Consolidated Investment Products (Tables)

12 Months Ended

Dec. 31, 2017

Consolidated Investment Products [Abstract]

The following table presents the balances related to CIP that are included on the Consolidated Balance Sheets as well as Invesco's net interest in the CIP for each period presented. At December 31, 2017 all CIP are VIEs.



	As of
$ in millions	December 31, 2017		December 31, 2016
Cash and cash equivalents of CIP	511.3		742.2
Accounts receivable and other assets of CIP	131.5		106.2
Investments of CIP	5,658.0		5,116.1
Less: Debt of CIP	(4,799.8	)	(4,403.1	)
Less: Other liabilities of CIP	(498.8	)	(673.4	)
Less: Retained earnings	16.7		19.0
Less: Accumulated other comprehensive income, net of tax	(16.6	)	(18.0	)
Less: Equity attributable to redeemable noncontrolling interests	(243.2	)	(283.7	)
Less: Equity attributable to nonredeemable noncontrolling interests	(258.6	)	(107.2	)
Invesco's net interests in CIP	500.5		498.1

Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income

The following table reflects the impact of consolidation of investment products into the Consolidated Statements of Income for the years ended December 31, 2017, 2016 and 2015.

Summary of Income Statement Impact of CIP



	Years ended December 31,
$ in millions	2017		2016		2015
Total operating revenues	(32.4	)	(22.3	)	(39.2	)
Total operating expenses	10.5		28.7		24.0
Operating income	(42.9	)	(51.0	)	(63.2	)
Equity in earnings of unconsolidated affiliates	(20.0	)	(8.9	)	(1.7	)
Interest and dividend income	—		(0.3	)	(4.4	)
Other gains and losses, net	(38.4	)	(1.9	)	(3.9	)
Interest and dividend income of CIP	211.6		195.3		253.0
Interest expense of CIP	(155.3	)	(123.5	)	(188.9	)
Other gains/(losses) of CIP, net	81.0		7.4		(37.0	)
Income before income taxes	36.0		17.1		(46.1	)
Income tax provision	—		—		—
Net income	36.0		17.1		(46.1	)
Net (income)/loss attributable to noncontrolling interests in consolidated entities	(33.7	)	(14.1	)	5.7
Net income attributable to Invesco Ltd.	2.3		3.0		(40.4	)

Schedule of Variable Interest Entities [Table Text Block]

At December 31, 2017, the company's carrying value and maximum risk of loss with respect to VIEs in which the company is not the primary beneficiary was $227.3 million (December 31, 2016: $234.4 million).

VIE Balance Sheets Consolidated In Period



	For the year ended December 31, 2017	For the year ended December 31, 2016
$ in millions	VIEs	VIEs	VOEs
Cash and cash equivalents of CIP	277.8	609.8	—
Accounts receivable and other assets of CIP	11.5	108.5	0.2
Investments of CIP	851.8	1,032.8	49.8
Total assets	1,141.1	1,751.1	50.0

Debt of CIP	544.2	1,013.3	—
Other liabilities of CIP	331.5	472.4	—
Total liabilities	875.7	1,485.7	—
Total equity	265.4	265.4	50.0
Total liabilities and equity	1,141.1	1,751.1	50.0

During the year ended December 31, 2017, the company determined it was no longer the primary beneficiary of eight VIEs and one VOE. During the year ended December 31, 2016, the company determined that it was no longer the primary beneficiary of ten VIEs. The amounts deconsolidated from the Consolidated Balance Sheets are illustrated in the table below. There was no net impact to the Consolidated Statements of Income for the years ended December 31, 2017 and December 31, 2016 from the deconsolidation of these investment products.



	For the year ended December 31, 2017		For the year ended December 31, 2016
$ in millions	VIEs	VOEs	VIEs
Cash and cash equivalents of CIP	15.8	—	40.1
Accounts receivable and other assets of CIP	4.1	0.2	19.0
Investments of CIP	358.1	49.8	418.0
Total assets	378.0	50.0	477.1

Debt of CIP	4.2	—	—
Other liabilities of CIP	3.1	—	23.9
Total liabilities	7.3	—	23.9
Total equity	370.7	50.0	453.2
Total liabilities and equity	378.0	50.0	477.1

Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products

December 31, 2017 and December 31, 2016:



	As of December 31, 2017
$ 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	4,894.2	—	4,894.2	—	—
Bonds	302.0	—	302.0	—	—
Equity securities	203.2	198.8	4.4	—	—
Equity and fixed income mutual funds	19.0	19.0	—	—	—
Investments in other private equity funds	163.4	—	—	—	163.4
Real estate investments	76.2	—	—	76.2	—
Total assets at fair value	5,658.0	217.8	5,200.6	76.2	163.4



	As of December 31, 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	4,397.8	—	4,397.8	—	—
Bonds	370.9	—	370.9	—	—
Equity securities	167.4	166.0	1.4	—	—
Equity and fixed income mutual funds	13.0	13.0	—	—	—
Investments in other private equity funds	68.6	—	—	—	68.6
Real estate investments	40.7	—	—	40.7	—
Investments in fixed income fund of funds	57.7	—	—	—	57.7
Total assets at fair value	5,116.1	179.0	4,770.1	40.7	126.3

Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities

The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities using significant unobservable inputs:



	Year ended December 31, 2017		Year ended December 31, 2016
$ in millions	Level 3 Assets		Level 3 Assets
Beginning balance	40.7		388.6
Adjustment for adoption of ASU 2015-02	—		(388.6	)
Purchases	15.1		39.4
Sales	(4.5	)	—
Gains and losses included in the Consolidated Statements of Income*	24.9		1.3
Ending balance	76.2		40.7

____________


*	Included in gains/(losses) of CIP, net in the Consolidated Statement of Income for the year ended December 31, 2017 are $24.5 million in net unrealized gains attributable to investments still held at December 31, 2017 by CIP (year ended December 31, 2016: $1.3 million net unrealized gains attributable to investments still held at December 31, 2016).

Fair Value Inputs, Assets and Liabilities, Quantitative Information, Consolidated Investment Products

The following table shows significant unobservable inputs used in the fair value measurement of level 3 assets at December 31, 2017:



Assets and Liabilities *	Fair Value at December 31, 2017 ($ in millions)	Valuation Technique	Unobservable Inputs	Range	Weighted Average (by fair value)
Real Estate Investments	$76.2	Discounted Cash Flow	Discount rate	7% - 33%	17.0	%
			Terminal capitalization rate	5.3%	5.3	%
			Average rent growth rate	2%-3%	2.5	%

At December 31, 2016, $40.7 million of investments held by consolidated real estate funds were valued using recent private market transactions.

The following narrative will indicate the sensitivity of inputs illustrating the impact of significant increases to the inputs. A directionally opposite impact would apply for significant decreases in these inputs:

•

For real estate investments, a change in the average rent growth rate would result in a directionally-opposite change in the assumptions for discount rate and terminal capitalization rate. Significant increases in the average growth rate would result in significantly higher fair values. Significant increases in the assumptions for discount rate and terminal capitalization rate in isolation would result in significantly lower fair value measurements.

The table below summarizes as of December 31, 2017 and December 31, 2016, the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized:

December 31, 2017

December 31, 2016

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⁾

$163.4

$53.9

5.5 years

$68.6

$41.9

7.0 years

Investments in fixed income fund of funds ⁽³⁾

—

n/a

57.7

—

n/a

____________


(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.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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