Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-32191 | |
Entity Registrant Name | PRICE T ROWE GROUP INC | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 52-2264646 | |
Entity Address, Address Line One | 100 East Pratt Street | |
Entity Address, City or Town | Baltimore | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 21202 | |
City Area Code | 410 | |
Local Phone Number | 345-2000 | |
Title of 12(b) Security | Common stock, $.20 par value per share | |
Trading Symbol | TROW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 227,548,883 | |
Entity Central Index Key | 0001113169 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Amendment Flag | false |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 1,562.4 | $ 1,781.8 |
Accounts receivable and accrued revenue | 585.3 | 646.6 |
Investments | 2,731.3 | 2,939.8 |
Assets of consolidated T. Rowe Price investment products ($1,795.8 million at March 31, 2020 and $1,975.3 million at December 31, 2019, related to variable interest entities) | 2,024.3 | 2,276.9 |
Operating lease assets | 137.6 | 110.8 |
Property and equipment, net | 675.2 | 674.4 |
Goodwill | 665.7 | 665.7 |
Other assets | 255.1 | 234.4 |
Total assets | 8,636.9 | 9,330.4 |
LIABILITIES | ||
Accounts payable and accrued expenses | 198.5 | 214.5 |
Liabilities of consolidated T. Rowe Price investment products ($72.0 million at March 31, 2020 and $27.0 million at December 31, 2019, related to variable interest entities) | 82.9 | 39.2 |
Operating lease liabilities | 172.6 | 146.3 |
Accrued compensation and related costs | 215.4 | 112.1 |
Supplemental savings plan liability | 504.2 | 563.4 |
Income taxes payable | 58.3 | 31.8 |
Total liabilities | 1,231.9 | 1,107.3 |
Commitments and contingent liabilities | ||
Redeemable non-controlling interests | 971 | 1,121 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, undesignated, $.20 par value – authorized and unissued 20,000,000 shares | 0 | 0 |
Common stock, $.20 par value—authorized 750,000,000; issued 227,985,000 shares at March 31, 2020 and 235,214,000 at December 31, 2019 | 45.6 | 47 |
Additional capital in excess of par value | 654.6 | 654.6 |
Retained earnings | 5,782.9 | 6,443.5 |
Accumulated other comprehensive loss | (49.1) | (43) |
Total permanent stockholders’ equity | 6,434 | 7,102.1 |
Total liabilities, redeemable non-controlling interests, and permanent stockholders’ equity | $ 8,636.9 | $ 9,330.4 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets of consolidated T. Rowe Price investment products | $ 2,024.3 | $ 2,276.9 |
Liabilities of consolidated T. Rowe Price investment products | $ 82.9 | $ 39.2 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 227,985,000 | 235,214,000 |
Variable interest entities | ||
Assets of consolidated T. Rowe Price investment products | $ 1,795.8 | $ 1,975.3 |
Liabilities of consolidated T. Rowe Price investment products | $ 72 | $ 27 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Net revenues | $ 1,462.6 | $ 1,327.3 |
Operating expenses | ||
Compensation and related costs | 440.7 | 491.5 |
Distribution and servicing | 65.7 | 66.4 |
Advertising and promotion | 24.9 | 21.6 |
Product-related costs | 41.6 | 44.2 |
Technology, occupancy, and facility costs | 105.4 | 98.1 |
General, administrative, and other | 77.1 | 73 |
Total operating expenses | 755.4 | 794.8 |
Net operating income | 707.2 | 532.5 |
Non-operating income (loss) | ||
Net gains (losses) on investments | (154.6) | 100.1 |
Net gains (losses) on consolidated investment products | (330.3) | 101.9 |
Other income (loss) | (15.4) | 0.8 |
Total non-operating income (loss) | (500.3) | 202.8 |
Income before income taxes | 206.9 | 735.3 |
Provision for income taxes | 40.3 | 181.3 |
Net income | 166.6 | 554 |
Less: net income (loss) attributable to redeemable non-controlling interests | (176.5) | 41.4 |
Net income attributable to T. Rowe Price Group | $ 343.1 | $ 512.6 |
Earnings per share on common stock of T. Rowe Price Group | ||
Basic (in dollars per share) | $ 1.43 | $ 2.11 |
Diluted (in dollars per share) | $ 1.41 | $ 2.09 |
Investment advisory fees | ||
Revenues | ||
Net revenues | $ 1,327.8 | $ 1,194.2 |
Administrative, distribution, and servicing fees | ||
Revenues | ||
Net revenues | $ 134.8 | $ 133.1 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 166.6 | $ 554 |
Other comprehensive income (loss) | ||
Other comprehensive loss before income taxes | (25.3) | (1) |
Net deferred tax benefits | 2 | 0.1 |
Total other comprehensive loss | (23.3) | (0.9) |
Total comprehensive income | 143.3 | 553.1 |
Less: comprehensive income (loss) attributable to redeemable non-controlling interests | (193.7) | 40.1 |
Total comprehensive income attributable to T. Rowe Price Group | 337 | 513 |
Equity method investments | ||
Other comprehensive income (loss) | ||
Currency translation adjustments | (0.1) | 4.9 |
Variable interest entities | ||
Other comprehensive income (loss) | ||
Consolidated T. Rowe Price investment products - variable interest entities | (25.1) | (5.8) |
Reclassification gains recognized in non-operating income upon deconsolidation of certain T. Rowe Price investment products | (0.1) | (0.1) |
Currency translation adjustments | $ (25.2) | $ (5.9) |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 166.6 | $ 554 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization of property and equipment | 46.1 | 41.9 |
Stock-based compensation expense | 58.3 | 43.5 |
Net (gains) losses recognized on investments | 167.3 | (82) |
Net investments in T. Rowe Price investment products used to economically hedge supplemental savings plan liability | (8.9) | (18.2) |
Net change in securities held by consolidated T. Rowe Price investment products | 234.6 | (184.2) |
Other changes in assets and liabilities | 123.7 | 223.7 |
Net cash provided by operating activities | 787.7 | 578.7 |
Cash flows from investing activities | ||
Purchases of T. Rowe Price investment products | (225.1) | (15.6) |
Dispositions of T. Rowe Price investment products | 299.1 | 33.5 |
Net cash of T. Rowe Price investment products on deconsolidation | (0.8) | (3.4) |
Additions to property and equipment | (46) | (47.7) |
Other investing activity | 0.4 | (0.6) |
Net cash provided by (used in) investing activities | 27.6 | (33.8) |
Cash flows from financing activities | ||
Repurchases of common stock | (891.3) | (231) |
Common share issuances under stock-based compensation plans | 38.1 | 43.6 |
Dividends paid to common stockholders of T. Rowe Price Group | (215.2) | (184.6) |
Net subscriptions received from redeemable non-controlling interest holders | 76.1 | 66 |
Net cash used in financing activities | (992.3) | (306) |
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | (1.2) | (0.7) |
Net change in cash and cash equivalents during period | (178.2) | 238.2 |
Cash and cash equivalents at beginning of period | 1,858.3 | 1,495.3 |
Cash and cash equivalents at ending of period | $ 1,680.1 | $ 1,733.5 |
UNAUDITED CONDENSED CONSOLIDA_6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Cash and cash equivalents at beginning of period | $ 1,858.3 | $ 1,733.5 | $ 1,495.3 |
Cash and cash equivalents at ending of period | 1,680.1 | 1,858.3 | 1,733.5 |
Consolidated T. Rowe Price investment products | |||
Cash and cash equivalents at beginning of period | 76.5 | 76.1 | 70.1 |
Cash and cash equivalents at ending of period | $ 117.7 | $ 76.5 | $ 76.1 |
UNAUDITED CONDENSED CONSOLIDA_7
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Restricted stock units | Common stock | Common stockRestricted stock units | Additional capital in excess of par value | Additional capital in excess of par valueRestricted stock units | Retained earnings | AOCI | [1] |
Beginning Balances (in shares) at Dec. 31, 2018 | 238,069,000 | ||||||||
Balances at beginning of period at Dec. 31, 2018 | $ 6,124.3 | $ 47.6 | $ 654.6 | $ 5,464.1 | $ (42) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 512.6 | 512.6 | |||||||
Other comprehensive income (loss), net of tax | 0.4 | 0.4 | |||||||
Dividends declared | (183.8) | (183.8) | |||||||
Common stock-based compensation plans activity | |||||||||
Shares issued upon option exercises (in shares) | 830,000 | ||||||||
Shares issued upon option exercises | 45 | $ 0.2 | 44.8 | ||||||
Net shares issued upon vesting of restricted stock units (in shares) | 14,000 | ||||||||
Net shares issued upon vesting of restricted stock units | $ (1.2) | $ (1.2) | |||||||
Forfeiture of restricted awards (in shares) | (5,000) | ||||||||
Stock-based compensation expense | 43.5 | 43.5 | |||||||
Common shares repurchased (in shares) | (2,476,000) | ||||||||
Common shares repurchased | (229.8) | $ (0.5) | (87.2) | (142.1) | |||||
Ending Balances (in shares) at Mar. 31, 2019 | 236,432,000 | ||||||||
Balances at end of period at Mar. 31, 2019 | 6,311 | $ 47.3 | 654.5 | 5,650.8 | (41.6) | ||||
Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2018 | 740.3 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable non-controlling interests | 41.4 | ||||||||
Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests | (1.3) | ||||||||
Net subscriptions into consolidated T. Rowe Price investment products | 85.9 | ||||||||
Net reconsolidations (deconsolidations) of T. Rowe Price investment products | 20.4 | ||||||||
Ending balances attributable to redeemable non-controlling interests at Mar. 31, 2019 | 886.7 | ||||||||
Beginning Balances (in shares) at Dec. 31, 2019 | 235,214,000 | ||||||||
Balances at beginning of period at Dec. 31, 2019 | 7,102.1 | $ 47 | 654.6 | 6,443.5 | (43) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 343.1 | 343.1 | |||||||
Other comprehensive income (loss), net of tax | (6.1) | (6.1) | |||||||
Dividends declared | $ (214.7) | (214.7) | |||||||
Common stock-based compensation plans activity | |||||||||
Shares issued upon option exercises (in shares) | 1,540,694 | 1,068,000 | |||||||
Shares issued upon option exercises | $ 41.3 | $ 0.2 | 41.1 | ||||||
Net shares issued upon vesting of restricted stock units (in shares) | 37,000 | ||||||||
Net shares issued upon vesting of restricted stock units | $ (3) | $ (3) | |||||||
Stock-based compensation expense | 58.3 | 58.3 | |||||||
Restricted stock units issued as dividend equivalents | 0.1 | (0.1) | |||||||
Common shares repurchased (in shares) | (8,334,000) | ||||||||
Common shares repurchased | (887) | $ (1.6) | (96.5) | (788.9) | |||||
Ending Balances (in shares) at Mar. 31, 2020 | 227,985,000 | ||||||||
Balances at end of period at Mar. 31, 2020 | 6,434 | $ 45.6 | $ 654.6 | $ 5,782.9 | $ (49.1) | ||||
Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2019 | 1,121 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Net income (loss) attributable to redeemable non-controlling interests | (176.5) | ||||||||
Other comprehensive income (loss), net of tax, attributable to redeemable non-controlling interests | (17.2) | ||||||||
Net subscriptions into consolidated T. Rowe Price investment products | 63.8 | ||||||||
Net reconsolidations (deconsolidations) of T. Rowe Price investment products | (20.1) | ||||||||
Ending balances attributable to redeemable non-controlling interests at Mar. 31, 2020 | $ 971 | ||||||||
[1] | Accumulated other comprehensive income. |
UNAUDITED CONDENSED CONSOLIDA_8
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in USD per share) | $ 0.90 | $ 0.76 |
THE COMPANY AND BASIS OF PREPAR
THE COMPANY AND BASIS OF PREPARATION. | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND BASIS OF PREPARATION | THE COMPANY AND BASIS OF PREPARATION. T. Rowe Price Group Inc. derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the T. Rowe Price U.S. mutual funds (“ U.S. mutual funds ”), separately managed accounts, subadvised funds, and other T. Rowe Price products. The other T. Rowe Price products include: collective investment trusts, open-ended investment products offered to investors outside the U.S., and products offered through variable annuity life insurance plans in the U.S. We also provide certain investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting, and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage; and trust services. Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations. BASIS OF PRESENTATION. These unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. These principles require the use of estimates and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of our results for the interim periods presented. All such adjustments are of a normal recurring nature. Actual results may vary from our estimates. The unaudited interim financial information contained in these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in our 2019 Annual Report. NEW ACCOUNTING GUIDANCE. We adopted Accounting Standards Update No. 2018-15 — Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract on January 1, 2020 using the prospective method of adoption. This update required implementation costs incurred in cloud computing arrangements to be deferred and recognized over the term of the hosting arrangement. A hosting arrangement is an agreement that allows customers, like us, to access and use software on an as-needed basis without having possession of the software. Beginning on January 1, 2020, we are required to defer such qualifying implementation costs. As of March 31, 2020, we capitalized an immaterial amount of implementation costs incurred in a cloud computing arrangement. Accordingly, the adoption of this guidance did not have a material impact on our consolidated balance sheets or our consolidated statements of income. NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our unaudited condensed consolidated statements, including those we have not yet adopted. We do not believe that any such guidance has or will have a material effect on our financial position or results of operations. U.S. ECONOMIC RELIEF LEGISLATION |
INFORMATION ABOUT RECEIVABLES,
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. | 3 Months Ended |
Mar. 31, 2020 | |
Information about Receivables, Revenues, and Services [Abstract] | |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES | INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. Revenues earned during the first quarter of 2020 and 2019 under agreements with clients include: Three months ended 3/31/2020 Three months ended 3/31/2019 Administrative, distribution, and servicing fees Administrative, distribution, and servicing fees (in millions) Investment advisory fees Administrative fees Distribution and servicing fees Net revenues Investment advisory fees Administrative fees Distribution and servicing fees Net revenues U.S. mutual funds $ 876.2 $ 77.2 $ 27.9 $ 981.3 $ 815.9 $ 76.6 $ 30.2 $ 922.7 Subadvised and separate accounts and other investment products 451.6 — — 451.6 378.3 — — 378.3 Other clients — 29.7 — 29.7 — 26.3 — 26.3 $ 1,327.8 $ 106.9 $ 27.9 $ 1,462.6 $ 1,194.2 $ 102.9 $ 30.2 $ 1,327.3 Total net revenues earned from our related parties, specifically T. Rowe Price investment products , aggregate $1,207.7 million and $1,093.4 million for the three months ended March 31, 2020 and 2019 , respectively. Accounts receivable from these products aggregate to $374.3 million at March 31, 2020 , and $424.8 million at December 31, 2019 . The following table details the investment advisory fees earned from clients by their underlying asset class. Three months ended (in millions) 3/31/2020 3/31/2019 U.S. mutual funds Equity and blended assets $ 749.8 $ 694.5 Fixed income, including money market 126.4 121.4 876.2 815.9 Subadvised and separate accounts and other investment products Equity and blended assets 385.2 318.8 Fixed income, including money market 66.4 59.5 451.6 378.3 Total $ 1,327.8 $ 1,194.2 The following table summarizes the assets under management on which we earn investment advisory fees. Average during three months ended As of (in billions) 3/31/2020 3/31/2019 3/31/2020 12/31/2019 U.S. mutual funds Equity and blended assets $ 525.0 $ 487.6 $ 443.6 $ 552.4 Fixed income, including money market 129.3 122.5 118.7 130.3 654.3 610.1 562.3 682.7 Subadvised and separate accounts and other investment products Equity and blended assets 396.3 332.9 340.9 412.1 Fixed income, including money market 112.1 100.5 105.6 112.0 508.4 433.4 446.5 524.1 Total $ 1,162.7 $ 1,043.5 $ 1,008.8 $ 1,206.8 Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 7.4% and 6.9% of our assets under management at March 31, 2020 , and December 31, 2019 |
INVESTMENTS.
INVESTMENTS. | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS. The carrying values of our investments that are not part of the consolidated T. Rowe Price investment products are as follows: (in millions) 3/31/2020 12/31/2019 Investments held at fair value T. Rowe Price investment products $ 1,088.1 $ 1,402.9 T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability 500.0 561.1 Investment partnerships and other investments 105.5 99.7 Equity method investments T. Rowe Price investment products 864.5 705.6 26% interest in UTI Asset Management Company Limited (India) 166.8 164.5 Investment partnerships and other investments 5.4 5.0 U.S. Treasury note 1.0 1.0 Total $ 2,731.3 $ 2,939.8 The investment partnerships are carried at fair value using net asset value (“NAV”) per share as a practical expedient. Our interests in these partnerships are generally not redeemable and are subject to significant restrictions on transferability. The underlying investments of these partnerships have contractual terms through 2029, though we may receive distributions of liquidating assets over a longer term. The investment strategies of these partnerships include growth equity, buyout, venture capital, and real estate. During the three months ended March 31, 2020 , net losses on investments included $103.6 million of net unrealized losses related to investments held at fair value that were still held at March 31, 2020 . For the same period of 2019, the net gains on investments included $50.6 million of net unrealized gains on investments held at fair value that were still held at March 31, 2019 . During the three months ended March 31, 2020 and 2019, certain T. Rowe Price investment products in which we provided initial seed capital at the time of formation were deconsolidated, as we no longer had a controlling interest. Depending on our ownership interest, we are now reporting our residual interests in these T. Rowe Price investment products as either an equity method investment or an investment held at fair value. Additionally, during the three months ended March 31, 2019 , certain T. Rowe Price investment products that were being accounted for as equity method investments were consolidated, as we regained a controlling interest. The net impact of these changes on our unaudited condensed consolidated balance sheets and statements of income as of the dates the portfolios were deconsolidated or reconsolidated is detailed below. Three months ended (in millions) 3/31/2020 3/31/2019 Net increase (decrease) in assets of consolidated T. Rowe Price investment products $ (46.2 ) $ 12.3 Net decrease in liabilities of consolidated T. Rowe Price investment products $ (2.4 ) $ (.9 ) Net increase (decrease) in redeemable non-controlling interests $ (20.1 ) $ 20.4 Gains recognized upon deconsolidation $ .1 $ .1 The gains or losses recognized upon deconsolidation were the result of reclassifying currency translation adjustments accumulated on certain T. Rowe Price investment products with non-USD functional currencies from accumulated other comprehensive income to non-operating income (loss). VARIABLE INTEREST ENTITIES. Our investments at March 31, 2020 and December 31, 2019 , include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows: (in millions) 3/31/2020 12/31/2019 Investment carrying values $ 129.4 $ 156.0 Unfunded capital commitments 15.6 18.1 Uncollected investment advisory and administrative fees 7.1 10.5 $ 152.1 $ 184.6 The unfunded capital commitments totaling $15.6 million and $18.1 million at March 31, 2020 and December 31, 2019 |
FAIR VALUE MEASUREMENTS.
FAIR VALUE MEASUREMENTS. | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS. We determine the fair value of our cash equivalents and certain investments using the following broad levels of inputs as defined by related accounting standards: Level 1 – quoted prices in active markets for identical securities. Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources. Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. We do not value any investments using Level 3 inputs. These levels are not necessarily an indication of the risk or liquidity associated with our investments. The following table summarizes our investments that are recognized in our unaudited condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. This table excludes investments held by the consolidated T. Rowe Price investment products which are presented separately on our unaudited condensed consolidated balance sheets and are detailed in Note 5. 3/31/2020 12/31/2019 (in millions) Level 1 Level 2 Level 1 Level 2 Cash equivalents held in T. Rowe Price money market funds $ 1,164.9 $ — $ 1,355.6 $ — T. Rowe Price investment products 1,075.7 12.4 1,393.0 9.9 T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability 500.0 — 561.1 — Total $ 2,740.6 $ 12.4 $ 3,309.7 $ 9.9 As required by the accounting guidance, the fair value hierarchy levels table above does not include the investment partnerships and other investments for which fair value is estimated using their NAV per share as a practical expedient. The carrying value of these investments as disclosed in Note 3 were $105.5 million at March 31, 2020 and $99.7 million at December 31, 2019 . |
CONSOLIDATED T. ROWE PRICE INVE
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. | 3 Months Ended |
Mar. 31, 2020 | |
Consolidated Sponsored Investment Portfolios [Abstract] | |
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS | CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. The T. Rowe Price investment products that we consolidate in our unaudited condensed consolidated financial statements are generally those products we provided initial seed capital at the time of their formation and have a controlling interest. Our U.S. mutual funds are considered voting interest entities, while those regulated outside the U.S. are considered variable interest entities. The following table details the net assets of the consolidated T. Rowe Price investment products : 3/31/2020 12/31/2019 (in millions) Voting Variable interest entities Total Voting Variable interest entities Total Cash and cash equivalents (1) $ 23.1 $ 94.6 $ 117.7 $ 9.9 $ 66.6 $ 76.5 Investments (2) 197.3 1,641.3 1,838.6 281.1 1,891.3 2,172.4 Other assets 8.1 59.9 68.0 10.6 17.4 28.0 Total assets 228.5 1,795.8 2,024.3 301.6 1,975.3 2,276.9 Liabilities 10.9 72.0 82.9 12.2 27.0 39.2 Net assets $ 217.6 $ 1,723.8 $ 1,941.4 $ 289.4 $ 1,948.3 $ 2,237.7 Attributable to T. Rowe Price Group $ 155.0 $ 815.4 $ 970.4 $ 199.6 $ 917.1 $ 1,116.7 Attributable to redeemable non-controlling interests 62.6 908.4 971.0 89.8 1,031.2 1,121.0 $ 217.6 $ 1,723.8 $ 1,941.4 $ 289.4 $ 1,948.3 $ 2,237.7 (1) Cash and cash equivalents includes $22.5 million and $9.1 million at March 31, 2020 , and December 31, 2019 , respectively, of T. Rowe Price money market mutual funds. (2) Investments includes $35.3 million and $40.2 million at March 31, 2020 , and December 31, 2019 , respectively, of T. Rowe Price investment products. Although we can redeem our net interest in these consolidated T. Rowe Price investment products at any time, we cannot directly access or sell the assets held by these products to obtain cash for general operations. Additionally, the assets of these investment products are not available to our general creditors. Since third party investors in these investment products have no recourse to our credit, our overall risk related to the net assets of consolidated T. Rowe Price investment products is limited to valuation changes associated with our net interest. We, however, are required to recognize the valuation changes associated with all underlying investments held by these products in our unaudited condensed consolidated statements of income and disclose the portion attributable to third party investors as net income attributable to redeemable non-controlling interests. The operating results of the consolidated T. Rowe Price investment products for the three months ended March 31, 2020 and 2019 , are reflected in our unaudited condensed consolidated statements of income as follows: Three months ended 3/31/2020 3/31/2019 (in millions) Voting interest entities Variable interest entities Total Voting interest entities Variable interest entities Total Operating expenses reflected in net operating income $ (.2 ) $ (3.5 ) $ (3.7 ) $ (.3 ) $ (2.8 ) $ (3.1 ) Net investment income (loss) reflected in non-operating income (loss) (35.2 ) (295.1 ) (330.3 ) 8.0 93.9 101.9 Impact on income before taxes $ (35.4 ) $ (298.6 ) $ (334.0 ) $ 7.7 $ 91.1 $ 98.8 Net income (loss) attributable to T. Rowe Price Group $ (22.6 ) $ (134.9 ) $ (157.5 ) $ 8.7 $ 48.7 $ 57.4 Net income (loss) attributable to redeemable non-controlling interests (12.8 ) (163.7 ) (176.5 ) (1.0 ) 42.4 41.4 $ (35.4 ) $ (298.6 ) $ (334.0 ) $ 7.7 $ 91.1 $ 98.8 The operating expenses of the consolidated investment products are reflected in other operating expenses. In preparing our unaudited condensed consolidated financial statements, we eliminated operating expenses of $2.5 million and $1.5 million for the three months ended March 31, 2020 and 2019 , respectively, against the investment advisory and administrative fees earned from these products. The net investment income (loss) reflected in non- operating income (loss) includes dividend and interest income and realized and unrealized gains and losses on the underlying securities held by the consolidated T. Rowe Price investment products . The table below details the impact of these consolidated investment products on the individual lines of our unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 . Three months ended 3/31/2020 3/31/2019 (in millions) Voting Variable interest entities Total Voting Variable interest entities Total Net cash provided by operating activities $ 11.3 $ (87.0 ) $ (75.7 ) $ (28.7 ) $ (65.0 ) $ (93.7 ) Net cash provided by (used in) investing activities (.8 ) — (.8 ) (5.1 ) 1.7 (3.4 ) Net cash used in financing activities 2.7 116.2 118.9 31.6 72.2 103.8 Effect of exchange rate changes on cash and cash equivalents of consolidated — (1.2 ) (1.2 ) — (.7 ) (.7 ) Net change in cash and cash equivalents during period 13.2 28.0 41.2 (2.2 ) 8.2 6.0 Cash and cash equivalents at beginning of year 9.9 66.6 76.5 18.5 51.6 70.1 Cash and cash equivalents at end of period $ 23.1 $ 94.6 $ 117.7 $ 16.3 $ 59.8 $ 76.1 The net cash provided by financing activities during the three months ended March 31, 2020 and 2019 includes $42.8 million and $37.8 million , respectively, of net subscriptions we made into the consolidated T. Rowe Price investment products , net of dividends received. These cash flows were eliminated in consolidation. FAIR VALUE MEASUREMENTS. We determine the fair value of investments held by consolidated T. Rowe Price investment products using the following broad levels of inputs as defined by related accounting standards: Level 1 – quoted prices in active markets for identical securities. Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources. Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. The value of investments using Level 3 inputs is insignificant. These levels are not necessarily an indication of the risk or liquidity associated with these investment holdings. The following table summarizes the investment holdings held by our consolidated T. Rowe Price investment products using fair value measurements determined based on the differing levels of inputs. 3/31/2020 12/31/2019 (in millions) Level 1 Level 2 Level 1 Level 2 Assets Cash equivalents $ 22.5 $ — $ 9.1 $ 1.1 Equity securities 149.9 548.3 162.8 724.5 Fixed income securities — 1,097.9 — 1,248.6 Other investments 3.3 39.2 2.7 33.8 $ 175.7 $ 1,685.4 $ 174.6 $ 2,008.0 Liabilities $ (2.3 ) $ (31.9 ) $ (.4 ) $ (11.2 ) |
STOCKHOLDERS' EQUITY.
STOCKHOLDERS' EQUITY. | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY. Accounts payable and accrued expenses includes liabilities of $7.9 million at March 31, 2020 , and $12.2 million at December 31, 2019 |
STOCK-BASED COMPENSATION.
STOCK-BASED COMPENSATION. | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION. STOCK OPTIONS. The following table summarizes the status of, and changes in, our stock options during the three months ended March 31, 2020 . Options Weighted- average exercise price Outstanding at December 31, 2019 7,388,068 $ 71.06 Exercised (1,540,694 ) $ 67.50 Forfeited (1,428 ) $ 76.00 Outstanding at March 31, 2020 5,845,946 $ 72.00 Exercisable at March 31, 2020 5,176,419 $ 71.50 RESTRICTED SHARES AND STOCK UNITS. The following table summarizes the status of, and changes in, our nonvested restricted shares and restricted stock units during the three months ended March 31, 2020 . Restricted shares Restricted stock units Weighted-average fair value Nonvested at December 31, 2019 7,404 6,718,261 $ 98.75 Time-based grants — 15,184 $ 126.33 Dividend equivalents granted to non-employee directors — 643 $ 98.80 Vested — (62,499 ) $ 95.26 Forfeited — (34,004 ) $ 97.30 Nonvested at March 31, 2020 7,404 6,637,585 $ 98.85 Nonvested at March 31, 2020 , includes 403,008 performance-based restricted stock units, including 318,768 restricted stock units for which the performance period has expired, and the performance threshold has been met. FUTURE STOCK-BASED COMPENSATION EXPENSE. The following table presents the compensation expense to be recognized over the remaining vesting periods of the stock-based awards outstanding at March 31, 2020 . Estimated future compensation expense will change to reflect future grants of restricted stock awards and units, future option grants, changes in the probability of performance thresholds being met, and adjustments for actual forfeitures. (in millions) Second quarter 2020 $ 54.5 Third quarter 2020 53.2 Fourth quarter 2020 46.2 2021 108.1 2022 through 2026 90.0 Total $ 352.0 |
EARNINGS PER SHARE CALCULATIONS
EARNINGS PER SHARE CALCULATIONS. | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS. The following table presents the reconciliation of net income attributable to T. Rowe Price Group to net income allocated to our common stockholders and the weighted-average shares that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflects the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested. No stock options had an anti-dilutive impact on the diluted earnings per common share calculation in the periods presented. Three months ended (in millions) 3/31/2020 3/31/2019 Net income attributable to T. Rowe Price Group $ 343.1 $ 512.6 Less: net income allocated to outstanding restricted stock and stock unit holders 9.4 13.0 Net income allocated to common stockholders $ 333.7 $ 499.6 Weighted-average common shares Outstanding 234.1 236.6 Outstanding assuming dilution 236.8 239.6 |
OTHER COMPREHENSIVE INCOME AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS. | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS. The changes in each component of accumulated other comprehensive loss, including reclassification adjustments for the three months ended March 31, 2020 and 2019 are presented in the table below. Three months ended 3/31/2020 Three months ended 3/31/2019 Currency translation adjustments Currency translation adjustments (in millions) Equity method investments Consolidated T. Rowe Price investment products - variable interest entities Total currency translation adjustments Equity method investments Consolidated T. Rowe Price investment products - variable interest entities Total currency translation adjustments Balances at beginning of period $ (46.9 ) $ 3.9 $ (43.0 ) $ (48.8 ) $ 6.8 $ (42.0 ) Other comprehensive income (loss) before reclassifications and income taxes (.1 ) (7.9 ) (8.0 ) 4.9 (4.5 ) .4 Reclassification adjustments recognized in non-operating income — (.1 ) (.1 ) — (.1 ) (.1 ) (.1 ) (8.0 ) (8.1 ) 4.9 (4.6 ) .3 Net deferred tax benefits (income taxes) — 2.0 2.0 (1.1 ) 1.2 .1 Other comprehensive income (loss) (.1 ) (6.0 ) (6.1 ) 3.8 (3.4 ) .4 Balances at end of period $ (47.0 ) $ (2.1 ) $ (49.1 ) $ (45.0 ) $ 3.4 $ (41.6 ) The other comprehensive income (loss) in the table above excludes $17.2 million and $1.3 million of other comprehensive loss related to redeemable non-controlling interests held in our consolidated products for the three months ended March 31, 2020 and 2019 , respectively. |
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES. | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES. On February 14, 2017, T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price Trust Company, current and former members of the management committee, and trustees of the T. Rowe Price U.S. Retirement Program were named as defendants in a lawsuit filed in the United States District Court for the District of Maryland. The lawsuit alleges breaches of ERISA’s fiduciary duty and prohibited transaction provisions on behalf of a class of all participants and beneficiaries of the T. Rowe Price 401(k) Plan from February 14, 2011, to the time of judgment. The matter has been certified as a class action. T. Rowe Price believes the claims are without merit and is vigorously defending the action. This matter is in the expert discovery phase of litigation and we cannot predict the eventual outcome, or whether it will have a material negative impact on our financial results, or estimate the possible loss or range of loss that may arise from any negative outcome. On April 27, 2016, certain shareholders in the T. Rowe Price Blue Chip Growth Fund, T. Rowe Price Capital Appreciation Fund, T. Rowe Price Equity Income Fund, T. Rowe Price Growth Stock Fund, T. Rowe Price International Stock Fund, T. Rowe Price High Yield Fund, T. Rowe Price New Income Fund and T. Rowe Price Small Cap Stock Fund (the “Funds”) filed a Section 36(b) complaint under the caption Zoidis v. T. Rowe Price Assoc., Inc., against T. Rowe Price Associates, Inc. (“T. Rowe Price”) in the United States District Court for the Northern District of California. The complaint alleges that the management fees for the identified funds are excessive because T. Rowe Price charges lower advisory fees to subadvised clients with funds in the same strategy. The complaint seeks to recover the allegedly excessive advisory fees received by T. Rowe Price in the year preceding the start of the lawsuit, along with investments’ returns and profits. In the alternative, the complaint seeks the rescission of each fund’s investment management agreement and restitution of any allegedly excessive management fees. T. Rowe Price believes the claims are without merit and is vigorously defending the action. This matter is in the discovery phase of litigation and we cannot predict the eventual outcome, or whether it will have a material negative impact on our financial results, or estimate the possible loss or range of loss that may arise from any negative outcome. In addition to the matters discussed above, various claims against us arise in the ordinary course of business, including employment-related claims. In the opinion of management, after consultation with counsel, the likelihood of an adverse determination in one or more of these pending ordinary course of business claims that would have a material adverse effect on our financial position or results of operations is remote. |
THE COMPANY AND BASIS OF PREP_2
THE COMPANY AND BASIS OF PREPARATION. (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Guidance and Newly Issued But Not Yet Adopted Accounting Guidance | NEW ACCOUNTING GUIDANCE. We adopted Accounting Standards Update No. 2018-15 — Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract on January 1, 2020 using the prospective method of adoption. This update required implementation costs incurred in cloud computing arrangements to be deferred and recognized over the term of the hosting arrangement. A hosting arrangement is an agreement that allows customers, like us, to access and use software on an as-needed basis without having possession of the software. Beginning on January 1, 2020, we are required to defer such qualifying implementation costs. As of March 31, 2020, we capitalized an immaterial amount of implementation costs incurred in a cloud computing arrangement. Accordingly, the adoption of this guidance did not have a material impact on our consolidated balance sheets or our consolidated statements of income. NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our unaudited condensed consolidated statements, including those we have not yet adopted. We do not believe that any such guidance has or will have a material effect on our financial position or results of operations. |
INFORMATION ABOUT RECEIVABLES_2
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Information about Receivables, Revenues, and Services [Abstract] | |
Components of revenues from advisory services | Revenues earned during the first quarter of 2020 and 2019 under agreements with clients include: Three months ended 3/31/2020 Three months ended 3/31/2019 Administrative, distribution, and servicing fees Administrative, distribution, and servicing fees (in millions) Investment advisory fees Administrative fees Distribution and servicing fees Net revenues Investment advisory fees Administrative fees Distribution and servicing fees Net revenues U.S. mutual funds $ 876.2 $ 77.2 $ 27.9 $ 981.3 $ 815.9 $ 76.6 $ 30.2 $ 922.7 Subadvised and separate accounts and other investment products 451.6 — — 451.6 378.3 — — 378.3 Other clients — 29.7 — 29.7 — 26.3 — 26.3 $ 1,327.8 $ 106.9 $ 27.9 $ 1,462.6 $ 1,194.2 $ 102.9 $ 30.2 $ 1,327.3 Total net revenues earned from our related parties, specifically T. Rowe Price investment products , aggregate $1,207.7 million and $1,093.4 million for the three months ended March 31, 2020 and 2019 , respectively. Accounts receivable from these products aggregate to $374.3 million at March 31, 2020 , and $424.8 million at December 31, 2019 . The following table details the investment advisory fees earned from clients by their underlying asset class. Three months ended (in millions) 3/31/2020 3/31/2019 U.S. mutual funds Equity and blended assets $ 749.8 $ 694.5 Fixed income, including money market 126.4 121.4 876.2 815.9 Subadvised and separate accounts and other investment products Equity and blended assets 385.2 318.8 Fixed income, including money market 66.4 59.5 451.6 378.3 Total $ 1,327.8 $ 1,194.2 |
Components of assets under management | The following table summarizes the assets under management on which we earn investment advisory fees. Average during three months ended As of (in billions) 3/31/2020 3/31/2019 3/31/2020 12/31/2019 U.S. mutual funds Equity and blended assets $ 525.0 $ 487.6 $ 443.6 $ 552.4 Fixed income, including money market 129.3 122.5 118.7 130.3 654.3 610.1 562.3 682.7 Subadvised and separate accounts and other investment products Equity and blended assets 396.3 332.9 340.9 412.1 Fixed income, including money market 112.1 100.5 105.6 112.0 508.4 433.4 446.5 524.1 Total $ 1,162.7 $ 1,043.5 $ 1,008.8 $ 1,206.8 |
INVESTMENTS. (Tables)
INVESTMENTS. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Unconsolidated investments | The carrying values of our investments that are not part of the consolidated T. Rowe Price investment products are as follows: (in millions) 3/31/2020 12/31/2019 Investments held at fair value T. Rowe Price investment products $ 1,088.1 $ 1,402.9 T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability 500.0 561.1 Investment partnerships and other investments 105.5 99.7 Equity method investments T. Rowe Price investment products 864.5 705.6 26% interest in UTI Asset Management Company Limited (India) 166.8 164.5 Investment partnerships and other investments 5.4 5.0 U.S. Treasury note 1.0 1.0 Total $ 2,731.3 $ 2,939.8 |
Net impact of deconsolidation and consolidation on condensed consolidated balance sheets and income statements | The net impact of these changes on our unaudited condensed consolidated balance sheets and statements of income as of the dates the portfolios were deconsolidated or reconsolidated is detailed below. Three months ended (in millions) 3/31/2020 3/31/2019 Net increase (decrease) in assets of consolidated T. Rowe Price investment products $ (46.2 ) $ 12.3 Net decrease in liabilities of consolidated T. Rowe Price investment products $ (2.4 ) $ (.9 ) Net increase (decrease) in redeemable non-controlling interests $ (20.1 ) $ 20.4 Gains recognized upon deconsolidation $ .1 $ .1 |
Maximum risk of loss related to investments in variable interest entities | Our investments at March 31, 2020 and December 31, 2019 , include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows: (in millions) 3/31/2020 12/31/2019 Investment carrying values $ 129.4 $ 156.0 Unfunded capital commitments 15.6 18.1 Uncollected investment advisory and administrative fees 7.1 10.5 $ 152.1 $ 184.6 |
FAIR VALUE MEASUREMENTS. (Table
FAIR VALUE MEASUREMENTS. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements summary | The following table summarizes our investments that are recognized in our unaudited condensed consolidated balance sheets using fair value measurements determined based on the differing levels of inputs. This table excludes investments held by the consolidated T. Rowe Price investment products which are presented separately on our unaudited condensed consolidated balance sheets and are detailed in Note 5. 3/31/2020 12/31/2019 (in millions) Level 1 Level 2 Level 1 Level 2 Cash equivalents held in T. Rowe Price money market funds $ 1,164.9 $ — $ 1,355.6 $ — T. Rowe Price investment products 1,075.7 12.4 1,393.0 9.9 T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability 500.0 — 561.1 — Total $ 2,740.6 $ 12.4 $ 3,309.7 $ 9.9 |
CONSOLIDATED T. ROWE PRICE IN_2
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Consolidated Sponsored Investment Portfolios [Abstract] | |
Net assets of consolidated sponsored investment portfolios | The following table details the net assets of the consolidated T. Rowe Price investment products : 3/31/2020 12/31/2019 (in millions) Voting Variable interest entities Total Voting Variable interest entities Total Cash and cash equivalents (1) $ 23.1 $ 94.6 $ 117.7 $ 9.9 $ 66.6 $ 76.5 Investments (2) 197.3 1,641.3 1,838.6 281.1 1,891.3 2,172.4 Other assets 8.1 59.9 68.0 10.6 17.4 28.0 Total assets 228.5 1,795.8 2,024.3 301.6 1,975.3 2,276.9 Liabilities 10.9 72.0 82.9 12.2 27.0 39.2 Net assets $ 217.6 $ 1,723.8 $ 1,941.4 $ 289.4 $ 1,948.3 $ 2,237.7 Attributable to T. Rowe Price Group $ 155.0 $ 815.4 $ 970.4 $ 199.6 $ 917.1 $ 1,116.7 Attributable to redeemable non-controlling interests 62.6 908.4 971.0 89.8 1,031.2 1,121.0 $ 217.6 $ 1,723.8 $ 1,941.4 $ 289.4 $ 1,948.3 $ 2,237.7 (1) Cash and cash equivalents includes $22.5 million and $9.1 million at March 31, 2020 , and December 31, 2019 , respectively, of T. Rowe Price money market mutual funds. (2) Investments includes $35.3 million and $40.2 million at March 31, 2020 , and December 31, 2019 , respectively, of T. Rowe Price investment products. |
Operating results of consolidated sponsored investment portfolios | The operating results of the consolidated T. Rowe Price investment products for the three months ended March 31, 2020 and 2019 , are reflected in our unaudited condensed consolidated statements of income as follows: Three months ended 3/31/2020 3/31/2019 (in millions) Voting interest entities Variable interest entities Total Voting interest entities Variable interest entities Total Operating expenses reflected in net operating income $ (.2 ) $ (3.5 ) $ (3.7 ) $ (.3 ) $ (2.8 ) $ (3.1 ) Net investment income (loss) reflected in non-operating income (loss) (35.2 ) (295.1 ) (330.3 ) 8.0 93.9 101.9 Impact on income before taxes $ (35.4 ) $ (298.6 ) $ (334.0 ) $ 7.7 $ 91.1 $ 98.8 Net income (loss) attributable to T. Rowe Price Group $ (22.6 ) $ (134.9 ) $ (157.5 ) $ 8.7 $ 48.7 $ 57.4 Net income (loss) attributable to redeemable non-controlling interests (12.8 ) (163.7 ) (176.5 ) (1.0 ) 42.4 41.4 $ (35.4 ) $ (298.6 ) $ (334.0 ) $ 7.7 $ 91.1 $ 98.8 |
Cash flows of consolidated sponsored investment portfolios | The table below details the impact of these consolidated investment products on the individual lines of our unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 . Three months ended 3/31/2020 3/31/2019 (in millions) Voting Variable interest entities Total Voting Variable interest entities Total Net cash provided by operating activities $ 11.3 $ (87.0 ) $ (75.7 ) $ (28.7 ) $ (65.0 ) $ (93.7 ) Net cash provided by (used in) investing activities (.8 ) — (.8 ) (5.1 ) 1.7 (3.4 ) Net cash used in financing activities 2.7 116.2 118.9 31.6 72.2 103.8 Effect of exchange rate changes on cash and cash equivalents of consolidated — (1.2 ) (1.2 ) — (.7 ) (.7 ) Net change in cash and cash equivalents during period 13.2 28.0 41.2 (2.2 ) 8.2 6.0 Cash and cash equivalents at beginning of year 9.9 66.6 76.5 18.5 51.6 70.1 Cash and cash equivalents at end of period $ 23.1 $ 94.6 $ 117.7 $ 16.3 $ 59.8 $ 76.1 |
Fair values of investments held by consolidated sponsored investment portfolios | The following table summarizes the investment holdings held by our consolidated T. Rowe Price investment products using fair value measurements determined based on the differing levels of inputs. 3/31/2020 12/31/2019 (in millions) Level 1 Level 2 Level 1 Level 2 Assets Cash equivalents $ 22.5 $ — $ 9.1 $ 1.1 Equity securities 149.9 548.3 162.8 724.5 Fixed income securities — 1,097.9 — 1,248.6 Other investments 3.3 39.2 2.7 33.8 $ 175.7 $ 1,685.4 $ 174.6 $ 2,008.0 Liabilities $ (2.3 ) $ (31.9 ) $ (.4 ) $ (11.2 ) |
STOCK-BASED COMPENSATION. (Tabl
STOCK-BASED COMPENSATION. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Rollforward of stock options | The following table summarizes the status of, and changes in, our stock options during the three months ended March 31, 2020 . Options Weighted- average exercise price Outstanding at December 31, 2019 7,388,068 $ 71.06 Exercised (1,540,694 ) $ 67.50 Forfeited (1,428 ) $ 76.00 Outstanding at March 31, 2020 5,845,946 $ 72.00 Exercisable at March 31, 2020 5,176,419 $ 71.50 |
Rollforward of nonvested restricted shares and restricted stock units | The following table summarizes the status of, and changes in, our nonvested restricted shares and restricted stock units during the three months ended March 31, 2020 . Restricted shares Restricted stock units Weighted-average fair value Nonvested at December 31, 2019 7,404 6,718,261 $ 98.75 Time-based grants — 15,184 $ 126.33 Dividend equivalents granted to non-employee directors — 643 $ 98.80 Vested — (62,499 ) $ 95.26 Forfeited — (34,004 ) $ 97.30 Nonvested at March 31, 2020 7,404 6,637,585 $ 98.85 |
Future stock-based compensation expense | The following table presents the compensation expense to be recognized over the remaining vesting periods of the stock-based awards outstanding at March 31, 2020 . Estimated future compensation expense will change to reflect future grants of restricted stock awards and units, future option grants, changes in the probability of performance thresholds being met, and adjustments for actual forfeitures. (in millions) Second quarter 2020 $ 54.5 Third quarter 2020 53.2 Fourth quarter 2020 46.2 2021 108.1 2022 through 2026 90.0 Total $ 352.0 |
EARNINGS PER SHARE CALCULATIO_2
EARNINGS PER SHARE CALCULATIONS. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share reconciliation | The following table presents the reconciliation of net income attributable to T. Rowe Price Group to net income allocated to our common stockholders and the weighted-average shares that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflects the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested. No stock options had an anti-dilutive impact on the diluted earnings per common share calculation in the periods presented. Three months ended (in millions) 3/31/2020 3/31/2019 Net income attributable to T. Rowe Price Group $ 343.1 $ 512.6 Less: net income allocated to outstanding restricted stock and stock unit holders 9.4 13.0 Net income allocated to common stockholders $ 333.7 $ 499.6 Weighted-average common shares Outstanding 234.1 236.6 Outstanding assuming dilution 236.8 239.6 |
OTHER COMPREHENSIVE INCOME AN_2
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS. (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Changes in accumulated other comprehensive loss | he changes in each component of accumulated other comprehensive loss, including reclassification adjustments for the three months ended March 31, 2020 and 2019 are presented in the table below. Three months ended 3/31/2020 Three months ended 3/31/2019 Currency translation adjustments Currency translation adjustments (in millions) Equity method investments Consolidated T. Rowe Price investment products - variable interest entities Total currency translation adjustments Equity method investments Consolidated T. Rowe Price investment products - variable interest entities Total currency translation adjustments Balances at beginning of period $ (46.9 ) $ 3.9 $ (43.0 ) $ (48.8 ) $ 6.8 $ (42.0 ) Other comprehensive income (loss) before reclassifications and income taxes (.1 ) (7.9 ) (8.0 ) 4.9 (4.5 ) .4 Reclassification adjustments recognized in non-operating income — (.1 ) (.1 ) — (.1 ) (.1 ) (.1 ) (8.0 ) (8.1 ) 4.9 (4.6 ) .3 Net deferred tax benefits (income taxes) — 2.0 2.0 (1.1 ) 1.2 .1 Other comprehensive income (loss) (.1 ) (6.0 ) (6.1 ) 3.8 (3.4 ) .4 Balances at end of period $ (47.0 ) $ (2.1 ) $ (49.1 ) $ (45.0 ) $ 3.4 $ (41.6 ) The other comprehensive income (loss) in the table above excludes $17.2 million and $1.3 million of other comprehensive loss related to redeemable non-controlling interests held in our consolidated products for the three months ended March 31, 2020 and 2019 , respectively. |
INFORMATION ABOUT RECEIVABLES_3
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Investment Advisory Services) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue and Services [Line Items] | |||
Net revenues | $ 1,462.6 | $ 1,327.3 | |
Average assets under management | 1,162,700 | 1,043,500 | |
Period end assets under management | 1,008,800 | $ 1,206,800 | |
T. Rowe Price investment products | |||
Revenue and Services [Line Items] | |||
Net revenues | 1,207.7 | 1,093.4 | |
U.S. mutual funds | |||
Revenue and Services [Line Items] | |||
Net revenues | 981.3 | 922.7 | |
Average assets under management | 654,300 | 610,100 | |
Period end assets under management | 562,300 | 682,700 | |
U.S. mutual funds | Equity and blended assets | |||
Revenue and Services [Line Items] | |||
Average assets under management | 525,000 | 487,600 | |
Period end assets under management | 443,600 | 552,400 | |
U.S. mutual funds | Fixed income, including money market | |||
Revenue and Services [Line Items] | |||
Average assets under management | 129,300 | 122,500 | |
Period end assets under management | 118,700 | 130,300 | |
Subadvised and separate accounts and other investment products | |||
Revenue and Services [Line Items] | |||
Net revenues | 451.6 | 378.3 | |
Average assets under management | 508,400 | 433,400 | |
Period end assets under management | 446,500 | 524,100 | |
Subadvised and separate accounts and other investment products | Equity and blended assets | |||
Revenue and Services [Line Items] | |||
Average assets under management | 396,300 | 332,900 | |
Period end assets under management | 340,900 | 412,100 | |
Subadvised and separate accounts and other investment products | Fixed income, including money market | |||
Revenue and Services [Line Items] | |||
Average assets under management | 112,100 | 100,500 | |
Period end assets under management | 105,600 | $ 112,000 | |
Other clients | |||
Revenue and Services [Line Items] | |||
Net revenues | 29.7 | 26.3 | |
Investment advisory fees | |||
Revenue and Services [Line Items] | |||
Net revenues | 1,327.8 | 1,194.2 | |
Investment advisory fees | U.S. mutual funds | |||
Revenue and Services [Line Items] | |||
Net revenues | 876.2 | 815.9 | |
Investment advisory fees | U.S. mutual funds | Equity and blended assets | |||
Revenue and Services [Line Items] | |||
Net revenues | 749.8 | 694.5 | |
Investment advisory fees | U.S. mutual funds | Fixed income, including money market | |||
Revenue and Services [Line Items] | |||
Net revenues | 126.4 | 121.4 | |
Investment advisory fees | Subadvised and separate accounts and other investment products | |||
Revenue and Services [Line Items] | |||
Net revenues | 451.6 | 378.3 | |
Investment advisory fees | Subadvised and separate accounts and other investment products | Equity and blended assets | |||
Revenue and Services [Line Items] | |||
Net revenues | 385.2 | 318.8 | |
Investment advisory fees | Subadvised and separate accounts and other investment products | Fixed income, including money market | |||
Revenue and Services [Line Items] | |||
Net revenues | 66.4 | 59.5 | |
Investment advisory fees | Other clients | |||
Revenue and Services [Line Items] | |||
Net revenues | 0 | 0 | |
Administrative fees | |||
Revenue and Services [Line Items] | |||
Net revenues | 106.9 | 102.9 | |
Administrative fees | U.S. mutual funds | |||
Revenue and Services [Line Items] | |||
Net revenues | 77.2 | 76.6 | |
Administrative fees | Subadvised and separate accounts and other investment products | |||
Revenue and Services [Line Items] | |||
Net revenues | 0 | 0 | |
Administrative fees | Other clients | |||
Revenue and Services [Line Items] | |||
Net revenues | 29.7 | 26.3 | |
Distribution and servicing fees | |||
Revenue and Services [Line Items] | |||
Net revenues | 27.9 | 30.2 | |
Distribution and servicing fees | U.S. mutual funds | |||
Revenue and Services [Line Items] | |||
Net revenues | 27.9 | 30.2 | |
Distribution and servicing fees | Subadvised and separate accounts and other investment products | |||
Revenue and Services [Line Items] | |||
Net revenues | 0 | 0 | |
Distribution and servicing fees | Other clients | |||
Revenue and Services [Line Items] | |||
Net revenues | $ 0 | $ 0 |
INFORMATION ABOUT RECEIVABLES_4
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Services Concentration and Receivables) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Concentration Risk [Line Items] | ||||
Net revenues | $ 1,462.6 | $ 1,327.3 | ||
Accounts receivable | $ 585.3 | $ 646.6 | 585.3 | |
T. Rowe Price investment products | ||||
Concentration Risk [Line Items] | ||||
Net revenues | 1,207.7 | $ 1,093.4 | ||
Accounts receivable | $ 374.3 | $ 424.8 | $ 374.3 | |
Outside U.S. | Assets under management | Investment advisory clients | Geographic concentration | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 7.40% | 6.90% |
INVESTMENTS. (Investments) (Det
INVESTMENTS. (Investments) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
U.S. Treasury note | $ 1 | $ 1 | |
Total | 2,731.3 | 2,939.8 | |
Net unrealized gains (losses) on T. Rowe Price investments product recognized in nonoperating income | (103.6) | $ 50.6 | |
Gains recognized upon deconsolidation | (500.3) | 202.8 | |
Reclassification out of accumulated other comprehensive income | Currency translation adjustments | |||
Schedule of Equity Method Investments [Line Items] | |||
Gains recognized upon deconsolidation | 0.1 | 0.1 | |
Assets | |||
Schedule of Equity Method Investments [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | (46.2) | 12.3 | |
Liability | |||
Schedule of Equity Method Investments [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | (2.4) | (0.9) | |
Redeemable noncontrolling interest | |||
Schedule of Equity Method Investments [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | (20.1) | $ 20.4 | |
T. Rowe Price investment products | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments held at fair value | 1,088.1 | 1,402.9 | |
Equity method investments | 864.5 | 705.6 | |
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments held at fair value | 500 | 561.1 | |
Investment partnerships and other investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments held at fair value | 105.5 | 99.7 | |
26% interest in UTI Asset Management Company Limited (India) | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 166.8 | $ 164.5 | |
Equity method investment (ownership percentage) | 26.00% | 26.00% | |
Investment partnerships and other investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 5.4 | $ 5 |
INVESTMENTS. (Variable Interest
INVESTMENTS. (Variable Interest Entities) (Details) - Variable interest entity, not primary beneficiary - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investment carrying values | $ 129.4 | $ 156 |
Unfunded capital commitments | 15.6 | 18.1 |
Uncollected investment advisory and administrative fees | 7.1 | 10.5 |
Maximum risk of loss related to nonconsolidated variable interest entities | $ 152.1 | $ 184.6 |
FAIR VALUE MEASUREMENTS. (Detai
FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents held in T. Rowe Price money market funds | $ 1,164.9 | $ 1,355.6 |
Total | 2,740.6 | 3,309.7 |
Level 2 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents held in T. Rowe Price money market funds | 0 | 0 |
Total | 12.4 | 9.9 |
Fair value measured at NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 105.5 | 99.7 |
T. Rowe Price investment products | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 1,088.1 | 1,402.9 |
T. Rowe Price investment products | Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 1,075.7 | 1,393 |
T. Rowe Price investment products | Level 2 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 12.4 | 9.9 |
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 500 | 561.1 |
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability | Level 1 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | 500 | 561.1 |
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability | Level 2 | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products | $ 0 | $ 0 |
CONSOLIDATED T. ROWE PRICE IN_3
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Net Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,562.4 | $ 1,781.8 | ||
Investments | 2,731.3 | 2,939.8 | ||
Other assets | 255.1 | 234.4 | ||
Total assets | 8,636.9 | 9,330.4 | ||
Liabilities | 1,231.9 | 1,107.3 | ||
Attributable to redeemable non-controlling interests | 971 | 1,121 | $ 886.7 | $ 740.3 |
Consolidated T. Rowe Price investment products | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net assets | 1,941.4 | 2,237.7 | ||
Attributable to T. Rowe Price Group | 970.4 | 1,116.7 | ||
Attributable to redeemable non-controlling interests | 971 | 1,121 | ||
Consolidated T. Rowe Price investment products | Reportable entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 117.7 | 76.5 | ||
Investments | 1,838.6 | 2,172.4 | ||
Other assets | 68 | 28 | ||
Total assets | 2,024.3 | 2,276.9 | ||
Liabilities | 82.9 | 39.2 | ||
Net assets | 1,941.4 | 2,237.7 | ||
Consolidated T. Rowe Price investment products | Reportable entities | T. Rowe Price investment products | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Investments | 35.3 | 40.2 | ||
Consolidated T. Rowe Price investment products | Money Market Funds | Reportable entities | T. Rowe Price investment products | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 22.5 | 9.1 | ||
Voting interest entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net assets | 217.6 | 289.4 | ||
Attributable to T. Rowe Price Group | 155 | 199.6 | ||
Attributable to redeemable non-controlling interests | 62.6 | 89.8 | ||
Voting interest entities | Reportable entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 23.1 | 9.9 | ||
Investments | 197.3 | 281.1 | ||
Other assets | 8.1 | 10.6 | ||
Total assets | 228.5 | 301.6 | ||
Liabilities | 10.9 | 12.2 | ||
Net assets | 217.6 | 289.4 | ||
Variable interest entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net assets | 1,723.8 | 1,948.3 | ||
Attributable to T. Rowe Price Group | 815.4 | 917.1 | ||
Attributable to redeemable non-controlling interests | 908.4 | 1,031.2 | ||
Variable interest entities | Reportable entities | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 94.6 | 66.6 | ||
Investments | 1,641.3 | 1,891.3 | ||
Other assets | 59.9 | 17.4 | ||
Total assets | 1,795.8 | 1,975.3 | ||
Liabilities | 72 | 27 | ||
Net assets | $ 1,723.8 | $ 1,948.3 |
CONSOLIDATED T. ROWE PRICE IN_4
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Operating Results) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||
Operating expenses reflected in net operating income | $ (755.4) | $ (794.8) |
Income before income taxes | 206.9 | 735.3 |
Net income (loss) attributable to redeemable non-controlling interests | (176.5) | 41.4 |
Consolidation eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating expenses reflected in net operating income | (2.5) | (1.5) |
Consolidated T. Rowe Price investment products | ||
Condensed Income Statements, Captions [Line Items] | ||
Income before income taxes | (334) | 98.8 |
Net income (loss) attributable to T. Rowe Price Group | (157.5) | 41.4 |
Net income (loss) attributable to redeemable non-controlling interests | (176.5) | 57.4 |
Consolidated T. Rowe Price investment products | Reportable entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating expenses reflected in net operating income | (3.7) | (3.1) |
Net investment income (loss) reflected in non-operating income (loss) | (330.3) | 101.9 |
Income before income taxes | (334) | 98.8 |
Voting interest entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Income before income taxes | (35.4) | 7.7 |
Net income (loss) attributable to T. Rowe Price Group | (22.6) | (1) |
Net income (loss) attributable to redeemable non-controlling interests | (12.8) | 8.7 |
Voting interest entities | Reportable entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating expenses reflected in net operating income | (0.2) | (0.3) |
Net investment income (loss) reflected in non-operating income (loss) | (35.2) | 8 |
Income before income taxes | (35.4) | 7.7 |
Variable interest entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Income before income taxes | (298.6) | 91.1 |
Net income (loss) attributable to T. Rowe Price Group | (134.9) | 42.4 |
Net income (loss) attributable to redeemable non-controlling interests | (163.7) | 48.7 |
Variable interest entities | Reportable entities | ||
Condensed Income Statements, Captions [Line Items] | ||
Operating expenses reflected in net operating income | (3.5) | (2.8) |
Net investment income (loss) reflected in non-operating income (loss) | (295.1) | 93.9 |
Income before income taxes | $ (298.6) | $ 91.1 |
CONSOLIDATED T. ROWE PRICE IN_5
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 787.7 | $ 578.7 |
Net cash provided by (used in) investing activities | 27.6 | (33.8) |
Net cash used in financing activities | (992.3) | (306) |
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | (1.2) | (0.7) |
Net change in cash and cash equivalents during period | (178.2) | 238.2 |
Cash and cash equivalents at beginning of period | 1,858.3 | 1,495.3 |
Cash and cash equivalents at ending of period | 1,680.1 | 1,733.5 |
Consolidation eliminations | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in financing activities | 42.8 | 37.8 |
Consolidated T. Rowe Price investment products | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash and cash equivalents at beginning of period | 76.5 | 70.1 |
Cash and cash equivalents at ending of period | 117.7 | 76.1 |
Consolidated T. Rowe Price investment products | Reportable entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (75.7) | (93.7) |
Net cash provided by (used in) investing activities | (0.8) | (3.4) |
Net cash used in financing activities | 118.9 | 103.8 |
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | (1.2) | (0.7) |
Net change in cash and cash equivalents during period | 41.2 | 6 |
Cash and cash equivalents at beginning of period | 76.5 | 70.1 |
Cash and cash equivalents at ending of period | 117.7 | 76.1 |
Voting interest entities | Reportable entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 11.3 | (28.7) |
Net cash provided by (used in) investing activities | (0.8) | (5.1) |
Net cash used in financing activities | 2.7 | 31.6 |
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 0 | 0 |
Net change in cash and cash equivalents during period | 13.2 | (2.2) |
Cash and cash equivalents at beginning of period | 9.9 | 18.5 |
Cash and cash equivalents at ending of period | 23.1 | 16.3 |
Variable interest entities | Reportable entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (87) | (65) |
Net cash provided by (used in) investing activities | 0 | 1.7 |
Net cash used in financing activities | 116.2 | 72.2 |
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | (1.2) | (0.7) |
Net change in cash and cash equivalents during period | 28 | 8.2 |
Cash and cash equivalents at beginning of period | 66.6 | 51.6 |
Cash and cash equivalents at ending of period | $ 94.6 | $ 59.8 |
CONSOLIDATED T. ROWE PRICE IN_6
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Fair Value Measurements) (Details) - Fair value, measurements, recurring - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,164.9 | $ 1,355.6 |
Total | 2,740.6 | 3,309.7 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Total | 12.4 | 9.9 |
Consolidated T. Rowe Price investment products | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 22.5 | 9.1 |
Total | 175.7 | 174.6 |
Liabilities | (2.3) | (0.4) |
Consolidated T. Rowe Price investment products | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 1.1 |
Total | 1,685.4 | 2,008 |
Liabilities | (31.9) | (11.2) |
Consolidated T. Rowe Price investment products | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 149.9 | 162.8 |
Consolidated T. Rowe Price investment products | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 548.3 | 724.5 |
Consolidated T. Rowe Price investment products | Fixed income securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Consolidated T. Rowe Price investment products | Fixed income securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,097.9 | 1,248.6 |
Consolidated T. Rowe Price investment products | Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3.3 | 2.7 |
Consolidated T. Rowe Price investment products | Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 39.2 | $ 33.8 |
STOCKHOLDERS' EQUITY. (Details)
STOCKHOLDERS' EQUITY. (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | ||
Common stock repurchases liability | $ 7.9 | $ 12.2 |
STOCK-BASED COMPENSATION. (Stoc
STOCK-BASED COMPENSATION. (Stock Options) (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, beginning balance (in shares) | shares | 7,388,068 |
Exercised (in shares) | shares | (1,540,694) |
Forfeited (in shares) | shares | (1,428) |
Outstanding, ending balance (in shares) | shares | 5,845,946 |
Exercisable at current period-end (in shares) | shares | 5,176,419 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price of options outstanding, beginning balance (in dollars per share) | $ / shares | $ 71.06 |
Weighted-average exercise price of options exercised (in dollars per share) | $ / shares | 67.50 |
Weighted-average exercise price of options forfeited (in dollars per share) | $ / shares | 76 |
Weighted-average exercise price of options outstanding, ending balance (in dollars per share) | $ / shares | 72 |
Weighted-average exercise price of options exercisable at current period-end (in dollars per share) | $ / shares | $ 71.50 |
STOCK-BASED COMPENSATION. (Rest
STOCK-BASED COMPENSATION. (Restricted Shares and Stock Units) (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value of nonvested restricted shares and restricted stock units, beginning balance (in dollars per share) | $ / shares | $ 98.75 |
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $ / shares | 126.33 |
Nonvested dividend equivalents granted to non-employee directors (in dollars per share) | $ / shares | 98.80 |
Weighted-average fair value of restricted shares and restricted stock units vested (in dollars per share) | $ / shares | 95.26 |
Weighted-average fair value of restricted shares and restricted stock units forfeited (in dollars per share) | $ / shares | 97.30 |
Weighted-average fair value of nonvested restricted shares and restricted stock units, ending balance (in dollars per share) | $ / shares | $ 98.85 |
Restricted shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning balance (in shares) | 7,404 |
Grants (in shares) | 0 |
Nonvested dividend equivalents granted to non-employee directors (in shares) | 0 |
Vested (in shares) | 0 |
Forfeited (in shares) | 0 |
Nonvested, ending balance (in shares) | 7,404 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning balance (in shares) | 6,718,261 |
Grants (in shares) | 15,184 |
Nonvested dividend equivalents granted to non-employee directors (in shares) | 643 |
Vested (in shares) | (62,499) |
Forfeited (in shares) | (34,004) |
Nonvested, ending balance (in shares) | 6,637,585 |
Restricted stock units | Performance-based | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, ending balance (in shares) | 403,008 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested shares where performance threshold has been met (in shares) | 318,768 |
STOCK-BASED COMPENSATION. (Futu
STOCK-BASED COMPENSATION. (Future Stock-Based Compensation Expense) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Share-based Payment Arrangement [Abstract] | |
Second quarter 2020 | $ 54.5 |
Third quarter 2020 | 53.2 |
Fourth quarter 2020 | 46.2 |
2021 | 108.1 |
2022 through 2026 | 90 |
Total | $ 352 |
EARNINGS PER SHARE CALCULATIO_3
EARNINGS PER SHARE CALCULATIONS. (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Stock options with anti-diluted impact (in shares) | 0 | 0 |
Net income attributable to T. Rowe Price Group | $ 343.1 | $ 512.6 |
Less: net income allocated to outstanding restricted stock and stock unit holders (basic) | 9.4 | 13 |
Less: net income allocated to outstanding restricted stock and stock unit holders (diluted) | 9.4 | 13 |
Net income allocated to common stockholders (basic) | 333.7 | 499.6 |
Net income allocated to common stockholders (diluted) | $ 333.7 | $ 499.6 |
Weighted-average common shares | ||
Outstanding (in shares) | 234,100,000 | 236,600,000 |
Outstanding assuming dilution (in shares) | 236,800,000 | 239,600,000 |
OTHER COMPREHENSIVE INCOME AN_3
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS. (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances at beginning of period | $ 7,102.1 | $ 6,124.3 |
Other comprehensive income (loss) | (6.1) | 0.4 |
Balances at end of period | 6,434 | 6,311 |
Other comprehensive loss, net of tax, attributable to redeemable non-controlling interests | 17.2 | 1.3 |
Currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances at beginning of period | (43) | (42) |
Other comprehensive income (loss) before reclassifications and income taxes | (8) | 0.4 |
Reclassification adjustments recognized in non-operating income | (0.1) | (0.1) |
Other comprehensive income (loss), before taxes | (8.1) | 0.3 |
Net deferred tax benefits (income taxes) | 2 | 0.1 |
Other comprehensive income (loss) | (6.1) | 0.4 |
Balances at end of period | (49.1) | (41.6) |
Currency translation adjustments | Equity method investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances at beginning of period | (46.9) | (48.8) |
Other comprehensive income (loss) before reclassifications and income taxes | (0.1) | 4.9 |
Reclassification adjustments recognized in non-operating income | 0 | 0 |
Other comprehensive income (loss), before taxes | (0.1) | 4.9 |
Net deferred tax benefits (income taxes) | 0 | (1.1) |
Other comprehensive income (loss) | (0.1) | 3.8 |
Balances at end of period | (47) | (45) |
Consolidated T. Rowe Price investment products - variable interest entities | Currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balances at beginning of period | 3.9 | 6.8 |
Other comprehensive income (loss) before reclassifications and income taxes | (7.9) | (4.5) |
Reclassification adjustments recognized in non-operating income | (0.1) | (0.1) |
Other comprehensive income (loss), before taxes | (8) | (4.6) |
Net deferred tax benefits (income taxes) | 2 | 1.2 |
Other comprehensive income (loss) | (6) | (3.4) |
Balances at end of period | $ (2.1) | $ 3.4 |