of the senior secured corporate loan in the borrower's debt structure; iii) the nature, adequacy and value of the senior secured corporate loan's collateral, including the CLO's rights, remedies and interests with respect to the collateral; iv) for senior secured corporate loans, the creditworthiness of the borrower, based on an evaluation of its financial condition, financial statements and information about the business, cash flows, capital structure and future prospects; v) the reputation and financial condition of the agent and any intermediate participants in the senior secured corporate loan; and vi) general economic and market conditions affecting the fair value of the senior secured corporate loan. Notes issued by consolidated CLOs mature at various dates between 2023 and 2028 and have a weighted average maturity of 9.7 years. The notes are issued in various tranches with different risk profiles. The interest rates are generally variable rates based on Libor plus a pre-defined spread, which varies from 0.21% for the more senior tranches to 8.25% for the more subordinated tranches. The investors in this debt are not affiliated with the company and have no recourse to the general credit of the company for this debt. Fair value of consolidated partnership entities Consolidated private equity funds are generally structured as partnerships. Generally, the investment strategy of underlying holdings in these partnerships is to seek capital appreciation through direct investments in public or private companies with compelling business models or ideas or through investments in partnership investments that also invest in similar private or public companies. Various strategies may be used. Companies targeted could be distressed organizations, targets of leveraged buyouts or fledgling companies in need of venture capital. Investors generally may not redeem their investment until the partnership liquidates. Generally, the partnerships have a life that ranges from seven to twelve years unless dissolved earlier. The general partner may extend the partnership term up to a specified period of time as stated in the Partnership Agreement. Some partnerships allow the limited partners to cause an earlier termination upon the occurrence of certain events as specified in the Partnership Agreement. For private equity partnerships, fair value is determined by reviewing each investment for the sale of additional securities of an issuer to sophisticated investors or for investee financial conditions and fundamentals. Publicly traded portfolio investments are carried at market value as determined by their most recent quoted sale, or if there is no recent sale, at their most recent bid price. For these investments held by CIP, level 1 classification indicates that fair values have been determined using unadjusted quoted prices in active markets for identical assets that the partnership has the ability to access. Level 2 classification may indicate that fair values have been determined using quoted prices in active markets but give effect to certain lock-up restrictions surrounding the holding period of the underlying investments. The fair value of level 3 investments held are derived from inputs that are unobservable and which reflect the limited partnerships' own determinations about the assumptions that market participants would use in pricing the investments, including assumptions about risk. These inputs are developed based on the partnership's own data, which is adjusted if information indicates that market participants would use different assumptions. The partnerships which invest directly into private equity portfolio companies (direct private equity funds) take into account various market conditions, subsequent rounds of financing, liquidity, financial condition, purchase multiples paid in other comparable third-party transactions, the price of securities of other companies comparable to the portfolio company, and operating results and other financial data of the portfolio company, as applicable. The partnerships which invest into other private equity funds take into account information received from those underlying funds, including their reported net asset values and evidence as to their fair value approach, including consistency of their fair value application. These investments do not trade in active markets and represent illiquid long-term investments that generally require future capital commitments. The partnerships' reported share of the underlying net asset values of the underlying funds is used as a practical expedient, as allowed by ASC Topic 820, in arriving at fair value. Quantitative Information about Level 3 Fair Value Measurements At June 30, 2016 $23.9 million of investments held by consolidated real estate funds were valued using recent private market transactions.
____________
The table below summarizes as of June 30, 2016 and December 31, 2015, 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.
____________
For investments held by consolidated private equity funds, significant increases in discounts in isolation would result in significantly lower fair value measurements, while significant increases in revenue multiple assumptions in isolation would result in significantly higher fair value measurements. An increase in discount assumptions would result in a directionally opposite change in the assumptions for revenue multiple, resulting in lower fair value measurements. Fair Value of Equity Securities, Bonds, and Equity/Fixed Income Mutual Funds Equity securities are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. Bonds are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Equity and fixed income mutual funds are valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments. |
Related Parties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTIES | RELATED PARTIES Certain managed funds are deemed to be affiliated entities under the related party definition in ASC 850, "Related Party Disclosures." Additionally, related parties include those defined in the company's proxy statement.
|
Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 22, 2016, the company's board of directors authorized an additional $1.5 billion for the share repurchase plan with no stated expiration date. On July 28, 2016, the company announced a second quarter 2016 dividend of 28.0 cents per share, payable on September 2, 2016, to shareholders of record at the close of business on August 18, 2016 with an ex-dividend date of August 16, 2016. |
Accounting Policies (Policy) |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Consolidation | Basis of Accounting and Consolidation The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with rules and regulations of the Securities and Exchange Commission and consolidate the financial statements of the Parent and all of its controlled subsidiaries. In the opinion of management, the financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair statement of the financial condition and results of operations for the periods presented. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, CLOs, and other investment products sponsored by the company in the normal course of business for the investment of client assets. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of these products. In addition to consolidating the financial statements of the Parent and all of its controlled subsidiaries, the Condensed Consolidated Financial Statements include the consolidation of certain investment products (“Consolidated Investment Products” or "CIP") that meet the definition of either a voting rights entity (“VOE”), if the company is deemed to have a controlling financial interest in the fund, or a variable interest entity (“VIE”) if the company has been deemed to be the primary beneficiary of the fund. At June 30, 2016, all CIP were VIEs. Certain of these investment products, typically CLOs, funds that are structured as partnership entities (such as private equity funds, real estate funds, and fund-of-funds), and certain non-U.S. mutual funds, are considered, for accounting and consolidation analysis purposes, to be VIEs if the VIE criteria are met. A VIE, in the context of the company and its managed funds, is a fund that does not have sufficient equity to finance its operations without additional subordinated financial support, or a fund for which the risks and rewards of ownership are not directly linked to voting interests. If the company is deemed to have the power to direct the activities of the fund that most significantly impact the fund's economic performance, and the obligation to absorb losses/right to receive benefits from the fund that could potentially be significant to the fund, then the company is deemed to be the fund's primary beneficiary and is required to consolidate the fund. The company's economic risk with respect to each investment in a CIP is limited to its equity ownership and any uncollected management and performance fees. See Note 13, "Consolidated Investment Products," for additional information regarding the impact of CIP. Consolidation Analysis The company inventories its funds by vehicle type on a quarterly basis. The company assesses modifications to existing funds on an ongoing basis to determine if a significant reconsideration event has occurred. The consolidation analysis includes a detailed review of the terms of the fund's governing documents and a comparison of the significant terms against the consolidation criteria in ASC 810, including a determination of whether the fund is a VIE or a VOE. Seed money and co-investments in managed funds in which the company has determined that it is the primary beneficiary or in which the company has a controlling financial interest are consolidated if the impact of doing so is deemed material. Otherwise, these investments are accounted for as described in the “Investments” accounting policy in the Form 10-K for the year-ended December 31, 2015. Upon consolidation of CLOs, the company's and the funds' accounting policies are effectively aligned, resulting in the reclassification of the company's gain or loss (representing the changes in the market value of the company's holding in the consolidated fund) from other comprehensive income into other gains/losses. The company's gain or loss on its investment (before consolidation) eliminates with the company's share of the offsetting loss or gain on the fund. The net impact from consolidation of funds previously carried as available for sale investments to net income attributable to Invesco Ltd. in each period primarily represents the changes in the value of the company's holding in its consolidated CLOs. Consolidation of CLOs A significant portion of VIEs are CLOs. CLOs are investment vehicles created for the sole purpose of issuing collateralized loan instruments that offer investors the opportunity for returns that vary with the risk level of their investment. The notes issued by the CLOs are backed by diversified collateral asset portfolios consisting primarily of loans or structured debt. For managing the collateral of the CLO entities, the company earns investment management fees, including in some cases subordinated management fees, as well as contingent performance fees. The company has invested in certain of the entities, generally taking a portion of the unrated, junior subordinated position. The company's investments in CLOs are generally subordinated to other interests in the entities and entitle the company and other subordinated tranche investors to receive the residual cash flows, if any, from the entities. The company's subordinated interest can take the form of (1) subordinated notes, (2) income notes or (3) preference/preferred shares. The company has determined that, although the junior tranches have certain characteristics of equity, they should be accounted for and disclosed as debt on the company's Condensed Consolidated Balance Sheets, as the subordinated and income notes have a stated maturity indicating a date for which they are mandatorily redeemable. The preference shares are also classified as debt, as redemption is required only upon liquidation or termination of the CLO and not of the company. The company determined that it was the primary beneficiary of certain CLOs, as it has the power to direct the activities of the CLOs that most significantly impact the CLOs' economic performance, and the obligation to absorb losses/right to receive benefits from the CLOs that could potentially be significant to the CLOs. The primary beneficiary assessment includes an analysis of the rights of the company in its capacity as investment manager. In some CLOs, the company's role as investment manager provides that the company contractually has the power, as defined in ASC Topic 810, to direct the activities of the CLOs that most significantly impact the CLOs' economic performance, such as managing the collateral portfolio and the CLO's credit risk. In other CLOs, the company determined that it does not have this power in its role as investment manager due to certain rights held by other investors in the products or restrictions that limit the company's ability to manage the collateral portfolio and its credit risk. Additionally, the primary beneficiary assessment includes an analysis of the company's rights to receive benefits and obligations to absorb losses associated with its first loss position and management/performance fees. The company has elected the fair value option under ASC Topic 825-10-25 to measure the assets of all consolidated CLOs at fair value. All of the investments held by VIEs are presented at fair value in the company's Condensed Consolidated Balance Sheets at June 30, 2016 and December 31, 2015. The company adopted ASU 2014-13 on January 1, 2015, and accordingly the notes issued by consolidated CLOs are no longer carried at fair value but are now measured under the measurement alternative discussed in Accounting Standard Update 2014-13, "Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity" (ASU 2014-13). The measurement alternative requires that the reporting entity measure both the financial assets and the financial liabilities of the CFE by using the more observable of the fair value of the financial assets and the fair value of the financial liabilities, removing any measurement difference previously recorded as net income (loss) attributable to noncontrolling interests in consolidated entities and as an adjustment to retained earnings appropriated for investors in CIP. The company’s subsequent earnings from consolidated CLOs reflect changes in fair value of its own economic interests in the CLOs. Gains or losses on assets and liabilities of the CLOs are not attributed to noncontrolling interests but are offset in other gains/(losses) of CIP. Consolidation of Private Equity, Real Estate, and Fund-of-Funds The company also consolidates certain private equity funds and from time to time real estate funds that are structured as partnerships in which the company is the general partner receiving a management and/or performance fee. Private equity investments made by the underlying funds consist of direct investments in, or fund investments in other private equity funds that hold direct investments in, equity or debt securities in operating companies that are generally not initially publicly traded. Private equity funds are considered investment companies and are therefore accounted for under ASC Topic 946, “Financial Services - Investment Companies.” The company has retained the specialized industry accounting principles of these investment products in its Condensed Consolidated Financial Statements. See Note 13, “Consolidated Investment Products,” for additional details. Consolidation basis The Condensed Consolidated Financial Statements have been prepared primarily on the historical cost basis; however, certain items are presented using other bases such as fair value, where such treatment is required or voluntarily elected, as discussed above. The financial statements of subsidiaries, with the exception of certain CIP, are prepared for the same reporting period as the Parent and use consistent accounting policies, which, where applicable, have been adjusted to U.S. GAAP from local generally accepted accounting principles or reporting regulations. The financial information of certain CIP is included in the company's Condensed Consolidated Financial Statements on a one-month or a three-month lag based upon the availability of fund financial information. Noncontrolling interests in consolidated entities represents the interests in certain entities consolidated by the company either because the company has control over the entity or has determined that it is the primary beneficiary, but of which the company does not own all of the entity's equity. To the extent that noncontrolling interests represent equity which is redeemable or convertible for cash or other assets at the option of the equity holder, these are deemed to represent temporary equity, and are classified as equity attributable to redeemable noncontrolling interests in the Condensed Consolidated Balance Sheets. Nonredeemable noncontrolling interests are classified as a component of permanent equity. |
Management and Investment Advisory Fees, Policy [Policy Text Block] | Money Market Fee Waivers The company is currently voluntarily providing yield support waivers of its management fees on certain money market funds to ensure that they maintain a minimum level of daily net investment income. During the three and six months ended June 30, 2016, yield support waivers resulted in a reduction of management and service and distribution fees of approximately $4.1 million and $9.0 million, respectively. During the three months ended June 30, 2016, approximately 54% of yield support waivers are offset by a reduction in third party distribution, service and advisory expenses (six months ended June 30, 2015: 50.4%), resulting in a net waiver of $1.9 million (six months ended June 30, 2015: $4.5 million). The company has provided yield support waivers in prior periods and may increase or decrease the level of fee waivers in future periods. |
Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements | Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 was originally effective for fiscal years and interim periods within those years beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 by one year for periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date and requires either a retrospective or a modified retrospective approach to adoption. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Gross versus Net)” (ASU 2016-08). ASU 2016-08 clarified implementation guidance on determining if the entity acts as a principal or agent to the customer when another party is involved in providing goods or services. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (ASU 2016-10). ASU 2016-10 clarifies guidance relating to identifying performance obligations and accounting for an entity’s promise to grant a license. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients” (ASU 2016-12). ASU 2016-12 provides narrow-scope improvements relating to collectibility of consideration, presentation of sales and other similar taxes, noncash consideration, and the definition of completed contracts at transition. ASU 2016-12 also provides a practical expedient for dealing with contract modifications at transition and other technical corrections in applying the retrospective transition method. The company is currently evaluating the potential impact on its Consolidated Financial Statements, as well as the available transition methods. In February 2015, the FASB issued Accounting Standard Update 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The company adopted ASU 2015-02 on January 1, 2016 using the modified retrospective approach, which did not require the restatement of prior periods to conform to the post-adoption presentation. The impacts of the adoption of ASU 2015-02 on January 1, 2016 were as follows: •The company consolidated CIP with total assets and liabilities/equity of $458.5 million. The company deconsolidated CIP with total assets and total liabilities and equity of $3,170.6 million, including CLOs of $2,366.5 million. •VOE partnership entities (consolidated private equity and fund-of-fund entities) became VIEs upon the adoption and were deconsolidated, along with certain VIE partnership entities. •The adoption resulted in the consolidation of certain investment products which became VIEs upon adoption and which were not previously consolidated. •The funds consolidated in prior periods as Consolidated Sponsored Investment Products, "CSIP," became VIEs. Accordingly, with effect from January 1, 2016, the consolidation of all VIEs is presented in the aggregate as part of CIP. See Notes 12, “Consolidated Sponsored Investment Products,” and 13, “Consolidated Investment Products.” In May 2015, the FASB issued Accounting Standards Update 2015-07, "Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)" (ASU 2015-07). ASU 2015-07 removes the requirement to categorize investments within the fair value hierarchy for which fair value is measured using the net asset value (NAV) practical expedient. The company adopted ASU 2015-07 on January 1, 2016; it required retrospective application for each prior period presented. The adoption did not impact the company's financial condition, results of operations or cash flows, as the update relates to financial statement disclosures. See Notes 12, "Consolidated Sponsored Investment Products," and 13, "Consolidated Investment Products." In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (ASU 2016-01). The standard amends certain aspects of recognition, measurement, presentation, and disclosure of financial assets and liabilities. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 and, in general, requires a modified retrospective approach to adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). ASU 2016-13 amends guidance on reporting credit losses for assets measured at amortized cost and available for sale securities. ASU 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019 and requires a modified retrospective approach to adoption. Early adoption in fiscal years, and interim periods within those years, beginning after December 15, 2018 is permitted. The company is currently evaluating the potential impacts of these standards as well as available transition methods. In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases” (ASU 2016-02). The standard requires that lessees recognize lease assets and lease liabilities on the balance sheet for all leases with a lease term greater than 12 months. ASU 2016-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018 and requires a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard. In March 2016, the FASB issued Accounting Standards Update 2016-09, “Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09). The standard is intended to simplify aspects of the accounting for share-based payment transactions, including income tax impacts, classification on the statement of cash flows, and forfeitures. ASU 2016-09 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The various amendments within the standard require different approaches to adoption of either retrospective, modified retrospective or prospective. Early adoption is permitted. The company is currently evaluating the potential impact of this standard as well as the available transition methods. |
Fair Value Measurement | The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash equivalents Cash investments in money market funds are valued under the market approach through the use of quoted market prices in an active market, which is the net asset value of the underlying funds, and are classified within level 1 of the valuation hierarchy. Available-for-sale investments Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments. At June 30, 2016 and December 31, 2015, investments in CLOs were valued using pricing information obtained by an independent third-party pricing source. Due to liquidity constraints within the market for CLO products that require the use of unobservable inputs, these investments are classified within level 3 of the valuation hierarchy. Other debt securities are valued using a cost valuation technique due to the lack of available cash flow and market data and are accordingly also classified within level 3 of the valuation hierarchy. Trading investments •Investments related to deferred compensation plans Investments related to deferred compensation plans are valued under the market approach through the use of quoted prices in an active market and are classified within level 1 of the valuation hierarchy. •Seed money Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments. •Other equity securities Other equity securities consist of investments in publicly-traded equity securities. These securities are valued under the market approach through the use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. •UIT-related equity and debt securities The company invests in UIT-related equity and debt securities consisting of investments in corporate equities, UITs, and municipal securities. Each is discussed more fully below. Corporate equities The company temporarily holds investments in corporate equities for purposes of creating a UIT. Corporate equities are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. UITs The company may hold units of its sponsored UITs at period-end for sale in the primary market or secondary market. Equity UITs are valued under the market approach through use of quoted prices on an exchange. Fixed income UITs are valued using recently executed transaction prices, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturities as the underlying bonds. If the spread data does not reference the issuers, then data that references comparable issuers is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Municipal securities Municipal securities are valued using recently executed transaction prices, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturities as the underlying bonds. If the spread data does not reference the issuers, then data that references comparable issuers is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as level 1, 2, or 3. Put option contracts The company has purchased several put option contracts to hedge economically foreign currency risk on the translation of a portion of its pound sterling-denominated earnings into U.S. dollars (purchases of zero and $7.0 million in the three and six months ended June 30, 2016, respectively). These were the only contracts entered into during the period to hedge economically foreign currency risk and provide coverage through March 31, 2017. The economic hedge is predominantly triggered upon the impact of a significant decline in the Pound Sterling/U.S. Dollar foreign exchange rate. Open put option contracts are marked-to-market through earnings, which are recorded in the company's Condensed Consolidated Statements of Income in other gains and losses, net. These derivative contracts are valued using option valuation models and are included in other assets in the company's Condensed Consolidated Balance Sheets. The significant inputs in these models (volatility, forward points and swap curves) are readily available in public markets or can be derived from observable market transactions for substantially the full terms of the contracts and are classified within level 2 of the valuation hierarchy. The company recognized a $6.6 million and $9.1 million net gain in the three and six months ended June 30, 2016, respectively (three and six months ended June 30, 2015: $8.4 million and $7.8 million net loss, respectively) related to the change in market value of these put option contracts. Assets held for policyholders Assets held for policyholders are measured at fair value under the market approach based on the quoted prices of the underlying funds in an active market and are classified within level 1 of the valuation hierarchy. The policyholder payables are indexed to the value of the assets held for policyholders and are therefore not included in the tables below. UIT-related financial instruments sold, not yet purchased, and derivative instruments The company uses U.S. Treasury futures, which are types of derivative financial instruments, to hedge economically fixed income UIT inventory and securities in order to mitigate market risk. Open futures contracts are marked-to-market daily through earnings, which are recorded in the company’s Condensed Consolidated Statements of Income in other revenue, along with the mark-to-market on the underlying trading securities held. Fair values of derivative contracts in an asset position are included in other assets in the company’s Condensed Consolidated Balance Sheets. Fair values of derivative contracts in a liability position are included in other liabilities in the company’s Condensed Consolidated Balance Sheets. These derivative contracts are valued under the market approach through use of quoted prices in an active market and are classified within level 1 of the valuation hierarchy. At June 30, 2016 there were 10 futures contracts with a notional value of $1.7 million (December 31, 2015: 15 open futures contracts with a notional value of $1.9 million). Additionally, to hedge economically the market risk associated with equity and debt securities and UITs temporarily held as trading investments, the company will hold short positions in corporate equities, exchange-traded funds, or U.S. treasury security positions. These transactions are recorded as financial instruments sold, not yet purchased and are included in accounts payable and accrued expenses in the company’s Condensed Consolidated Balance Sheets. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized within level 1 of the valuation hierarchy; otherwise, they are categorized in level 2. Contingent Consideration Liability During 2015, the company acquired certain investment management contracts from Deutsche Bank. Indefinite-lived intangible assets were valued at $119.3 million. This transaction was a non-cash investing activity during that period. The purchase price was comprised solely of contingent consideration payable in future periods, and is linked to future revenues generated from the contracts. The contingent consideration liability was recorded at fair value as of the date of acquisition using a discounted cash flow model, and is categorized within level 3 of the valuation hierarchy. Anticipated future cash flows were determined using forecast AUM levels and discounted back to the valuation date. The company reassesses significant unobservable inputs during each reporting period. At June 30, 2016 inputs used in the model included assumed growth rates in AUM ranging from 0.69% to 6.67% (weighted average growth rate of 3.41%) and a discount rate of 3.33%. Changes in fair value are recorded in other gains and losses, net in the Condensed Consolidated Statements of Income in the period incurred. An increase in AUM levels and a decrease in the discount rate would increase the fair value of the contingent consideration liability while a decrease in forecasted AUM and an increase in the discount rate would decrease the liability. |
Fair Value Of Assets And Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value By Balance Sheet Grouping | The carrying value and fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CSIP (for the prior period) and CIP are presented in Notes 12, "Consolidated Sponsored Investment Products" and 13, "Consolidated Investment Products," respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tri-Level Hierarchy, Carrying Value | The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the company's Condensed Consolidated Balance Sheet as of June 30, 2016:
The following table presents, for each of the hierarchy levels described above, the carrying value of the company's assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the company's Condensed Consolidated Balance Sheet as of December 31, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Balance, Fair Value Measurement, Level 3 | The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three and six months ended June 30, 2016 and June 30, 2015, which are valued using significant unobservable inputs:
_______________
|
Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized Gains Losses Available-For-Sale Securities | Realized gains and losses recognized in the Condensed Consolidated Statements of Income during the period from investments classified as available-for-sale are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Holding Gains And Losses Recognized In Other Accumulated Comprehensive Income From Available-For-Sale Investments | Gross unrealized holding gains and losses recognized in other accumulated comprehensive income from available-for-sale investments are presented in the table below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown Of Available-For-Sale Investments with Unrealized Losses | At June 30, 2016, 134 seed money funds (December 31, 2015: 192 seed money funds) had incurred gross unrealized holding losses. The following table provides a breakdown of the unrealized losses.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held-to-maturity Securities [Table Text Block] | Available-for-sale debt securities as of June 30, 2016 by maturity, are set out below:
|
Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Long-Term Debt Instruments | The disclosures below include details of the company's debt. Debt of CIP is detailed in Note 13, “Consolidated Investment Products.”
____________
The issuer of the senior notes is an indirect 100% owned finance subsidiary of Invesco Ltd. (the Parent), and the Parent fully and unconditionally guaranteed the securities. The requirement of certain subsidiaries of the Parent to maintain minimum levels of capital and other similar provisions of applicable law may have the effect of limiting withdrawals of capital, repayment of intercompany loans and payment of dividends by such entities. The fair market value of the company's senior notes was determined by market quotes provided by Bloomberg, which is considered a Level 2 valuation input. In the absence of an active market, the company relies upon the average price quoted by brokers for determining the fair market value of the debt. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis Of Borrowings By Maturity | At June 30, 2016, the company's outstanding senior notes of $2,072.7 million mature in periods greater than five years from the balance sheet date. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | At June 30, 2016, the outstanding balance on the $1.25 billion credit facility was zero (December 31, 2015: zero). Borrowings under the credit facility will bear interest at (i) LIBOR for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month plus 1.00%), plus, in either case, an applicable margin determined with reference to the higher of the available credit ratings of the company or its indirect subsidiary Invesco Finance PLC. Based on credit ratings as of June 30, 2016 of the company, the applicable margin for LIBOR-based loans was 0.875% and for base rate loans was 0.00%. In addition, the company is required to pay the lenders a facility fee on the aggregate commitments of the lenders (whether or not used) at a rate per annum which is based on the higher of the available credit ratings of the company or its indirect subsidiary Invesco Finance PLC. Based on credit ratings as of June 30, 2016, the annual facility fee was equal to 0.125%. The credit agreement governing the credit facility contains customary restrictive covenants on the company and its subsidiaries. Restrictive covenants in the credit agreement include, but are not limited to: prohibitions on creating, incurring or assuming any liens; entering into merger arrangements; selling, leasing, transferring or otherwise disposing of assets; making a material change in the nature of the business; making a significant accounting policy change in certain situations; entering into transactions with affiliates; and incurring indebtedness through the subsidiaries (other than the borrower, Invesco Finance PLC). Many of these restrictions are subject to certain minimum thresholds and exceptions. Financial covenants under the credit agreement include: (i) the quarterly maintenance of a debt/EBITDA leverage ratio, as defined in the credit agreement, of not greater than 3.25:1.00, (ii) a coverage ratio (EBITDA, as defined in the credit agreement/interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00. The credit agreement governing the credit facility also contains customary provisions regarding events of default which could result in an acceleration or increase in amounts due, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain judgments, ERISA matters, cross-default to other debt agreements, governmental action prohibiting or restricting the company or its subsidiaries in a manner that has a material adverse effect and failure of certain guaranty obligations. The company is in compliance with all regulatory minimum net capital requirements. The lenders (and their respective affiliates) may have provided, and may in the future provide, investment banking, cash management, underwriting, lending, commercial banking, leasing, foreign exchange, trust or other advisory services to the company and its subsidiaries and affiliates. These parties may have received, and may in the future receive, customary compensation for these services. The company maintains approximately $11.7 million in letters of credit from a variety of banks. The letters of credit are generally one-year automatically-renewable facilities and are maintained for various commercial reasons. |
Share Capital (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Movements In Shares Issued And Outstanding | The number of common shares and common share equivalents issued are represented in the table below:
|
Other Comprehensive Income/(Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income/(loss) were as follows:
Net Investment Hedge During the second quarter 2016, the Company designated certain intercompany debt as a non-derivative net investment hedging instrument against foreign currency exposure related to its net investment in foreign operations. At June 30, 2016, £130 million ($173.9 million) of intercompany debt was designated as a net investment hedge. For the six months ended June 30, 2016, the Company recognized foreign currency gains of $13.3 million resulting from the net investment hedge within currency translation differences on investments in foreign subsidiaries in other comprehensive income. No hedge ineffectiveness was recognized in income. |
Share-Based Compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Movements Of Share Awards | Movements on share awards during the periods ended June 30, are detailed below:
|
Retirement Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans | The components of net periodic benefit cost in respect of these defined benefit plans are as follows:
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation Of Earnings Per Share | The calculation of earnings per share is as follows:
|
Consolidated Sponsored Investment Products (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances Related To CSIP |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy Levels Of Investments Held By CSIP |
The tables below summarizes as of December 31, 2015 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:
__________________ (1) 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. (2) 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. |
Consolidated Investment Products (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Investment Products [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances Related To CIP |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income | The following tables reflect the impact of consolidation of investment products into the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2016 and 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transition date impact of adoption of ASU 2015-02 | Transition date impact of adoption of ASU 2015-02
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's Maximum Risk Of Loss In Significant VIE's | At June 30, 2016, the company's carrying value and maximum risk of loss with respect to VIEs in which the company is not the primary beneficiary was $277.9 million. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VIE Balance Sheets Consolidated In Period |
During the six months ended June 30, 2016, the company determined that it was no longer the primary beneficiary of four VIEs. The amounts deconsolidated from the Condensed Consolidated Balance Sheet are illustrated in the table below. There was no net impact to the Condensed Consolidated Statement of Income for the six months ended June 30, 2016 from the deconsolidation of the investment product.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products | The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of June 30, 2016 and December 31, 2015:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities | The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities using significant unobservable inputs:
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information, Consolidated Investment Products |
____________
The table below summarizes as of June 30, 2016 and December 31, 2015, 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.
____________
|
Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions |
|
Investments (Narrative) (Details) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
fund
|
Jun. 30, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
fund
|
Jun. 30, 2015
USD ($)
|
Apr. 05, 2016 |
Dec. 31, 2015
fund
|
|
Schedule of Available-for-sale Securities [Line Items] | ||||||
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | $ 100,000 | $ 500,000 | $ 400,000 | $ 1,200,000 | ||
Number of affiliated funds holding seed money | fund | 134 | 134 | 192 | |||
Gains and losses on trading securities | $ 3,300,000 | $ (2,100,000) | ||||
Seed Money [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Other-than-temporary impairment charges on seed money investments | $ 0 | $ 0 | ||||
Religare Invesco Asset Management Company [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Equity Method Investment, Ownership Percentage change | 51.00% | |||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | 100.00% | |||
Equity Method Investment, Other than Temporary Impairment | $ 17,800,000 |
Investments (Details Of Company Investments) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Investment Holdings [Line Items] | ||
Available for sale investments | $ 188.5 | $ 233.2 |
Equity method investments | 286.0 | 352.8 |
Foreign time deposits | 15.0 | 24.7 |
Cost Method Investments | 5.7 | 5.7 |
Investments | 892.0 | 1,019.1 |
Seed Money [Member] | ||
Investment Holdings [Line Items] | ||
Available for sale investments | 173.7 | 225.9 |
Trading investments | 193.1 | 191.2 |
Collateralized Loan Obligations [Member] | ||
Investment Holdings [Line Items] | ||
Available for sale investments | 11.5 | 1.4 |
Other Debt Obligations [Member] | ||
Investment Holdings [Line Items] | ||
Available for sale investments | 3.3 | 5.9 |
Deferred Compensation Arrangements [Member] | ||
Investment Holdings [Line Items] | ||
Trading investments | 168.5 | 158.8 |
Common Stock [Member] | ||
Investment Holdings [Line Items] | ||
Trading investments | 31.4 | 48.1 |
UIT-Related Equity And Debt Securities [Member] | ||
Investment Holdings [Line Items] | ||
Trading investments | $ 3.8 | $ 4.6 |
Investments (Realized Gains Losses Available-For-Sale Securities) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | $ 2.4 | $ 8.2 | $ 5.7 | $ 18.0 |
Gross Realized Gains | 0.1 | 0.5 | 0.4 | 1.2 |
Gross Realized Losses | 0.0 | 0.0 | 0.0 | 0.0 |
Seed Money [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | 0.6 | 6.8 | 1.8 | 15.7 |
Gross Realized Gains | 0.1 | 0.4 | 0.4 | 1.0 |
Gross Realized Losses | 0.0 | 0.0 | 0.0 | 0.0 |
Collateralized Loan Obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | 0.8 | 1.4 | 1.3 | 2.3 |
Gross Realized Gains | 0.0 | 0.1 | 0.0 | 0.2 |
Gross Realized Losses | 0.0 | $ 0.0 | 0.0 | $ 0.0 |
Other Debt Obligations [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds from Sales | 1.0 | 2.6 | ||
Gross Realized Gains | 0.0 | 0.0 | ||
Gross Realized Losses | $ 0.0 | $ 0.0 |
Investments (Breakdown Of Available-For-Sale Investments With Unrealized Losses) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Schedule of Available-for-sale Securities [Line Items] | |||
Gains and losses on trading securities | $ 3.3 | $ (2.1) | |
Seed Money Funds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | 23.1 | $ 93.0 | |
Less than 12 Months, Gross Unrealized Losses | (0.3) | (3.0) | |
12 Months or Greater, Fair Value | 80.3 | 65.5 | |
12 Months or Greater, Gross Unrealized Losses | (6.1) | (6.3) | |
Total, Fair Value | 103.4 | 158.5 | |
Total, Gross Unrealized Losses | $ (6.4) | $ (9.3) |
Investments Maturities Of Available For Sale Debt Securities (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities | $ 188.5 | $ 233.2 |
Available-for-sale Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1.7 | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 1.5 | |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 8.7 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 2.9 | |
Available-for-sale Securities, Debt Securities | $ 14.8 |
Share Capital (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Class of Stock [Line Items] | ||||
Treasury stock shares | 90.0 | 90.0 | 81.3 | |
Treasury shares held, as unvested restricted stock awards | 9.5 | 9.5 | 8.4 | |
Common shares market price (per share) | $ 25.54 | |||
Treasury shares market value | $ 2,300.0 | |||
Treasury stock acquired (shares) | 4.7 | |||
Purchase of shares | $ 120.0 | 394.0 | $ 225.0 | |
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ (150.0) | $ (150.0) |
Share Capital (Movements In Shares Issued And Outstanding) (Details) - shares shares in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Equity [Abstract] | ||
Common shares issued | 490.4 | 490.4 |
Less: Treasury shares for which dividend and voting rights do not apply | (80.5) | (72.9) |
Common shares outstanding | 409.9 | 417.5 |
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 79.1 | $ 76.7 |
Proceeds from Stock Options Exercised | $ 0.0 | 1.2 |
Weighted average remaining contractual terms | 1 year 8 months 22 days | |
Fair value of vested shares | $ 118.1 | $ 183.5 |
Weighted average fair value of shares granted (usd per share) | $ 27.39 | $ 40.26 |
Unrecognized compensation cost related to non-vested shares | $ 354.1 | |
Weighted average non-vested shares compensation cost expected to recognize | 2 years 8 months 37 days |
Retirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Cost Recognized | $ 15.2 | $ 15.3 | ||
Other Postretirement Benefits Payable | $ 14.9 | $ 14.9 | $ 24.5 | |
Retirement Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated amounts of contributions expected to be paid to the plans in next fiscal year | 15.5 | |||
Pension Contributions | 7.8 | |||
Medical Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated amounts of contributions expected to be paid to the plans in next fiscal year | 0.0 | |||
Pension Contributions | $ 0.0 |
Retirement Benefit Plans (Components of net periodic benefit cost) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Retirement Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 1.4 | $ 1.3 | $ 2.8 | $ 2.5 |
Interest cost | 4.4 | 5.2 | 8.8 | 10.5 |
Expected return on plan assets | (5.7) | (6.1) | (11.4) | (12.3) |
Amortization of prior service cost/(credit) | 0.0 | 0.1 | 0.0 | 0.1 |
Amortization of net actuarial gain/(loss) | 0.5 | 0.7 | 1.0 | 1.3 |
Net periodic benefit cost | 0.6 | 1.2 | 1.2 | 2.1 |
Medical Plans [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0.0 | 0.0 | 0.0 | 0.0 |
Interest cost | 0.0 | 0.0 | 0.0 | 0.0 |
Expected return on plan assets | 0.0 | (0.1) | 0.0 | (0.2) |
Amortization of prior service cost/(credit) | (2.9) | (2.5) | (4.9) | (4.7) |
Amortization of net actuarial gain/(loss) | 0.0 | 0.0 | 0.0 | 0.0 |
Net periodic benefit cost | $ (2.9) | $ (2.6) | $ (4.9) | $ (4.9) |
Taxation (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 10.0 | $ 9.6 |
Earnings Per Share (Narrative) (Details) - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | |
Contingently issuable share excluded | 200,000 | 400,000 |
Commitments And Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Undrawn capital and purchase commitments | $ 233.9 | $ 185.6 | ||
Regulatory investigations fee | $ (4.9) | $ 0.0 | $ 1.1 |
Consolidated Sponsored Investment Products (Balances Related To CSIP) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Schedule of Investments [Abstract] | ||
Investments of CSIP | $ 290.3 | |
Cash and cash equivalents of CSIP | 21.9 | |
Accounts receivable and other assets of CSIP | 6.9 | |
Assets of consolidated sponsored investment products (CSIP) | $ 0.0 | 319.1 |
Other liabilities of CSIP | (4.4) | |
Equity attributable to redeemable noncontrolling interests | (167.3) | |
Equity attributable to nonredeemable noncontrolling interests | (40.8) | |
Invesco's net interests in CSIP | $ 106.6 |
Consolidated Investment Products (Balances Related To CIP) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Consolidated Investment Products [Abstract] | ||
Cash and cash equivalents of consolidated investment products | $ 257.9 | $ 363.3 |
Accounts receivable and other assets of CIP | 182.2 | 173.5 |
Investments Of Consolidated Investment Products | 4,036.9 | 6,016.1 |
Less: Debt of CIP | (3,529.6) | (5,437.0) |
Less: Other liabilities of CIP | (314.0) | (273.7) |
Less: Retained earnings | 22.4 | 20.1 |
Less: Accumulated other comprehensive income, net of tax | (18.9) | (20.1) |
Less: Redeemable Noncontrolling Interest, Consolidated Investment Products | (312.6) | 0.0 |
Less: Equity attributable to nonredeemable noncontrolling interests | (73.3) | (768.8) |
Invesco's net interests in CIP | $ 251.0 | $ 73.4 |
Consolidated Investment Products (Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Total operating revenues | $ 1,189.4 | $ 1,318.1 | $ 2,338.1 | $ 2,609.7 |
Total operating expenses | 887.9 | 954.1 | 1,762.2 | 1,907.6 |
Operating Income (Loss) | 301.5 | 364.0 | 575.9 | 702.1 |
Equity in earnings of unconsolidated affiliates | 4.6 | 12.0 | (7.6) | 23.8 |
Interest and dividend income | 2.5 | 2.6 | 6.1 | 5.1 |
Other gains and losses, net | (4.2) | (8.8) | (8.9) | (6.1) |
Other gains/(losses) of CIP, net | 0.4 | 4.7 | ||
Income before income taxes | 320.2 | 353.4 | 549.9 | 738.7 |
Income tax provision | (83.7) | (109.4) | (155.6) | (210.7) |
Income from continuing operations, net of taxes | 236.5 | 244.0 | 394.3 | 528.0 |
Net income | 236.5 | 244.0 | 394.3 | 528.0 |
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net | (11.0) | 13.3 | (7.8) | (11.1) |
Net income attributable to Invesco Ltd | 225.5 | 257.3 | 386.5 | 516.9 |
Impact of CIP [Member] | ||||
Total operating revenues | (5.1) | (10.4) | (10.6) | (19.7) |
Total operating expenses | 7.9 | 1.5 | 9.7 | 13.7 |
Operating Income (Loss) | (13.0) | (11.9) | (20.3) | (33.4) |
Equity in earnings of unconsolidated affiliates | (5.1) | 0.5 | (1.6) | (1.2) |
Interest and dividend income | 0.0 | (0.8) | (0.2) | (2.2) |
Other gains and losses, net | (0.8) | (1.2) | (0.9) | (3.9) |
Interest and dividend income of CIP | 46.2 | 65.1 | 90.6 | 125.3 |
Interest expense of CIP | 33.3 | 47.3 | 60.6 | 92.4 |
Other gains/(losses) of CIP, net | 25.0 | (19.7) | 0.4 | 4.7 |
Income before income taxes | 19.0 | (15.3) | 7.4 | (3.1) |
Income tax provision | 0.0 | 0.0 | 0.0 | 0.0 |
Net income | 19.0 | (15.3) | 7.4 | (3.1) |
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net | (11.0) | 15.7 | (7.8) | (4.7) |
Net income attributable to Invesco Ltd | $ 8.0 | $ 0.4 | $ (0.4) | $ (7.8) |
Consolidated Investment Products (Private Equity) (Details) - USD ($) $ in Millions |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Private Equity Fund Of Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Weighted Average Remaining Term | ||
Private Equity Funds [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value | $ 368.2 | |
Unfunded Commitments | $ 52.5 | $ 218.1 |
Weighted Average Remaining Term | 6 years 8 months | 2 years 9 months |
Related Parties (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Investment Advisory Fees | $ 946.7 | $ 1,055.7 | $ 1,860.3 | $ 2,057.1 | ||
Distribution and Servicing Fees | 203.4 | 219.6 | 401.1 | 433.0 | ||
Performance Fees | 8.9 | 6.7 | 23.4 | 53.5 | ||
Revenue, Other Financial Services | 30.4 | 36.1 | 53.3 | 66.1 | ||
Revenues | 1,189.4 | 1,318.1 | 2,338.1 | 2,609.7 | ||
Cash and cash equivalents | 1,446.2 | 1,465.7 | 1,446.2 | 1,465.7 | $ 1,851.4 | $ 1,514.2 |
Unsettled fund receivables | 1,202.9 | 1,202.9 | 566.3 | |||
Accounts receivable | 516.2 | 516.2 | 528.1 | |||
Investments | 892.0 | 892.0 | 1,019.1 | |||
Separate Account Assets | 6,620.4 | 6,620.4 | 6,051.5 | |||
Other assets | 68.8 | 68.8 | 107.0 | |||
Total assets | 23,502.8 | 23,502.8 | 25,073.2 | |||
Accrued compensation and benefits | 412.1 | 412.1 | 661.3 | |||
Accounts payable and accrued expenses | 928.4 | 928.4 | 863.1 | |||
Unsettled fund payables | 1,192.8 | 1,192.8 | 561.9 | |||
Total liabilities | 15,460.1 | 15,460.1 | 16,210.2 | |||
Affiliated Entity [Member] | ||||||
Investment Advisory Fees | 820.1 | 927.7 | 1,617.0 | 1,809.1 | ||
Distribution and Servicing Fees | 203.1 | 219.6 | 400.6 | 431.6 | ||
Performance Fees | 6.4 | 1.5 | 16.8 | 12.3 | ||
Revenue, Other Financial Services | 24.7 | 30.4 | 46.5 | 58.0 | ||
Revenues | 1,054.3 | $ 1,179.2 | 2,080.9 | $ 2,311.0 | ||
Cash and cash equivalents | 328.1 | 328.1 | 383.3 | |||
Unsettled fund receivables | 321.8 | 321.8 | 166.7 | |||
Accounts receivable | 310.6 | 310.6 | 317.7 | |||
Investments | 847.3 | 847.3 | 982.7 | |||
Separate Account Assets | 6,620.1 | 6,620.1 | 6,051.2 | |||
Other assets | 2.1 | 2.1 | 3.4 | |||
Total assets | 8,430.0 | 8,430.0 | 7,905.0 | |||
Accrued compensation and benefits | 82.6 | 82.6 | 105.0 | |||
Accounts payable and accrued expenses | 94.6 | 94.6 | 82.9 | |||
Unsettled fund payables | 799.9 | 799.9 | 248.2 | |||
Total liabilities | $ 977.1 | $ 977.1 | $ 436.1 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Billions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Jul. 22, 2016 |
|
Subsequent Event [Line Items] | |||||
Dividends declared per share (usd per share) | $ 0.28 | $ 0.27 | $ 0.55 | $ 0.52 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1.5 |
5@+*J90HGB'W$5
M75C'^"?+)MIU0CH1TH5PEP3CL5&P^<@M+W*-(S$]]V>WVCFX]B).F3AOQHT=
M-'48O,A/19IM7Q2?X[3>O<'
M;N$)Y2_1NL&;S2AIH>.3=*\X?X-EA-L@V*"T\4N:R3I4)PHEBG^D5>BXSNE/
M62RTZX1\(>0KX3Z+QE.C:/,K=[RN#,[$CCR
90IP+AS\;G=@;W+$YH/CN@#(76P!T&0S$%