Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38103 | |
Entity Registrant Name | JANUS HENDERSON GROUP PLC | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 98-1376360 | |
Entity Address, Address Line One | 201 Bishopsgate | |
Entity Address, City or Town | London | |
Entity Address, Country | GB | |
Entity Address, Postal Zip Code | EC2M3AE | |
Country Region | +44 | |
City Area Code | (0) 20 | |
Local Phone Number | 7818 1818 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | JHG | |
Security Exchange Name | NYSE | |
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 | 184,914,488 | |
Entity Central Index Key | 0001274173 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Fees and other receivables | $ 291.3 | $ 334.8 |
OEIC and unit trust receivables | 206.2 | 131.7 |
Other current assets | 110.4 | 116 |
Total current assets | 2,244.5 | 2,580.8 |
Non-current assets: | ||
Property, equipment and software, net | 84 | 84.7 |
Intangible assets, net | 2,651.7 | 3,088.6 |
Goodwill | 1,307.1 | 1,504.3 |
Retirement benefit asset, net | 200.3 | 214 |
Other non-current assets | 156.3 | 149.3 |
Total assets | 6,643.9 | 7,621.7 |
Current liabilities: | ||
Current portion of accrued compensation, benefits and staff costs | 172.3 | 335.7 |
OEIC and unit trust payables | 213.7 | 130.9 |
Total current liabilities | 690.7 | 769.7 |
Non-current liabilities: | ||
Accrued compensation, benefits and staff costs | 30.9 | 59.4 |
Long-term debt | 315.5 | 316.2 |
Deferred tax liabilities, net | 602.7 | 729.1 |
Retirement benefit obligations, net | 4.1 | 4.4 |
Other non-current liabilities | 142.6 | 158.8 |
Total liabilities | 1,786.5 | 2,037.6 |
Commitments and contingencies (See Note 14) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 464 | 677.9 |
EQUITY | ||
Common stock ($1.50 par, 480,000,000 shares authorized and 184,914,488 and 186,975,693 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively) | 277.4 | 280.5 |
Additional paid-in-capital | 3,803.7 | 3,828.5 |
Treasury shares (3,534,497 and 3,545,812 shares held, respectively) | (137.9) | (139.5) |
Accumulated other comprehensive loss, net of tax | (511) | (367.1) |
Retained earnings | 942.8 | 1,284.1 |
Total shareholders' equity | 4,375 | 4,886.5 |
Nonredeemable noncontrolling interests | 18.4 | 19.7 |
Total equity | 4,393.4 | 4,906.2 |
Total liabilities, redeemable noncontrolling interests and equity | 6,643.9 | 7,621.7 |
Consolidated excluding VIEs | ||
Current assets: | ||
Cash and cash equivalents | 732.5 | 733.9 |
Investment securities | 250.6 | 253.5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 221.6 | 246 |
Consolidated VIEs | ||
Current assets: | ||
Cash and cash equivalents | 69.7 | 62.6 |
Investment securities | 548.8 | 924.8 |
Other current assets | 35 | 23.5 |
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 83.1 | $ 57.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, par (in dollars per share) | $ 1.50 | $ 1.50 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 184,914,488 | 186,975,693 |
Common stock, shares outstanding | 184,914,488 | 186,975,693 |
Treasury shares (in shares) | 3,534,497 | 3,545,812 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 554.9 | $ 519.3 |
Operating expenses: | ||
Employee compensation and benefits | 155.6 | 145 |
Long-term incentive plans | 33.6 | 48.4 |
Distribution expenses | 112.2 | 101.9 |
Investment administration | 11.7 | 11.8 |
Marketing | 6.7 | 7.5 |
General, administrative and occupancy | 65.2 | 65.2 |
Impairment of goodwill and intangible assets | 487.3 | |
Depreciation and amortization | 15 | 15 |
Total operating expenses | 887.3 | 394.8 |
Operating income (loss) | (332.4) | 124.5 |
Interest expense | (3.3) | (4.1) |
Investment gains (losses), net | (50.5) | 13.3 |
Other non-operating income (expenses), net | 32.2 | (3.9) |
Income (loss) before taxes | (354) | 129.8 |
Income tax benefit (provision) | 68.8 | (29.9) |
Net income (loss) | (285.2) | 99.9 |
Net loss (income) attributable to noncontrolling interests | 38.2 | (5.8) |
Net income (loss) attributable to JHG | $ (247) | $ 94.1 |
Earnings (loss) per share attributable to JHG common shareholders: | ||
Basic (in dollars per share) | $ (1.35) | $ 0.48 |
Diluted (in dollars per share) | $ (1.35) | $ 0.48 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation gains (losses) | $ (149.1) | $ 36.8 |
Actuarial gains | 0.1 | |
Other comprehensive income (loss), net of tax | (149) | 36.8 |
Other comprehensive loss (income) attributable to noncontrolling interests | 5.1 | (0.1) |
Other comprehensive income (loss) attributable to JHG | (143.9) | 36.7 |
Total comprehensive income (loss) | (434.2) | 136.7 |
Total comprehensive loss (income) attributable to noncontrolling interests | 43.3 | (5.9) |
Total comprehensive income (loss) attributable to JHG | (390.9) | 130.8 |
Management fees | ||
Revenue: | ||
Total revenue | 439.6 | 441.9 |
Performance fees | ||
Revenue: | ||
Total revenue | 14.6 | (5.6) |
Shareowner servicing fees | ||
Revenue: | ||
Total revenue | 50.3 | 35.9 |
Other revenue | ||
Revenue: | ||
Total revenue | $ 50.4 | $ 47.1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income (loss) | $ (285.2) | $ 99.9 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 15 | 15 |
Impairment of goodwill and intangible assets | 487.3 | |
Deferred income taxes | (110.8) | 0.4 |
Stock-based compensation plan expense | 16.6 | 20.1 |
Impairment of right-of-use operating asset | 4.7 | |
Gain on sale of Geneva | (17.4) | |
Investment (gains) losses, net | 50.5 | (13.3) |
Contributions to pension plans in excess of costs recognized | (0.1) | (1.8) |
Contingent consideration adjustment | (7.1) | |
Other, net | (13.2) | (3.2) |
Changes in operating assets and liabilities: | ||
OEIC and unit trust receivables and payables | 8.3 | 11.1 |
Other assets | 57.4 | 1.8 |
Other accruals and liabilities | (163.4) | (169.4) |
Net operating activities | 37.9 | (34.7) |
Proceeds from (purchase of): | ||
Investment securities, net | 98.3 | 19.3 |
Property, equipment and software | (8.2) | (7.5) |
Investment securities by consolidated seeded investment products, net | (105.3) | 46.1 |
Cash received (paid) on settled hedges, net | 17.9 | (7.4) |
Dividends received from equity-method investments | 0.5 | 0.5 |
Proceeds from sale of Volantis | 0.3 | |
Proceeds from sale of Geneva | 38.6 | |
Net investing activities | 41.8 | 51.3 |
Financing activities: | ||
Purchase of common stock for stock-based compensation plans | (39.8) | (37.1) |
Purchase of common stock for share buyback program | (31.2) | (30.9) |
Dividends paid to shareholders | (66.2) | (69.7) |
Payment of contingent consideration | (13.8) | (14.1) |
Distributions to noncontrolling interests | (0.1) | (0.1) |
Third-party sales (redemptions) in consolidated seeded investment products, net | 105.3 | (46.1) |
Principal payments under capital lease obligations | (0.2) | (0.3) |
Net financing activities | (46) | (198.3) |
Cash and cash equivalents: | ||
Effect of foreign exchange rate changes | (28) | 5 |
Net change | 5.7 | (176.7) |
At beginning of period | 796.5 | 916.6 |
At end of period | 802.2 | 739.9 |
Supplemental cash flow information: | ||
Cash paid for interest | 7.3 | 7.3 |
Cash paid for income taxes, net of refunds | 4.9 | 12.6 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 802.2 | 739.9 |
Consolidated VIEs | ||
Cash and cash equivalents: | ||
At end of period | 69.7 | 22.8 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | 69.7 | 22.8 |
Consolidated excluding VIEs | ||
Cash and cash equivalents: | ||
At end of period | 732.5 | 717.1 |
Reconciliation of cash and cash equivalents: | ||
Cash and cash equivalents | $ 732.5 | $ 717.1 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Common stock | Additional paid-in-capital | Treasury shares | Accumulated other comprehensive loss | Retained earnings | Nonredeemable noncontrolling interests | Total |
Balance at Dec. 31, 2018 | $ 294.6 | $ 3,824.5 | $ (170.8) | $ (423.5) | $ 1,314.5 | $ 21.5 | $ 4,860.8 |
Balance (in shares) at Dec. 31, 2018 | 196,400,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 94.1 | 1.2 | 95.3 | ||||
Other comprehensive income (loss) | 36.7 | 36.7 | |||||
Dividends paid to shareholders | (69.7) | (69.7) | |||||
Share buyback program | $ (1.9) | (29) | (30.9) | ||||
Share buyback program (in shares) | (1,200,000) | ||||||
Distributions to noncontrolling interests | (0.1) | (0.1) | |||||
Purchase of common stock for stock-based compensation plans | (31.4) | (5.7) | (37.1) | ||||
Vesting of stock-based compensation plans | (11.1) | 11.1 | |||||
Stock-based compensation plan expense | 20.1 | 20.1 | |||||
Balance at Mar. 31, 2019 | $ 292.7 | 3,802.1 | (165.4) | (386.8) | 1,309.9 | 22.6 | 4,875.1 |
Balance (in shares) at Mar. 31, 2019 | 195,200,000 | ||||||
Balance at Dec. 31, 2019 | $ 280.5 | 3,828.5 | (139.5) | (367.1) | 1,284.1 | 19.7 | $ 4,906.2 |
Balance (in shares) at Dec. 31, 2019 | 187,000,000 | 186,975,693 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | (247) | (1.2) | $ (248.2) | ||||
Other comprehensive income (loss) | (143.9) | (143.9) | |||||
Dividends paid to shareholders | (66.2) | (66.2) | |||||
Share buyback program | $ (3.1) | (28.1) | (31.2) | ||||
Share buyback program (in shares) | (2,100,000) | ||||||
Distributions to noncontrolling interests | (0.1) | (0.1) | |||||
Purchase of common stock for stock-based compensation plans | (37) | (2.8) | (39.8) | ||||
Vesting of stock-based compensation plans | (4.4) | 4.4 | |||||
Stock-based compensation plan expense | 16.6 | 16.6 | |||||
Balance at Mar. 31, 2020 | $ 277.4 | $ 3,803.7 | $ (137.9) | $ (511) | $ 942.8 | $ 18.4 | $ 4,393.4 |
Balance (in shares) at Mar. 31, 2020 | 184,900,000 | 184,914,488 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation and Significant Accounting Policies | Note 1 — Basis of Presentation and Significant Accounting Policies Basis of Presentation In the opinion of management of Janus Henderson Group plc (“JHG,” “the Group,” “we,” “us,” “our” and similar terms), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state our financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in our Annual Report on Form 10-K for the year ended December 31, 2019. The December 31, 2019, condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. Recent Accounting Pronouncements Adopted Implementation Costs — Cloud Computing Arrangements In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for implementation costs incurred to develop or obtain internal-use software. The ASU is effective January 1, 2020, for calendar year-end companies and for the interim periods within those years. The ASU allows either a retrospective or prospective approach to all implementation costs incurred after adoption. We adopted the ASU effective January 1, 2020, using the prospective approach. There were no Recent Accounting Pronouncements Not Yet Adopted Retirement Benefit Plans In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension plans. The ASU removes, adds and clarifies a number of disclosure requirements related to sponsored benefit plans. The standard is effective January 1, 2021, for calendar year-end companies, and early adoption is permitted. We are evaluating the effect of adopting this new accounting standard. |
Dispositions
Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Dispositions | |
Dispositions | Note 2 — Dispositions On December 3, 2019, Henderson Global Investors (North America), Inc. (“HGINA”), a subsidiary, of the Group, entered into an agreement to sell its 100% ownership interest in Geneva Capital Management LLC (“Geneva”) to GCM Purchaser, LLC. The sale closed on March 17, 2020. Consideration included aggregate cash consideration of $38.6 million and contingent consideration (the “Earnout”) based on future revenue. Payments under the Earnout are to be made quarterly over a five-year term, with minimum aggregate payments of $20.5 million and maximum aggregate payments of $35.0 million. We recognized a gain on the sale of Geneva of $17.4 million in other non-operating income (expenses), net on the Condensed Consolidated Statements of Comprehensive Income during the three months ended March 31, 2020. The gain on the sale of Geneva was calculated as follows (in millions): Consideration received: Cash $ 38.6 Minimum earnout 20.5 Less carrying amount of assets and liabilities: Intangible assets 17.9 Other assets 0.3 Less: Goodwill allocation 23.5 Net gain on sale, before taxes $ 17.4 |
Consolidation
Consolidation | 3 Months Ended |
Mar. 31, 2020 | |
Consolidation | |
Consolidation | Note 3 — Consolidation Variable Interest Entities Consolidated Variable Interest Entities Our consolidated variable interest entities (“VIEs”) as of March 31, 2020, and December 31, 2019, include certain consolidated seeded investment products in which we have an investment and act as the investment manager. The assets of these VIEs are not available to us or our creditors. We may not, under any circumstances, access cash and cash equivalents held by consolidated VIEs to use in our operating activities or otherwise. In addition, the investors in these VIEs have no recourse to the credit of JHG. Unconsolidated Variable Interest Entities At March 31, 2020, and December 31, 2019, the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VIEs was $8.1 million and $9.9 million, respectively. Our total exposure to unconsolidated VIEs represents the value of our economic ownership interest in the investment securities. Voting Rights Entities Consolidated Voting Rights Entities The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on our Condensed Consolidated Balance Sheets, including our net interest in these products (in millions): March 31, December 31, 2020 2019 Investment securities $ 52.7 $ 29.9 Cash and cash equivalents 5.7 1.5 Other current assets 14.4 0.2 Accounts payable and accrued liabilities (8.6) (0.7) Total 64.2 30.9 Redeemable noncontrolling interests in consolidated VREs (43.2) (6.3) JHG's net interest in consolidated VREs $ 21.0 $ 24.6 Our total exposure to consolidated VREs represents the value of our economic ownership interest in these seeded investment products. Unconsolidated Voting Rights Entities At March 31, 2020, and December 31, 2019, the carrying value of investment securities included on our Condensed Consolidated Balance Sheets pertaining to unconsolidated VREs was $30.1 million and $21.5 million, respectively. Our total exposure to unconsolidated VREs represents the value of our economic ownership interest in the investment securities. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities | |
Investment Securities | Note 4 — Investment Securities Our investment securities as of March 31, 2020, and December 31, 2019, are summarized as follows (in millions): March 31, December 31, 2020 2019 Seeded investment products: Consolidated VIEs $ 548.8 $ 924.8 Consolidated VREs 52.7 29.9 Unconsolidated VIEs and VREs 38.2 31.4 Separate accounts 54.8 60.8 Pooled investment funds 0.1 0.1 Total seeded investment products 694.6 1,047.0 Investments related to deferred compensation plans 99.5 125.9 Other investments 5.3 5.4 Total investment securities $ 799.4 $ 1,178.3 Trading Securities Net unrealized gains (losses) on investment securities held as of the three months ended March 31, 2020 and 2019, are summarized as follows (in millions): Three months ended March 31, 2020 2019 Unrealized gains (losses) on investment securities held at period end $ (39.5) $ 11.1 Derivative Instruments We maintain an economic hedge program that uses derivative instruments to mitigate against market volatility of certain seeded investments by using index and commodity futures (“futures”), index swaps, total return swaps (“TRSs”) and credit default swaps. Foreign currency exposures associated with our seeded investment products are also hedged by using foreign currency forward contracts. We also have a net investment hedge related to foreign currency translation on hedged seed investments denominated in currencies other than our functional currency. We were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions): Notional value March 31, 2020 December 31, 2019 Futures $ 117.4 $ 222.9 Credit default swaps 150.2 143.0 Total return swaps 45.4 46.3 Foreign currency forward contracts 224.8 327.8 The derivative instruments are not designated as hedges for accounting purposes, with the exception of certain foreign currency forward contracts used for net investment hedging. Changes in fair value of the futures, index swaps, TRSs and credit default swaps are recognized in investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income. Changes in the fair value of the foreign currency forward contracts designated as hedges for accounting purposes are recognized in other comprehensive income (loss), net of tax on our Condensed Consolidated Statements of Comprehensive Income. Derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. As of March 31, 2020, derivative assets and liabilities were $13.3 million and $0.2 million, respectively. We recognized the following foreign currency translation losses on hedged seed investments denominated in currencies other than our functional currency and gains associated with foreign currency forward contracts under net investment hedge accounting for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Foreign currency translation $ 3.0 $ 0.3 Foreign currency forward contracts (3.0) (0.3) Total $ — $ — In addition to using derivative instruments to mitigate against market volatility of certain seeded investments, we also occasionally engage in short sales of securities. As of March 31, 2020, the fair value of securities sold but not yet purchased was $9.6 million. The cash received from the short sale and the obligation to repurchase the shares are classified in other current assets and accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets, respectively. Fair value adjustments are recognized in investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income. Derivative Instruments in Consolidated Seeded Investment Products Certain of our consolidated seeded investment products utilize derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income. Our consolidated seeded investment products were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions): Notional Value March 31, 2020 December 31, 2019 Futures $ 137.6 $ 88.3 Contracts for differences 12.8 15.5 Credit default swaps 20.1 0.1 Total return swaps 0.1 0.1 Interest rate swaps 18.7 19.4 Options — 1.0 Foreign currency forward contracts 441.2 167.5 As of March 31, 2020, certain consolidated seeded investment products sold credit protection through the use of credit default swap contracts. The contracts provide alternative credit risk exposure to individual companies and countries outside of traditional bond markets. The terms of the credit default swap contracts range from one As sellers in credit default swap contracts, the consolidated seeded investment products would be required to pay the notional value of a referenced debt obligation to the counterparty in the event of a default on the debt obligation by the issuer. The notional value represents the estimated maximum potential undiscounted amount of future payments required upon the occurrence of a credit default event. As of March 31, 2020, and December 31, 2019, the notional values of the agreements totaled $1.7 million and $2.2 million, respectively. The credit default swap contracts include recourse provisions that allow for recovery of a certain percentage of amounts paid upon the occurrence of a credit default event. As of March 31, 2020, and December 31, 2019, the fair value of the credit default swap contracts selling protection was nil. Investment Gains (Losses), Net Investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income included the following for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Seeded investment products and derivatives, net $ (43.5) $ 8.2 Other (7.0) 5.1 Investment gains (losses), net $ (50.5) $ 13.3 Cash Flows Cash flows related to investment securities for the three months ended March 31, 2020 and 2019, are summarized as follows (in millions): Three months ended March 31, 2020 2019 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ 2.9 $ (108.2) $ (176.7) $ 222.8 Investment securities (15.1) 113.4 (42.8) 62.1 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 — Fair Value Measurements The following table presents assets and liabilities presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of March 31, 2020 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 384.7 $ — $ — $ 384.7 Investment securities: Consolidated VIEs 191.6 349.6 7.6 548.8 Other investment securities 194.5 56.1 — 250.6 Total investment securities 386.1 405.7 7.6 799.4 Seed hedge derivatives — 13.3 — 13.3 Volantis contingent consideration — — 2.7 2.7 Geneva contingent consideration — — 20.5 20.5 Total assets $ 770.8 $ 419.0 $ 30.8 $ 1,220.6 Liabilities: Derivatives in consolidated seeded investment products $ — $ 17.7 $ — $ 17.7 Securities sold, not yet purchased 9.6 — — 9.6 Seed hedge derivatives — 0.2 — 0.2 Long-term debt (1) — 305.9 — 305.9 Deferred bonuses — — 74.3 74.3 Total liabilities $ 9.6 $ 323.8 $ 74.3 $ 407.7 (1) Carried at amortized cost and disclosed at fair value. The following table presents assets and liabilities presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2019 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 198.4 $ — $ — $ 198.4 Investment securities: Consolidated VIEs 573.9 341.0 9.9 924.8 Other investment securities 197.0 56.5 — 253.5 Total investment securities 770.9 397.5 9.9 1,178.3 Seed hedge derivatives — 0.7 — 0.7 Derivatives in consolidated seeded investment products — — — — Contingent consideration — — 2.9 2.9 Total assets $ 969.3 $ 398.2 $ 12.8 $ 1,380.3 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.9 $ — $ 0.9 Securities sold, not yet purchased 26.5 — — 26.5 Seed hedge derivatives — 8.7 — 8.7 Long-term debt (1) — 330.0 — 330.0 Deferred bonuses — — 76.6 76.6 Contingent consideration — — 21.2 21.2 Total liabilities $ 26.5 $ 339.6 $ 97.8 $ 463.9 (1) Carried at amortized cost and disclosed at fair value. Level 1 Fair Value Measurements Our Level 1 fair value measurements consist mostly of seeded investment products, investments in advised mutual funds, cash equivalents and investments related to deferred compensation plans with quoted market prices in active markets. The fair value level of consolidated seeded investment products is determined by the underlying securities of the product. The fair value level of unconsolidated seeded investment products is determined by the underlying inputs used in the calculation of the net asset value (“NAV”) and the trading activity of each product. Level 2 Fair Value Measurements Our Level 2 fair value measurements consist mostly of consolidated seeded investment products, derivative instruments and our long-term debt. The fair value of consolidated seeded investment products is determined by the underlying securities of the product. The fair value of our long-term debt is determined using broker quotes and recent trading activity, which are considered Level 2 inputs. Level 3 Fair Value Measurements Investment Securities As of March 31, 2020, and December 31, 2019, certain securities within consolidated VIEs were valued using significant unobservable inputs, resulting in Level 3 classification. Valuation techniques and significant unobservable inputs used in the valuation of our material Level 3 assets included within consolidated VIEs as of March 31, 2020, and December 31, 2019, were as follows (in millions): Significant Fair Valuation unobservable As of March 31, 2020 value technique inputs Inputs Investment securities of consolidated VIEs $ 7.4 Discounted Discount rate 15% cash flow EBITDA multiple 4.73 Price-earnings ratio 8.86 Significant Fair Valuation unobservable As of December 31, 2019 value technique inputs Inputs Investment securities of consolidated VIEs $ 9.9 Discounted Discount rate 15% cash flow EBITDA multiple 5.92 Price-earnings ratio 11.09 Sale of Geneva In the fourth quarter 2019, we entered into an agreement to sell our Milwaukee-based U.S. equities subsidiary, Geneva. The sale closed on March 17, 2020, and the previous contingent consideration liability from the purchase of Geneva was waived as part of the sale agreement. As of March 31, 2020, the value of the contingent consideration liability was nil. Consideration included aggregate cash consideration of $38.6 million and contingent consideration (the “Earnout”) based on future revenue. Payments under the Earnout are to be made quarterly over a five-year term, with minimum aggregate payments of $20.5 million and maximum aggregate payments of $35.0 million. For further information regarding the contingent consideration asset see Note 2 — Dispositions. Acquisition of Kapstream The purchase of Kapstream Capital Pty Limited (“Kapstream”) was a step acquisition and the purchase of the second step (49%) had contingent consideration of up to $43.0 million. Payment of the contingent consideration was subject to all Kapstream products and certain products advised by us, reaching defined revenue targets on the first, second and third anniversaries of January 31, 2017. The contingent consideration was payable in three equal installments on the anniversary dates and was indexed to the performance of the premier share class of the Kapstream Absolute Return Income Fund. If Kapstream achieved the defined revenue targets, the holders would receive the value of the contingent consideration adjusted for gains or losses attributable to the mutual fund to which the contingent consideration was indexed, subject to tax withholding. On January 31, 2018, 2019 and 2020, the first, second and third anniversary of the acquisition, Kapstream reached defined revenue targets, and we paid $15.3 million in February 2018, $14.1 million in February 2019 and $13.8 million in February 2020. The February 2020 payment represented the final payment and there was no Disposal of Volantis On April 1, 2017, we completed the sale of the Volantis UK Small Cap (“Volantis”) alternative team assets. Consideration for the sale was a 10% share of the management and performance fees generated by Volantis for a period of three years. The fair value of the Volantis contingent consideration is estimated at each reporting date by forecasting revenues over the contingency period of three years. Significant unobservable inputs used in the valuation are limited to forecasted revenues, which factor in expected growth in assets under management (“AUM”) based on performance and industry trends. Increases in forecasted revenue increase the fair value of the consideration, while decreases in forecasted revenue decrease the fair value. The forecasted share of revenues is then discounted back to the valuation date using a discount rate. As of March 31, 2020, and December 31, 2019, the fair value of the Volantis contingent consideration was $2.7 million and $2.9 million, respectively. Deferred Bonuses Deferred bonuses represent liabilities to employees over the vesting period that will be settled by investments in our products. The significant unobservable inputs used to value the liabilities are investment designations and vesting periods. Changes in Fair Value Changes in fair value of our Level 3 assets for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Beginning of period fair value $ 12.8 $ 23.1 Geneva contingent consideration 20.5 — Settlements — (0.3) Movement recognized in net income (2.2) (3.1) Movements recognized in other comprehensive income (0.3) 0.1 End of period fair value $ 30.8 $ 19.8 Changes in fair value of our individual Level 3 liabilities for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Contingent Deferred Contingent Deferred consideration bonuses consideration bonuses Beginning of period fair value $ 21.2 $ 76.6 $ 61.3 $ 68.5 Fair value adjustments (7.1) (4.9) — 2.6 Vesting of deferred bonuses — (2.3) — (3.4) Amortization of deferred bonuses — 9.8 — 13.9 Unrealized gains (losses) 0.3 — 2.4 — Distributions (13.8) — (14.1) — Foreign currency translation (0.6) (4.9) 0.2 1.5 End of period fair value $ — $ 74.3 $ 49.8 $ 83.1 Nonrecurring Fair Value Measurements Nonrecurring Level 3 fair value measurements include goodwill and intangible assets. We measure the fair value of goodwill and intangible assets on initial recognition using discounted cash flow analysis that requires assumptions regarding projected future earnings and discount rates. Because of the significance of the unobservable inputs in the fair value measurements of these assets, such measurements are classified as Level 3. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note 6 — Goodwill and Intangible Assets The following tables present movements in our intangible assets and goodwill during the three months ended March 31, 2020 and 2019 (in millions): December 31, Foreign March 31, 2019 Amortization Disposal Impairment translation 2020 Indefinite-lived intangible assets: Investment management agreements $ 2,490.3 $ — $ — $ (263.5) $ (45.2) $ 2,181.6 Trademarks 380.8 — — (7.7) (0.5) 372.6 Definite-lived intangible assets: Client relationships 364.7 — (79.3) (92.6) (6.8) 186.0 Accumulated amortization (147.2) (6.4) 61.4 — 3.7 (88.5) Net intangible assets $ 3,088.6 $ (6.4) $ (17.9) $ (363.8) $ (48.8) $ 2,651.7 Goodwill $ 1,504.3 $ — $ (23.5) $ (123.5) $ (50.2) $ 1,307.1 December 31, Foreign March 31, 2018 Amortization Disposal Impairment translation 2019 Indefinite-lived intangible assets: Investment management agreements $ 2,495.5 $ — $ — $ — $ 9.2 $ 2,504.7 Trademarks 380.8 — — — — 380.8 Definite-lived intangible assets: Client relationships 363.3 — — — 1.2 364.5 Accumulated amortization (116.3) (7.4) — — (0.9) (124.6) Net intangible assets $ 3,123.3 $ (7.4) $ — $ — $ 9.5 $ 3,125.4 Goodwill $ 1,478.0 $ — $ — $ — $ 15.6 $ 1,493.6 Sale of Geneva On December 3, 2019, HGINA, a subsidiary of JHG, entered into an agreement to sell its 100% ownership interest in Geneva to GCM Purchaser, LLC. The sale closed on March 17, 2020. The transaction included $17.9 million of net intangible assets and goodwill of $23.5 million, as disclosed in the disposal column above. Refer to Note 2 — Disposals for additional information on the sale of Geneva. Goodwill and intangible asset impairments In March 2020, the World Health Organization declared the novel coronavirus (“COVID-19”) a pandemic. The impact of COVID-19 on the global economy and businesses is extreme and evolving rapidly, and its future effects are uncertain. Our financial results are directly impacted by the volatility and decline in the global financial markets. In March 2020, the global financial markets declined substantially and our AUM was significantly impacted. We therefore determined that the sudden and severe decline in our AUM was a triggering event for performing an interim impairment assessment of our goodwill and intangible assets. A discounted cash flow (“DCF”) model was used to determine the estimated fair value of certain investment management agreements and client relationships while a relief from royalty method was used for trademarks. Some of the inputs used in the DCF and relief from royalty models required significant management judgment, including the discount rate, terminal growth rate, forecasted financial results and market returns. Management’s judgment used in the assessments is more significant under the current market conditions and economic uncertainty created by COVID-19. The carrying value of certain investment management agreements, trademarks and client relationships exceeded their estimated fair value and we recognized impairments of $263.5 million, $7.7 million and $92.6 million, respectively. A DCF model was also used to estimate the fair value of our sole reporting unit. Goodwill was assessed for impairment by comparing the estimated fair value of our reporting unit to its carrying value. The carrying value of our reporting unit was reduced by the intangible asset impairment charges prior to assessing goodwill for impairment. The assessment of goodwill also required significant management judgment as discussed in the preceding paragraph. The goodwill impairment assessment indicated the carrying value of our reporting unit exceeded its estimated fair value by $123.5 million. The results of the interim assessment are included in the table above. The impairment charges were recorded in goodwill and intangible asset impairment charges on the Condensed Consolidated Statements of Comprehensive Income. If our AUM is further impacted by the global economic conditions caused by COVID-19, such as adverse and significant declines in the value of global financial markets, additional impairments of goodwill or intangible assets are possible in future periods. Future Amortization Expected future amortization expense related to client relationships is summarized below (in millions): Future amortization Amount 2020 (remainder of year) $ 7.1 2021 9.4 2022 9.4 2023 9.2 2024 8.0 Thereafter 54.4 Total $ 97.5 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Debt | Note 7 — Debt Our debt as of March 31, 2020, and December 31, 2019, consisted of the following (in millions): March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 315.5 $ 305.9 $ 316.2 $ 330.0 4.875% Senior Notes Due 2025 The 4.875% Senior Notes due 2025 (“2025 Senior Notes”) have a principal value of $300.0 million, pay interest at 4.875% semiannually on February 1 and August 1 of each year, and mature on August 1, 2025. The 2025 Senior Notes include unamortized debt premium, net at March 31, 2020, of $15.5 million, which will be amortized over the remaining life of the notes. The unamortized debt premium is recorded as a liability within long-term debt on our Condensed Consolidated Balance Sheets. We fully and unconditionally guarantee the obligations of Janus Capital Group Inc. (“JCG”) in relation to the 2025 Senior Notes. Credit Facility At March 31, 2020, we had a $200 million, unsecured, revolving credit facility (“Credit Facility”). JHG and its subsidiaries may use the Credit Facility for general corporate purposes. The rate of interest for each interest period is the aggregate of the applicable margin, which is based on our long-term credit rating and the London Interbank Offered Rate (“LIBOR”); the Euro Interbank Offered Rate (“EURIBOR”) in relation to any loan in euro (“EUR”); or in relation to any loan in Australian dollar (“AUD”), the benchmark rate for that currency. We are required to pay a quarterly commitment fee on any unused portion of the Credit Facility, which is also based on our long-term credit rating. Under the Credit Facility, the financing leverage ratio cannot exceed 3.00x EBITDA. At March 31, 2020, we were in compliance with all covenants contained in, and there were no borrowings under the Credit Facility. The maturity date of the Credit Facility is February 16, 2024. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Income Taxes | Note 8 — Income Taxes Our effective tax rates for the three months ended March 31, 2020 and 2019, were as follows: Three months ended March 31, 2020 2019 Effective tax rate 19.4 % 23.0 % The effective tax rate for the three months ended March 31, 2020, compared to the three months ended March 31, 2019 was impacted by a significant reduction in pre-tax book income, resulting in a pre-tax book loss from impairment of intangible assets and goodwill, used to compute the effective tax rate. Most of the impairment charges were temporary in nature and did not have a direct impact on the effective tax rate. The change in the effective tax rate was primarily due to an increase in provision of income taxes attributable to non-controlling interests, a tax shortfall on non-deductible equity-based compensation and non-deductible goodwill. As of March 31, 2020, and December 31, 2019, we had $12.6 million and $14.1 million of unrecognized tax benefits held for uncertain tax positions, respectively. We estimate that the existing liability for uncertain tax positions could decrease by up to $0.5 million within the next 12 months, without giving effect to changes in foreign currency translation. A reduction in the United Kingdom (“UK”) corporation tax rate was scheduled to decline from 19% to 17% starting April 1, 2020. In March 2020, the UK government announced the UK tax rate would remain at 19%. This UK change will be considered enacted only when the Finance Act 2020 is given Royal Assent, which is likely to occur in the second quarter of 2020 at which point UK deferred tax balances will be adjusted from 17% to 19%. This adjustment of deferred tax assets and liabilities is expected to result in a net non-cash deferred tax expense in the second quarter of 2020 ranging from $6.0 million to $9.0 million. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act, was signed into legislation on March 27, 2020 and as such is considered enacted for US GAAP. The Act features significant business tax relief provisions and other measures to assist businesses, including, but not limited to, a five-year carryback of federal Net Operating Losses, retroactively correcting qualified improvement property, and a temporary increase of Section 163(j) interest limitations. We analyzed the impact of CARES Act tax relief provisions on our financial statements and determined that it did not have a significant impact on us. However, in accordance with FASB Accounting Standards Codification (“ASC”) ASC Topic 740, Income Taxes, we recognized the income tax effects of the CARES Act in our financial statements for the first quarter of 2020, the reporting period during which the CARES Act was signed into law. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interests | |
Noncontrolling Interests | Note 9 — Noncontrolling Interests Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of March 31, 2020, and December 31, 2019, consisted of the following (in millions): March 31, December 31, 2020 2019 Consolidated seeded investment products $ 448.7 $ 662.8 Intech: Appreciation rights 12.0 11.8 Founding member ownership interests 3.3 3.3 Total redeemable noncontrolling interests $ 464.0 $ 677.9 Consolidated Seeded Investment Products Noncontrolling interests in consolidated seeded investment products are classified as redeemable noncontrolling interests when there is an obligation to repurchase units at the investor’s request. Redeemable noncontrolling interests in consolidated seeded investment products may fluctuate from period to period and are impacted by changes in our relative ownership, changes in the amount of third-party investment in seeded products and volatility in the market value of the underlying securities included in the portfolios of seeded products. Redemptions of investments by third parties in any particular seeded product are redeemed from the net assets of such seeded product and cannot be redeemed from the assets of our other seeded products or from our other assets. The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Opening balance $ 662.8 $ 121.6 Changes in market value (36.9) 4.5 Changes in ownership (171.6) (4.2) Foreign currency translation (5.6) 0.1 Closing balance $ 448.7 $ 122.0 Intech Intech ownership interests held by a founding member had an estimated fair value of $3.3 million as of March 31, 2020, representing an approximate 1.1% ownership of Intech. This founding member is entitled to retain his remaining Intech interests for the remainder of his life and has the option to require us to purchase his ownership interests in Intech at fair value. Intech appreciation rights are amortized using a graded vesting method over the respective vesting period. The appreciation rights are exercisable upon termination of employment from Intech to the extent vested. Upon exercise, the appreciation rights are settled in Intech equity. Nonredeemable Noncontrolling Interests Nonredeemable noncontrolling interests as of March 31, 2020, and December 31, 2019, were as follows (in millions): March 31, December 31, 2020 2019 Nonredeemable noncontrolling interests in: Seed capital investments $ 5.3 $ 6.7 Intech 13.1 13.0 Total nonredeemable noncontrolling interests $ 18.4 $ 19.7 |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Incentive Compensation | |
Long-Term Incentive Compensation | Note 10 — Long-Term Incentive and Employee Compensation We granted $125.9 million in long-term incentive awards during the three months ended March 31, 2020, which generally vest and will be recognized using a graded vesting method over a three |
Retirement Benefit Plans
Retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefit Plans | |
Retirement Benefit Plans | Note 11 — Retirement Benefit Plans We operate defined contribution retirement benefit plans and defined benefit pension plans. The main defined benefit pension plan sponsored by us is the defined benefit section of the Janus Henderson Group UK Pension Scheme (“JHGPS”). Net Periodic Benefit Credit The components of net periodic benefit credit in respect of defined benefit plans for the three months ended March 31, 2020 and 2019, include the following (in millions): Three months ended March 31, 2020 2019 Service cost $ (0.2) $ (0.3) Interest cost (4.3) (4.7) Amortization of prior service cost (0.1) — Expected return on plan assets 4.6 5.4 Net periodic benefit credit $ — $ 0.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | Note 12 — Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss, net of tax for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (386.2) $ 19.1 $ (367.1) $ (448.2) $ 24.7 $ (423.5) Other comprehensive income (loss) (149.1) 0.1 (149.0) 36.8 — 36.8 Less: other comprehensive loss (income) attributable to noncontrolling interests 5.1 — 5.1 (0.1) — (0.1) Ending balance $ (530.2) $ 19.2 $ (511.0) $ (411.5) $ 24.7 $ (386.8) The components of other comprehensive income (loss), net of tax for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Pre-tax Tax Pre-tax Tax amount impact Net amount amount impact Net amount Foreign currency translation adjustments $ (151.3) $ 2.2 $ (149.1) $ 35.3 $ 1.5 $ 36.8 Retirement benefit asset, net 0.1 — 0.1 — — — Total other comprehensive income (loss) $ (151.2) $ 2.2 $ (149.0) $ 35.3 $ 1.5 $ 36.8 |
Earnings (Loss) and Dividends P
Earnings (Loss) and Dividends Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) and Dividends Per Share | |
Earnings (Loss) and Dividends Per Share | Note 13 — Earnings (Loss) and Dividends Per Share Earnings (Loss) Per Share The following is a summary of the earnings (loss) per share calculation for the three months ended March 31, 2020 and 2019 (in millions, except per share data): Three months ended March 31, 2020 2019 Net income (loss) attributable to JHG $ (247.0) $ 94.1 Allocation of earnings to participating stock-based awards — (2.4) Net income (loss) attributable to JHG common shareholders $ (247.0) $ 91.7 Weighted-average common shares outstanding — basic 182.4 191.8 Dilutive effect of non-participating stock-based awards — 0.7 Weighted-average common shares outstanding — diluted 182.4 192.5 Earnings (loss) per share: Basic and diluted (two class) $ (1.35) $ 0.48 The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended March 31, 2020 2019 Unvested nonparticipating stock awards 2.3 1.0 Dividends Per Share The payment of cash dividends is within the discretion of our Board of Directors and depends on many factors, including, but not limited to, our results of operations, financial condition, capital requirements, legal requirements and general business conditions. The following is a summary of cash dividends paid during the three months ended March 31, 2020: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 3, 2020 $ 66.2 March 5, 2020 On April 29, 2020, our Board of Directors declared a cash dividend of $0.36 per share. The quarterly dividend will be paid on May 27, 2020, to shareholders of record at the close of business on May 11, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 14 — Commitments and Contingencies Commitments and contingencies may arise in the normal course of business. As of March 31, 2020, there were no material changes in the commitments and contingencies as reported in our Annual Report on Form 10-K for the year ended December 31, 2019. Litigation and Other Regulatory Matters We are periodically involved in various legal proceedings and other regulatory matters. Eisenberg v. Credit Suisse AG and Janus Indices, Halbert v. Credit Suisse AG and Janus Indices, Qiu v. Credit Suisse AG and Janus Indices, and Y-GAR Capital v. Credit Suisse AG and Janus Indices On March 15, 2018, a class action lawsuit was filed in the United States District Court for the Southern District of New York (“SDNY”) against Janus Index & Calculation Services LLC, which effective January 1, 2019, was renamed Janus Henderson Indices LLC (“Janus Indices”), a subsidiary of JHG, on behalf of a class consisting of investors who purchased VelocityShares Daily Inverse VIX Short-Term ETN (Ticker: XIV) between January 29, 2018, and February 5, 2018 ( Eisenberg v. Credit Suisse AG and Janus Indices Halbert v. Credit Suisse AG and Janus Indices On May 4, 2018, a third lawsuit, styled as a class action on behalf of investors who purchased XIV between January 29, 2018, and February 5, 2018, was filed against Janus Indices and Credit Suisse AG in the SDNY ( Qiu v. Credit Suisse AG and Janus Indices Halbert Qiu Eisenberg On August 20, 2018, an amended complaint was filed in the Eisenberg Qiu Set Capital LLC, et al. v. Credit Suisse AG, et al. Set Capital The defendants in Halbert — Credit Suisse and Janus Indices — jointly moved to dismiss the amended complaint. On August 22, 2019, the court granted in part and denied in part the defendants’ motion to dismiss the claims. The court dismissed all claims against Janus Indices — including all federal securities claims — other than a claim for negligent misrepresentation. On September 26, 2019, Janus Indices filed its answer to the complaint. As of March 31, 2020, the case remains in the discovery phase. On February 7, 2019, a fourth lawsuit was filed against Janus Indices, Janus Distributors LLC, Janus Henderson Group plc and Credit Suisse in the United States District Court for the Eastern District of New York (“EDNY”) by certain investors in XIV ( Y-GAR Capital LLC v. Credit Suisse Group AG, et al. Y-GAR Y-GAR We believe the remaining claims in these exchange-traded note lawsuits are without merit and are vigorously defending the actions. As of March 31, 2020, we cannot reasonably estimate possible losses from the remaining claims in the exchange-traded note lawsuits. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation and Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation In the opinion of management of Janus Henderson Group plc (“JHG,” “the Group,” “we,” “us,” “our” and similar terms), the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary to fairly state our financial position, results of operations and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the annual consolidated financial statements and notes presented in our Annual Report on Form 10-K for the year ended December 31, 2019. The December 31, 2019, condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying financial statements through the issuance date. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted Implementation Costs — Cloud Computing Arrangements In August 2018, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for implementation costs incurred to develop or obtain internal-use software. The ASU is effective January 1, 2020, for calendar year-end companies and for the interim periods within those years. The ASU allows either a retrospective or prospective approach to all implementation costs incurred after adoption. We adopted the ASU effective January 1, 2020, using the prospective approach. There were no |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted Retirement Benefit Plans In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension plans. The ASU removes, adds and clarifies a number of disclosure requirements related to sponsored benefit plans. The standard is effective January 1, 2021, for calendar year-end companies, and early adoption is permitted. We are evaluating the effect of adopting this new accounting standard. |
Dispositions (Tables)
Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Dispositions | |
Schedule of gain on sale | Consideration received: Cash $ 38.6 Minimum earnout 20.5 Less carrying amount of assets and liabilities: Intangible assets 17.9 Other assets 0.3 Less: Goodwill allocation 23.5 Net gain on sale, before taxes $ 17.4 |
Consolidation (Tables)
Consolidation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Consolidation | |
Schedule of consolidated voting right entities (VREs) | The following table presents the balances related to consolidated voting rights entities (“VREs”) that were recorded on our Condensed Consolidated Balance Sheets, including our net interest in these products (in millions): March 31, December 31, 2020 2019 Investment securities $ 52.7 $ 29.9 Cash and cash equivalents 5.7 1.5 Other current assets 14.4 0.2 Accounts payable and accrued liabilities (8.6) (0.7) Total 64.2 30.9 Redeemable noncontrolling interests in consolidated VREs (43.2) (6.3) JHG's net interest in consolidated VREs $ 21.0 $ 24.6 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of investment securities | Our investment securities as of March 31, 2020, and December 31, 2019, are summarized as follows (in millions): March 31, December 31, 2020 2019 Seeded investment products: Consolidated VIEs $ 548.8 $ 924.8 Consolidated VREs 52.7 29.9 Unconsolidated VIEs and VREs 38.2 31.4 Separate accounts 54.8 60.8 Pooled investment funds 0.1 0.1 Total seeded investment products 694.6 1,047.0 Investments related to deferred compensation plans 99.5 125.9 Other investments 5.3 5.4 Total investment securities $ 799.4 $ 1,178.3 |
Schedule of net unrealized gains (losses) on trading securities | Trading Securities Net unrealized gains (losses) on investment securities held as of the three months ended March 31, 2020 and 2019, are summarized as follows (in millions): Three months ended March 31, 2020 2019 Unrealized gains (losses) on investment securities held at period end $ (39.5) $ 11.1 |
Schedule of net foreign currency translation gains (losses) on hedged seed investments denominated in foreign currencies and net gains (losses) associated with foreign currency forward contracts under net investment hedging | We recognized the following foreign currency translation losses on hedged seed investments denominated in currencies other than our functional currency and gains associated with foreign currency forward contracts under net investment hedge accounting for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Foreign currency translation $ 3.0 $ 0.3 Foreign currency forward contracts (3.0) (0.3) Total $ — $ — |
Schedule of investment gains (losses), net in Consolidated Statements of Comprehensive Income | Investment gains (losses), net on our Condensed Consolidated Statements of Comprehensive Income included the following for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Seeded investment products and derivatives, net $ (43.5) $ 8.2 Other (7.0) 5.1 Investment gains (losses), net $ (50.5) $ 13.3 |
Cash flows related to investment securities | Cash flows related to investment securities for the three months ended March 31, 2020 and 2019, are summarized as follows (in millions): Three months ended March 31, 2020 2019 Sales, Sales, Purchases settlements Purchases settlements and and and and settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ 2.9 $ (108.2) $ (176.7) $ 222.8 Investment securities (15.1) 113.4 (42.8) 62.1 |
Not Designated as Hedging Instrument | |
Schedule of derivative instruments | We were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions): Notional value March 31, 2020 December 31, 2019 Futures $ 117.4 $ 222.9 Credit default swaps 150.2 143.0 Total return swaps 45.4 46.3 Foreign currency forward contracts 224.8 327.8 |
Seeded investment products | |
Schedule of derivative instruments | Certain of our consolidated seeded investment products utilize derivative instruments to contribute to the achievement of defined investment objectives. These derivative instruments are classified within other current assets or accounts payable and accrued liabilities on our Condensed Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Condensed Consolidated Statements of Comprehensive Income. Our consolidated seeded investment products were party to the following derivative instruments as of March 31, 2020, and December 31, 2019 (in millions): Notional Value March 31, 2020 December 31, 2019 Futures $ 137.6 $ 88.3 Contracts for differences 12.8 15.5 Credit default swaps 20.1 0.1 Total return swaps 0.1 0.1 Interest rate swaps 18.7 19.4 Options — 1.0 Foreign currency forward contracts 441.2 167.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Schedule of assets and liabilities presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis | The following table presents assets and liabilities presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of March 31, 2020 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 384.7 $ — $ — $ 384.7 Investment securities: Consolidated VIEs 191.6 349.6 7.6 548.8 Other investment securities 194.5 56.1 — 250.6 Total investment securities 386.1 405.7 7.6 799.4 Seed hedge derivatives — 13.3 — 13.3 Volantis contingent consideration — — 2.7 2.7 Geneva contingent consideration — — 20.5 20.5 Total assets $ 770.8 $ 419.0 $ 30.8 $ 1,220.6 Liabilities: Derivatives in consolidated seeded investment products $ — $ 17.7 $ — $ 17.7 Securities sold, not yet purchased 9.6 — — 9.6 Seed hedge derivatives — 0.2 — 0.2 Long-term debt (1) — 305.9 — 305.9 Deferred bonuses — — 74.3 74.3 Total liabilities $ 9.6 $ 323.8 $ 74.3 $ 407.7 (1) Carried at amortized cost and disclosed at fair value. The following table presents assets and liabilities presented in the financial statements or disclosed in the notes to the financial statements at fair value on a recurring basis as of December 31, 2019 (in millions): Fair value measurements using: Quoted prices in active markets for identical assets Significant other Significant and liabilities observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) Total Assets: Cash equivalents $ 198.4 $ — $ — $ 198.4 Investment securities: Consolidated VIEs 573.9 341.0 9.9 924.8 Other investment securities 197.0 56.5 — 253.5 Total investment securities 770.9 397.5 9.9 1,178.3 Seed hedge derivatives — 0.7 — 0.7 Derivatives in consolidated seeded investment products — — — — Contingent consideration — — 2.9 2.9 Total assets $ 969.3 $ 398.2 $ 12.8 $ 1,380.3 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.9 $ — $ 0.9 Securities sold, not yet purchased 26.5 — — 26.5 Seed hedge derivatives — 8.7 — 8.7 Long-term debt (1) — 330.0 — 330.0 Deferred bonuses — — 76.6 76.6 Contingent consideration — — 21.2 21.2 Total liabilities $ 26.5 $ 339.6 $ 97.8 $ 463.9 (1) Carried at amortized cost and disclosed at fair value. |
Summary of valuation techniques and significant unobservable inputs used in the valuation of the company's private equity investments | Valuation techniques and significant unobservable inputs used in the valuation of our material Level 3 assets included within consolidated VIEs as of March 31, 2020, and December 31, 2019, were as follows (in millions): Significant Fair Valuation unobservable As of March 31, 2020 value technique inputs Inputs Investment securities of consolidated VIEs $ 7.4 Discounted Discount rate 15% cash flow EBITDA multiple 4.73 Price-earnings ratio 8.86 Significant Fair Valuation unobservable As of December 31, 2019 value technique inputs Inputs Investment securities of consolidated VIEs $ 9.9 Discounted Discount rate 15% cash flow EBITDA multiple 5.92 Price-earnings ratio 11.09 |
Schedule of maximum amount payable and fair value of Geneva, Perennial, Kapstream and VelocityShares contingent consideration | |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for collective items | Changes in fair value of our Level 3 assets for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Beginning of period fair value $ 12.8 $ 23.1 Geneva contingent consideration 20.5 — Settlements — (0.3) Movement recognized in net income (2.2) (3.1) Movements recognized in other comprehensive income (0.3) 0.1 End of period fair value $ 30.8 $ 19.8 |
Schedule of changes in fair value of the recurring Level 3 fair value measurements for individual items | Changes in fair value of our individual Level 3 liabilities for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Contingent Deferred Contingent Deferred consideration bonuses consideration bonuses Beginning of period fair value $ 21.2 $ 76.6 $ 61.3 $ 68.5 Fair value adjustments (7.1) (4.9) — 2.6 Vesting of deferred bonuses — (2.3) — (3.4) Amortization of deferred bonuses — 9.8 — 13.9 Unrealized gains (losses) 0.3 — 2.4 — Distributions (13.8) — (14.1) — Foreign currency translation (0.6) (4.9) 0.2 1.5 End of period fair value $ — $ 74.3 $ 49.8 $ 83.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets | |
Summary of goodwill and intangible assets | The following tables present movements in our intangible assets and goodwill during the three months ended March 31, 2020 and 2019 (in millions): December 31, Foreign March 31, 2019 Amortization Disposal Impairment translation 2020 Indefinite-lived intangible assets: Investment management agreements $ 2,490.3 $ — $ — $ (263.5) $ (45.2) $ 2,181.6 Trademarks 380.8 — — (7.7) (0.5) 372.6 Definite-lived intangible assets: Client relationships 364.7 — (79.3) (92.6) (6.8) 186.0 Accumulated amortization (147.2) (6.4) 61.4 — 3.7 (88.5) Net intangible assets $ 3,088.6 $ (6.4) $ (17.9) $ (363.8) $ (48.8) $ 2,651.7 Goodwill $ 1,504.3 $ — $ (23.5) $ (123.5) $ (50.2) $ 1,307.1 December 31, Foreign March 31, 2018 Amortization Disposal Impairment translation 2019 Indefinite-lived intangible assets: Investment management agreements $ 2,495.5 $ — $ — $ — $ 9.2 $ 2,504.7 Trademarks 380.8 — — — — 380.8 Definite-lived intangible assets: Client relationships 363.3 — — — 1.2 364.5 Accumulated amortization (116.3) (7.4) — — (0.9) (124.6) Net intangible assets $ 3,123.3 $ (7.4) $ — $ — $ 9.5 $ 3,125.4 Goodwill $ 1,478.0 $ — $ — $ — $ 15.6 $ 1,493.6 |
Client relationships | |
Goodwill and Intangible Assets | |
Schedule of expected future amortization | Expected future amortization expense related to client relationships is summarized below (in millions): Future amortization Amount 2020 (remainder of year) $ 7.1 2021 9.4 2022 9.4 2023 9.2 2024 8.0 Thereafter 54.4 Total $ 97.5 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Components of debt | Our debt as of March 31, 2020, and December 31, 2019, consisted of the following (in millions): March 31, 2020 December 31, 2019 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 315.5 $ 305.9 $ 316.2 $ 330.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes | |
Schedule of effective income tax rates | Three months ended March 31, 2020 2019 Effective tax rate 19.4 % 23.0 % |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interests | |
Summary of redeemable noncontrolling interests | Redeemable noncontrolling interests as of March 31, 2020, and December 31, 2019, consisted of the following (in millions): March 31, December 31, 2020 2019 Consolidated seeded investment products $ 448.7 $ 662.8 Intech: Appreciation rights 12.0 11.8 Founding member ownership interests 3.3 3.3 Total redeemable noncontrolling interests $ 464.0 $ 677.9 |
Schedule of movement in redeemable noncontrolling interests in consolidated seeded investment products | Redeemable noncontrolling interests in consolidated seeded investment products may fluctuate from period to period and are impacted by changes in our relative ownership, changes in the amount of third-party investment in seeded products and volatility in the market value of the underlying securities included in the portfolios of seeded products. Redemptions of investments by third parties in any particular seeded product are redeemed from the net assets of such seeded product and cannot be redeemed from the assets of our other seeded products or from our other assets. The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the three months ended March 31, 2020 and 2019 (in millions): Three months ended March 31, 2020 2019 Opening balance $ 662.8 $ 121.6 Changes in market value (36.9) 4.5 Changes in ownership (171.6) (4.2) Foreign currency translation (5.6) 0.1 Closing balance $ 448.7 $ 122.0 |
Summary of nonredeemable noncontrolling interests | Nonredeemable noncontrolling interests as of March 31, 2020, and December 31, 2019, were as follows (in millions): March 31, December 31, 2020 2019 Nonredeemable noncontrolling interests in: Seed capital investments $ 5.3 $ 6.7 Intech 13.1 13.0 Total nonredeemable noncontrolling interests $ 18.4 $ 19.7 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefit Plans | |
Schedule of components of net periodic benefit credit | The components of net periodic benefit credit in respect of defined benefit plans for the three months ended March 31, 2020 and 2019, include the following (in millions): Three months ended March 31, 2020 2019 Service cost $ (0.2) $ (0.3) Interest cost (4.3) (4.7) Amortization of prior service cost (0.1) — Expected return on plan assets 4.6 5.4 Net periodic benefit credit $ — $ 0.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Loss | |
Schedule of the changes in accumulated other comprehensive loss, net of tax | Changes in accumulated other comprehensive loss, net of tax for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Foreign Retirement benefit Foreign Retirement currency asset, net Total currency asset, net Total Beginning balance $ (386.2) $ 19.1 $ (367.1) $ (448.2) $ 24.7 $ (423.5) Other comprehensive income (loss) (149.1) 0.1 (149.0) 36.8 — 36.8 Less: other comprehensive loss (income) attributable to noncontrolling interests 5.1 — 5.1 (0.1) — (0.1) Ending balance $ (530.2) $ 19.2 $ (511.0) $ (411.5) $ 24.7 $ (386.8) |
Components of other comprehensive income (loss), net of tax | The components of other comprehensive income (loss), net of tax for the three months ended March 31, 2020 and 2019, were as follows (in millions): Three months ended March 31, 2020 2019 Pre-tax Tax Pre-tax Tax amount impact Net amount amount impact Net amount Foreign currency translation adjustments $ (151.3) $ 2.2 $ (149.1) $ 35.3 $ 1.5 $ 36.8 Retirement benefit asset, net 0.1 — 0.1 — — — Total other comprehensive income (loss) $ (151.2) $ 2.2 $ (149.0) $ 35.3 $ 1.5 $ 36.8 |
Earnings (Loss) and Dividends_2
Earnings (Loss) and Dividends Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) and Dividends Per Share | |
Summary of earnings (loss) per share calculation | The following is a summary of the earnings (loss) per share calculation for the three months ended March 31, 2020 and 2019 (in millions, except per share data): Three months ended March 31, 2020 2019 Net income (loss) attributable to JHG $ (247.0) $ 94.1 Allocation of earnings to participating stock-based awards — (2.4) Net income (loss) attributable to JHG common shareholders $ (247.0) $ 91.7 Weighted-average common shares outstanding — basic 182.4 191.8 Dilutive effect of non-participating stock-based awards — 0.7 Weighted-average common shares outstanding — diluted 182.4 192.5 Earnings (loss) per share: Basic and diluted (two class) $ (1.35) $ 0.48 |
Schedule of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | The following instruments are anti-dilutive and have not been included in the weighted-average diluted shares outstanding calculation (in millions): Three months ended March 31, 2020 2019 Unvested nonparticipating stock awards 2.3 1.0 |
Schedule of cash dividends declared and paid | The following is a summary of cash dividends paid during the three months ended March 31, 2020: Dividend Date Dividends paid Date per share declared (in US$ millions) paid $ 0.36 February 3, 2020 $ 66.2 March 5, 2020 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounting Standards Update 2018-15 | |
Recent Accounting Pronouncements | |
Capitalized implementation costs | $ 0 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Millions | Mar. 17, 2020 | Mar. 31, 2020 |
Dispositions | ||
Net gain on sale, before taxes | $ 17.4 | |
Geneva | ||
Dispositions | ||
Ownership sold (as a percent) | 100.00% | |
Consideration received | $ 38.6 | |
Period of time for earnout payments | 5 years | |
Net gain on sale, before taxes | $ 17.4 | |
Geneva | Minimum | ||
Dispositions | ||
Contingent consideration | 20.5 | |
Geneva | Maximum | ||
Dispositions | ||
Contingent consideration | $ 35 |
Dispositions - Gain on Sale (De
Dispositions - Gain on Sale (Details) - USD ($) $ in Millions | Mar. 17, 2020 | Mar. 31, 2020 |
Less carrying amount of assets and liabilities: | ||
Net gain on sale, before taxes | $ 17.4 | |
Geneva | ||
Consideration received | ||
Cash | $ 38.6 | |
Less carrying amount of assets and liabilities: | ||
Intangible assets | 17.9 | 79.3 |
Other assets | 0.3 | |
Less: Goodwill allocation | 23.5 | $ 23.5 |
Net gain on sale, before taxes | 17.4 | |
Geneva | Minimum | ||
Consideration received | ||
Contingent consideration | $ 20.5 |
Consolidation - VIEs (Details)
Consolidation - VIEs (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Unconsolidated VIEs | ||
Investment securities | $ 8.1 | $ 9.9 |
Consolidation - VREs (Details)
Consolidation - VREs (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other current assets | $ 110.4 | $ 116 |
Consolidated VREs | ||
Investment securities | 52.7 | 29.9 |
Cash and cash equivalents | 5.7 | 1.5 |
Other current assets | 14.4 | 0.2 |
Accounts payable and accrued liabilities | (8.6) | (0.7) |
Total | 64.2 | 30.9 |
Redeemable noncontrolling interests in consolidated VREs | (43.2) | (6.3) |
JHG's net interest in consolidated VREs | 21 | 24.6 |
Unconsolidated VREs | ||
Investment securities | $ 30.1 | $ 21.5 |
Investment Securities - General
Investment Securities - General Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Short-term investments: | |||
Estimated Fair Value | $ 799.4 | $ 1,178.3 | |
Unrealized gains (losses) on investment securities held at period end | (39.5) | $ 11.1 | |
Assets | |||
Derivative assets | 13.3 | ||
Liabilities | |||
Derivative liabilities | 0.2 | ||
Net gains (losses) in net income related to: | |||
Foreign currency translation | 3 | 0.3 | |
Foreign currency forward contracts | (3) | $ (0.3) | |
Securities sold, not yet purchased | 9.6 | ||
Seeded investment products | |||
Short-term investments: | |||
Seeded investment products | 694.6 | 1,047 | |
Investment securities | Separate accounts | |||
Short-term investments: | |||
Seeded investment products | 54.8 | 60.8 | |
Investment securities | Pooled investment funds | |||
Short-term investments: | |||
Seeded investment products | 0.1 | 0.1 | |
Investment securities | Investments related to deferred compensation plans | |||
Short-term investments: | |||
Estimated Fair Value | 99.5 | 125.9 | |
Investment securities | Other investments | |||
Short-term investments: | |||
Estimated Fair Value | 5.3 | 5.4 | |
Consolidated VIEs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 548.8 | 924.8 | |
Consolidated VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 52.7 | 29.9 | |
Unconsolidated VIEs and VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 38.2 | 31.4 | |
Consolidated | Credit default swap, selling protection contracts | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 1.7 | 2.2 | |
Assets | |||
Notional value of derivative | 1.7 | 2.2 | |
Futures | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 117.4 | 222.9 | |
Assets | |||
Notional value of derivative | 117.4 | 222.9 | |
Futures | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 137.6 | 88.3 | |
Assets | |||
Notional value of derivative | 137.6 | 88.3 | |
Credit default swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 150.2 | 143 | |
Assets | |||
Notional value of derivative | 150.2 | 143 | |
Credit default swaps | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 20.1 | 0.1 | |
Assets | |||
Notional value of derivative | 20.1 | 0.1 | |
Total return swaps | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 0.1 | 0.1 | |
Assets | |||
Notional value of derivative | 0.1 | 0.1 | |
Total return swaps and index swaps | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 45.4 | 46.3 | |
Assets | |||
Notional value of derivative | 45.4 | 46.3 | |
Foreign currency forward contracts | Derivative Instruments | Not Designated as Hedging Instrument | |||
Short-term investments: | |||
Notional value of derivative | 224.8 | 327.8 | |
Assets | |||
Notional value of derivative | 224.8 | 327.8 | |
Foreign currency forward contracts | Derivative Instruments | Seeded investment products | |||
Short-term investments: | |||
Notional value of derivative | 441.2 | 167.5 | |
Assets | |||
Notional value of derivative | $ 441.2 | $ 167.5 |
Investment Securities - Offsett
Investment Securities - Offsetting Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Assets | |||
Derivative Asset | $ 13.3 | ||
Liabilities | |||
Derivative liabilities | 0.2 | ||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (50.5) | $ 13.3 | |
Cash flows related to investment securities | |||
Purchases and settlements | 98.3 | 19.3 | |
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | |||
Seeded investment products, credit protection | |||
Notional value of derivative | $ 1.7 | $ 2.2 | |
Fair value of credit default swap contracts | 0 | ||
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | Minimum | |||
Seeded investment products, credit protection | |||
Term of credit default swap contracts (in years) | 1 year | ||
Seeded investment products | Consolidated | Credit default swap, selling protection contracts | Maximum | |||
Seeded investment products, credit protection | |||
Term of credit default swap contracts (in years) | 5 years | ||
Seeded investment products and derivatives | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | $ (43.5) | 8.2 | |
Other investments | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (7) | 5.1 | |
Investment securities | |||
Cash flows related to investment securities | |||
Purchases and settlements | (15.1) | (42.8) | |
Sales, settlements and maturities | 113.4 | 62.1 | |
Investment securities | Seeded investment products | Consolidated | |||
Cash flows related to investment securities | |||
Purchases and settlements | 2.9 | (176.7) | |
Sales, settlements and maturities | (108.2) | $ 222.8 | |
Derivative Instruments | Seeded investment products | Futures | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 137.6 | 88.3 | |
Derivative Instruments | Seeded investment products | Contracts for differences | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 12.8 | 15.5 | |
Derivative Instruments | Seeded investment products | Interest rate swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 18.7 | 19.4 | |
Derivative Instruments | Seeded investment products | Total return swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 0.1 | 0.1 | |
Derivative Instruments | Seeded investment products | Credit default swaps | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 20.1 | 0.1 | |
Derivative Instruments | Seeded investment products | Options | |||
Seeded investment products, credit protection | |||
Notional value of derivative | 1 | ||
Derivative Instruments | Seeded investment products | Foreign currency forward contracts | |||
Seeded investment products, credit protection | |||
Notional value of derivative | $ 441.2 | $ 167.5 |
Fair Value Measurements - Level
Fair Value Measurements - Level of Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||||
Derivative assets | $ 13.3 | |||
Liabilities | ||||
Derivative liabilities | 0.2 | |||
Securities sold, not yet purchased | 9.6 | |||
Total redeemable noncontrolling interests | 464 | $ 677.9 | ||
Geneva | ||||
Liabilities | ||||
Contingent consideration | 0 | |||
Seeded investment products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 448.7 | 662.8 | $ 122 | $ 121.6 |
Unconsolidated VIEs | ||||
Assets | ||||
Total investment securities | 8.1 | 9.9 | ||
Intech Founders | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 3.3 | 3.3 | ||
Consolidated | Seeded investment products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 448.7 | 662.8 | ||
Consolidated VIEs | ||||
Assets | ||||
Total investment securities | 548.8 | 924.8 | ||
Fair value measurements, recurring | ||||
Assets | ||||
Cash equivalents | 384.7 | 198.4 | ||
Contingent consideration | 2.9 | |||
Total assets | 1,220.6 | 1,380.3 | ||
Liabilities | ||||
Securities sold, not yet purchased | 9.6 | 26.5 | ||
Long-term debt | 305.9 | 330 | ||
Contingent consideration | 21.2 | |||
Total liabilities | 407.7 | 463.9 | ||
Fair value measurements, recurring | Deferred bonuses | ||||
Liabilities | ||||
Derivative liabilities | 74.3 | |||
Current portion of long-term debt | 76.6 | |||
Fair value measurements, recurring | Volantis | ||||
Assets | ||||
Contingent consideration | 2.7 | |||
Fair value measurements, recurring | Geneva | ||||
Assets | ||||
Contingent consideration | 20.5 | |||
Fair value measurements, recurring | Investment securities | ||||
Assets | ||||
Total investment securities | 799.4 | 1,178.3 | ||
Fair value measurements, recurring | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 13.3 | 0.7 | ||
Liabilities | ||||
Derivative liabilities | 0.2 | 8.7 | ||
Fair value measurements, recurring | Level 1 | ||||
Assets | ||||
Cash equivalents | 384.7 | 198.4 | ||
Total assets | 770.8 | 969.3 | ||
Liabilities | ||||
Securities sold, not yet purchased | 9.6 | 26.5 | ||
Total liabilities | 9.6 | 26.5 | ||
Fair value measurements, recurring | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 386.1 | 770.9 | ||
Fair value measurements, recurring | Level 2 | ||||
Assets | ||||
Total assets | 419 | 398.2 | ||
Liabilities | ||||
Long-term debt | 305.9 | 330 | ||
Total liabilities | 323.8 | 339.6 | ||
Fair value measurements, recurring | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 405.7 | 397.5 | ||
Fair value measurements, recurring | Level 2 | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 13.3 | 0.7 | ||
Liabilities | ||||
Derivative liabilities | 0.2 | 8.7 | ||
Fair value measurements, recurring | Level 3 | ||||
Assets | ||||
Contingent consideration | 2.9 | |||
Total assets | 30.8 | 12.8 | ||
Liabilities | ||||
Contingent consideration | 21.2 | |||
Total liabilities | 74.3 | 97.8 | ||
Fair value measurements, recurring | Level 3 | Deferred bonuses | ||||
Liabilities | ||||
Derivative liabilities | 74.3 | |||
Current portion of long-term debt | 76.6 | |||
Fair value measurements, recurring | Level 3 | Volantis | ||||
Assets | ||||
Contingent consideration | 2.7 | |||
Fair value measurements, recurring | Level 3 | Geneva | ||||
Assets | ||||
Contingent consideration | 20.5 | |||
Fair value measurements, recurring | Level 3 | Investment securities | ||||
Assets | ||||
Total investment securities | 7.6 | 9.9 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Investment securities | ||||
Assets | ||||
Total investment securities | 250.6 | 253.5 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 194.5 | 197 | ||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 56.1 | 56.5 | ||
Fair value measurements, recurring | Consolidated | Seeded investment products | ||||
Liabilities | ||||
Derivative liabilities | 17.7 | 0.9 | ||
Fair value measurements, recurring | Consolidated | Level 2 | Seeded investment products | ||||
Liabilities | ||||
Derivative liabilities | 17.7 | 0.9 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | ||||
Assets | ||||
Total investment securities | 7.4 | 9.9 | ||
Fair value measurements, recurring | Consolidated VIEs | Investment securities | ||||
Assets | ||||
Total investment securities | 548.8 | 924.8 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | Investment securities | ||||
Assets | ||||
Total investment securities | 191.6 | 573.9 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | Investment securities | ||||
Assets | ||||
Total investment securities | 349.6 | 341 | ||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | Investment securities | ||||
Assets | ||||
Total investment securities | $ 7.6 | $ 9.9 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation techniques and significant unobservable inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Consolidated VIEs | Level 3 | Fair value measurements, recurring | Discounted cash flow | ||
Changes in fair value | ||
Discount rate | 15.00% | 15.00% |
EBITDA multiple | 4.73% | 5.92% |
Price-earnings ratio | 8.86 | 11.09 |
Consolidated VIEs | ||
Changes in fair value | ||
Investment securities | $ 548.8 | $ 924.8 |
Consolidated VIEs | Level 3 | Fair value measurements, recurring | ||
Changes in fair value | ||
Investment securities | $ 7.4 | $ 9.9 |
Fair Value Measurements - Conti
Fair Value Measurements - Contingent Consideration (Details) $ in Millions | Mar. 31, 2020USD ($) |
Kapstream | |
Fair value included in: | |
Contingent consideration | $ 0 |
Fair Value Measurements - Dispo
Fair Value Measurements - Disposal of Geneva (Details) - Geneva - USD ($) $ in Millions | Mar. 17, 2020 | Mar. 31, 2020 |
Dispositions | ||
Consideration received | $ 38.6 | |
Period of time for earnout payments | 5 years | |
Contingent consideration | $ 0 | |
Minimum | ||
Dispositions | ||
Contingent consideration | $ 20.5 | |
Maximum | ||
Dispositions | ||
Contingent consideration | $ 35 |
Fair Value Measurements - Acqui
Fair Value Measurements - Acquisition of Kapstream (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) | Feb. 28, 2018USD ($) | Mar. 31, 2020USD ($) | Jan. 31, 2017USD ($)item | |
Business acquisition | |||||
Contingent consideration adjustment | $ (7.1) | ||||
Kapstream | |||||
Business acquisition | |||||
Ownership interest acquired (as a percent) | 49.00% | ||||
Contingent cash consideration paid, for revenue target achieved | $ 13.8 | $ 14.1 | $ 15.3 | ||
Fair value of contingent consideration liability | $ 0 | ||||
Number of installments | item | 3 | ||||
Kapstream | Maximum | |||||
Business acquisition | |||||
Fair value of contingent consideration liability | $ 43 |
Fair Value Measurements - Dis_2
Fair Value Measurements - Disposal of Volantis (Details) - USD ($) $ in Millions | Apr. 01, 2017 | Mar. 31, 2020 | Dec. 31, 2019 |
Dispositions | |||
Revenue forecasting period | 3 years | ||
Volantis | |||
Dispositions | |||
Period of performance of investee for recognizing consideration | 3 years | ||
Volantis | Discontinued Operations, Disposed of by Sale | |||
Dispositions | |||
Percentage of share for consideration of sale | 10.00% | ||
Fair value of contingent consideration | $ 2.7 | $ 2.9 | |
Business Combination, Contingent Consideration, Asset | $ 2.7 | $ 2.9 |
Fair Value Measurements - Lev_2
Fair Value Measurements - Level 3 Rollforward (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Changes in fair value | |||
Foreign currency translation | $ 3 | $ 0.3 | |
Change in fair value of Level 3 assets | |||
Balance at the beginning of period, Asset value | 12.8 | 23.1 | $ 23.1 |
Geneva sell off | 20.5 | ||
Settlements | (0.3) | ||
Movements recognized in net income | (2.2) | (3.1) | |
Movements recognized in other comprehensive income | (0.3) | 0.1 | |
Balance at the end of period, Asset value | 30.8 | 19.8 | 12.8 |
Consolidated VIEs | |||
Changes in fair value | |||
Investment securities | 548.8 | 924.8 | |
Level 3 | Fair value measurements, recurring | Consolidated VIEs | |||
Changes in fair value | |||
Investment securities | $ 7.4 | $ 9.9 | |
Level 3 | Fair value measurements, recurring | Discounted cash flow | Consolidated VIEs | |||
Changes in fair value | |||
Price-earnings ratio | 8.86 | 11.09 | |
Level 3 | Fair value measurements, recurring | Contingent consideration | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | $ 21.2 | 61.3 | $ 61.3 |
Fair value adjustments | (7.1) | ||
Unrealized gains (losses) | 0.3 | 2.4 | |
Distributions | (13.8) | (14.1) | |
Foreign currency translation | (0.6) | 0.2 | |
Balance at the end of period, Liability Value | 49.8 | 21.2 | |
Level 3 | Fair value measurements, recurring | Deferred bonuses | |||
Changes in fair value | |||
Balance at the beginning of period, Liability Value | 76.6 | 68.5 | 68.5 |
Fair value adjustments | (4.9) | 2.6 | |
Vesting of deferred bonuses | (2.3) | (3.4) | |
Amortization of deferred bonuses | (9.8) | (13.9) | |
Foreign currency translation | (4.9) | 1.5 | |
Balance at the end of period, Liability Value | $ 74.3 | $ 83.1 | $ 76.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 17, 2020 | |
Definite-lived intangible assets: | |||||
Foreign currency translation | $ 1.2 | ||||
Accumulated amortization, balance at the beginning of the period | $ (147.2) | (116.3) | |||
Amortization | (6.4) | (7.4) | |||
Foreign currency translation | 3.7 | (0.9) | |||
Accumulated amortization, balance at the end of the period | $ (88.5) | (88.5) | (124.6) | ||
Net intangible assets | |||||
Net intangible assets, balance at the beginning of the period | 3,088.6 | 3,123.3 | |||
Amortization | (6.4) | (7.4) | |||
Impairment | (363.8) | ||||
Foreign currency translation | (48.8) | 9.5 | |||
Net intangible assets, balance at the end of the period | 2,651.7 | 2,651.7 | 3,125.4 | ||
Goodwill | |||||
Goodwill, balance at the beginning of the period | 1,504.3 | 1,478 | |||
Impairment | 123.5 | ||||
Foreign currency translation | (50.2) | 15.6 | |||
Goodwill, balance at the end of the period | 1,307.1 | 1,307.1 | 1,493.6 | ||
The amount of fair value greater than carrying value for goodwill | $ 123.5 | ||||
Goodwill and intangible assets impairment | 487.3 | ||||
Sale | |||||
Intangible assets, net | 2,651.7 | 3,088.6 | 3,125.4 | 2,651.7 | |
Future Amortization: | |||||
2020 (remainder of year) | 7.1 | ||||
2021 | 9.4 | ||||
2022 | 9.4 | ||||
2023 | 9.2 | ||||
2024 | 8 | ||||
Thereafter | 54.4 | ||||
Total | 97.5 | ||||
Geneva | |||||
Indefinite-lived intangible assets: | |||||
Disposal | 79.3 | $ 17.9 | |||
Definite-lived intangible assets: | |||||
Disposal | 79.3 | 17.9 | |||
Accumulated amortization, balance at the end of the period | 61.4 | 61.4 | |||
Net intangible assets | |||||
Impairment | (17.9) | ||||
Goodwill | |||||
Disposal | (23.5) | $ (23.5) | |||
Sale | |||||
Ownership sold (as a percent) | 100.00% | ||||
Intangible assets, net | $ 17.9 | ||||
Allocated goodwill | 23.5 | $ 23.5 | |||
Client relationships | |||||
Definite-lived intangible assets: | |||||
Balance at the beginning of the period | 364.7 | 363.3 | |||
Impairment | 92.6 | 92.6 | |||
Foreign currency translation | (6.8) | ||||
Balance at the end of the period | 186 | 186 | 364.5 | ||
Investment management agreements | |||||
Indefinite-lived intangible assets: | |||||
Balance at the beginning of the period | 2,490.3 | 2,495.5 | |||
Impairment | 263.5 | (263.5) | |||
Foreign currency translation | (45.2) | 9.2 | |||
Balance at the end of the period | 2,181.6 | 2,181.6 | 2,504.7 | ||
Goodwill | |||||
Indefinite-Lived Intangible Assets | 2,181.6 | 2,181.6 | 2,504.7 | 2,181.6 | |
Impairment | (263.5) | 263.5 | |||
Trademarks | |||||
Indefinite-lived intangible assets: | |||||
Balance at the beginning of the period | 380.8 | 380.8 | |||
Impairment | 7.7 | (7.7) | |||
Foreign currency translation | (0.5) | ||||
Balance at the end of the period | 372.6 | 372.6 | 380.8 | ||
Goodwill | |||||
Indefinite-Lived Intangible Assets | 372.6 | 372.6 | $ 380.8 | $ 372.6 | |
Impairment | $ (7.7) | $ 7.7 |
Debt (Details)
Debt (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
4.875% Senior Notes due 2025 | ||
Components of debt | ||
Interest rate (as a percent) | 4.875% | |
Other Disclosures | ||
Face value of debt issued | $ 300 | |
Unamortized premium, net | 15.5 | |
4.875% Senior Notes due 2025 | Carrying value | ||
Components of debt | ||
Total debt | 315.5 | $ 316.2 |
4.875% Senior Notes due 2025 | Fair value | ||
Components of debt | ||
Total debt | 305.9 | $ 330 |
Credit Facility | ||
Other Disclosures | ||
Credit facility, maximum borrowing capacity | $ 200 | |
Credit facility covenant terms, financing leverage ratio, maximum | 3 | |
Borrowings under the Credit Facility | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Apr. 01, 2020 | Mar. 27, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Income taxes | ||||||||
Effective tax rate (as a percent) | 19.40% | 23.00% | ||||||
Impairment of goodwill and intangible assets | $ 487.3 | |||||||
Unrecognized tax liability | $ 12.6 | 12.6 | $ 14.1 | |||||
Anticipated decrease in income tax contingency reserves in the next 12 months | $ 0.5 | $ 0.5 | ||||||
Carryback period for Federal Net Operating Losses per the CARES Act | 5 years | |||||||
UK | ||||||||
Income taxes | ||||||||
Statutory corporation tax rate (as a percentage) | 17.00% | 19.00% | 19.00% | |||||
UK | Forecast | ||||||||
Income taxes | ||||||||
Statutory corporation tax rate (as a percentage) | 19.00% | |||||||
UK | Forecast | Minimum | ||||||||
Income taxes | ||||||||
Adjustment to deferred tax assets and liabilities | $ 6 | |||||||
UK | Forecast | Maximum | ||||||||
Income taxes | ||||||||
Adjustment to deferred tax assets and liabilities | $ 9 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Mar. 31, 2020 | |
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | $ 677.9 | $ 677.9 | $ 464 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 677.9 | |||
Closing balance | 464 | 677.9 | ||
Seeded investment products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 448.7 | $ 122 | 121.6 | 448.7 |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 662.8 | 121.6 | 121.6 | |
Changes in market value | (36.9) | 4.5 | ||
Changes in ownership | (171.6) | (4.2) | ||
Foreign currency translation | (5.6) | 0.1 | ||
Closing balance | 448.7 | $ 122 | 662.8 | |
Intech Founders | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 3.3 | 3.3 | $ 3.3 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 3.3 | |||
Closing balance | 3.3 | 3.3 | ||
Remaining interest (as a percent) | 1.10% | |||
Consolidated | Seeded investment products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 662.8 | 662.8 | $ 448.7 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | ||||
Opening balance | 662.8 | |||
Closing balance | 448.7 | 662.8 | ||
Intech | Intech | ||||
Redeemable Noncontrolling Interests | ||||
INTECH appreciation rights | $ 12 | $ 11.8 |
Noncontrolling Interests - Nonr
Noncontrolling Interests - Nonredeemable (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 18.4 | $ 19.7 |
Seeded investment products | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | 5.3 | 6.7 |
Intech | ||
Nonredeemable noncontrolling interests | ||
Total nonredeemable noncontrolling interests | $ 13.1 | $ 13 |
Long-Term Incentive and Employe
Long-Term Incentive and Employee Compensation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Long-Term Incentive and Employee Compensation | |
Long-term incentive awards granted | $ 125.9 |
Maximum | |
Long-Term Incentive and Employee Compensation | |
Vesting period | 4 years |
Minimum | |
Long-Term Incentive and Employee Compensation | |
Vesting period | 3 years |
Retirement benefit plans - Actu
Retirement benefit plans - Actuarial gains(losses), benefit cost, cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Components of net periodic benefit cost | ||
Service cost | $ (0.2) | $ (0.3) |
Interest cost | (4.3) | (4.7) |
Expected return on plan assets | 4.6 | 5.4 |
Amortization of prior service cost | $ (0.1) | |
Net periodic benefit credit | $ 0.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | $ 4,886.5 | |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 5.1 | $ (0.1) |
Ending balance | 4,375 | |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | (367.1) | (423.5) |
Other comprehensive income (loss) | (149) | 36.8 |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 5.1 | (0.1) |
Ending balance | (511) | (386.8) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | (386.2) | (448.2) |
Other comprehensive income (loss) | (149.1) | 36.8 |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 5.1 | (0.1) |
Ending balance | (530.2) | (411.5) |
Retirement benefit asset, net | ||
Changes in accumulated other comprehensive loss, net of tax | ||
Beginning balance | 19.1 | 24.7 |
Other comprehensive income (loss) | 0.1 | |
Ending balance | $ 19.2 | $ 24.7 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other comprehensive income, net of tax | ||
Pre-tax amount | $ (151.2) | $ 35.3 |
Tax impact | (2.2) | (1.5) |
Net amount | (149) | 36.8 |
Other comprehensive income (loss) | (149) | 36.8 |
Foreign currency translation adjustments | ||
Other comprehensive income, net of tax | ||
Pre-tax amount | (151.3) | 35.3 |
Tax impact | (2.2) | (1.5) |
Net amount | (149.1) | $ 36.8 |
Retirement benefit asset, net | ||
Other comprehensive income, net of tax | ||
Pre-tax amount | 0.1 | |
Net amount | $ 0.1 |
Earnings (Loss) and Dividends_3
Earnings (Loss) and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Apr. 29, 2020 | Mar. 05, 2020 | Feb. 03, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Earnings (loss) per share | |||||
Net income (loss) attributable to JHG | $ (247) | $ 94.1 | |||
Less: Allocation of earnings to participating stock-based awards | (2.4) | ||||
Net income (loss) attributable to JHG common shareholders | $ (247) | $ 91.7 | |||
Weighted-average common shares outstanding - basic | 182.4 | 191.8 | |||
Dilutive effect of non-participating stock-based awards | 0.7 | ||||
Weighted-average common shares outstanding - diluted | 182.4 | 192.5 | |||
Earnings (loss) per share: | |||||
Basic and diluted (two class) | $ (1.35) | $ 0.48 | |||
Cash dividend declared (in dollars per share) | $ 0.36 | $ 0.36 | |||
Cash dividends paid | $ 66.2 | $ 66.2 | $ 69.7 | ||
Unvested nonparticipating stock awards | |||||
Anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | |||||
Number of anti-dilutive securities that have not been included in the calculation of weighted average diluted shares outstanding | 2.3 | 1 |