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Landmark | ||||
Purchase price | ||||
Cash | $ | 239.2 | ||
Seller's expenses | 3.5 | |||
Total consideration | 242.7 | |||
Identifiable assets and liabilities | ||||
Cash | 23.4 | |||
Receivables | 8.5 | |||
Indefinite-life trade name | 1.0 | |||
Amortizable intangible asset management contracts | 85.0 | |||
Fixed assets | 5.1 | |||
Other current assets (liabilities), net | (26.7 | ) | ||
Assets (liabilities), net | (1.7 | ) | ||
Total identifiable assets and liabilities | 94.6 | |||
Goodwill | $ | 148.1 |
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June 30, 2017 | December 31, 2016 | ||||||
Investments of consolidated Funds held at fair value | $ | 46.7 | $ | 35.5 | |||
Other investments held at fair value | 14.5 | 17.5 | |||||
Investments related to long-term incentive compensation plans held at fair value | 88.1 | 78.1 | |||||
Equity-accounted investments in unconsolidated Funds | 28.5 | 30.5 | |||||
Total investments held at fair value | 177.8 | 161.6 | |||||
Equity-accounted investments in Affiliates | 60.5 | 55.2 | |||||
Other investments* | 1.9 | 52.0 | |||||
Total investments per Condensed Consolidated Balance Sheets | $ | 240.2 | $ | 268.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Investment return of equity-accounted investments in unconsolidated Funds | $ | 0.8 | $ | 0.5 | $ | 1.2 | $ | 0.5 | |||||||
Realized and unrealized gains on other investments held at fair value | 1.0 | — | 2.7 | — | |||||||||||
Investment return of held for sale investments | — | 0.3 | 1.7 | 0.6 | |||||||||||
Total return on OMAM investments | 1.8 | 0.8 | 5.6 | 1.1 | |||||||||||
Investment return of equity-accounted investments in Affiliates | 3.2 | 3.7 | 5.5 | 6.9 | |||||||||||
Total investment income per Condensed Consolidated Statement of Operations | $ | 5.0 | $ | 4.5 | $ | 11.1 | $ | 8.0 |
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Quoted prices in active markets (Level I) | Significant other observable inputs (Level II) | Significant unobservable inputs (Level III) | Uncategorized | Total value, June 30, 2017 | |||||||||||||||
Assets of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common and preferred stock | $ | 46.5 | $ | — | $ | — | $ | — | $ | 46.5 | |||||||||
Short-term investment funds | 0.2 | — | — | — | 0.2 | ||||||||||||||
Consolidated Funds total | 46.7 | — | — | — | 46.7 | ||||||||||||||
Investments in separate accounts(2) | 8.5 | — | — | — | 8.5 | ||||||||||||||
Investments related to long-term incentive compensation plans(3) | 88.1 | — | — | — | 88.1 | ||||||||||||||
Investments in unconsolidated Funds(4) | — | — | — | 34.5 | 34.5 | ||||||||||||||
OMAM total | 96.6 | — | — | 34.5 | 131.1 | ||||||||||||||
Total fair value assets | $ | 143.3 | $ | — | $ | — | $ | 34.5 | $ | 177.8 | |||||||||
Liabilities of consolidated Funds(1) | |||||||||||||||||||
Common stock | $ | (5.9 | ) | $ | — | $ | — | $ | — | $ | (5.9 | ) | |||||||
Consolidated Funds total | (5.9 | ) | — | — | — | (5.9 | ) | ||||||||||||
Total fair value liabilities | $ | (5.9 | ) | $ | — | $ | — | $ | — | $ | (5.9 | ) |
Quoted prices in active markets (Level I) | Significant other observable inputs (Level II) | Significant unobservable inputs (Level III) | Uncategorized | Total value December 31, 2016 | |||||||||||||||
Assets of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common and preferred stock | $ | 35.1 | $ | — | $ | — | $ | — | $ | 35.1 | |||||||||
Short-term investment funds | 0.4 | — | — | — | 0.4 | ||||||||||||||
Consolidated Funds total | 35.5 | — | — | — | 35.5 | ||||||||||||||
Investments in separate accounts(2) | 7.5 | — | — | — | 7.5 | ||||||||||||||
Investments related to long-term incentive compensation plans(3) | 78.1 | — | — | — | 78.1 | ||||||||||||||
Investments in unconsolidated Funds(4) | — | — | — | 40.5 | 40.5 | ||||||||||||||
OMAM total | 85.6 | — | — | 40.5 | 126.1 | ||||||||||||||
Total fair value assets | $ | 121.1 | $ | — | $ | — | $ | 40.5 | $ | 161.6 | |||||||||
Liabilities of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common stock | $ | (5.0 | ) | $ | — | $ | — | $ | — | $ | (5.0 | ) | |||||||
Consolidated Funds total | (5.0 | ) | — | — | — | (5.0 | ) | ||||||||||||
Derivative securities | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||
OMAM total | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||
Total fair value liabilities | $ | (5.0 | ) | $ | (0.1 | ) | $ | — | $ | — | $ | (5.1 | ) |
(1) | Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliates. $46.7 million in assets and $5.9 million in liabilities at June 30, 2017 and $35.5 million in assets and $5.0 million in liabilities at December 31, 2016 are the result of the consolidation of Funds sponsored by the Company’s Affiliates. |
(2) | Investments in separate accounts of $8.5 million at June 30, 2017 consist of approximately 2% of cash equivalents and 98% of equity securities. Investments in separate accounts of $7.5 million at December 31, 2016 consist of approximately 28% of cash equivalents and 72% of equity securities. The Company has valued these using the published price of the underlying securities as of the measurement date. Accordingly, the Company has classified these investments as Level I. |
(3) | Investments related to long term compensation plans of $88.1 million and $78.1 million at June 30, 2017 and December 31, 2016, respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. |
(4) | The $34.5 million and $40.5 million at June 30, 2017 and December 31, 2016, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds and UCITS. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. |
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6/30/2017 | 12/31/2016 | ||||||
Assets | |||||||
Investments at fair value | $ | 21.4 | $ | 14.9 | |||
Other assets of consolidated Funds | 0.5 | 0.6 | |||||
Total Assets | $ | 21.9 | $ | 15.5 | |||
Liabilities | |||||||
Other liabilities of consolidated Funds | $ | 0.5 | $ | 0.7 | |||
Total Liabilities | $ | 0.5 | $ | 0.7 |
June 30, 2017 | December 31, 2016 | ||||||
Unconsolidated VIE assets | $ | 5,931.6 | $ | 6,006.3 | |||
Unconsolidated VIE liabilities | $ | 3,782.8 | $ | 3,740.2 | |||
Equity interests on the Condensed Consolidated Balance Sheet | $ | 59.2 | $ | 54.2 | |||
Maximum risk of loss(1) | $ | 63.5 | $ | 58.5 |
(1) | Includes equity investments the Company has made or is required to make and any earned but uncollected management/incentive fees. The Company does not record performance/incentive allocations until the respective measurement period has ended. |
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June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Long-term bonds: | Maturity amount | Discount and issuance costs | Carrying value | Fair Value | Carrying value | Fair Value | ||||||||||||||||||
4.80% Senior Notes Due 2026 | $ | 275.0 | $ | (3.3 | ) | $ | 271.7 | $ | 279.1 | $ | 271.6 | $ | 271.0 | |||||||||||
5.125% Senior Notes Due 2031 | 125.0 | (4.2 | ) | 120.8 | 122.8 | 120.7 | 107.9 | |||||||||||||||||
Total long-term bonds | $ | 400.0 | $ | (7.5 | ) | $ | 392.5 | $ | 401.9 | $ | 392.3 | $ | 378.9 |
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For the six months ended June 30, 2017 | |||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | |||||||||
Foreign currency translation adjustment | $ | 1.7 | $ | — | $ | 1.7 | |||||
Amortization related to derivative securities | 1.3 | (0.6 | ) | 0.7 | |||||||
Other comprehensive income (loss) | $ | 3.0 | $ | (0.6 | ) | $ | 2.4 |
For the six months ended June 30, 2016 | |||||||||||
Pre-Tax | Tax Benefit | Net of Tax | |||||||||
Foreign currency translation adjustment | $ | (1.1 | ) | $ | — | $ | (1.1 | ) | |||
Change in net realized and unrealized gain (loss) on derivative securities | (23.8 | ) | 4.1 | (19.7 | ) | ||||||
Other comprehensive income (loss) | $ | (24.9 | ) | $ | 4.1 | $ | (20.8 | ) |
Foreign currency translation adjustment | Valuation of derivative securities | Total | |||||||||
Balance, as of December 31, 2016 | $ | (1.2 | ) | $ | (26.9 | ) | $ | (28.1 | ) | ||
Other comprehensive income | 1.7 | 0.7 | 2.4 | ||||||||
Balance, as of June 30, 2017 | $ | 0.5 | $ | (26.2 | ) | $ | (25.7 | ) |
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Landmark | ||||
Purchase price | ||||
Cash | $ | 239.2 | ||
Seller's expenses | 3.5 | |||
Total consideration | 242.7 | |||
Identifiable assets and liabilities | ||||
Cash | 23.4 | |||
Receivables | 8.5 | |||
Indefinite-life trade name | 1.0 | |||
Amortizable intangible asset management contracts | 85.0 | |||
Fixed assets | 5.1 | |||
Other current assets (liabilities), net | (26.7 | ) | ||
Assets (liabilities), net | (1.7 | ) | ||
Total identifiable assets and liabilities | 94.6 | |||
Goodwill | $ | 148.1 |
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June 30, 2017 | December 31, 2016 | ||||||
Investments of consolidated Funds held at fair value | $ | 46.7 | $ | 35.5 | |||
Other investments held at fair value | 14.5 | 17.5 | |||||
Investments related to long-term incentive compensation plans held at fair value | 88.1 | 78.1 | |||||
Equity-accounted investments in unconsolidated Funds | 28.5 | 30.5 | |||||
Total investments held at fair value | 177.8 | 161.6 | |||||
Equity-accounted investments in Affiliates | 60.5 | 55.2 | |||||
Other investments* | 1.9 | 52.0 | |||||
Total investments per Condensed Consolidated Balance Sheets | $ | 240.2 | $ | 268.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Investment return of equity-accounted investments in unconsolidated Funds | $ | 0.8 | $ | 0.5 | $ | 1.2 | $ | 0.5 | |||||||
Realized and unrealized gains on other investments held at fair value | 1.0 | — | 2.7 | — | |||||||||||
Investment return of held for sale investments | — | 0.3 | 1.7 | 0.6 | |||||||||||
Total return on OMAM investments | 1.8 | 0.8 | 5.6 | 1.1 | |||||||||||
Investment return of equity-accounted investments in Affiliates | 3.2 | 3.7 | 5.5 | 6.9 | |||||||||||
Total investment income per Condensed Consolidated Statement of Operations | $ | 5.0 | $ | 4.5 | $ | 11.1 | $ | 8.0 |
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Quoted prices in active markets (Level I) | Significant other observable inputs (Level II) | Significant unobservable inputs (Level III) | Uncategorized | Total value, June 30, 2017 | |||||||||||||||
Assets of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common and preferred stock | $ | 46.5 | $ | — | $ | — | $ | — | $ | 46.5 | |||||||||
Short-term investment funds | 0.2 | — | — | — | 0.2 | ||||||||||||||
Consolidated Funds total | 46.7 | — | — | — | 46.7 | ||||||||||||||
Investments in separate accounts(2) | 8.5 | — | — | — | 8.5 | ||||||||||||||
Investments related to long-term incentive compensation plans(3) | 88.1 | — | — | — | 88.1 | ||||||||||||||
Investments in unconsolidated Funds(4) | — | — | — | 34.5 | 34.5 | ||||||||||||||
OMAM total | 96.6 | — | — | 34.5 | 131.1 | ||||||||||||||
Total fair value assets | $ | 143.3 | $ | — | $ | — | $ | 34.5 | $ | 177.8 | |||||||||
Liabilities of consolidated Funds(1) | |||||||||||||||||||
Common stock | $ | (5.9 | ) | $ | — | $ | — | $ | — | $ | (5.9 | ) | |||||||
Consolidated Funds total | (5.9 | ) | — | — | — | (5.9 | ) | ||||||||||||
Total fair value liabilities | $ | (5.9 | ) | $ | — | $ | — | $ | — | $ | (5.9 | ) |
Quoted prices in active markets (Level I) | Significant other observable inputs (Level II) | Significant unobservable inputs (Level III) | Uncategorized | Total value December 31, 2016 | |||||||||||||||
Assets of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common and preferred stock | $ | 35.1 | $ | — | $ | — | $ | — | $ | 35.1 | |||||||||
Short-term investment funds | 0.4 | — | — | — | 0.4 | ||||||||||||||
Consolidated Funds total | 35.5 | — | — | — | 35.5 | ||||||||||||||
Investments in separate accounts(2) | 7.5 | — | — | — | 7.5 | ||||||||||||||
Investments related to long-term incentive compensation plans(3) | 78.1 | — | — | — | 78.1 | ||||||||||||||
Investments in unconsolidated Funds(4) | — | — | — | 40.5 | 40.5 | ||||||||||||||
OMAM total | 85.6 | — | — | 40.5 | 126.1 | ||||||||||||||
Total fair value assets | $ | 121.1 | $ | — | $ | — | $ | 40.5 | $ | 161.6 | |||||||||
Liabilities of OMAM and consolidated Funds(1) | |||||||||||||||||||
Common stock | $ | (5.0 | ) | $ | — | $ | — | $ | — | $ | (5.0 | ) | |||||||
Consolidated Funds total | (5.0 | ) | — | — | — | (5.0 | ) | ||||||||||||
Derivative securities | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||
OMAM total | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||
Total fair value liabilities | $ | (5.0 | ) | $ | (0.1 | ) | $ | — | $ | — | $ | (5.1 | ) |
(1) | Assets and liabilities measured at fair value are comprised of financial investments managed by the Company's Affiliates. $46.7 million in assets and $5.9 million in liabilities at June 30, 2017 and $35.5 million in assets and $5.0 million in liabilities at December 31, 2016 are the result of the consolidation of Funds sponsored by the Company’s Affiliates. |
(2) | Investments in separate accounts of $8.5 million at June 30, 2017 consist of approximately 2% of cash equivalents and 98% of equity securities. Investments in separate accounts of $7.5 million at December 31, 2016 consist of approximately 28% of cash equivalents and 72% of equity securities. The Company has valued these using the published price of the underlying securities as of the measurement date. Accordingly, the Company has classified these investments as Level I. |
(3) | Investments related to long term compensation plans of $88.1 million and $78.1 million at June 30, 2017 and December 31, 2016, respectively, are investments in publicly registered daily redeemable funds (some managed by Affiliates), which the Company has classified as trading securities and valued using the published price as of the measurement dates. Accordingly, the Company has classified these investments as Level I. |
(4) | The $34.5 million and $40.5 million at June 30, 2017 and December 31, 2016, respectively, relate to investments in unconsolidated Funds which consist primarily of investments in Funds advised by Affiliates and are valued using NAV which the Company relies on to determine their fair value as a practical expedient and has therefore not classified these investments in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to amounts presented in the Condensed Consolidated Balance Sheets. These unconsolidated Funds consist primarily of real estate investment Funds and UCITS. The NAVs that have been provided by investees have been derived from the fair values of the underlying investments as of the measurement dates. |
|
June 30, 2017 | December 31, 2016 | ||||||
Unconsolidated VIE assets | $ | 5,931.6 | $ | 6,006.3 | |||
Unconsolidated VIE liabilities | $ | 3,782.8 | $ | 3,740.2 | |||
Equity interests on the Condensed Consolidated Balance Sheet | $ | 59.2 | $ | 54.2 | |||
Maximum risk of loss(1) | $ | 63.5 | $ | 58.5 |
(1) | Includes equity investments the Company has made or is required to make and any earned but uncollected management/incentive fees. The Company does not record performance/incentive allocations until the respective measurement period has ended. |
6/30/2017 | 12/31/2016 | ||||||
Assets | |||||||
Investments at fair value | $ | 21.4 | $ | 14.9 | |||
Other assets of consolidated Funds | 0.5 | 0.6 | |||||
Total Assets | $ | 21.9 | $ | 15.5 | |||
Liabilities | |||||||
Other liabilities of consolidated Funds | $ | 0.5 | $ | 0.7 | |||
Total Liabilities | $ | 0.5 | $ | 0.7 |
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June 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Long-term bonds: | Maturity amount | Discount and issuance costs | Carrying value | Fair Value | Carrying value | Fair Value | ||||||||||||||||||
4.80% Senior Notes Due 2026 | $ | 275.0 | $ | (3.3 | ) | $ | 271.7 | $ | 279.1 | $ | 271.6 | $ | 271.0 | |||||||||||
5.125% Senior Notes Due 2031 | 125.0 | (4.2 | ) | 120.8 | 122.8 | 120.7 | 107.9 | |||||||||||||||||
Total long-term bonds | $ | 400.0 | $ | (7.5 | ) | $ | 392.5 | $ | 401.9 | $ | 392.3 | $ | 378.9 |
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For the six months ended June 30, 2017 | |||||||||||
Pre-Tax | Tax Benefit (Expense) | Net of Tax | |||||||||
Foreign currency translation adjustment | $ | 1.7 | $ | — | $ | 1.7 | |||||
Amortization related to derivative securities | 1.3 | (0.6 | ) | 0.7 | |||||||
Other comprehensive income (loss) | $ | 3.0 | $ | (0.6 | ) | $ | 2.4 |
For the six months ended June 30, 2016 | |||||||||||
Pre-Tax | Tax Benefit | Net of Tax | |||||||||
Foreign currency translation adjustment | $ | (1.1 | ) | $ | — | $ | (1.1 | ) | |||
Change in net realized and unrealized gain (loss) on derivative securities | (23.8 | ) | 4.1 | (19.7 | ) | ||||||
Other comprehensive income (loss) | $ | (24.9 | ) | $ | 4.1 | $ | (20.8 | ) |
Foreign currency translation adjustment | Valuation of derivative securities | Total | |||||||||
Balance, as of December 31, 2016 | $ | (1.2 | ) | $ | (26.9 | ) | $ | (28.1 | ) | ||
Other comprehensive income | 1.7 | 0.7 | 2.4 | ||||||||
Balance, as of June 30, 2017 | $ | 0.5 | $ | (26.2 | ) | $ | (25.7 | ) |
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