Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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, $1.50 Per Share Par Value | ||
Trading Symbol | JHG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,894,617,346.55 | ||
Entity Common Stock, Shares Outstanding | 165,657,905 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Denver, Colorado | ||
Auditor Firm ID | 238 | ||
Entity Central Index Key | 0001274173 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Fees and other receivables | $ 252.9 | $ 351.6 |
OEIC and unit trust receivables | 65.7 | 84.4 |
Other current assets | 120.3 | 150.2 |
Total current assets | 2,214.8 | 2,409.2 |
Non-current assets: | ||
Property, equipment and software, net | 51.8 | 63.3 |
Intangible assets, net | 2,414.7 | 2,542.7 |
Goodwill | 1,253.1 | 1,341.5 |
Retirement benefit asset, net | 97.9 | 165.1 |
Other non-current assets | 205.5 | 180.6 |
Total assets | 6,237.8 | 6,702.4 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 232.6 | 270.8 |
Current portion of accrued compensation, benefits and staff costs | 300.8 | 420 |
OEIC and unit trust payables | 72.8 | 92.2 |
Total current liabilities | 610.5 | 785.6 |
Non-current liabilities: | ||
Accrued compensation, benefits and staff costs | 46.9 | 45.7 |
Long-term debt | 307.5 | 310.4 |
Deferred tax liabilities, net | 574.6 | 619.2 |
Retirement benefit obligations, net | 3 | 4.8 |
Other non-current liabilities | 98.8 | 134.4 |
Total liabilities | 1,641.3 | 1,900.1 |
Commitments and contingencies (See Note 20) | ||
REDEEMABLE NONCONTROLLING INTERESTS | 233.9 | 163.4 |
EQUITY | ||
Common stock, $1.50 par value; 480,000,000 shares authorized, and 165,657,905 and 169,046,154 shares issued and outstanding as of December 31, 2022, and December 31, 2021, respectively | 248.5 | 253.6 |
Additional paid-in-capital | 3,706.6 | 3,771.8 |
Treasury shares, 312,469 and 1,133,934 shares held at December 31, 2022, and December 31, 2021, respectively | (8.3) | (55.1) |
Accumulated other comprehensive loss, net of tax | (647.7) | (387) |
Retained earnings | 1,060.7 | 1,040.2 |
Total shareholders' equity | 4,359.8 | 4,623.5 |
Nonredeemable noncontrolling interests | 2.8 | 15.4 |
Total equity | 4,362.6 | 4,638.9 |
Total liabilities, redeemable noncontrolling interests and equity | 6,237.8 | 6,702.4 |
Consolidated excluding VIEs | ||
Current assets: | ||
Cash and cash equivalents | 1,162.3 | 1,107.3 |
Investment securities | 261.6 | 451.4 |
Other current assets | 120.3 | 150.2 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 232.6 | 270.8 |
Consolidated VIEs | ||
Current assets: | ||
Cash and cash equivalents | 14.1 | 11.3 |
Investment securities | 334.3 | 250.9 |
Other current assets | 3.6 | 2.1 |
Current liabilities: | ||
Accounts payable and accrued liabilities | $ 4.3 | $ 2.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Par value | $ 1.50 | $ 1.50 |
Common stock, shares authorized | 480,000,000 | 480,000,000 |
Common stock, shares issued | 165,657,905 | 169,046,154 |
Common stock, shares outstanding | 165,657,905 | 169,046,154 |
Treasury shares (in shares) | 312,469 | 1,133,934 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Total revenue | $ 2,203.6 | $ 2,767 | $ 2,298.6 |
Operating expenses: | |||
Employee compensation and benefits | 611.5 | 693.3 | 618.6 |
Long-term incentive plans | 180.7 | 181 | 170.1 |
Distribution expenses | 498.3 | 554.1 | 461.1 |
Investment administration | 49.4 | 51.6 | 50 |
Marketing | 27.1 | 31.7 | 19.6 |
General, administrative and occupancy | 279.3 | 271.8 | 255.2 |
Impairment of goodwill and intangible assets | 35.8 | 121.9 | 546.5 |
Depreciation and amortization | 31.7 | 40.7 | 49.2 |
Total operating expenses | 1,713.8 | 1,946.1 | 2,170.3 |
Operating income | 489.8 | 820.9 | 128.3 |
Interest expense | (12.6) | (12.8) | (12.9) |
Investment gains (losses), net | (113.3) | 0.8 | 57.5 |
Other non-operating income, net | 11.5 | 8.8 | 30.6 |
Income before taxes | 375.4 | 817.7 | 203.5 |
Income tax provision | (100.9) | (205.3) | (52.2) |
Net income | 274.5 | 612.4 | 151.3 |
Net loss (income) attributable to noncontrolling interests | 97.9 | 7.6 | (21) |
Net income attributable to JHG | $ 372.4 | $ 620 | $ 130.3 |
Earnings per share attributable to JHG common shareholders: | |||
Basic (in dollars per share) | $ 2.23 | $ 3.59 | $ 0.70 |
Diluted (in dollars per share) | $ 2.23 | $ 3.57 | $ 0.70 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | $ (225.1) | $ (50.1) | $ 80.9 |
Actuarial losses | (37.6) | (22.4) | (29.5) |
Other comprehensive income (loss), net of tax | (262.7) | (72.5) | 51.4 |
Other comprehensive loss attributable to noncontrolling interests | 2 | 0.4 | 0.8 |
Other comprehensive income (loss) attributable to JHG | (260.7) | (72.1) | 52.2 |
Total comprehensive income | 11.8 | 539.9 | 202.7 |
Total comprehensive loss (income) attributable to noncontrolling interests | 99.9 | 8 | (20.2) |
Total comprehensive income attributable to JHG | 111.7 | 547.9 | 182.5 |
Management fees | |||
Revenue: | |||
Total revenue | 1,799.4 | 2,189.4 | 1,794.1 |
Performance fees | |||
Revenue: | |||
Total revenue | (10.7) | 102.7 | 98.1 |
Shareowner servicing fees | |||
Revenue: | |||
Total revenue | 224 | 260.7 | 209.2 |
Other revenue | |||
Revenue: | |||
Total revenue | $ 190.9 | $ 214.2 | $ 197.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 274.5 | $ 612.4 | $ 151.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 31.7 | 40.7 | 49.2 |
Impairment of goodwill and intangible assets | 35.8 | 121.9 | 546.5 |
Deferred income taxes | (14.3) | (2.2) | (112.7) |
Stock-based compensation plan expense | 90.6 | 68.2 | 66.7 |
Impairment of right-of-use operating asset | 1.3 | ||
(Gain) loss on sale of subsidiaries | 9.1 | (16.2) | |
Investment (gains) losses, net | 113.3 | (0.8) | (57.5) |
Contributions to pension plans in excess of costs recognized | 0.9 | 1.2 | (4.6) |
Contingent consideration fair value adjustment | (7.1) | ||
Other, net | (9.1) | (8.4) | (20.5) |
Changes in operating assets and liabilities: | |||
OEIC and unit trust receivables and payables | (0.7) | 1 | 7.6 |
Other assets | 41.6 | (44.5) | (52.8) |
Other accruals and liabilities | (100.1) | 105.9 | 94.5 |
Net operating activities | 473.3 | 895.4 | 645.7 |
Sales (purchases) of: | |||
Investment securities, net | 44.6 | (177.1) | 134.8 |
Property, equipment and software | (17.6) | (10.4) | (17.8) |
Investment securities by consolidated seeded investment products, net | (43.9) | (97.4) | (20.2) |
Cash received (paid) on settled seed capital hedges, net | 75.9 | (27) | (11.6) |
Dividends received from equity-method investments | 0.5 | 1.2 | 0.4 |
JHG long-term note with Intech | (15.9) | ||
Proceeds from sale of subsidiaries | 14.9 | 38.4 | |
Receipt of contingent consideration payments from sale of subsidiaries | 27.4 | 5.4 | |
Net investing activities | 58.5 | (283.3) | 129.4 |
Financing activities: | |||
Proceeds from stock-based compensation plans | 4.3 | 12.5 | 1 |
Purchase of common stock for stock-based compensation plans | (113.8) | (71.8) | (49.1) |
Purchase of common stock from Dai-ichi Life and share buyback program | (98.9) | (372.1) | (130.8) |
Dividends paid to shareholders | (259.4) | (256) | (262.9) |
Payment of contingent consideration | (13.8) | ||
Distributions to noncontrolling interests | (1) | (0.5) | (0.8) |
Third-party sales (purchases) in consolidated seeded investment products, net | 51.1 | 100.3 | (34) |
Principal payments under capital lease obligations | (1.4) | (0.5) | (0.6) |
Net financing activities | (419.1) | (588.1) | (491) |
Cash and cash equivalents: | |||
Effect of foreign exchange rate changes | (54.9) | (13.5) | 27.5 |
Net change | 57.8 | 10.5 | 311.6 |
At beginning of period | 1,118.6 | 1,108.1 | 796.5 |
At end of period | 1,176.4 | 1,118.6 | 1,108.1 |
Supplemental cash flow information: | |||
Cash paid for interest | 14.6 | 14.6 | 14.6 |
Cash paid for income taxes, net of refunds | 140.7 | 217.6 | 159 |
Reconciliation of cash and cash equivalents: | |||
Cash and cash equivalents | 1,176.4 | 1,118.6 | 1,108.1 |
Consolidated VIEs | |||
Cash and cash equivalents: | |||
At beginning of period | 11.3 | 8.4 | |
At end of period | 14.1 | 11.3 | 8.4 |
Reconciliation of cash and cash equivalents: | |||
Cash and cash equivalents | 14.1 | 11.3 | 8.4 |
Consolidated excluding VIEs | |||
Cash and cash equivalents: | |||
At beginning of period | 1,107.3 | 1,099.7 | |
At end of period | 1,162.3 | 1,107.3 | 1,099.7 |
Reconciliation of cash and cash equivalents: | |||
Cash and cash equivalents | $ 1,162.3 | $ 1,107.3 | $ 1,099.7 |
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 | Noncontrolling interests | Total |
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 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 130.3 | (1.5) | 128.8 | ||||
Other comprehensive income loss | 52.2 | 52.2 | |||||
Dividends paid to shareholders | 0.1 | (263) | (262.9) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (9.9) | (120.9) | (130.8) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (6,600,000) | ||||||
Distributions to noncontrolling interests | (0.8) | (0.8) | |||||
Fair value adjustments to redeemable noncontrolling interests | 0.3 | 0.3 | |||||
Purchase of common stock for stock-based compensation plans | (45.4) | (3.7) | (49.1) | ||||
Vesting of stock-based compensation plans | (35.9) | 35.9 | |||||
Stock-based compensation plan expense | 66.7 | 66.7 | |||||
Proceeds from stock-based compensation plans | 1 | 1 | |||||
Balance at Dec. 31, 2020 | $ 270.6 | 3,815 | (107.3) | (314.9) | 1,030.8 | 17.4 | 4,711.6 |
Balance (in shares) at Dec. 31, 2020 | 180,400,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 620 | (1.5) | 618.5 | ||||
Other comprehensive income loss | (72.1) | (72.1) | |||||
Dividends paid to shareholders | 0.1 | (256.1) | (256) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (17) | (355.1) | (372.1) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (11,400,000) | ||||||
Distributions to noncontrolling interests | (0.5) | (0.5) | |||||
Fair value adjustments to redeemable noncontrolling interests | 0.6 | 0.6 | |||||
Purchase of common stock for stock-based compensation plans | (70.3) | (1.5) | (71.8) | ||||
Vesting of stock-based compensation plans | (53.7) | 53.7 | |||||
Stock-based compensation plan expense | 68.2 | 68.2 | |||||
Proceeds from stock-based compensation plans | 12.5 | 12.5 | |||||
Balance at Dec. 31, 2021 | $ 253.6 | 3,771.8 | (55.1) | (387) | 1,040.2 | 15.4 | $ 4,638.9 |
Balance (in shares) at Dec. 31, 2021 | 169,000,000 | 169,046,154 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 372.4 | $ 372.4 | |||||
Other comprehensive income loss | (260.7) | (260.7) | |||||
Dividends paid to shareholders | 0.1 | (259.5) | (259.4) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program | $ (5.1) | (93.8) | (98.9) | ||||
Purchase of common stock from Dai-ichi Life and/or share buyback program (in shares) | (3,300,000) | ||||||
Distributions to noncontrolling interests | (1) | (1) | |||||
Sale of Intech | (11.6) | (11.6) | |||||
Fair value adjustments to redeemable noncontrolling interests | 1.4 | 1.4 | |||||
Purchase of common stock for stock-based compensation plans | (105) | (8.8) | (113.8) | ||||
Vesting of stock-based compensation plans | (55.2) | 55.6 | 0.4 | ||||
Stock-based compensation plan expense | 90.6 | 90.6 | |||||
Proceeds from stock-based compensation plans | 4.3 | 4.3 | |||||
Balance at Dec. 31, 2022 | $ 248.5 | $ 3,706.6 | $ (8.3) | $ (647.7) | $ 1,060.7 | $ 2.8 | $ 4,362.6 |
Balance (in shares) at Dec. 31, 2022 | 165,700,000 | 165,657,905 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||
Dividends paid (per share) | $ 1.55 | $ 1.50 | $ 1.44 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2022 | |
Description of the Business | |
Description of the Business | N ote 1 — D escription of the B usiness As used herein, “JHG,” “we,” "us,” “our” and similar terms refer to Janus Henderson Group plc and its subsidiaries, unless indicated otherwise. JHG is an independent global asset manager, specializing in active investment across all major asset classes. We actively manage a broad range of investment products for institutional and retail investors across four capabilities: Equities, Fixed Income, Multi-Asset and Alternatives. JHG is a public limited company incorporated in Jersey, Channel Islands, and is tax-resident and domiciled in the UK. Our common stock is traded on the NYSE and our CDIs are traded on the ASX. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | N ote 2 — S ummary of S ignificant A ccounting P olicies Basis of Presentation Our consolidated financial statements have been prepared according to U.S. GAAP and include all majority-owned subsidiaries and consolidated seeded investment products. Intercompany accounts and transactions have been eliminated in consolidation. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying consolidated financial statements through the issuance date. Revision of Previously Issued Financial Statements We identified errors in our previously issued 2021 and 2020 financial statements and interim 2022 financial statements. We determined that the errors, individually and in the aggregate, did not result in a material misstatement to our previously issued consolidated financial statements, however, correcting the errors in the 2022 financial statements would create a material error in the 2022 financial statements and therefore, we have corrected these errors by revising the prior period amounts included in certain Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity and related footnote disclosures. In the first quarter 2020, we recognized a $123.5 million goodwill impairment expense. Subsequent to the first quarter 2020, we identified a $32.8 million accounting error in which we did not consider the incremental impairment charge related to the tax-deductible goodwill. We corrected this error in the first quarter 2022 as an out-of-period adjustment. In conjunction with the preparation of the third quarter 2022 financial statements, certain additional unrelated immaterial errors were identified related to prior periods. The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions and the amounts as currently revised within the financial statements. The revisions did not impact net operating activities, investing activities and financing activities on our Consolidated Statements of Cash Flows for any impacted period. The impact of the error on the Consolidated Balance Sheets as of December 31, 2021, is as follows (in millions): December 31, 2021 As Previously Reported Impact of Revisions As Revised ASSETS Goodwill 1,374.3 (32.8) 1,341.5 Other non-current assets 172.9 7.7 180.6 Total assets $ 6,727.5 $ (25.1) $ 6,702.4 LIABILITIES Accounts payable and accrued liabilities 271.6 (0.8) 270.8 Total current liabilities 786.4 (0.8) 785.6 Total liabilities $ 1,900.9 $ (0.8) $ 1,900.1 EQUITY Accumulated other comprehensive loss, net of tax (396.1) 9.1 (387.0) Retained earnings 1,073.6 (33.4) 1,040.2 Total shareholders’ equity 4,647.8 (24.3) 4,623.5 Total equity $ 4,663.2 $ (24.3) $ 4,638.9 Total liabilities, redeemable noncontrolling interests and equity $ 6,727.5 $ (25.1) $ 6,702.4 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2021, is as follows (in millions, except per share data): Year Ended December 31, 2021 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 551.6 $ 2.5 $ 554.1 Total operating expenses 1,943.6 2.5 1,946.1 Operating income (loss) 823.4 (2.5) 820.9 Income (loss) before taxes 820.2 (2.5) 817.7 Income tax benefit (provision) (205.7) 0.4 (205.3) Net income (loss) 614.5 (2.1) 612.4 Net income (loss) attributable to JHG $ 622.1 $ (2.1) $ 620.0 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 3.60 $ (0.01) $ 3.59 Diluted $ 3.59 $ (0.02) $ 3.57 Other comprehensive income (loss), net of tax: Total comprehensive income (loss) $ 542.0 $ (2.1) $ 539.9 Total comprehensive income (loss) attributable to JHG $ 550.0 $ (2.1) $ 547.9 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2020, is as follows (in millions, except per share data): Year Ended December 31, 2020 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 464.4 $ (3.3) $ 461.1 Impairment of goodwill and intangible assets 513.7 32.8 546.5 Total operating expenses 2,140.8 29.5 2,170.3 Operating income (loss) 157.8 (29.5) 128.3 Other non-operating income (expenses), net 39.7 (9.1) 30.6 Income (loss) before taxes 242.1 (38.6) 203.5 Income tax benefit (provision) (59.5) 7.3 (52.2) Net income (loss) 182.6 (31.3) 151.3 Net income (loss) attributable to JHG $ 161.6 $ (31.3) $ 130.3 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 0.87 $ (0.17) $ 0.70 Diluted $ 0.87 $ (0.17) $ 0.70 Other comprehensive income (loss), net of tax: Foreign currency translation gains (losses) 71.8 9.1 80.9 Other comprehensive income (loss), net of tax 42.3 9.1 51.4 Other comprehensive income (loss) attributable to JHG $ 43.1 $ 9.1 $ 52.2 Total comprehensive income (loss) $ 224.9 $ (22.2) $ 202.7 Total comprehensive income (loss) attributable to JHG $ 204.7 $ (22.2) $ 182.5 Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material. Our significant estimates relate to investment securities, acquisition accounting, goodwill and intangible assets, retirement benefit assets and obligations, contingent consideration, equity compensation and income taxes. Segment Information We are a global asset manager and manage a range of investment products, operating across various product lines, distribution channels and geographic regions. However, resources are allocated and the business is managed by the chief operating decision-maker, the CEO, on an aggregated basis. Strategic and financial management decisions are determined centrally by the CEO and, on this basis, we operate as a single-segment investment management business. Consolidation of Investment Products We perform periodic consolidation analyses of our seeded investment products to determine if the product is a VIE or a VRE. Factors considered in this assessment include the product’s legal organization, the product’s capital structure and equity ownership, and any de facto agent implications of our involvement with the product. Investment products that are determined to be VIEs are consolidated if we are the primary beneficiary of the product. VREs are consolidated if we hold the majority voting interest. Upon the occurrence of certain events (such as contributions and redemptions, either by JHG or third parties, or amendments to the governing documents of our investment products), management reviews and reconsiders its previous conclusion regarding the status of a product as a VIE or a VRE. Additionally, management continually reconsiders whether we are considered a VIE’s primary beneficiary and thus would be required to consolidate such product or discontinue consolidation of the VIE if we are no longer considered the primary beneficiary. Variable Interest Entities Certain investment products for which a controlling financial interest is achieved through arrangements that do not involve or are not directly linked to voting interests are considered VIEs. We review factors, including whether or not (i) the product has equity that is sufficient to permit it to finance its activities without additional subordinated support from other parties and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the product that most significantly impact the product’s economic performance, to determine if the investment product is a VIE. We reevaluate such factors as facts and circumstances change. We consolidate a VIE if we are the VIE’s primary beneficiary. The primary beneficiary of a VIE is defined as the variable interest holder that has a controlling financial interest in the VIE. A controlling financial interest is defined as (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the product or the right to receive benefits from the product that potentially could be significant to the VIE. We are the manager of various types of seeded investment products, which may be considered VIEs. Our involvement in financing the operations of the VIEs is generally limited to our investments in the products. VIEs are generally subject to consolidation by us when we hold an economic interest of greater than 9% and we deconsolidate such VIEs once equity ownership equals or falls below 9%. VIEs are subject to specific disclosure requirements. Voting Rights Entities We consolidate seeded investment products accounted for as VREs when we are considered to control such products, which generally exists if we have a greater than 50% voting equity interest. Property, Equipment and Software Property, equipment and software are recorded at cost. Depreciation is recorded using the straight-line method over the estimated useful life of the related assets (or the lease term, if shorter). Computer software is recorded at cost and depreciated over its estimated useful life. Internal and external costs incurred in connection with researching or obtaining computer software for internal use are expensed as incurred during the preliminary project stage, as are post-implementation training and maintenance costs. Internal and external costs incurred for internal use software during the application development stage are capitalized until such time that the software is substantially complete and ready for its intended use. Application development stage costs are depreciated on a straight-line basis over the estimated useful life of the software. An impairment loss is recognized if the carrying value of the asset exceeds the fair value of the asset. The amount of the impairment loss is equal to the excess of the carrying amount over the fair value. The evaluation is based on an estimate of the future cash flows expected to result from the use of the asset and its eventual disposal. If expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized in an amount equal to the excess of the carrying amount of the asset over the fair value of the asset. There were no impairments of property, equipment and software for the years ended December 31, 2022, 2021 and 2020. Cloud Computing Arrangements Costs paid to vendors for third-party cloud-based hosting services are recorded to other current assets or other long-term assets and subsequently amortized to general, administrative and occupancy expense on a straight-line basis over the life of the contract. Implementation costs incurred related to the cloud hosting arrangement are accounted for similarly to internal use software. Implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. We capitalize costs incurred during the application development stage to other long-term assets and subsequently amortize those costs to general, administrative and occupancy expense on a straight-line basis over the life of the contract beginning when the asset is ready for its intended use. Equity Method Investments Our investment in equity method investees, where we do not control the investee but can exert significant influence over the financial and operating policies (generally considered to be ownership between 20% and 50%), is accounted for using the equity method of accounting. Investments are initially recognized at cost when purchased for cash or at the fair value of shares received where acquired as part of a wider transaction. The investments are subsequently carried at cost adjusted for our share of net income or loss and other changes in comprehensive income of the equity method investee, less any dividends or distributions received by us. The Consolidated Statements of Comprehensive Income includes our share of net income or loss for the year, or period of ownership, if shorter, within investment gains (losses), net. Debt Long term debt consists of senior notes and is stated at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any issuance costs and any discount or premium on settlement. Debt will cease to be recognized when the obligation under the liability has been discharged or cancelled or has expired. Investment Securities Seeded Investment Products We periodically add new investment strategies to our investment product offerings by providing the initial cash investment (“seed capital”). The primary purpose of seed capital is to generate an investment performance track record in a product to attract third-party investors. Seeded investment products are initially assessed for consolidation. If it is determined consolidation is required, the individual securities within the portfolio are accounted for as equity securities. If consolidation is not required, the fair value is determined using the number of shares held multiplied by the share price of the respective fund. The change in fair value of seeded investment products is recorded within investment gains (losses), net on our Consolidated Statements of Comprehensive Income. Noncontrolling interests in seeded investment products represent third-party ownership interests and are included within investment securities on our Consolidated Balance Sheets. These assets are not available for general corporate purposes and may be redeemed by the third parties at any time. Refer to the Consolidation of Investment Products section in this note for information regarding the consolidation of certain seeded investment products. We may redeem invested seed capital for a variety of reasons, including when third-party investments in the relevant product are sufficient to sustain the given investment strategy. The length of time we hold a majority interest in a product varies based on a number of factors, including market demand, market conditions, investment performance and internal policies. Investments in Advised Mutual Funds and Investments Related to the Economic Hedging of Deferred Compensation We grant mutual fund share awards to employees that are indexed to certain funds managed by us. Upon vesting, participants receive the value of the mutual fund share awards adjusted for gains or losses attributable to the mutual funds to which the award was indexed, subject to tax withholding, or participants receive shares in the mutual fund. When investments in our fund products are purchased and held against deferred compensation liabilities, any movement in the fair value of the assets and corresponding movements in the deferred compensation liability are recognized within the Consolidated Statements of Comprehensive Income. We maintain deferred compensation plans for certain highly compensated employees and members of the Board of Directors. Eligible participants may defer a portion of their compensation and have the ability to earn a return by indexing their deferrals to mutual funds managed by us and our subsidiaries. We make no contributions to the plans. To protect against market variability of the liability, we create an economic hedge by investing in mutual funds that are consistent with the deferred amounts and mutual fund elections of the participants. Such investments remain assets of JHG. Changes in market value of the liability to participants are recognized as long-term incentive plans within our Consolidated Statements of Comprehensive Income, and changes in the market value of the mutual fund securities are recognized within investment gains (losses), net on our Consolidated Statements of Comprehensive Income. Trade Receivables Trade receivables, are initially recognized at fair value, which is normally equivalent to the invoice amount. When the time value of money is material, the fair value is discounted. Provision for specific doubtful accounts is made when there is evidence that we may not be able to recover balances in full. Balances are written off when the receivable amount is deemed uncollectable. OEIC and Unit Trust Receivables and Payables OEIC and unit trust receivables and payables are in relation to the purchase of units/shares (by investors) and the liquidation of units/shares (owned by trustees). The amounts are dependent on the level of trading and fund switches in the four working days leading up to the end of the period. Since they are held with different counterparties, the amounts are presented gross on our Consolidated Balance Sheets. Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash held at banks, on-demand deposits, investments in money market instruments and highly liquid short-term government securities with a maturity date of three months or less. Cash balances maintained by consolidated VREs are not considered legally restricted and are included within cash and cash equivalents on the Consolidated Balance Sheets. Cash balances held by consolidated VIEs are disclosed separately as a component of assets of consolidated VIEs on the Consolidated Balance Sheets. Cash held in consolidated VREs and VIEs is not available to us to use in our operations. Derivative Instruments We may, from time to time, use derivative financial instruments to mitigate price, interest rate, foreign currency and credit risk. We do not designate derivative instruments as hedges for accounting purposes. Derivative instruments are measured at fair value and classified as either other current assets or accounts payable and accrued liabilities on our Consolidated Balance Sheets. Changes in the fair value of derivative instruments are recorded within investment gains (losses), net within our Consolidated Statements of Comprehensive Income. Our consolidated seed investments may also be party to derivative instruments. These derivative instruments are disclosed separately from our corporate derivative instruments. Refer to Note 11 — Fair Value Measurements, in Part II, Item 8, Financial Statements and Supplemental Data. Leases We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in other non-current assets within our Consolidated Balance Sheets. The current and non-current portions of operating lease liabilities are included within accounts payable and accrued liabilities and within other non-current liabilities, respectively. Finance lease ROU assets are included within property, equipment and software, net. The current and non-current portions of finance lease liabilities are included within accounts payable and accrued liabilities and within other non-current liabilities, respectively. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term within general, administrative and occupancy expense within our Consolidated Statements of Comprehensive Income. Nonredeemable Noncontrolling Interests and Redeemable Noncontrolling Interests Nonredeemable noncontrolling interests that are not subject to redemption rights are classified in permanent equity. Redeemable noncontrolling interests are classified outside of permanent equity on the Consolidated Balance Sheets and are measured at the estimated fair value as of the balance sheet date. Noncontrolling interests in consolidated seed investments are classified as redeemable noncontrolling interests where there is an obligation on the fund to repurchase units at the investor’s request. Fair Value Measurements Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial instruments traded in active markets (such as publicly traded securities and derivatives) is based on quoted market prices at the reporting date. The quoted market price used for financial instruments is the last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid ask spread. In circumstances where the last traded price is not within the bid ask spread, management will determine the point within the bid ask spread that is most representative of fair value current bid price. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques commonly used by market participants, including the use of comparable recent arm’s length transactions, DCF analysis and option pricing models. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that we are valuing and the selected benchmark. Measurements of fair value are classified within a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The valuation hierarchy contains three levels: ● ● ● Level 3 — Valuation inputs are unobservable and significant to the fair value measurement. The valuation of an asset or liability may involve inputs from more than one level of the hierarchy. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. 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 using the underlying inputs used in the calculation of the NAV of each product. Level 2 Fair Value Measurements Our Level 2 fair value measurements consist mostly of consolidated seeded investment products 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 Our assets and liabilities measured at Level 3 are primarily deferred compensation liabilities that are held against investments in our fund products and contingent consideration received as part of the Management Buyout of Intech, where the significant valuation inputs are unobservable. Details of inputs used to calculate the fair value of contingent deferred consideration can be found in Note 11 — Fair Value Measurements, and details of the Management Buyout of Intech can be found in Note 3 – Acquisitions and Dispositions, in Part II, Item 8, Financial Statements and Supplemental Data. 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 DCF 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 and liabilities, such measurements are classified as Level 3. See the Goodwill and Intangible Assets accounting policy set forth within this note for further information. Income Taxes We provide for current tax expense according to the tax laws in each jurisdiction in which we operate, using tax rates and laws that have been enacted by the balance sheet date. Deferred income tax assets and liabilities are recorded for temporary differences between the financial statement and income tax basis of assets and liabilities as measured by the enacted income tax rates that may be in effect when these differences reverse. The effect of changes in tax rates on our deferred tax assets and liabilities is recognized as income tax within net income in the period that includes the enactment date. Significant management judgment is required in developing our provision for income taxes, including the valuation allowances that might be required against deferred tax assets and the evaluation of unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We periodically assess the recoverability of our deferred tax assets and the need for valuation allowances on these assets. We make these assessments based on the weight of available evidence regarding possible sources of future taxable income and estimates relating to the future performance of the business that results in taxable income. In evaluating uncertain tax positions, we consider the probability that the tax benefit can be sustained on examination by a taxing authority on the basis of its technical merits (“the recognition threshold”). For tax positions meeting this threshold, the amount recognized within the financial statements is the benefit expected to be realized upon settlement with the taxing authority on the basis of a cumulative-probability assessment of the possible outcomes. For tax positions not meeting the recognition threshold, no financial statement benefit is recognized. We recognize the accrual of interest and penalties on uncertain tax positions as a component of the income tax provision. Revenue Recognition Revenue is determined based on the transaction price negotiated with the customer, net of rebates. Management fees, performance fees, shareowner servicing fees and other revenue are derived from providing professional services to manage investment products. Management fees are earned over time as services are provided and are generally based on a percentage of the market value of AUM. These fees are calculated as a percentage of either the daily, month-end or quarter-end average asset balance in accordance with contractual agreements. Performance fees are specified in certain fund and client contracts and are based on investment performance either on an absolute basis or compared to an established index over a specified period of time. Performance fees are generated on certain management contracts when performance hurdles or other specified criteria are achieved. Performance fees for all fund ranges and other investment products are recognized when it is probable that a significant reversal of revenue recognized will not occur in future periods. There are no performance fee contracts where revenue can be clawed back. There are no cumulative revenues recognized that would be reversed if all of the existing investments became worthless. Management fees are primarily earned monthly or quarterly, while performance fees are usually earned monthly, quarterly or annually, although the frequency of receipt varies between agreements. Management and performance fee revenue earned but not yet received is recognized within fees and other receivables on our Consolidated Balance Sheets. Shareowner servicing fees are earned for services rendered related to transfer agent and administrative activities performed for investment products. These services are transferred over time and are generally based on a percentage of the market value of AUM. Other revenue includes distribution and servicing fees earned from U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities. These services are transferred over time and are generally based on a percentage of the market value of AUM. U.S. Mutual Fund Performance Fees The investment management fee paid by each U.S. mutual fund subject to a performance fee is the base management fee plus or minus a performance fee adjustment as determined by the relative investment performance of the fund compared to a specified benchmark index. Under the performance-based fee structure, the investment advisory fee paid by each fund consists of two components: (i) a base fee calculated by applying the contractual fixed rate of the advisory fee to the fund’s average daily net assets during the previous month, plus or minus (ii) a performance fee adjustment calculated by applying a variable rate of up to 0.15% to the fund’s average daily net assets during the performance measurement period. The performance measurement period is a rolling 36-month period. The addition of performance fees to all funds without such fees is subject to the approval of both a majority of the shareholders of such funds and the funds’ independent board of trustees. Principal Versus Agent We use third-party intermediaries to fulfill certain performance obligations in our revenue agreements. Generally, we are considered the principal in these arrangements because we control the investment management and other related services before they are transferred to customers. Such control is evidenced by our primary responsibility to customers, the ability to negotiate the third-party contract price and select and direct third-party service providers, or a combination of these factors. Therefore, distribution and service fee revenues and the related third-party distribution and service expenses are reported on a gross basis. Operating Expenses Operating expenses are accrued and recognized as incurred. Stock-Based Compensation We grant stock-based awards to certain employees, all of which are classified as equity settled stock-based payments. Equity settled stock-based payments are measured at the fair value of the shares at the grant date. The awards are expensed, with a corresponding increase in reserves, on a graded basis over the vesting period. Forfeitures are recognized as they occur. The grant date fair value for stock options is determined using the Black-Scholes option pricing model, and the grant date fair value of restricted stock is determined from the market price on the date of grant. The Black-Scholes model requires management to determine certain variables; the assumptions used in the Black-Scholes option pricing model include dividend yield, expected volatility, risk-free interest rate and expected life. The dividend yield and expected volatility are determined using historical Company data. The risk-free interest rate for options granted is based on the three-year UK treasury coupon at the time of the grant. The expected life of the stock options is generally three years. We generally use the Monte Carlo model to determine the fair |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2022 | |
Dispositions | |
Dispositions | N ote 3 — Dispositions Management-Led Buyout of Quantitative Equities Subsidiary Intech On February 3, 2022, we announced the strategic decision to sell our 97%-owned Quantitative Equities subsidiary, Intech, to a consortium composed of Intech management and certain Intech non-executive directors (“Management Buyout”). The Management Buyout is expected to enable both organizations to refocus on their key value propositions: Janus Henderson on providing active, fundamental investing, and Intech on delivering quantitative investment solutions for institutional investors. On March 31, 2022, the Management Buyout closed and we recognized a $9.1 million loss on disposal of Intech. The loss is recognized in other non-operating income, net on our Consolidated Statements of Comprehensive Income. Consideration received as part of the Management Buyout included cash proceeds of $14.9 million; contingent consideration of up to $17.5 million, which is based on future Intech revenue; and an option agreement with a fair value of $3.9 million that provides JHG the option to purchase a certain equity stake in Intech at a predetermined price on or before the seventh anniversary of the Management Buyout. The fair value of the option agreement at December 31, 2022, was $0.8 million. The terms of the transaction also included a $20.0 million seven-year term note subject to two tranches. The first tranche of $10.0 million was paid to Intech at closing while the second tranche of $10.0 million is available to Intech, subject to certain restrictions. The outstanding principal on the note receivable was $15.9 million as of December 31, 2022, which includes $0.4 million of accrued interest. The first tranche of the term note pays interest at 5.5%, while the second tranche pays interest at 6.0%. JHG and Intech entered into a transition services agreement that provides for continuation of support services to help ensure a seamless transition in operations and continuity in serving Intech’s clients. Geneva On December 3, 2019, Henderson Global Investors (North America), Inc. (“HGINA”), a subsidiary of the Company, entered into an agreement to sell its 100% ownership interest in Geneva to GCM Purchaser, LLC. The sale closed on March 17, 2020. Consideration included aggregate cash consideration of $38.4 million and contingent consideration (“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 $16.2 million in other non-operating income, net on the Consolidated Statements of Comprehensive Income during the year ended December 31, 2020. In November 2021, we received $20.0 million from GCM Purchaser, LLC with the intention to buy out the remaining Earnout balances with a lump sum. Approximately $12.5 million went toward the remaining balance of the base earnout, and the remaining $7.5 million went toward the excess earnout payment, which was recorded in other non-operating income, net on the Consolidated Statements of Comprehensive Income during the year ended December 31, 2021. As such, all consideration has been received, including the excess Earnout, and we do not expect to receive any additional contingent consideration related to the sale. |
Consolidation
Consolidation | 12 Months Ended |
Dec. 31, 2022 | |
Consolidation | |
Consolidation | Note 4 — Consolidation Variable Interest Entities Consolidated Variable Interest Entities Our consolidated VIEs as of December 31, 2022 and 2021, include certain consolidated seeded investment products in which we have an investment and act as the investment manager. Third-party assets held in consolidated VIEs are not available to us or to our creditors. We may not, under any circumstances, access third-party assets 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 The following table presents the carrying value of investment securities included on our Consolidated Balance Sheets pertaining to unconsolidated VIEs as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Unconsolidated VIEs $ 1.5 $ 102.7 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 VREs that were recorded on JHG’s Consolidated Balance Sheets, including our net interest in these products, as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Investment securities $ 206.0 $ 179.6 Cash and cash equivalents 5.8 1.3 Other current assets 1.8 0.7 Accounts payable and accrued liabilities (1.0) (1.2) Total $ 212.6 $ 180.4 Redeemable noncontrolling interests in consolidated VREs (35.1) (17.5) JHG's net interest in consolidated VREs $ 177.5 $ 162.9 Third-party assets held in consolidated VREs are not available to us or to our creditors. We may not, under any circumstances, access third-party assets held by consolidated VREs to use in our operating activities or otherwise. In addition, the investors in the VREs have no recourse to the credit of JHG. Our total exposure to consolidated VREs represents the value of our economic ownership interest in these seeded investment products. Unconsolidated Voting Rights Entities The following table presents the carrying value of investment securities included on our Consolidated Balance Sheets pertaining to unconsolidated VREs as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Unconsolidated VREs $ 3.4 $ 56.6 Our total exposure to unconsolidated VREs represents the value of our economic ownership interest in the investment securities. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities, | |
Investment Securities | N ote 5 — I nvestment S ecurities Our investment securities as of December 31, 2022 and 2021, are summarized as follows (in millions): December 31, December 31, 2022 2021 Seeded investment products: Consolidated VIEs $ 334.3 $ 250.9 Consolidated VREs 206.0 179.6 Unconsolidated VIEs and VREs 4.9 159.3 Separate accounts 29.7 56.7 Pooled investment funds — 0.1 Total seeded investment products 574.9 646.6 Investments related to deferred compensation plans 10.7 50.3 Other investments 10.3 5.4 Total investment securities $ 595.9 $ 702.3 Equity Securities Net unrealized gains (losses) on investment securities held by us as of December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 Unrealized gains (losses) on investment securities held at period end $ (23.5) $ (0.2) $ 69.8 Investment Gains (Losses), Net Investment gains (losses), net on our Consolidated Statements of Comprehensive Income included the following for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, 2022 2021 2020 Seeded investment products and hedges, net $ (15.2) $ 2.0 $ 26.6 Third-party ownership interests in seeded investment products (97.9) (8.0) 20.1 Long Tail Alpha investment 2.9 3.0 6.0 Deferred equity plan (0.9) 2.8 2.1 Other (2.2) 1.0 2.7 Investment gains (losses), net $ (113.3) $ 0.8 $ 57.5 Gains and losses attributable to third-party ownership interests in seeded investment products are noncontrolling interests and are not included in net income attributable to JHG. Cash Flows Cash flows related to our investment securities for the years ended December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 Purchases Sales, Purchases Sales, Purchases Sales, and settlements and and settlements and and settlements and settlements maturities settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ (88.4) $ 44.5 $ (100.4) $ 3.0 $ (103.9) $ 83.7 Investment securities (143.1) 187.7 (303.0) 125.9 (120.4) 255.2 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments. | |
Derivative Instruments | N ote 6 — Derivative Instruments Derivative Instruments Used to Hedge Seeded Investment Products We maintain an economic hedge program that uses derivative instruments to mitigate against market exposure of certain seeded investments by using index and commodity futures (“futures”), total return swaps and credit default swaps. Certain foreign currency exposures associated with our seeded investment products are also hedged by using foreign currency forward contracts and swaps. We were party to the following derivative instruments as of December 31, 2022 and 2021 (in millions): Notional value December 31, 2022 December 31, 2021 Futures $ 196.8 $ 368.7 Credit default swaps 115.1 207.2 Total return swaps 37.2 55.0 Foreign currency forward contracts and swaps 131.7 415.6 The derivative instruments are not designated as hedges for accounting purposes. Changes in fair value of the derivatives are recognized in investment gains (losses), net in our Consolidated Statements of Comprehensive Income. The change in fair value of the derivative instruments for the years ended December 31, 2022 and 2021, is summarized as follows (in millions): Year ended December 31, 2022 2021 Futures $ 40.8 $ (24.6) Credit default swaps 3.7 (1.6) Total return swaps 21.3 (13.3) Foreign currency forward contracts and swaps (9.6) 11.6 Total gains (losses) from derivative instruments $ 56.2 $ (27.9) Derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or in accounts payable and accrued liabilities on the Consolidated Balance Sheets. The derivative assets and liabilities as of December 31, 2022 and 2021, are summarized as follows (in millions): Fair value December 31, 2022 December 31, 2021 Derivative assets $ 5.3 $ 8.8 Derivative liabilities 4.0 15.5 In addition to using derivative instruments to mitigate against market volatility of certain seeded investments, we also engage in short sales of securities to hedge certain seeded investments. As of December 31, 2022 and 2021, the fair value of securities sold but not yet purchased was $0.5 million and $3.1 million, respectively. The cash received from the short sale and the obligation to repurchase the shares are classified in other current assets and in accounts payable and accrued liabilities on our Consolidated Balance Sheets, respectively. Fair value adjustments are recognized in investment gains (losses), net on our 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 in accounts payable and accrued liabilities on our Consolidated Balance Sheets. Gains and losses on these derivative instruments are classified within investment gains (losses), net in our Consolidated Statements of Comprehensive Income. Our consolidated seeded investment products were party to the following derivative instruments as of December 31, 2022 and 2021 (in millions): Notional value December 31, 2022 December 31, 2021 Futures $ 141.3 $ 190.1 Credit default swaps 2.2 6.1 Total return swaps 10.4 — Options 0.1 0.1 Foreign currency forward contracts and swaps 18.3 22.1 The derivative assets and liabilities as of December 31, 2022 and 2021, are summarized as follows (in millions): Fair value December 31, 2022 December 31, 2021 Derivative assets $ 0.1 $ 0.6 Derivative liabilities 0.6 0.4 Derivative Instruments — Foreign Currency Hedging Program We implemented a foreign currency hedging program to take reasonable measures to minimize the income statement effects of foreign currency remeasurement of monetary balance sheet accounts. The program is not designed to eliminate all impacts of foreign currency risk; rather it is designed to reduce income statement volatility. The program utilizes foreign currency forward contracts and swaps to achieve its objectives, and it is considered an economic hedge for accounting purposes. The notional value of the foreign currency forward contracts and swaps as of December 31, 2022 and 2021, is summarized as follows (in millions): Notional value December 31, 2022 December 31, 2021 Foreign currency forward contracts and swaps $ 74.7 $ 171.4 The derivative assets and liabilities are generally recognized on a gross basis and included in other current assets or in accounts payable and accrued liabilities on our Consolidated Balance Sheets. The derivative assets as of December 31, 2022 and 2021, are summarized as follows (in millions): Fair Value December 31, 2022 December 31, 2021 Derivative assets $ 0.4 $ 3.2 Derivative liabilities 1.1 — Changes in fair value of the derivatives are recognized in other non-operating income, net on our Consolidated Statements of Comprehensive Income. Foreign currency remeasurement is also recognized in other non-operating income, net on our Consolidated Statements of Comprehensive Income. The change in fair value of the foreign currency forward contracts and swaps for the years ended December 31, 2022 and 2021, is summarized as follows (in millions): Year Ended December 31, 2022 2021 Gains (losses) on foreign currency forward contracts and swaps $ (2.4) $ 0.4 |
Property, Equipment, and Softwa
Property, Equipment, and Software | 12 Months Ended |
Dec. 31, 2022 | |
Property, Equipment, and Software | |
Property, Equipment, and Software | Note 7 — Property, Equipment and Software The following table presents depreciation expense for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, 2022 2021 2020 Depreciation expense $ 21.6 $ 23.5 $ 26.0 Property, equipment and software as of December 31, 2022 and 2021, are summarized as follows (in millions): Depreciation December 31, period 2022 2021 Furniture, fixtures and computer equipment 3-10 years $ 23.9 $ 24.8 Leasehold improvements Over the shorter of 20 years or the period of the lease 27.6 40.6 Computer software 3-7 years 90.6 92.1 Property, equipment and software, gross $ 142.1 $ 157.5 Accumulated depreciation (90.3) (94.2) Property, equipment and software, net $ 51.8 $ 63.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets. | |
Goodwill and Intangible Assets | N ote 8 — G oodwill and I ntangible A ssets The following tables present movements in our intangible assets and goodwill during years ended December 31, 2022 and 2021 (in millions): December 31, Foreign currency December 31, 2021 Amortization Disposal Impairment translation 2022 Indefinite-lived intangible assets: Investment management agreements $ 2,114.8 $ — $ — $ (25.9) $ (42.4) $ 2,046.5 Trademarks 366.7 — (4.7) (2.0) — 360.0 Definite-lived intangible assets: Client relationships 168.4 — (84.8) (7.9) (6.8) 68.9 Accumulated amortization (107.2) (3.7) 44.7 — 5.5 (60.7) Net intangible assets $ 2,542.7 $ (3.7) $ (44.8) $ (35.8) $ (43.7) $ 2,414.7 Goodwill $ 1,341.5 $ — $ (7.0) $ — $ (81.4) $ 1,253.1 December 31, Foreign currency December 31, 2020 Amortization Disposal Impairment translation 2021 Indefinite-lived intangible assets: Investment management agreements $ 2,242.9 $ — $ — $ (115.6) $ (12.5) $ 2,114.8 Trademarks 373.2 — — (6.3) (0.2) 366.7 Definite-lived intangible assets: Client relationships 170.9 — — — (2.5) 168.4 Accumulated amortization (100.7) (7.7) — — 1.2 (107.2) Net intangible assets $ 2,686.3 $ (7.7) $ — $ (121.9) $ (14.0) $ 2,542.7 Goodwill $ 1,351.1 $ — $ — $ — $ (9.6) $ 1,341.5 Indefinite-lived intangible assets represent certain investment . Foreign currency translation movements in the table primarily relate to the translation of the intangible assets and goodwill balances denominated in non-USD currencies to our functional and presentational currency of USD using the closing foreign currency exchange rate at the end of each reporting period. Management Buyout of Intech As detailed in Note 3 — Dispositions, in Part II, Item 8, Financial Statements and Supplemental Data, on March 31, 2022, the Management Buyout of Intech closed. As part of this disposition, we removed $4.7 million and $40.1 million of trademarks and client relationships, respectively, from our Consolidated Balance Sheets as these intangible assets were directly connected to Intech. In addition, we also allocated $7.0 million of goodwill to Intech, which was also removed from our Consolidated Balance Sheets as part of the Management Buyout. Impairment Assessment Goodwill and indefinite-lived intangible assets are reviewed for impairment annually or more frequently if changes in circumstances indicate that the carrying value may be impaired. We perform our annual impairment assessment of goodwill and indefinite-lived intangible assets as of October 1 of each year by performing a qualitative impairment (step 0) test. To assess our goodwill balance, our qualitative procedures are inclusive of performing a quantitative impairment test to determine the enterprise value of the reporting unit, under a market value approach. The results of the assessment revealed it is more likely than not that the estimated fair value of the reporting unit was greater than the carrying value. We also assessed our indefinite-lived intangible assets as part of our annual impairment assessment. We used a qualitative approach to determine the likelihood of impairment, with AUM being the focus of the assessment. After reviewing the results of the qualitative assessment, a certain indefinite-lived intangible asset composed of investment management agreements required further review to determine if it was impaired. We prepared a DCF model to determine the estimated fair value of the intangible asset, which was below the carrying value of the asset. As such, a $22.3 million impairment was recorded in impairment of goodwill and intangible assets expense in the Consolidated Statements of Comprehensive Income to bring the carrying value of the intangible asset as of December 31, 2022 (post-impairment), to $17.7 million. Some of the inputs used in the annual DCF model required significant management judgment, including the discount rate, terminal growth rate, forecasted financial results and market returns. Further, upon a qualitative review of other indefinite-lived intangible assets during our annual assessment, we determined certain intangible assets were impaired. As such, a $3.6 million impairment was recorded in impairment of goodwill and intangible assets expense in the Consolidated Statements of Comprehensive Income to bring the carrying value of the intangible assets as of December 31, 2022 (post-impairment) to $0. Additionally, a certain trademark with a $2.0 million carrying value as of October 1, 2022 was impaired. The carrying value of the intangible asset as of December 31, 2022 (post-impairment), was $0. For the remaining indefinite-lived intangible assets, we concluded it is more likely than not that the fair values of our intangible assets exceed their carrying values; no impairment was recorded. Our definite-lived intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Due to a decline in AUM, a certain definite-lived intangible asset required further review to determine if it was impaired. We prepared a DCF model to determine the estimated fair value of the intangible asset, which was below the carrying value of the asset. As such, a $7.9 million impairment was recorded in impairment of goodwill and intangible assets expense in the Consolidated Statements of Comprehensive Income to bring the carrying value of the intangible asset as of December 31, 2022 (post-impairment), to $6.9 million. Some of the inputs used in the annual DCF model required significant management judgment, including the discount rate, terminal growth rate, forecasted financial results and market returns. Future Amortization Expected future amortization expense related to definite-lived intangible assets is summarized below (in millions): Future amortization Amount 2023 $ 1.8 2024 0.4 2025 0.4 2026 0.4 2027 0.4 Thereafter 4.8 Total $ 8.2 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 9 — Leases Our leases include operating and finance leases for property and equipment. Property leases include office space in the UK, Europe, the U.S. and the Asia Pacific region. Equipment leases include copiers and server equipment located throughout our office space and offsite. Our leases have remaining lease terms of one year to 10 years. Certain leases include options to extend or early terminate the leases; however, we currently have not exercised these options, and they are not reflected in our lease assets and liabilities. The impact of operating and financing leases on our financial statements is summarized below. Balance Sheet Operating and financing lease assets and liabilities on our Consolidated Balance Sheets as of December 31, 2022 and 2021, consisted of the following (in millions): Operating lease right-of-use assets: December 31, 2022 December 31, 2021 Other non-current assets $ 79.7 $ 115.5 Operating lease liabilities: Accounts payable and accrued liabilities $ 23.7 $ 28.4 Other non-current liabilities 67.1 104.6 Total operating lease liabilities $ 90.8 $ 133.0 Finance lease right-of-use assets: Property and equipment, cost $ 16.3 $ 15.4 Accumulated depreciation (14.2) (13.4) Property and equipment, net $ 2.1 $ 2.0 Finance lease liabilities: Accounts payable and accrued liabilities $ 0.8 $ 0.7 Other non-current liabilities 1.4 1.4 Total finance lease liabilities $ 2.2 $ 2.1 Statement of Comprehensive Income The components of lease expense on our Consolidated Statements of Comprehensive Income during the years ended December 31, 2022, 2021 and 2020, are summarized below (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Operating lease cost (1) $ 27.5 $ 30.2 $ 31.2 Finance lease cost: Amortization of right-of-use asset (2) $ 0.8 $ 0.5 $ 0.9 Interest on lease liabilities (3) — — 0.1 Total finance lease cost $ 0.8 $ 0.5 $ 1.0 (1) Included in general, administrative and occupancy on our Consolidated Statements of Comprehensive Income. (2) Included in depreciation and amortization on our Consolidated Statements of Comprehensive Income. (3) Included in interest expense on our Consolidated Statements of Comprehensive Income. We sublease certain office buildings in the UK. During the years ended December 31, 2022, 2021 and 2020, we received the following from tenants (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Sublease income $ 5.9 $ 7.2 $ 3.0 As collection of rents under the sublease is uncertain, we recognize impairments of a subleased ROU operating assets during the years ended December 31, 2022, 2021 and 2020, of the following (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Impairment of a subleased right-of-use operating asset $ 0.3 $ — $ 1.4 Supplemental Information Cash payments for operating and finance leases included in our Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Operating cash flows from operating leases $ 26.9 $ 27.9 $ 32.4 Financing cash flows from finance leases $ 0.9 $ 0.4 $ 0.7 Supplemental non-cash lease information for the years ended December 31, 2022, 2021 and 2020, is summarized as follows (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Increase (decrease) in ROU assets related to modified operating lease liabilities $ (3.2) $ 11.4 $ 1.2 The weighted-average remaining lease term, weighted-average discount rate and future lease obligations are summarized below. Year ended Year ended Weighted-average remaining lease term (in months): December 31, 2022 December 31, 2021 Operating leases 57 67 Finance leases 38 42 Year ended Year ended Weighted-average discount rate (1) : December 31, 2022 December 31, 2021 Operating leases 4.3% 4.2% Finance leases 2.2% 3.5% (1) Discounted using incremental borrowing rates determined for each lease as of the date of adoption, including consideration for specific interest rate environments. Future lease obligations (in millions) Operating leases Finance leases 2023 $ 23.9 $ 0.8 2024 22.8 0.7 2025 16.5 0.5 2026 12.5 0.2 2027 11.6 0.1 Thereafter 8.7 — Total lease payments 96.0 2.3 Less interest 5.2 0.1 Total $ 90.8 $ 2.2 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments | |
Equity Method Investments | Note 10 — Equity Method Investments We hold a 20% interest in Long Tail Alpha LLC and account for this investment under the equity method. Equity method investments of $18.7 million and $16.3 million were recognized on our Consolidated Balance Sheets within other non-current assets as of December 31, 2022 and 2021, respectively. The share of net gain (loss) from equity method investments recognized within investment gains (losses), net on our Consolidated Statements of Comprehensive Income, was a $2.9 million gain and $3.0 million gain during the years ended December 31, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | N ote 11 — F air V alue M easurements The following table presents assets and liabilities in our consolidated financial statements or disclosed in the notes to our consolidated financial statements at fair value on a recurring basis as of December 31, 2022 (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 $ 688.4 $ — $ — $ 688.4 Investment securities: Consolidated VIEs 275.4 54.0 4.9 334.3 Other investment securities 171.9 89.4 0.3 261.6 Total investment securities 447.3 143.4 5.2 595.9 Seed hedge derivatives — 5.3 — 5.3 Derivatives in consolidated seeded investment products — 0.1 — 0.1 Derivatives used in foreign currency hedging program — 0.4 — 0.4 Intech option agreement — — 0.8 0.8 Intech contingent consideration — — 12.1 12.1 Volantis contingent consideration — — 0.2 0.2 Total assets $ 1,135.7 $ 149.2 $ 18.3 $ 1,303.2 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.6 $ — $ 0.6 Derivatives used in foreign currency hedging program — 1.1 — 1.1 Securities sold, not yet purchased 0.5 — — 0.5 Seed hedge derivatives — 4.0 — 4.0 Long-term debt (1) — 295.4 — 295.4 Deferred bonuses — — 46.5 46.5 Total liabilities $ 0.5 $ 301.1 $ 46.5 $ 348.1 (1) Carried at amortized cost on our Consolidated Balance Sheets and disclosed at fair value. The following table presents assets and liabilities in our consolidated financial statements or disclosed in the notes to the consolidated financial statements at fair value on a recurring basis as of December 31, 2021 (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 $ 585.4 $ — $ — $ 585.4 Investment securities: Consolidated VIEs 216.8 26.2 7.9 250.9 Other investment securities 424.1 27.3 — 451.4 Total investment securities 640.9 53.5 7.9 702.3 Seed hedge derivatives — 8.8 — 8.8 Derivatives in consolidated seeded investment products — 0.6 — 0.6 Derivatives used in foreign currency hedging program — 3.2 — 3.2 Volantis contingent consideration — — 0.9 0.9 Total assets $ 1,226.3 $ 66.1 $ 8.8 $ 1,301.2 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.4 $ — $ 0.4 Securities sold, not yet purchased 3.1 — — 3.1 Seed hedge derivatives — 15.5 — 15.5 Long-term debt (1) — 328.7 — 328.7 Deferred bonuses — — 50.5 50.5 Total liabilities $ 3.1 $ 344.6 $ 50.5 $ 398.2 (1) Carried at amortized cost on our Consolidated Balance Sheets and disclosed at fair value. Level 1 Fair Value Measurements Our Level 1 fair value measurements consist mostly of investments held by seeded investment products; investments in advised mutual funds; cash equivalents; securities sold, not yet purchased; and investments related to deferred compensation plans with quoted market prices in active markets. The fair value level of consolidated investments held by seeded investment products is determined by the underlying securities of the product. The fair value level of unconsolidated investments held in seeded investment products is determined by the NAV, which is considered a quoted price in an active market. 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 December 31, 2022 and 2021, certain securities within consolidated VIEs were valued using significant unobservable inputs, resulting in Level 3 classification. Intech Option Agreement and Contingent Consideration On March 31, 2022, we completed the sale of Intech. Consideration received as part of the Management Buyout included contingent consideration of up to $17.5 million and an option agreement that provides JHG the option to purchase a certain equity stake in Intech at a predetermined price on or before the seventh anniversary of the Management Buyout. As of December 31, 2022, the fair value of the option agreement and the Intech contingent consideration was $0.8 million and $12.1 million, respectively. Significant unobservable inputs were used to value the call option and contingent consideration, including revenue estimates, discount rate and volatility. Deferred Bonuses Deferred bonuses represent liabilities to employees over the vesting period that will be settled by investments in our products or cash. 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 years ended December 31, 2022 and 2021, were as follows (in millions): Year ended December 31, 2022 2021 Beginning of period fair value $ 8.8 $ 31.4 Intech option agreement 0.8 — Contingent consideration from sale of Intech 12.1 — Settlement of contingent consideration — (19.4) Fair value adjustments (2.0) (6.6) Transfers from Level 1 0.3 — Transfers to Level 1 (2.1) — Purchases of securities 1.0 4.6 Sales of securities (0.3) (1.2) Foreign currency translation (0.3) — End of period fair value $ 18.3 $ 8.8 Changes in fair value of our individual Level 3 liabilities for the years ended December 31, 2022 and 2021, were as follows (in millions): Year ended December 31, 2022 2021 Deferred Deferred bonuses bonuses Beginning of period fair value $ 50.5 $ 65.2 Fair value adjustments (2.1) 6.8 Vesting of deferred bonuses (36.5) (53.0) Amortization of deferred bonuses 38.0 31.5 Foreign currency translation (3.4) — End of period fair value $ 46.5 $ 50.5 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 DCF analysis that requires assumptions regarding projected future earnings and discount rates. We also measured the fair value of a certain definite-lived and indefinite-lived intangible asset during our annual impairment assessment completed as of October 1, 2022. Refer to Note 8 — Goodwill and Intangible Assets, in Part II, Item 8, Financial Statements and Supplemental Data, for additional information on the impairment assessments. Because of the significance of the unobservable inputs in the fair value measurements of these assets, such measurements are classified as Level 3. The significant inputs used in the annual DCF analysis to calculate the fair value of the certain definite-lived and indefinite-lived intangible assets included the discount rate, terminal growth rate and forecasted financial results and market returns. A discount rate of 12.8% was used to determine the fair value of certain intangible assets in the annual assessment. The discount rate was calculated using a market participant approach with data from certain peer asset management companies. The discount rate also contemplated the risk-free rate and other premiums, such as the risk premium and company size premium. A terminal growth rate of 3% was used to determine the fair value of certain intangible assets. The terminal growth rate was based on the fundamentals of the business as well as varying external factors such as market positioning and industry growth expectations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Debt | N ote 12 — D ebt Our debt as of December 31, 2022 and 2021, consisted of the following (in millions): December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 307.5 $ 295.4 $ 310.4 $ 328.7 4.875% Senior Notes Due 2025 The 2025 Senior Notes have a principal value of $300.0 million as of December 31, 2022, and pay interest at 4.875% semiannually on February 1 and August 1, which is approximately $14.6 million per year. The Senior Notes include unamortized debt premium, at December 31, 2022, of $7.5 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 Consolidated Balance Sheets. JHG fully and unconditionally guarantees the obligations of Janus Henderson US (Holdings) Inc . in relation to the 2025 Senior Notes. Credit Facility At December 31, 2022, we had a $200 million 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 SOFR in relation to any loan in USD; the SONIA in relation to any loan in GBP; the Euro Interbank Offered Rate (“EURIBOR”) in relation to any loan in EUR; or the Bank Bill Swap Rate (“BBSW”) in relation to any loan in AUD. As a result of LIBOR’s phase-out, our Credit Facility was amended to incorporate the SOFR as the successor rate to USD LIBOR and the SONIA as the successor rate to GBP LIBOR. For more information, refer to Part I, Item 1A, Risk Factors. 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 December 31, 2022, 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 | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | N ote 13 — I ncome T axes The components of our provision for income taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Year ended December 31, 2022 2021 2020 Current income taxes: UK $ 10.5 $ 41.1 $ 18.7 U.S., including state and local 95.9 154.0 136.4 International 8.8 12.4 9.8 Total current income taxes 115.2 207.5 164.9 Deferred income taxes: UK (10.3) 29.6 4.4 U.S., including state and local 10.0 (8.7) (99.9) International (14.0) (23.1) (17.2) Total deferred income taxes (benefits) (14.3) (2.2) (112.7) Total income tax expense $ 100.9 $ 205.3 $ 52.2 The components of our total income before taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Year ended December 31, 2022 2021 2020 UK $ (44.1) $ 217.8 $ 104.5 U.S. 428.7 627.1 109.7 International (9.2) (27.2) (10.7) Total income before taxes $ 375.4 $ 817.7 $ 203.5 We are a tax resident in the UK and are subject to UK tax laws and regulations. The following is a reconciliation between the UK statutory corporation tax rate and the effective tax rate on our income from operations for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 UK statutory corporation tax rate 19.0 % 19.0 % 19.0 % Effect of foreign tax rates 6.3 3.5 4.0 Equity-based compensation 0.7 0.1 2.6 Tax adjustments 2.0 0.4 0.6 Impact of changes in statutory tax rates on deferred taxes (1.3) 3.6 3.4 Goodwill impairments — — 1.8 Taxes applicable to prior years (4.5) (1.4) (2.9) Other, net — (0.3) (0.8) Effective income tax rate, controlling interest 22.2 % 24.9 % 27.7 % Net loss (income) attributable to noncontrolling interests 4.7 0.2 (2.0) Total effective income tax rate 26.9 % 25.1 % 25.7 % We operate in several tax jurisdictions around the world, each with its own statutory tax rate and set of tax laws and regulations. As a result, our future blended average statutory tax rate will be influenced by any changes to such laws and regulations and the mix of profits and losses of our subsidiaries. Tax Legislation Any legislative changes and new or proposed Treasury regulations may result in additional income tax impacts, which could be material in the period any such changes are enacted. Deferred Taxes The significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Deferred tax assets: Compensation and staff benefits $ 57.6 $ 65.3 Loss carryforwards (1) 76.7 83.8 Accrued liabilities 6.3 4.3 Debt premium 2.1 2.9 Lease liabilities 19.6 27.8 Other 13.9 17.6 Gross deferred tax assets 176.2 201.7 Valuation allowance (68.3) (83.6) Deferred tax assets, net of valuation allowance $ 107.9 $ 118.1 Deferred tax liabilities: Retirement benefits $ (24.2) $ (36.5) Goodwill and acquired intangible assets (631.2) (657.1) Lease right-of-use assets (18.9) (26.3) Other (7.1) (9.1) Gross deferred tax liabilities (681.4) (729.0) Total deferred tax (liabilities) (2) $ (573.5) $ (610.9) (1) The majority of this loss carryforward relates to the UK capital loss of $279.0 million, before tax effects, which may be carried forward without time limitation. There is a full valuation allowance against UK capital losses. (2) The change in the net deferred tax liabilities does not equal the deferred tax expense due to the foreign currency translation adjustment on deferred tax liabilities booked through equity. Deferred tax assets and liabilities that relate to the same jurisdiction are recorded net on our Consolidated Balance Sheets as non-current balances and as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Deferred tax assets, net (included in other non-current assets) $ 1.1 $ 8.3 Deferred tax liabilities, net (574.6) (619.2) Total deferred tax (liabilities) $ (573.5) $ (610.9) A valuation allowance has been established against the deferred tax assets related to our tax loss carryforward where a history of losses in the respective tax jurisdiction makes it unlikely that the deferred tax asset will be realized or where it is unlikely that we would generate sufficient taxable income of the appropriate character to realize the full benefit of the deferred tax asset. The valuation allowance for deferred tax assets decreased by $15.3 million in 2022. The decrease is primarily attributable to foreign currency translation on capital losses during the current year. As a multinational corporation, we operate in various locations outside the U.S. and generate earnings from our non-U.S. subsidiaries. Prior to enactment of the Tax Act, we indefinitely reinvested the undistributed earnings of all our non-U.S. subsidiaries, except for income previously taxed in the U.S. or subject to regulatory or legal repatriation restrictions or requirements. Consistent with prior years’ assertion, we intend to assert indefinite reinvestment on distributions exceeding the tax basis and undistributed earnings. Unrecognized Tax Benefits We operate in several tax jurisdictions and a number of years may elapse before an uncertain tax position, for which we have unrecognized tax benefits, is finally resolved. A reconciliation of the beginning and ending liability for the years ended December 31, 2022, 2021 and 2020, is as follows (in millions): Year ended December 31, 2022 2021 2020 Beginning balance $ 19.2 $ 15.8 $ 14.1 Additions for tax positions of current year 9.7 5.0 — Additions for tax positions of prior years — — 3.5 Reduction due to settlement with taxing authorities (1.4) (1.2) — Reduction due to statute expirations (0.5) (0.4) (1.9) Foreign currency translation (0.3) — 0.1 Ending balance $ 26.7 $ 19.2 $ 15.8 If the balance in the table above is recognized, the balance would favorably affect our effective tax rate in future periods. We recognize interest and penalties on uncertain tax positions as a component of the income tax provision. At December 31, 2022, 2021 and 2020, the total accrued interest balance relating to uncertain tax positions was $3.9 million, $2.6 million and $2.1 million, respectively. Potential penalties at December 31, 2022, 2021, and 2020, were insignificant and have not been accrued. We are subject to U.S. federal income tax, state and local income tax, UK income tax, and income tax in several other jurisdictions, all of which can be examined by the relevant taxing authorities. For our major tax jurisdictions, the tax years that remain open to examination by the taxing authorities at December 31, 2022, are 2019 and onward for U.S. federal tax and a few states have open years from 2013. The tax years from 2018 and onward remain open for the UK under the normal four-year time limit. It is reasonably possible that the total amounts of unrecognized tax benefits will change within the next 12 months due to completion of tax authorities’ exams or the expiration of statutes of limitations. Management estimates that the existing liability for uncertain tax positions could decrease by approximately $6.3 million within the next 12 months, ignoring changes due to foreign currency translation. |
Other Financial Statement Capti
Other Financial Statement Captions | 12 Months Ended |
Dec. 31, 2022 | |
Other Financial Statement Captions | |
Other Financial Statement Captions | N ote 14 — O ther Financial Statement C aptions Other current assets on our Consolidated Balance Sheets at December 31, 2022 and 2021, are composed of the following (in millions): December 31, 2022 2021 Prepaid expenses $ 42.4 $ 38.1 Current corporation tax 31.1 10.9 Derivatives (including collateral and margin) 22.0 56.4 Other current assets 24.8 44.8 Total other current assets $ 120.3 $ 150.2 Other non-current assets on our Consolidated Balance Sheets of $205.5 million and $180.6 million as of December 31, 2022 and 2021, respectively, primarily relate to operating leases, capitalized cloud services implementation costs, deferred consideration and equity-method investments. Accounts payable and accrued liabilities on our Consolidated Balance Sheets at December 31, 2022 and 2021, comprise the following (in millions): December 31, 2022 2021 Accrued distribution commissions $ 60.9 $ 65.3 Accrued rebates 18.7 24.5 Other accrued liabilities 72.0 76.8 Total other accrued liabilities $ 151.6 $ 166.6 Current corporation tax (including interest) 14.9 17.6 Operating and financing leases 24.5 29.1 Derivatives 5.1 15.5 Other current liabilities 36.5 42.0 Total accounts payable and accrued liabilities $ 232.6 $ 270.8 Other non-current liabilities on our Consolidated Balance Sheets at December 31, 2022 and 2021, comprise the following (in millions): December 31, 2022 2021 Non-current tax liabilities (including interest) $ 23.0 $ 19.8 Operating leases 67.1 104.6 Other creditors 8.7 10.0 Total other non-current liabilities $ 98.8 $ 134.4 Other creditors include the non-current portion of financing lease obligations, provisions for retirement obligations of leased office space and deferred compensation for certain members of the board of directors. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interests. | |
Noncontrolling Interests | N ote 15 — N oncontrolling I nterests Redeemable Noncontrolling Interests Redeemable noncontrolling interests as of December 31, 2022 and 2021, consisted of the following (in millions): December 31, 2022 2021 Consolidated seeded investment products $ 233.9 $ 148.5 Intech: Employee appreciation rights — 12.6 Founding member ownership interests — 2.3 Total redeemable noncontrolling interests $ 233.9 $ 163.4 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 seed 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 seeded products’ underlying securities. Third-party redemption of investments is redeemed from the respective product’s net assets and cannot be redeemed from the assets of 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 years ended December 31, 2022, 2021, and 2020 (in millions): Year ended December 31, 2022 2021 2020 Opening balance $ 148.5 $ 70.6 $ 662.8 Changes in market value (97.9) (6.2) 22.2 Changes in ownership 184.2 84.3 (612.2) Foreign currency translation (0.9) (0.2) (2.2) Closing balance $ 233.9 $ 148.5 70.6 Nonredeemable Noncontrolling Interests Nonredeemable noncontrolling interests as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Nonredeemable noncontrolling interests in: Seed capital investments $ 2.8 $ 2.8 Intech — 12.6 Total nonredeemable noncontrolling interests $ 2.8 $ 15.4 On March 31, 2022, we completed the sale of our 97%-owned subsidiary, Intech. See Note 3 — Dispositions, in Part II, Item 8, Financial Statements and Supplemental Data, for further information regarding the sale. |
Long-Term Incentive Compensatio
Long-Term Incentive Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Incentive Compensation | |
Long-Term Incentive Compensation | N ote 16 — L ong - T erm I ncentive C ompensation We operate the following stock and mutual fund-based compensation plans: ● ● ● ● ● ● ● Other less significant plans (includes: Saveshare Plan (“SAYE”), Company Share Option Plan (“CSOP”), Executive Shared Ownership Plan (“ExSOP”), Long-Term Incentive Plan (“LTIP”), Buy As You Earn Share Plan (“BAYE”) and Employee Stock Purchase Plan (“ESPP”)). Further details on the material plans in operation during 2022 are discussed below. Deferred Incentive Plan Starting in 2020 as part of our effort to consolidate how awards are issued, DIP awards are generally issued as part of annual variable compensation and for recruitment and retention purposes in accordance with the 2022 Deferred Incentive Plan and the Third Amended and Restated 2010 LTIP. Awards are issued as stock or as mutual fund awards and generally vest over a three The expense of deferred short-term incentive awards is recognized in net income over the period of deferral on a graded basis, the fair value of which is determined by prevailing share price or unit price at grant date. Deferred Equity Plan Prior to the transition to the DIP in 2020, employees who received cash-based incentive awards over a preset threshold had an element deferred. The deferred awards are deferred into our common stock or into our managed funds. The DEP trustee purchases JHG common stock and units or shares in JHG-managed funds and holds them in trust. Awards are deferred for up to three years and vest in three equal tranches if employees satisfy employment conditions at each vesting date. The expense of deferred short-term incentive awards is recognized in net income over the period of deferral on a graded basis, the fair value of which is determined by prevailing share price or unit price at grant date. Restricted Share Plan The RSP allows employees to receive shares of our common stock for nil consideration at a future point, usually after three years. RSP is recognized in net income on a graded basis. The awards are typically granted for staff recruitment and retention purposes; all awards have employment conditions. Our Compensation Committee approves all awards to Code Staff (employees who perform a significant influence function, senior management and individuals whose professional activities could have a material impact on our risk profile) and any awards over £500,000. The fair value of the shares granted is calculated using the NYSE average high/low trading prices on grant date. Restricted Stock Awards Prior to the transition to the DIP in 2020, RSAs were generally issued as part of annual variable compensation and for recruitment and retention purposes in accordance with the Amended and Restated 2010 LTIP, the JCG 2005 Long-Term Incentive Stock Plan and the 2012 Employment Inducement Award Plan (“2012 EIA Plan”). Awards generally vest over a three Performance Stock Units The following table presents a summary of PSUs granted to our former CEO (1) Grant date February 28, 2018 February 28, 2019 February 28, 2020 February 26, 2021 Units granted 108,184 (2) 83,863 (2) 96,933 (3) 77,228 (3) Value at grant (in millions) $3.7 $2.0 $2.0 $2.0 Units vested 59,903 125,795 121,166 50,900 Vesting date February 4, 2021 February 4, 2022 December 31, 2022 December 31, 2023 (1) Units granted on February 28, 2018, were granted to our then Co-CEOs. (2) Vesting of these price-vesting units was subject to our three-year Total Shareholder Return (“TSR”) performance relative to a peer group over a three-year period following the grant date. (3) These price-vesting units may or may not vest in whole or in part three years after the date of grant, depending on our three-year TSR performance relative to a peer group during the vesting period. The February 28, 2020, and February 26, 2021, awards performance was determined as of June 30, 2022. Mutual Fund Share Awards Prior to the transition to the DIP in 2020, MFSAs were generally issued as part of annual variable compensation and for recruitment and retention purposes. The awards are indexed to certain mutual funds managed by us. Upon vesting, participants receive the value of the award adjusted for gains or losses attributable to the mutual funds to which the award was indexed and is subject to tax withholding. The awards are time-based awards that generally vest three Compensation Expense The components of our long-term incentive compensation expense for the years ended December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 DIP $ 84.0 $ 52.1 $ 27.4 DEP 0.3 2.8 8.7 RSP 0.2 0.9 3.5 RSA (including PSUs) 1.9 8.8 22.0 Other 3.9 3.3 3.0 Stock-based payments expense 90.3 67.9 64.6 DIP funds — liability settled 84.7 71.3 41.3 DEP funds — liability settled 0.6 13.1 23.7 MFSA — liability settled (1.5) 12.9 28.2 Profits Interests and Other (3.9) 2.9 0.9 Social Security costs 10.5 12.9 11.4 Total long-term incentive compensation expense $ 180.7 $ 181.0 $ 170.1 Unrecognized and unearned compensation expense based on expected vesting outcomes as of December 31, 2022, including the weighted-average number of years over which the compensation cost will be recognized, is summarized as follows (in millions): Unrecognized Weighted-average compensation years DIP $ 59.5 1.8 Other 2.6 1.4 Stock-based payments expense 62.1 1.8 DIP funds — liability settled 57.9 1.7 Other — liability settled 0.3 1.3 Social Security costs 16.8 0.7 Total unrecognized long-term incentive compensation expense $ 137.1 1.6 We generally grant annual long-term incentive awards in March in relation to annual awards but also throughout the year due to seasonality of performance fee bonuses. Stock Options Stock options were granted to employees in 2022, 2021 and 2020. The fair value of stock options granted were estimated on the date of each grant using the Black-Scholes option pricing model, with the following assumptions: Black-Scholes Option Pricing Model Year ended December 31, 2022 2021 2020 SAYE SAYE SAYE Fair value of options granted £ 9.25 £ 10.28 £ 4.59 Assumptions: Dividend yield 4.27 % 3.68 % 6.50 % Expected volatility 41.82 % 41.37 % 37.59 % Risk-free interest rate 1.43 % 0.17 % 0.01 % Expected life (years) 3.17 3.00 3.00 The table below summarizes our outstanding options, exercisable options, and options vested or expected to vest for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Weighted-average Weighted-average Weighted-average Shares price Shares price Shares price Outstanding at January 1 492,889 $ 20.83 1,255,398 $ 27.13 1,873,927 $ 28.41 Granted 127,903 $ 24.83 83,648 $ 23.85 212,550 $ 16.06 Exercised (193,821) $ 24.34 (418,292) $ 29.04 (147,408) $ 7.21 Forfeited (40,387) $ 22.78 (427,865) $ 36.87 (683,671) $ 31.86 Outstanding at December 31 386,584 $ 19.18 492,889 $ 20.83 1,255,398 $ 27.13 Exercisable (1) 32,710 $ 10.46 92,630 $ 26.62 254,779 $ 22.74 Vested or expected to vest 386,584 $ 19.18 92,630 $ 26.62 902,633 $ 30.86 (1) The number of exercisable options represents instruments for which all vesting criteria have been satisfied and whose exercise price was below the closing price of our common stock as of the end of the period. The following table summarizes the intrinsic value of exercised, outstanding and exercisable options at December 31, 2022, 2021 and 2020 (in millions): December 31, 2022 2021 2020 Exercised $ 1.3 $ 0.3 $ — Outstanding $ 2.4 $ 7.4 $ 4.1 Exercisable $ 0.5 $ 1.0 $ 0.7 Deferred Incentive Plan, Deferred Equity Plan and Restricted Stock Awards The table below summarizes unvested DIP, DEP and RSA for the years ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Weighted-average Weighted-average Weighted-average Shares price Shares price Shares price Outstanding at January 1 4,949,927 $ 26.42 5,602,828 $ 24.56 5,516,920 $ 28.41 Granted 3,581,420 $ 32.44 2,285,257 $ 29.94 2,736,264 $ 20.69 Vested (2,733,825) $ 26.29 (2,699,721) $ 26.78 (2,443,459) $ 29.00 Forfeited (155,683) $ 31.48 (238,437) $ 27.37 (206,897) $ 25.42 Unvested at December 31 5,641,839 $ 29.99 4,949,927 $ 26.42 5,602,828 $ 24.56 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefit Plans | |
Retirement Benefit Plans | N ote 17 — Retirement Benefit Plans Defined Contribution Plans We operate two separate defined contribution retirement benefit plans: a 401(k) plan for U.S. employees and a separate plan for international employees. Substantially all of our U.S. full-time employees are eligible to participate in our 401(k) plan. During the year ended December 31, 2022, we matched 5.0% of employee-eligible compensation in our 401(k) plan. Expenses related to our 401(k) plan are included in employee compensation and benefits on our Consolidated Statements of Comprehensive Income and were $8.6 million, $8.3 million and $8.0 million during the years ended December 31, 2022, 2021 and 2020, respectively. The assets of the plan are held in trustee-administered funds separately from our assets. Substantially all of our non-U.S. full-time employees are eligible to participate in our defined contribution plans. The total amounts charged to our Consolidated Statements of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020, in respect to our non-U.S. defined contribution plan were $15.7 million, $19.0 million and $14.0 million, respectively, which represents contributions paid or payable to this plan by us. Defined Benefit Plans The main defined benefit pension plan sponsored by us is the defined benefit section of the JHGPS, previously the Henderson Group Pension Scheme, which closed to new members on November 15, 1999. The JHGPS is funded by contributions to a separately administered fund. Benefits in the defined benefit section of the JHGPS are based on service and final salary. The plan is approved by His Majesty’s Revenue and Customs (“HMRC”) for tax purposes and is operated separately from the Company and managed by an independent trustee board. The trustee is responsible for payment of the benefits and management of the JHGPS assets. We also have a contractual obligation to provide certain members of the JHGPS with additional defined benefits on an unfunded basis. The JHGPS is subject to UK regulations, which require us and the trustee to agree to a funding strategy and contribution schedule for the scheme. Our latest triennial valuation of the JHGPS resulted in a surplus on a technical provisions basis of $2.4 million. Plan Assets and Benefit Obligations The Plan assets and defined benefit obligations of the JHGPS and the unapproved pension plan were valued as of December 31, 2022 and 2021. Our plan assets, benefit obligations and funded status as of the December 31 measurement date were as follows (in millions): December 31, 2022 2021 Change in plan assets: Fair value of plan assets as of January 1 $ 1,142.6 $ 1,232.5 Return on plan assets (335.0) (41.5) Employer contributions 2.1 1.9 Benefits paid (15.8) (17.2) Settlements (9.7) (21.2) Foreign currency translation (123.7) (11.9) Fair value of plan assets as of December 31 660.5 1,142.6 Change in benefit obligation: Benefit obligation as of January 1 (975.2) (1,026.5) Service cost — (0.6) Interest cost (16.9) (13.5) Settlements 9.7 21.2 Curtailments — (0.3) Benefits paid 15.8 17.2 Actuarial gain 295.4 18.1 Foreign currency translation 105.6 9.2 Benefit obligation as of December 31 (565.6) (975.2) Funded status as of year-end 94.9 167.4 Tax at source — (7.1) Net retirement benefit asset recognized in the Consolidated Balance Sheets $ 94.9 $ 160.3 Actuarial gains during the year ended December 31, 2022, were primarily due to changes in financial assumptions over the year, including an increase in discount rate resulting from higher bond yields, leading to a decrease in the benefit obligation. These gains were offset by reductions in the asset value, also resulting from higher bond yields, leading to a decrease in the fair value of the assets. During the year ended December 31, 2022, $9.7 million was paid to members transferring their benefits out of the scheme, reducing the benefit obligation. The JHGPS contains a money purchase section (“MPS”) that operates in a similar way to a defined contribution plan, but also provides for a minimum benefit to members of the JHGPS if the investment performance of their MPS investments falls below defined thresholds. The minimum benefit is referred to as a reference scheme test (“RST”) underpin. The RST underpin serves as a defined benefit guarantee in the case that investment returns of the MPS do not meet statutorily defined returns. As the MPS is providing a defined benefit in the form of the RST underpin, disclosure of the related plan assets and liabilities are made on a gross basis, similar to that of a defined benefit plan, and are included in the plan assets and benefit obligations of the retirement benefit asset. Amounts recognized on our Consolidated Balance Sheets, net of tax at source, as of December 31, 2022 and 2021, consist of the following (in millions): December 31, 2022 2021 Retirement benefit assets recognized in the Consolidated Balance Sheets: Janus Henderson Group UK Pension Scheme $ 97.9 $ 165.1 Retirement benefit obligations recognized in the Consolidated Balance Sheets: Janus Henderson Group unapproved pension scheme (3.0) (4.8) Net retirement benefit asset recognized in the Consolidated Balance Sheets $ 94.9 $ 160.3 We used the following key assumptions in determining the defined benefit obligation as of December 31, 2022 and 2021: December 31, 2022 2021 Discount rate 4.8 % 1.9 % Inflation — Retail Price Index ("RPI") 3.3 % 3.4 % Inflation — Consumer Price Index ("CPI") 2.7 % 2.8 % Pension increases (RPI capped at 5% per annum ("p.a.")) 3.2 % 3.3 % Pension increases (RPI capped at 2.5% p.a.) 2.1 % 2.2 % Life expectancy of male aged 60 at accounting date 29.4 29.6 Life expectancy of male aged 60 in 15 years' time 30.3 30.5 The discount rate applied to the plan obligations is based on AA-rated corporate bond yields with similar maturities. Plan Assets The fair values of the JHGPS plan assets as of December 31, 2022 and 2021, by major asset class are as follows (in millions): December 31, 2022 2021 Cash and cash equivalents $ 1.8 $ 1.5 Money market instruments 8.0 17.5 Bulk annuity policy 230.7 386.6 Fixed income investments 249.3 479.7 Equity investments 170.7 257.3 Total assets at fair value $ 660.5 $ 1,142.6 As of December 31, 2022 and 2021, $148.4 million and $230.2 million, respectively, of JHGPS assets were held in JHG-managed funds. On September 5, 2019, JHGPS and Scottish Widows Limited (“SWL”) entered into a pension buy-in agreement (“agreement”). The agreement provides JHGPS a monthly contractual payment stream from SWL to satisfy pension obligations payable to approximately one The remaining assets of the JHGPS plan are allocated to a growth portfolio and a Liability Driven Investment (LDI) portfolio. The majority of the growth portfolio is invested in pooled diversified funds, with the objective of generating equity like returns, while mitigating risk and volatility. The LDI portfolio aims to control risk by matching the Scheme’s expected cash flows as closely as possible. Excluding the bulk annuity policy, the strategic allocation as of December 31, 2022 and 2021, was broadly 80% fixed income investments and 20% growth portfolio. The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2022 (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 Cash and cash equivalents $ 1.8 $ — $ — $ 1.8 Money market instruments 8.0 — — 8.0 Bulk annuity contract — — 230.7 230.7 Fixed income investments 249.3 — — 249.3 Equity investments 170.7 — — 170.7 Total $ 429.8 $ — $ 230.7 $ 660.5 The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2021 (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 Cash and cash equivalents $ 1.5 $ — $ — $ 1.5 Money market instruments 17.5 — — 17.5 Bulk annuity contract — — 386.6 386.6 Fixed income investments 479.7 — — 479.7 Equity investments 257.3 — — 257.3 Total $ 756.0 $ — $ 386.6 $ 1,142.6 The value of the bulk annuity contracts decreased from $386.6 million at December 31, 2021, to $230.7 million at December 31, 2022, due to changes in financial conditions and demographic assumptions resulting in a decrease of $102.1 million and $2.4 million, respectively, combined with $13.1 million in cash payments received under the contract terms and foreign currency translation of $43.2 million, offset by $5.1 million of interest on the bulk annuity asset. The expected rate of return on assets for the financial period ending December 31, 2022, was 1.6% p.a. based on financial conditions as of December 31, 2021 (2021: 1.2% p.a.). This rate is derived by taking the weighted average of the long-term expected rate of return on each of the asset classes in JHGPS’s target asset allocation. The expected rate of return has been determined based on yields on either long-dated government bonds or relevant corporate bonds, dependent on the class of asset in question, adjusted where appropriate based on the individual characteristics of each asset class. Actuarial Gains and Losses Cumulative amounts recognized in accumulated other comprehensive income and the actuarial gain, net of tax deducted at source, credited to other comprehensive income for the years ended December 31, 2022 and 2021, are shown below (in millions): December 31, 2022 2021 Opening accumulated unamortized actuarial loss $ (32.8) $ (10.4) Actuarial loss (53.1) (35.3) Tax at source on current year actuarial gain 15.1 11.8 Prior service cost 0.4 0.4 Release of actuarial gain (loss) due to settlement event — 1.1 Release of tax at source due to settlement event — (0.4) Closing accumulated unamortized actuarial loss $ (70.4) $ (32.8) No actuarial gains were amortized from accumulated other comprehensive income during the years ended December 31, 2022 or 2021. Net Periodic Benefit Cost The components of net periodic benefit cost in respect to defined benefit plans for the years ended December 31, 2022, 2021, and 2020 include the following (in millions): December 31, 2022 2021 2020 Service cost $ — $ (0.6) $ (0.9) Settlement gain (loss) — (1.1) 1.3 Curtailment loss — (0.3) — Interest cost (16.9) (13.5) (14.1) Amortization of prior service cost (0.4) (0.4) (0.4) Expected return on plan assets 13.8 11.3 12.5 Net periodic benefit cost (3.5) (4.6) (1.6) Contributions to money purchase section (11.5) (11.3) (8.2) Total cost $ (15.0) $ (15.9) $ (9.8) The following key assumptions were used in determining the net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 (in millions): December 31, 2022 2021 2020 Discount rate 1.9 % 1.3 % 2.1 % Inflation — salaries N/A % 2.5 % 2.5 % Inflation — RPI 3.4 % 2.9 % 3.0 % Inflation — CPI 2.8 % 2.2 % 1.9 % Pension increases (RPI capped at 5% p.a.) 3.3 % 2.9 % 2.9 % Pension increases (RPI capped at 2.5% p.a.) 2.2 % 2.1 % 2.0 % Expected return on plan assets 1.6 % 1.2 % 1.7 % Amortization period for net actuarial gains at beginning of the year 9.0 9.0 9.0 Cash Flows Employer contributions of $2.1 million were paid in relation to our defined benefit pension plans during 2022 (excluding credits to members’ money purchase accounts). We expect to contribute approximately $1.2 million to the JHGPS (excluding credits to members’ money purchase accounts) in the year ended December 31, 2023. The expected future benefit payments for our pension plan are as follows (in millions): 2023 $ 20.0 2024 $ 20.9 2025 $ 21.3 2026 $ 22.6 2027 $ 23.6 2028-2032 $ 127.9 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Loss. | |
Accumulated Other Comprehensive Loss | N ote 18 — A ccumulated O ther C omprehensive L oss Changes in accumulated other comprehensive loss, net of tax, for the years ended December 31, 2022 and 2021, are as follows (in millions): Year ended December 31, 2022 2021 Foreign Retirement benefit Foreign Retirement benefit currency asset, net Total currency asset, net Total Beginning balance $ (354.2) $ (32.8) $ (387.0) $ (304.5) $ (10.4) $ (314.9) Other comprehensive loss (221.0) (38.0) (259.0) (46.9) (23.5) (70.4) Amounts reclassified from accumulated other comprehensive loss (4.1) 0.4 (3.7) (3.2) 1.1 (2.1) Total other comprehensive loss (225.1) (37.6) (262.7) (50.1) (22.4) (72.5) Less: other comprehensive loss attributable to noncontrolling interests 2.0 — 2.0 0.4 — 0.4 Ending balance $ (577.3) $ (70.4) $ (647.7) $ (354.2) $ (32.8) $ (387.0) The components of other comprehensive income (loss), net of tax, for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Pre-tax Tax Year ended December 31, 2022 amount expense Net amount Foreign currency translation adjustments $ (224.2) $ 3.2 $ (221.0) Retirement benefit asset, net (46.8) 8.8 (38.0) Reclassifications to net income (3.7) — (3.7) Total other comprehensive loss $ (274.7) $ 12.0 $ (262.7) Pre-tax Tax Year ended December 31, 2021 amount expense Net amount Foreign currency translation adjustments $ (48.2) $ 1.3 $ (46.9) Retirement benefit asset, net (23.5) — (23.5) Reclassifications to net income (2.1) — (2.1) Total other comprehensive loss $ (73.8) $ 1.3 $ (72.5) Pre-tax Tax Year ended December 31, 2020 amount expense Net amount Foreign currency translation adjustments $ 73.1 $ 0.3 $ 73.4 Retirement benefit asset, net (29.0) (0.1) (29.1) Reclassifications to net income 7.1 — 7.1 Total other comprehensive income $ 51.2 $ 0.2 $ 51.4 |
Earnings and Dividends Per Shar
Earnings and Dividends Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings and Dividends Per Share | |
Earnings and Dividends Per Share | N ote 19 — E arnings and Dividends Per S hare Earnings Per Share The following is a summary of the earnings per share calculation for the years ended December 31, 2022, 2021 and 2020 (in millions, except per share data): Year ended December 31, 2022 2021 2020 Net income attributable to JHG $ 372.4 $ 620.0 $ 130.3 Allocation of earnings to participating stock-based awards (11.3) (17.7) (3.8) Net income attributable to JHG common shareholders $ 361.1 $ 602.3 $ 126.5 Weighted-average common shares outstanding — basic 161.7 167.9 179.4 Dilutive effect of nonparticipating stock-based awards 0.3 0.6 0.5 Weighted-average common shares outstanding — diluted 162.0 168.5 179.9 Earnings per share: Basic (two class) $ 2.23 $ 3.59 $ 0.70 Diluted (two class) $ 2.23 $ 3.57 $ 0.70 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 declared and paid for the years ended December 31, 2022, 2021 and 2020: Year ended December 31, 2022 2021 2020 Dividends paid per share $ 1.55 $ 1.50 $ 1.44 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | N ote 20 — C ommitments and C ontingencies Commitments and contingencies may arise in the normal course of business. Commitments and contingencies as of December 31, 2022, are discussed below. Operating and Finance Leases As of December 31, 2022, we had future minimum rental commitments under non-cancelable operating and finance leases. Refer to Note 9 — Leases, in Part II, Item 8, Financial Statements and Supplemental Data, for information related to operating and financing lease commitments. Litigation and Other Regulatory Matters We are periodically involved in various legal proceedings and other regulatory matters. Sandra Schissler v Janus Henderson US (Holdings) Inc., Janus Henderson Advisory Committee, and John and Jane Does 1-30 On September 9, 2022, a class action complaint, captioned Schissler v. Janus Henderson US (Holdings) Inc., et al. , was filed in the United States District Court for the District of Colorado. Named as defendants are Janus Henderson US (Holdings) Inc. (“Janus US Holdings”), and the Advisory Committee to the Janus 401(k) and Employee Stock Ownership Plan (“Plan”). The complaint purports to be brought on behalf of a class consisting of participants and beneficiaries of the Plan that invested in Janus Henderson funds on or after September 9, 2016. On January 10, 2023, in response to defendants’ motion to dismiss filed on November 23, 2022, an amended complaint was filed against the same defendants. The amended complaint names two additional plaintiffs, Karly Sissel and Derrick Hittson. As amended, the complaint alleges that for the period September 9, 2016, through September 9, 2022, among other things, defendants breached fiduciary duties of loyalty and prudence by (i) selecting higher-cost Janus Henderson funds over less expensive investment options; (ii) retaining Janus Henderson funds despite their alleged underperformance; and (iii) failing to consider actively managed funds outside of Janus Henderson to add as investment options. The amended complaint also alleges that Janus US Holdings failed to monitor the Advisory Committee with respect to the foregoing. The amended complaint seeks various declaratory, equitable and monetary relief in unspecified amounts. On February 9, 2023, defendants filed a motion to dismiss the amended complaint. Janus US Holdings believes the claims asserted in the amended complaint are without merit and intends to vigorously defend against these claims. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | Note 21 — Related Party Transactions Disclosures relating to equity method investments and our pension scheme can be found in Note 10 — Equity Method Investments and Note 17 — Retirement Benefit Plans, respectively, in Part II, Item 8, Financial Statements and Supplemental Data. Transactions between JHG and our controlled subsidiaries have been eliminated on consolidation and are not disclosed in this note. Certain managed funds are considered to be related parties of JHG under the related party guidance. We earn fees from the funds for which we act as investment manager, and the balance sheet includes amount due from these managed funds. During the years ended December 31, 2022, 2021 and 2020, we recognized revenues of $2,017.2 million, $2,507.9 million and $1,974.6 million, respectively, from the funds we manage that are related parties and not consolidated in our Consolidated Statements of Comprehensive Income. The following table reflects amounts in our Consolidated Balance Sheets relating to fees receivable from managed funds as of December 31, 2022 and 2021 (in millions): As of December 31 2022 2021 Accrued income $ 125.3 $ 204.1 Accounts receivable 80.7 77.4 Seed investments held in managed funds are discussed in Note 4 — Consolidation, in Part II, Item 8, Financial Statements and Supplemental Data. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Geographic Information | |
Geographic Information | Note 22 — Geographic Information The following table provides our operating revenues by principal geographic area for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, Operating revenues 2022 2021 2020 U.S. $ 1,324.6 $ 1,634.4 $ 1,401.5 UK 315.1 639.7 562.7 Luxembourg 512.5 437.2 281.5 Australia and other 51.4 55.7 52.9 Total $ 2,203.6 $ 2,767.0 $ 2,298.6 Operating revenues are attributed to countries based on the location in which revenues are earned. The following table provides our long-lived assets by principal geographic area as of December 31, 2022 and 2021 (in millions): As of December 31, Long-lived assets 2022 2021 U.S. $ 2,099.8 $ 2,153.1 UK 326.2 374.6 Australia 37.5 76.0 Other 3.0 2.3 Total $ 2,466.5 $ 2,606.0 Long-lived assets include property, equipment, software and intangible assets. As of December 31, 2022, intangible assets in the U.S., UK and Australia were $2,074.2 million, $303.5 million and $37.0 million, respectively. As of December 31, 2021, intangible assets in the U.S., UK and Australia were $2,122.2 million, $345.1 million and $75.4 million, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation Our consolidated financial statements have been prepared according to U.S. GAAP and include all majority-owned subsidiaries and consolidated seeded investment products. Intercompany accounts and transactions have been eliminated in consolidation. Events subsequent to the balance sheet date have been evaluated for inclusion in the accompanying consolidated financial statements through the issuance date. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements We identified errors in our previously issued 2021 and 2020 financial statements and interim 2022 financial statements. We determined that the errors, individually and in the aggregate, did not result in a material misstatement to our previously issued consolidated financial statements, however, correcting the errors in the 2022 financial statements would create a material error in the 2022 financial statements and therefore, we have corrected these errors by revising the prior period amounts included in certain Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows, Consolidated Statements of Changes in Equity and related footnote disclosures. In the first quarter 2020, we recognized a $123.5 million goodwill impairment expense. Subsequent to the first quarter 2020, we identified a $32.8 million accounting error in which we did not consider the incremental impairment charge related to the tax-deductible goodwill. We corrected this error in the first quarter 2022 as an out-of-period adjustment. In conjunction with the preparation of the third quarter 2022 financial statements, certain additional unrelated immaterial errors were identified related to prior periods. The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revisions and the amounts as currently revised within the financial statements. The revisions did not impact net operating activities, investing activities and financing activities on our Consolidated Statements of Cash Flows for any impacted period. The impact of the error on the Consolidated Balance Sheets as of December 31, 2021, is as follows (in millions): December 31, 2021 As Previously Reported Impact of Revisions As Revised ASSETS Goodwill 1,374.3 (32.8) 1,341.5 Other non-current assets 172.9 7.7 180.6 Total assets $ 6,727.5 $ (25.1) $ 6,702.4 LIABILITIES Accounts payable and accrued liabilities 271.6 (0.8) 270.8 Total current liabilities 786.4 (0.8) 785.6 Total liabilities $ 1,900.9 $ (0.8) $ 1,900.1 EQUITY Accumulated other comprehensive loss, net of tax (396.1) 9.1 (387.0) Retained earnings 1,073.6 (33.4) 1,040.2 Total shareholders’ equity 4,647.8 (24.3) 4,623.5 Total equity $ 4,663.2 $ (24.3) $ 4,638.9 Total liabilities, redeemable noncontrolling interests and equity $ 6,727.5 $ (25.1) $ 6,702.4 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2021, is as follows (in millions, except per share data): Year Ended December 31, 2021 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 551.6 $ 2.5 $ 554.1 Total operating expenses 1,943.6 2.5 1,946.1 Operating income (loss) 823.4 (2.5) 820.9 Income (loss) before taxes 820.2 (2.5) 817.7 Income tax benefit (provision) (205.7) 0.4 (205.3) Net income (loss) 614.5 (2.1) 612.4 Net income (loss) attributable to JHG $ 622.1 $ (2.1) $ 620.0 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 3.60 $ (0.01) $ 3.59 Diluted $ 3.59 $ (0.02) $ 3.57 Other comprehensive income (loss), net of tax: Total comprehensive income (loss) $ 542.0 $ (2.1) $ 539.9 Total comprehensive income (loss) attributable to JHG $ 550.0 $ (2.1) $ 547.9 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2020, is as follows (in millions, except per share data): Year Ended December 31, 2020 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 464.4 $ (3.3) $ 461.1 Impairment of goodwill and intangible assets 513.7 32.8 546.5 Total operating expenses 2,140.8 29.5 2,170.3 Operating income (loss) 157.8 (29.5) 128.3 Other non-operating income (expenses), net 39.7 (9.1) 30.6 Income (loss) before taxes 242.1 (38.6) 203.5 Income tax benefit (provision) (59.5) 7.3 (52.2) Net income (loss) 182.6 (31.3) 151.3 Net income (loss) attributable to JHG $ 161.6 $ (31.3) $ 130.3 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 0.87 $ (0.17) $ 0.70 Diluted $ 0.87 $ (0.17) $ 0.70 Other comprehensive income (loss), net of tax: Foreign currency translation gains (losses) 71.8 9.1 80.9 Other comprehensive income (loss), net of tax 42.3 9.1 51.4 Other comprehensive income (loss) attributable to JHG $ 43.1 $ 9.1 $ 52.2 Total comprehensive income (loss) $ 224.9 $ (22.2) $ 202.7 Total comprehensive income (loss) attributable to JHG $ 204.7 $ (22.2) $ 182.5 |
Accounting Estimates | Accounting Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and the differences could be material. Our significant estimates relate to investment securities, acquisition accounting, goodwill and intangible assets, retirement benefit assets and obligations, contingent consideration, equity compensation and income taxes. |
Segment Information | Segment Information We are a global asset manager and manage a range of investment products, operating across various product lines, distribution channels and geographic regions. However, resources are allocated and the business is managed by the chief operating decision-maker, the CEO, on an aggregated basis. Strategic and financial management decisions are determined centrally by the CEO and, on this basis, we operate as a single-segment investment management business. |
Consolidation of Investment Products | Consolidation of Investment Products We perform periodic consolidation analyses of our seeded investment products to determine if the product is a VIE or a VRE. Factors considered in this assessment include the product’s legal organization, the product’s capital structure and equity ownership, and any de facto agent implications of our involvement with the product. Investment products that are determined to be VIEs are consolidated if we are the primary beneficiary of the product. VREs are consolidated if we hold the majority voting interest. Upon the occurrence of certain events (such as contributions and redemptions, either by JHG or third parties, or amendments to the governing documents of our investment products), management reviews and reconsiders its previous conclusion regarding the status of a product as a VIE or a VRE. Additionally, management continually reconsiders whether we are considered a VIE’s primary beneficiary and thus would be required to consolidate such product or discontinue consolidation of the VIE if we are no longer considered the primary beneficiary. Variable Interest Entities Certain investment products for which a controlling financial interest is achieved through arrangements that do not involve or are not directly linked to voting interests are considered VIEs. We review factors, including whether or not (i) the product has equity that is sufficient to permit it to finance its activities without additional subordinated support from other parties and (ii) the equity holders at risk have the obligation to absorb losses, the right to receive residual returns and the right to direct the activities of the product that most significantly impact the product’s economic performance, to determine if the investment product is a VIE. We reevaluate such factors as facts and circumstances change. We consolidate a VIE if we are the VIE’s primary beneficiary. The primary beneficiary of a VIE is defined as the variable interest holder that has a controlling financial interest in the VIE. A controlling financial interest is defined as (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the product or the right to receive benefits from the product that potentially could be significant to the VIE. We are the manager of various types of seeded investment products, which may be considered VIEs. Our involvement in financing the operations of the VIEs is generally limited to our investments in the products. VIEs are generally subject to consolidation by us when we hold an economic interest of greater than 9% and we deconsolidate such VIEs once equity ownership equals or falls below 9%. VIEs are subject to specific disclosure requirements. Voting Rights Entities We consolidate seeded investment products accounted for as VREs when we are considered to control such products, which generally exists if we have a greater than 50% voting equity interest. |
Property, Equipment and Software | Property, Equipment and Software Property, equipment and software are recorded at cost. Depreciation is recorded using the straight-line method over the estimated useful life of the related assets (or the lease term, if shorter). Computer software is recorded at cost and depreciated over its estimated useful life. Internal and external costs incurred in connection with researching or obtaining computer software for internal use are expensed as incurred during the preliminary project stage, as are post-implementation training and maintenance costs. Internal and external costs incurred for internal use software during the application development stage are capitalized until such time that the software is substantially complete and ready for its intended use. Application development stage costs are depreciated on a straight-line basis over the estimated useful life of the software. An impairment loss is recognized if the carrying value of the asset exceeds the fair value of the asset. The amount of the impairment loss is equal to the excess of the carrying amount over the fair value. The evaluation is based on an estimate of the future cash flows expected to result from the use of the asset and its eventual disposal. If expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized in an amount equal to the excess of the carrying amount of the asset over the fair value of the asset. There were no impairments of property, equipment and software for the years ended December 31, 2022, 2021 and 2020. |
Cloud Computing Arrangements | Cloud Computing Arrangements Costs paid to vendors for third-party cloud-based hosting services are recorded to other current assets or other long-term assets and subsequently amortized to general, administrative and occupancy expense on a straight-line basis over the life of the contract. Implementation costs incurred related to the cloud hosting arrangement are accounted for similarly to internal use software. Implementation costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred. We capitalize costs incurred during the application development stage to other long-term assets and subsequently amortize those costs to general, administrative and occupancy expense on a straight-line basis over the life of the contract beginning when the asset is ready for its intended use. |
Equity Method Investments | Equity Method Investments Our investment in equity method investees, where we do not control the investee but can exert significant influence over the financial and operating policies (generally considered to be ownership between 20% and 50%), is accounted for using the equity method of accounting. Investments are initially recognized at cost when purchased for cash or at the fair value of shares received where acquired as part of a wider transaction. The investments are subsequently carried at cost adjusted for our share of net income or loss and other changes in comprehensive income of the equity method investee, less any dividends or distributions received by us. The Consolidated Statements of Comprehensive Income includes our share of net income or loss for the year, or period of ownership, if shorter, within investment gains (losses), net. |
Debt | Debt Long term debt consists of senior notes and is stated at amortized cost using the effective interest rate method. Amortized cost is calculated by taking into account any issuance costs and any discount or premium on settlement. Debt will cease to be recognized when the obligation under the liability has been discharged or cancelled or has expired. |
Investment Securities | Investment Securities Seeded Investment Products We periodically add new investment strategies to our investment product offerings by providing the initial cash investment (“seed capital”). The primary purpose of seed capital is to generate an investment performance track record in a product to attract third-party investors. Seeded investment products are initially assessed for consolidation. If it is determined consolidation is required, the individual securities within the portfolio are accounted for as equity securities. If consolidation is not required, the fair value is determined using the number of shares held multiplied by the share price of the respective fund. The change in fair value of seeded investment products is recorded within investment gains (losses), net on our Consolidated Statements of Comprehensive Income. Noncontrolling interests in seeded investment products represent third-party ownership interests and are included within investment securities on our Consolidated Balance Sheets. These assets are not available for general corporate purposes and may be redeemed by the third parties at any time. Refer to the Consolidation of Investment Products section in this note for information regarding the consolidation of certain seeded investment products. We may redeem invested seed capital for a variety of reasons, including when third-party investments in the relevant product are sufficient to sustain the given investment strategy. The length of time we hold a majority interest in a product varies based on a number of factors, including market demand, market conditions, investment performance and internal policies. Investments in Advised Mutual Funds and Investments Related to the Economic Hedging of Deferred Compensation We grant mutual fund share awards to employees that are indexed to certain funds managed by us. Upon vesting, participants receive the value of the mutual fund share awards adjusted for gains or losses attributable to the mutual funds to which the award was indexed, subject to tax withholding, or participants receive shares in the mutual fund. When investments in our fund products are purchased and held against deferred compensation liabilities, any movement in the fair value of the assets and corresponding movements in the deferred compensation liability are recognized within the Consolidated Statements of Comprehensive Income. We maintain deferred compensation plans for certain highly compensated employees and members of the Board of Directors. Eligible participants may defer a portion of their compensation and have the ability to earn a return by indexing their deferrals to mutual funds managed by us and our subsidiaries. We make no contributions to the plans. To protect against market variability of the liability, we create an economic hedge by investing in mutual funds that are consistent with the deferred amounts and mutual fund elections of the participants. Such investments remain assets of JHG. Changes in market value of the liability to participants are recognized as long-term incentive plans within our Consolidated Statements of Comprehensive Income, and changes in the market value of the mutual fund securities are recognized within investment gains (losses), net on our Consolidated Statements of Comprehensive Income. |
Trade and Other Receivables | Trade Receivables Trade receivables, are initially recognized at fair value, which is normally equivalent to the invoice amount. When the time value of money is material, the fair value is discounted. Provision for specific doubtful accounts is made when there is evidence that we may not be able to recover balances in full. Balances are written off when the receivable amount is deemed uncollectable. OEIC and Unit Trust Receivables and Payables OEIC and unit trust receivables and payables are in relation to the purchase of units/shares (by investors) and the liquidation of units/shares (owned by trustees). The amounts are dependent on the level of trading and fund switches in the four working days leading up to the end of the period. Since they are held with different counterparties, the amounts are presented gross on our Consolidated Balance Sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash held at banks, on-demand deposits, investments in money market instruments and highly liquid short-term government securities with a maturity date of three months or less. Cash balances maintained by consolidated VREs are not considered legally restricted and are included within cash and cash equivalents on the Consolidated Balance Sheets. Cash balances held by consolidated VIEs are disclosed separately as a component of assets of consolidated VIEs on the Consolidated Balance Sheets. Cash held in consolidated VREs and VIEs is not available to us to use in our operations. |
Derivative Instruments | Derivative Instruments We may, from time to time, use derivative financial instruments to mitigate price, interest rate, foreign currency and credit risk. We do not designate derivative instruments as hedges for accounting purposes. Derivative instruments are measured at fair value and classified as either other current assets or accounts payable and accrued liabilities on our Consolidated Balance Sheets. Changes in the fair value of derivative instruments are recorded within investment gains (losses), net within our Consolidated Statements of Comprehensive Income. Our consolidated seed investments may also be party to derivative instruments. These derivative instruments are disclosed separately from our corporate derivative instruments. Refer to Note 11 — Fair Value Measurements, in Part II, Item 8, Financial Statements and Supplemental Data. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating lease right-of-use (“ROU”) assets are included in other non-current assets within our Consolidated Balance Sheets. The current and non-current portions of operating lease liabilities are included within accounts payable and accrued liabilities and within other non-current liabilities, respectively. Finance lease ROU assets are included within property, equipment and software, net. The current and non-current portions of finance lease liabilities are included within accounts payable and accrued liabilities and within other non-current liabilities, respectively. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term within general, administrative and occupancy expense within our Consolidated Statements of Comprehensive Income. |
Nonredeemable Noncontrolling Interests and Redeemable Noncontrolling Interests | Nonredeemable Noncontrolling Interests and Redeemable Noncontrolling Interests Nonredeemable noncontrolling interests that are not subject to redemption rights are classified in permanent equity. Redeemable noncontrolling interests are classified outside of permanent equity on the Consolidated Balance Sheets and are measured at the estimated fair value as of the balance sheet date. Noncontrolling interests in consolidated seed investments are classified as redeemable noncontrolling interests where there is an obligation on the fund to repurchase units at the investor’s request. |
Fair Value Measurements | Fair Value Measurements Fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial instruments traded in active markets (such as publicly traded securities and derivatives) is based on quoted market prices at the reporting date. The quoted market price used for financial instruments is the last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid ask spread. In circumstances where the last traded price is not within the bid ask spread, management will determine the point within the bid ask spread that is most representative of fair value current bid price. The fair value of financial instruments that are not traded in an active market is determined using valuation techniques commonly used by market participants, including the use of comparable recent arm’s length transactions, DCF analysis and option pricing models. Estimating fair value requires significant management judgment, including benchmarking to similar instruments with observable market data and applying appropriate discounts that reflect differences between the securities that we are valuing and the selected benchmark. Measurements of fair value are classified within a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable. The valuation hierarchy contains three levels: ● ● ● Level 3 — Valuation inputs are unobservable and significant to the fair value measurement. The valuation of an asset or liability may involve inputs from more than one level of the hierarchy. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. 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 using the underlying inputs used in the calculation of the NAV of each product. Level 2 Fair Value Measurements Our Level 2 fair value measurements consist mostly of consolidated seeded investment products 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 Our assets and liabilities measured at Level 3 are primarily deferred compensation liabilities that are held against investments in our fund products and contingent consideration received as part of the Management Buyout of Intech, where the significant valuation inputs are unobservable. Details of inputs used to calculate the fair value of contingent deferred consideration can be found in Note 11 — Fair Value Measurements, and details of the Management Buyout of Intech can be found in Note 3 – Acquisitions and Dispositions, in Part II, Item 8, Financial Statements and Supplemental Data. 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 DCF 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 and liabilities, such measurements are classified as Level 3. See the Goodwill and Intangible Assets accounting policy set forth within this note for further information. |
Income Taxes | Income Taxes We provide for current tax expense according to the tax laws in each jurisdiction in which we operate, using tax rates and laws that have been enacted by the balance sheet date. Deferred income tax assets and liabilities are recorded for temporary differences between the financial statement and income tax basis of assets and liabilities as measured by the enacted income tax rates that may be in effect when these differences reverse. The effect of changes in tax rates on our deferred tax assets and liabilities is recognized as income tax within net income in the period that includes the enactment date. Significant management judgment is required in developing our provision for income taxes, including the valuation allowances that might be required against deferred tax assets and the evaluation of unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We periodically assess the recoverability of our deferred tax assets and the need for valuation allowances on these assets. We make these assessments based on the weight of available evidence regarding possible sources of future taxable income and estimates relating to the future performance of the business that results in taxable income. In evaluating uncertain tax positions, we consider the probability that the tax benefit can be sustained on examination by a taxing authority on the basis of its technical merits (“the recognition threshold”). For tax positions meeting this threshold, the amount recognized within the financial statements is the benefit expected to be realized upon settlement with the taxing authority on the basis of a cumulative-probability assessment of the possible outcomes. For tax positions not meeting the recognition threshold, no financial statement benefit is recognized. We recognize the accrual of interest and penalties on uncertain tax positions as a component of the income tax provision. |
Revenue Recognition | Revenue Recognition Revenue is determined based on the transaction price negotiated with the customer, net of rebates. Management fees, performance fees, shareowner servicing fees and other revenue are derived from providing professional services to manage investment products. Management fees are earned over time as services are provided and are generally based on a percentage of the market value of AUM. These fees are calculated as a percentage of either the daily, month-end or quarter-end average asset balance in accordance with contractual agreements. Performance fees are specified in certain fund and client contracts and are based on investment performance either on an absolute basis or compared to an established index over a specified period of time. Performance fees are generated on certain management contracts when performance hurdles or other specified criteria are achieved. Performance fees for all fund ranges and other investment products are recognized when it is probable that a significant reversal of revenue recognized will not occur in future periods. There are no performance fee contracts where revenue can be clawed back. There are no cumulative revenues recognized that would be reversed if all of the existing investments became worthless. Management fees are primarily earned monthly or quarterly, while performance fees are usually earned monthly, quarterly or annually, although the frequency of receipt varies between agreements. Management and performance fee revenue earned but not yet received is recognized within fees and other receivables on our Consolidated Balance Sheets. Shareowner servicing fees are earned for services rendered related to transfer agent and administrative activities performed for investment products. These services are transferred over time and are generally based on a percentage of the market value of AUM. Other revenue includes distribution and servicing fees earned from U.S. mutual funds associated with mutual fund transfer agent, accounting, shareholder servicing and participant recordkeeping activities. These services are transferred over time and are generally based on a percentage of the market value of AUM. U.S. Mutual Fund Performance Fees The investment management fee paid by each U.S. mutual fund subject to a performance fee is the base management fee plus or minus a performance fee adjustment as determined by the relative investment performance of the fund compared to a specified benchmark index. Under the performance-based fee structure, the investment advisory fee paid by each fund consists of two components: (i) a base fee calculated by applying the contractual fixed rate of the advisory fee to the fund’s average daily net assets during the previous month, plus or minus (ii) a performance fee adjustment calculated by applying a variable rate of up to 0.15% to the fund’s average daily net assets during the performance measurement period. The performance measurement period is a rolling 36-month period. The addition of performance fees to all funds without such fees is subject to the approval of both a majority of the shareholders of such funds and the funds’ independent board of trustees. Principal Versus Agent We use third-party intermediaries to fulfill certain performance obligations in our revenue agreements. Generally, we are considered the principal in these arrangements because we control the investment management and other related services before they are transferred to customers. Such control is evidenced by our primary responsibility to customers, the ability to negotiate the third-party contract price and select and direct third-party service providers, or a combination of these factors. Therefore, distribution and service fee revenues and the related third-party distribution and service expenses are reported on a gross basis. |
Operating Expenses | Operating Expenses Operating expenses are accrued and recognized as incurred. |
Stock-Based Compensation | Stock-Based Compensation We grant stock-based awards to certain employees, all of which are classified as equity settled stock-based payments. Equity settled stock-based payments are measured at the fair value of the shares at the grant date. The awards are expensed, with a corresponding increase in reserves, on a graded basis over the vesting period. Forfeitures are recognized as they occur. The grant date fair value for stock options is determined using the Black-Scholes option pricing model, and the grant date fair value of restricted stock is determined from the market price on the date of grant. The Black-Scholes model requires management to determine certain variables; the assumptions used in the Black-Scholes option pricing model include dividend yield, expected volatility, risk-free interest rate and expected life. The dividend yield and expected volatility are determined using historical Company data. The risk-free interest rate for options granted is based on the three-year UK treasury coupon at the time of the grant. The expected life of the stock options is generally three years. We generally use the Monte Carlo model to determine the fair value of performance-based awards with market conditions. The assumptions used in the Monte Carlo model include dividend yield, share price volatility and discount rate. |
Commissions | Commissions Commissions on management fees are accounted for on an accrual basis and are recognized in the accounting period in which the associated management fee is earned. |
Earnings Per Share | Earnings Per Share Basic earnings per share attributable to our shareholders is calculated by dividing net income (adjusted for the allocation of earnings to participating restricted stock awards) by the weighted-average number of shares outstanding. We have calculated earnings per share using the two-class method. There are some participating restricted stock awards that are paid non-forfeitable dividends. Under the two-class method, net income attributable to JHG is adjusted for the allocation of earnings to participating restricted stock awards. Diluted earnings per share is calculated in a similar way to basic earnings per share but is adjusted for the effect of potential common shares unless they are anti-dilutive. |
Contingent Consideration | Contingent Consideration Contingent consideration, resulting from the Management Buyout of Intech, is recognized at fair value at the acquisition date as part of the disposal and discounted where the time value of money is material. The determination of the fair value is based on DCFs, with the key assumptions being the revenue estimates, discount rate and volatility. The contingent consideration is subsequently remeasured to fair value at each reporting date through other non-operating income. See Note 3 – Acquisitions and Dispositions for further information on the Management buyout of Intech, and Note 11 — Fair Value Measurements, in Part II, Item 8, Financial Statements and Supplemental Data, for further information about contingent consideration. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of the identifiable net assets of acquired companies and is capitalized within the Consolidated Balance Sheets. Intangible assets consist primarily of investment management contracts and trademarks acquired as part of business combinations. Investment management contracts have been identified as separately identifiable intangible assets arising on the acquisition of subsidiaries or businesses. Such contracts are recognized at the present value of the expected future cash flows of the investment management contracts at the date of acquisition. Investment management contracts may be classified as either indefinite-lived investment management contracts or definite-lived client relationships. Indefinite-lived intangible assets comprise investment management agreements where the agreements are with investment companies themselves and not with underlying investors. Such contracts are typically renewed indefinitely and, therefore, we consider the contract life to be indefinite and, as a result, the contracts are not amortized. Definite-lived intangible assets comprise client relationships where the agreements are with the underlying investor. Definite-lived client relationships are amortized on a straight-line basis over their remaining useful lives. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually or more frequently if changes in circumstances indicate that the carrying value may be impaired. Intangible assets subject to amortization are tested for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. If the fair value of our sole reporting unit or intangible asset is less than the carrying amount, an impairment is recognized. Any impairment is recognized immediately through net income and cannot subsequently be reversed. We have determined that we have one reporting unit for goodwill impairment testing purposes, which is consistent with internal management reporting and management’s oversight of operations. We may first assess goodwill for impairment using qualitative factors to determine whether it is necessary to perform a quantitative impairment test. Goodwill and intangible assets require significant management estimates and judgment, including the valuation and expected life determination upon inception and the ongoing evaluation for impairment. |
Foreign Currency | Foreign Currency Transactions in foreign currencies are recorded at the appropriate exchange rate prevailing at the date of the transaction. Foreign currency monetary balances at the reporting date are converted at the prevailing exchange rate. Foreign currency non-monetary balances carried at fair value or cost are translated at the rates prevailing at the date when the fair value or cost is determined. Gains and losses arising on retranslation are recognized as a component of other comprehensive income. On consolidation, the assets and liabilities of our operations for which the functional currency is not USD are translated at exchange rates prevailing at the reporting date. Income and expense items are recognized at the appropriate exchange rate prevailing at the date of the transaction. Foreign currency differences arising, if any, are taken through other comprehensive income to accumulated other comprehensive income. In the period in which an operation is disposed of, translation differences previously recognized within accumulated other comprehensive income are recognized as a component of other comprehensive income. |
Post-Employment Retirement Benefits | Post-Employment Retirement Benefits We provide employees with retirement benefits through both defined benefit and defined contribution plans. The assets of these plans are held separately from our general assets in trustee-administered funds. Contributions to the defined contribution plan are expensed to employee compensation and benefits on the Consolidated Statements of Comprehensive Income when they become payable. Defined benefit obligations and the cost of providing benefits are determined annually by independent qualified actuaries using the projected unit credit method. Our annual measurement date of the defined benefit plan is December 31. The defined benefit obligation is measured as the present value of the estimated future cash outflows using a discount rate based on AA-rated corporate bond yields of appropriate duration. The plan assets are recognized at fair value. The funded status of the defined benefit pension plans (the resulting surplus or deficit of defined benefit assets less liabilities) is recognized within retirement benefit asset, net on the Consolidated Balance Sheets, net of any taxes that would be deducted at source. Actuarial gains and losses arise as a result of the difference between actual experience and actuarial assumptions. We have adopted the 10% corridor method for recognizing actuarial gains and losses, which means that cumulative actuarial gains or losses up to an amount equal to 10% of the higher of the liabilities or assets of the scheme (the corridor) have no immediate impact on net income and are instead recognized through other comprehensive income. Cumulative gains or losses greater than the corridor are amortized to net income over the average future lifetime of inactive members of the plan on the grounds that there are no further active members of the plans remaining. Net periodic benefit cost is recorded as a component of net income within the Consolidated Statements of Comprehensive Income and includes service cost, interest cost, expected return on plan assets and any actuarial gains and losses previously recognized as a component of other comprehensive income that have been amortized in the period. Net periodic benefit costs, with the exception of service costs, are recognized within other non-operating income, net on the Consolidated Statements of Comprehensive Income; service costs are recognized within employee compensation and benefits. See Note 17 — Retirement Benefit Plans, in Part II, Item 8, Financial Statements and Supplemental Data, for further discussion of our pension plans. |
Common Stock | Common Stock JHG’s ordinary shares, par value $1.50 per share, are classified as equity instruments. Equity shares issued by us are recorded at the fair value of the proceeds received or the market price on the day of issue. Direct issue costs, net of tax, are deducted from additional paid-in-capital within equity. Treasury shares held are equity shares of JHG acquired by or issued to employee benefit trusts. Treasury shares held are recorded at cost and are deducted from equity. No gain or loss is recognized within the Consolidated Statements of Comprehensive Income on the purchase, issue, sale or cancellation of our own equity shares. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of tables for prior period financial statement revisions | The impact of the error on the Consolidated Balance Sheets as of December 31, 2021, is as follows (in millions): December 31, 2021 As Previously Reported Impact of Revisions As Revised ASSETS Goodwill 1,374.3 (32.8) 1,341.5 Other non-current assets 172.9 7.7 180.6 Total assets $ 6,727.5 $ (25.1) $ 6,702.4 LIABILITIES Accounts payable and accrued liabilities 271.6 (0.8) 270.8 Total current liabilities 786.4 (0.8) 785.6 Total liabilities $ 1,900.9 $ (0.8) $ 1,900.1 EQUITY Accumulated other comprehensive loss, net of tax (396.1) 9.1 (387.0) Retained earnings 1,073.6 (33.4) 1,040.2 Total shareholders’ equity 4,647.8 (24.3) 4,623.5 Total equity $ 4,663.2 $ (24.3) $ 4,638.9 Total liabilities, redeemable noncontrolling interests and equity $ 6,727.5 $ (25.1) $ 6,702.4 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2021, is as follows (in millions, except per share data): Year Ended December 31, 2021 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 551.6 $ 2.5 $ 554.1 Total operating expenses 1,943.6 2.5 1,946.1 Operating income (loss) 823.4 (2.5) 820.9 Income (loss) before taxes 820.2 (2.5) 817.7 Income tax benefit (provision) (205.7) 0.4 (205.3) Net income (loss) 614.5 (2.1) 612.4 Net income (loss) attributable to JHG $ 622.1 $ (2.1) $ 620.0 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 3.60 $ (0.01) $ 3.59 Diluted $ 3.59 $ (0.02) $ 3.57 Other comprehensive income (loss), net of tax: Total comprehensive income (loss) $ 542.0 $ (2.1) $ 539.9 Total comprehensive income (loss) attributable to JHG $ 550.0 $ (2.1) $ 547.9 The impact of the error on the Consolidated Statements of Comprehensive Income for the year ended December 31, 2020, is as follows (in millions, except per share data): Year Ended December 31, 2020 As Previously Reported Impact of Revisions As Revised Operating expenses: Distribution expenses $ 464.4 $ (3.3) $ 461.1 Impairment of goodwill and intangible assets 513.7 32.8 546.5 Total operating expenses 2,140.8 29.5 2,170.3 Operating income (loss) 157.8 (29.5) 128.3 Other non-operating income (expenses), net 39.7 (9.1) 30.6 Income (loss) before taxes 242.1 (38.6) 203.5 Income tax benefit (provision) (59.5) 7.3 (52.2) Net income (loss) 182.6 (31.3) 151.3 Net income (loss) attributable to JHG $ 161.6 $ (31.3) $ 130.3 Earnings (loss) per share attributable to JHG common shareholders: Basic $ 0.87 $ (0.17) $ 0.70 Diluted $ 0.87 $ (0.17) $ 0.70 Other comprehensive income (loss), net of tax: Foreign currency translation gains (losses) 71.8 9.1 80.9 Other comprehensive income (loss), net of tax 42.3 9.1 51.4 Other comprehensive income (loss) attributable to JHG $ 43.1 $ 9.1 $ 52.2 Total comprehensive income (loss) $ 224.9 $ (22.2) $ 202.7 Total comprehensive income (loss) attributable to JHG $ 204.7 $ (22.2) $ 182.5 |
Consolidation (Tables)
Consolidation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Consolidation | |
Schedule of unconsolidated variable interest entities (VIEs) | The following table presents the carrying value of investment securities included on our Consolidated Balance Sheets pertaining to unconsolidated VIEs as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Unconsolidated VIEs $ 1.5 $ 102.7 |
Schedule of consolidated voting right entities (VREs) | The following table presents the balances related to consolidated VREs that were recorded on JHG’s Consolidated Balance Sheets, including our net interest in these products, as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Investment securities $ 206.0 $ 179.6 Cash and cash equivalents 5.8 1.3 Other current assets 1.8 0.7 Accounts payable and accrued liabilities (1.0) (1.2) Total $ 212.6 $ 180.4 Redeemable noncontrolling interests in consolidated VREs (35.1) (17.5) JHG's net interest in consolidated VREs $ 177.5 $ 162.9 |
Schedule of unconsolidated voting right entities (VREs) | The following table presents the carrying value of investment securities included on our Consolidated Balance Sheets pertaining to unconsolidated VREs as of December 31, 2022 and 2021 (in millions): December 31, December 31, 2022 2021 Unconsolidated VREs $ 3.4 $ 56.6 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities, | |
Summary of investment securities | Our investment securities as of December 31, 2022 and 2021, are summarized as follows (in millions): December 31, December 31, 2022 2021 Seeded investment products: Consolidated VIEs $ 334.3 $ 250.9 Consolidated VREs 206.0 179.6 Unconsolidated VIEs and VREs 4.9 159.3 Separate accounts 29.7 56.7 Pooled investment funds — 0.1 Total seeded investment products 574.9 646.6 Investments related to deferred compensation plans 10.7 50.3 Other investments 10.3 5.4 Total investment securities $ 595.9 $ 702.3 |
Schedule of net unrealized gains (losses) on trading securities | Net unrealized gains (losses) on investment securities held by us as of December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 Unrealized gains (losses) on investment securities held at period end $ (23.5) $ (0.2) $ 69.8 |
Schedule of investment gains (losses), net in Consolidated Statements of Comprehensive Income | Investment gains (losses), net on our Consolidated Statements of Comprehensive Income included the following for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, 2022 2021 2020 Seeded investment products and hedges, net $ (15.2) $ 2.0 $ 26.6 Third-party ownership interests in seeded investment products (97.9) (8.0) 20.1 Long Tail Alpha investment 2.9 3.0 6.0 Deferred equity plan (0.9) 2.8 2.1 Other (2.2) 1.0 2.7 Investment gains (losses), net $ (113.3) $ 0.8 $ 57.5 |
Cash flows related to investment securities | Cash flows related to our investment securities for the years ended December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 Purchases Sales, Purchases Sales, Purchases Sales, and settlements and and settlements and and settlements and settlements maturities settlements maturities settlements maturities Investment securities by consolidated seeded investment products $ (88.4) $ 44.5 $ (100.4) $ 3.0 $ (103.9) $ 83.7 Investment securities (143.1) 187.7 (303.0) 125.9 (120.4) 255.2 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Forward foreign exchange contracts and swaps | |
Schedule of derivative instruments | The notional value of the foreign currency forward contracts and swaps as of December 31, 2022 and 2021, is summarized as follows (in millions): Notional value December 31, 2022 December 31, 2021 Foreign currency forward contracts and swaps $ 74.7 $ 171.4 |
Schedule of Derivative assets and liabilities | The derivative assets as of December 31, 2022 and 2021, are summarized as follows (in millions): |
Schedule of change in fair vale of derivative instruments | The change in fair value of the foreign currency forward contracts and swaps for the years ended December 31, 2022 and 2021, is summarized as follows (in millions): Year Ended December 31, 2022 2021 Gains (losses) on foreign currency forward contracts and swaps $ (2.4) $ 0.4 |
Seeded Investment Products | |
Schedule of derivative instruments | Our consolidated seeded investment products were party to the following derivative instruments as of December 31, 2022 and 2021 (in millions): Notional value December 31, 2022 December 31, 2021 Futures $ 141.3 $ 190.1 Credit default swaps 2.2 6.1 Total return swaps 10.4 — Options 0.1 0.1 Foreign currency forward contracts and swaps 18.3 22.1 |
Schedule of Derivative assets and liabilities | The derivative assets and liabilities as of December 31, 2022 and 2021, are summarized as follows (in millions): Fair value December 31, 2022 December 31, 2021 Derivative assets $ 0.1 $ 0.6 Derivative liabilities 0.6 0.4 |
Not Designated as Hedging Instrument, Trading | |
Schedule of derivative instruments | We were party to the following derivative instruments as of December 31, 2022 and 2021 (in millions): Notional value December 31, 2022 December 31, 2021 Futures $ 196.8 $ 368.7 Credit default swaps 115.1 207.2 Total return swaps 37.2 55.0 Foreign currency forward contracts and swaps 131.7 415.6 |
Not Designated as Hedging Instrument, Trading | Forward foreign exchange contracts and swaps | |
Schedule of Derivative assets and liabilities | Fair Value December 31, 2022 December 31, 2021 Derivative assets $ 0.4 $ 3.2 Derivative liabilities 1.1 — |
Not Designated as Hedging Instrument, Trading | Seeded Investment Products | |
Schedule of change in fair vale of derivative instruments | The change in fair value of the derivative instruments for the years ended December 31, 2022 and 2021, is summarized as follows (in millions): Year ended December 31, 2022 2021 Futures $ 40.8 $ (24.6) Credit default swaps 3.7 (1.6) Total return swaps 21.3 (13.3) Foreign currency forward contracts and swaps (9.6) 11.6 Total gains (losses) from derivative instruments $ 56.2 $ (27.9) |
Not Designated as Hedging Instrument | |
Schedule of Derivative assets and liabilities | The derivative assets and liabilities as of December 31, 2022 and 2021, are summarized as follows (in millions): Fair value December 31, 2022 December 31, 2021 Derivative assets $ 5.3 $ 8.8 Derivative liabilities 4.0 15.5 |
Property, Equipment, and Soft_2
Property, Equipment, and Software (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Equipment, and Software | |
Schedule of depreciation expense | The following table presents depreciation expense for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, 2022 2021 2020 Depreciation expense $ 21.6 $ 23.5 $ 26.0 |
Summary of property, equipment and software | Property, equipment and software as of December 31, 2022 and 2021, are summarized as follows (in millions): Depreciation December 31, period 2022 2021 Furniture, fixtures and computer equipment 3-10 years $ 23.9 $ 24.8 Leasehold improvements Over the shorter of 20 years or the period of the lease 27.6 40.6 Computer software 3-7 years 90.6 92.1 Property, equipment and software, gross $ 142.1 $ 157.5 Accumulated depreciation (90.3) (94.2) Property, equipment and software, net $ 51.8 $ 63.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets | |
Summary of goodwill and intangible assets | The following tables present movements in our intangible assets and goodwill during years ended December 31, 2022 and 2021 (in millions): December 31, Foreign currency December 31, 2021 Amortization Disposal Impairment translation 2022 Indefinite-lived intangible assets: Investment management agreements $ 2,114.8 $ — $ — $ (25.9) $ (42.4) $ 2,046.5 Trademarks 366.7 — (4.7) (2.0) — 360.0 Definite-lived intangible assets: Client relationships 168.4 — (84.8) (7.9) (6.8) 68.9 Accumulated amortization (107.2) (3.7) 44.7 — 5.5 (60.7) Net intangible assets $ 2,542.7 $ (3.7) $ (44.8) $ (35.8) $ (43.7) $ 2,414.7 Goodwill $ 1,341.5 $ — $ (7.0) $ — $ (81.4) $ 1,253.1 December 31, Foreign currency December 31, 2020 Amortization Disposal Impairment translation 2021 Indefinite-lived intangible assets: Investment management agreements $ 2,242.9 $ — $ — $ (115.6) $ (12.5) $ 2,114.8 Trademarks 373.2 — — (6.3) (0.2) 366.7 Definite-lived intangible assets: Client relationships 170.9 — — — (2.5) 168.4 Accumulated amortization (100.7) (7.7) — — 1.2 (107.2) Net intangible assets $ 2,686.3 $ (7.7) $ — $ (121.9) $ (14.0) $ 2,542.7 Goodwill $ 1,351.1 $ — $ — $ — $ (9.6) $ 1,341.5 |
Client relationships | |
Goodwill and Intangible Assets | |
Schedule of expected future amortization | Expected future amortization expense related to definite-lived intangible assets is summarized below (in millions): Future amortization Amount 2023 $ 1.8 2024 0.4 2025 0.4 2026 0.4 2027 0.4 Thereafter 4.8 Total $ 8.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of operating and financing lease assets and liabilities | Operating and financing lease assets and liabilities on our Consolidated Balance Sheets as of December 31, 2022 and 2021, consisted of the following (in millions): Operating lease right-of-use assets: December 31, 2022 December 31, 2021 Other non-current assets $ 79.7 $ 115.5 Operating lease liabilities: Accounts payable and accrued liabilities $ 23.7 $ 28.4 Other non-current liabilities 67.1 104.6 Total operating lease liabilities $ 90.8 $ 133.0 Finance lease right-of-use assets: Property and equipment, cost $ 16.3 $ 15.4 Accumulated depreciation (14.2) (13.4) Property and equipment, net $ 2.1 $ 2.0 Finance lease liabilities: Accounts payable and accrued liabilities $ 0.8 $ 0.7 Other non-current liabilities 1.4 1.4 Total finance lease liabilities $ 2.2 $ 2.1 |
Schedule of components of lease expense | The components of lease expense on our Consolidated Statements of Comprehensive Income during the years ended December 31, 2022, 2021 and 2020, are summarized below (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Operating lease cost (1) $ 27.5 $ 30.2 $ 31.2 Finance lease cost: Amortization of right-of-use asset (2) $ 0.8 $ 0.5 $ 0.9 Interest on lease liabilities (3) — — 0.1 Total finance lease cost $ 0.8 $ 0.5 $ 1.0 (1) Included in general, administrative and occupancy on our Consolidated Statements of Comprehensive Income. (2) Included in depreciation and amortization on our Consolidated Statements of Comprehensive Income. (3) Included in interest expense on our Consolidated Statements of Comprehensive Income. |
Schedule of operating sublease | We sublease certain office buildings in the UK. During the years ended December 31, 2022, 2021 and 2020, we received the following from tenants (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Sublease income $ 5.9 $ 7.2 $ 3.0 As collection of rents under the sublease is uncertain, we recognize impairments of a subleased ROU operating assets during the years ended December 31, 2022, 2021 and 2020, of the following (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Impairment of a subleased right-of-use operating asset $ 0.3 $ — $ 1.4 |
Schedule of cash flow statement | Cash payments for operating and finance leases included in our Consolidated Statements of Cash Flows for the years ended December 31, 2022, 2021 and 2020, consisted of the following (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Operating cash flows from operating leases $ 26.9 $ 27.9 $ 32.4 Financing cash flows from finance leases $ 0.9 $ 0.4 $ 0.7 |
Schedule of Supplemental Non Cash Lease Information | Supplemental non-cash lease information for the years ended December 31, 2022, 2021 and 2020, is summarized as follows (in millions): Year ended Year ended Year ended December 31, 2022 December 31, 2021 December 31, 2020 Increase (decrease) in ROU assets related to modified operating lease liabilities $ (3.2) $ 11.4 $ 1.2 |
Schedule of supplemental information | Year ended Year ended Weighted-average remaining lease term (in months): December 31, 2022 December 31, 2021 Operating leases 57 67 Finance leases 38 42 Year ended Year ended Weighted-average discount rate (1) : December 31, 2022 December 31, 2021 Operating leases 4.3% 4.2% Finance leases 2.2% 3.5% (1) Discounted using incremental borrowing rates determined for each lease as of the date of adoption, including consideration for specific interest rate environments. |
Schedule of future minimum payments under noncancelable finance leases | Future lease obligations (in millions) Operating leases Finance leases 2023 $ 23.9 $ 0.8 2024 22.8 0.7 2025 16.5 0.5 2026 12.5 0.2 2027 11.6 0.1 Thereafter 8.7 — Total lease payments 96.0 2.3 Less interest 5.2 0.1 Total $ 90.8 $ 2.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 in our consolidated financial statements or disclosed in the notes to our consolidated financial statements at fair value on a recurring basis as of December 31, 2022 (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 $ 688.4 $ — $ — $ 688.4 Investment securities: Consolidated VIEs 275.4 54.0 4.9 334.3 Other investment securities 171.9 89.4 0.3 261.6 Total investment securities 447.3 143.4 5.2 595.9 Seed hedge derivatives — 5.3 — 5.3 Derivatives in consolidated seeded investment products — 0.1 — 0.1 Derivatives used in foreign currency hedging program — 0.4 — 0.4 Intech option agreement — — 0.8 0.8 Intech contingent consideration — — 12.1 12.1 Volantis contingent consideration — — 0.2 0.2 Total assets $ 1,135.7 $ 149.2 $ 18.3 $ 1,303.2 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.6 $ — $ 0.6 Derivatives used in foreign currency hedging program — 1.1 — 1.1 Securities sold, not yet purchased 0.5 — — 0.5 Seed hedge derivatives — 4.0 — 4.0 Long-term debt (1) — 295.4 — 295.4 Deferred bonuses — — 46.5 46.5 Total liabilities $ 0.5 $ 301.1 $ 46.5 $ 348.1 (1) Carried at amortized cost on our Consolidated Balance Sheets and disclosed at fair value. The following table presents assets and liabilities in our consolidated financial statements or disclosed in the notes to the consolidated financial statements at fair value on a recurring basis as of December 31, 2021 (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 $ 585.4 $ — $ — $ 585.4 Investment securities: Consolidated VIEs 216.8 26.2 7.9 250.9 Other investment securities 424.1 27.3 — 451.4 Total investment securities 640.9 53.5 7.9 702.3 Seed hedge derivatives — 8.8 — 8.8 Derivatives in consolidated seeded investment products — 0.6 — 0.6 Derivatives used in foreign currency hedging program — 3.2 — 3.2 Volantis contingent consideration — — 0.9 0.9 Total assets $ 1,226.3 $ 66.1 $ 8.8 $ 1,301.2 Liabilities: Derivatives in consolidated seeded investment products $ — $ 0.4 $ — $ 0.4 Securities sold, not yet purchased 3.1 — — 3.1 Seed hedge derivatives — 15.5 — 15.5 Long-term debt (1) — 328.7 — 328.7 Deferred bonuses — — 50.5 50.5 Total liabilities $ 3.1 $ 344.6 $ 50.5 $ 398.2 (1) Carried at amortized cost on our Consolidated Balance Sheets and disclosed at fair value. |
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 years ended December 31, 2022 and 2021, were as follows (in millions): Year ended December 31, 2022 2021 Beginning of period fair value $ 8.8 $ 31.4 Intech option agreement 0.8 — Contingent consideration from sale of Intech 12.1 — Settlement of contingent consideration — (19.4) Fair value adjustments (2.0) (6.6) Transfers from Level 1 0.3 — Transfers to Level 1 (2.1) — Purchases of securities 1.0 4.6 Sales of securities (0.3) (1.2) Foreign currency translation (0.3) — End of period fair value $ 18.3 $ 8.8 |
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 years ended December 31, 2022 and 2021, were as follows (in millions): Year ended December 31, 2022 2021 Deferred Deferred bonuses bonuses Beginning of period fair value $ 50.5 $ 65.2 Fair value adjustments (2.1) 6.8 Vesting of deferred bonuses (36.5) (53.0) Amortization of deferred bonuses 38.0 31.5 Foreign currency translation (3.4) — End of period fair value $ 46.5 $ 50.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt | |
Components of debt | Our debt as of December 31, 2022 and 2021, consisted of the following (in millions): December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair value value value value 4.875% Senior Notes due 2025 $ 307.5 $ 295.4 $ 310.4 $ 328.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of provision for income taxes | The components of our provision for income taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Year ended December 31, 2022 2021 2020 Current income taxes: UK $ 10.5 $ 41.1 $ 18.7 U.S., including state and local 95.9 154.0 136.4 International 8.8 12.4 9.8 Total current income taxes 115.2 207.5 164.9 Deferred income taxes: UK (10.3) 29.6 4.4 U.S., including state and local 10.0 (8.7) (99.9) International (14.0) (23.1) (17.2) Total deferred income taxes (benefits) (14.3) (2.2) (112.7) Total income tax expense $ 100.9 $ 205.3 $ 52.2 |
Schedule of components of income before taxes | The components of our total income before taxes for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Year ended December 31, 2022 2021 2020 UK $ (44.1) $ 217.8 $ 104.5 U.S. 428.7 627.1 109.7 International (9.2) (27.2) (10.7) Total income before taxes $ 375.4 $ 817.7 $ 203.5 |
Schedule of differences between effective income tax rate and statutory federal income tax rate | Year ended December 31, 2022 2021 2020 UK statutory corporation tax rate 19.0 % 19.0 % 19.0 % Effect of foreign tax rates 6.3 3.5 4.0 Equity-based compensation 0.7 0.1 2.6 Tax adjustments 2.0 0.4 0.6 Impact of changes in statutory tax rates on deferred taxes (1.3) 3.6 3.4 Goodwill impairments — — 1.8 Taxes applicable to prior years (4.5) (1.4) (2.9) Other, net — (0.3) (0.8) Effective income tax rate, controlling interest 22.2 % 24.9 % 27.7 % Net loss (income) attributable to noncontrolling interests 4.7 0.2 (2.0) Total effective income tax rate 26.9 % 25.1 % 25.7 % |
Schedule of Significant components of deferred tax assets and liabilities | The significant components of our deferred tax assets and liabilities as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Deferred tax assets: Compensation and staff benefits $ 57.6 $ 65.3 Loss carryforwards (1) 76.7 83.8 Accrued liabilities 6.3 4.3 Debt premium 2.1 2.9 Lease liabilities 19.6 27.8 Other 13.9 17.6 Gross deferred tax assets 176.2 201.7 Valuation allowance (68.3) (83.6) Deferred tax assets, net of valuation allowance $ 107.9 $ 118.1 Deferred tax liabilities: Retirement benefits $ (24.2) $ (36.5) Goodwill and acquired intangible assets (631.2) (657.1) Lease right-of-use assets (18.9) (26.3) Other (7.1) (9.1) Gross deferred tax liabilities (681.4) (729.0) Total deferred tax (liabilities) (2) $ (573.5) $ (610.9) (1) The majority of this loss carryforward relates to the UK capital loss of $279.0 million, before tax effects, which may be carried forward without time limitation. There is a full valuation allowance against UK capital losses. (2) The change in the net deferred tax liabilities does not equal the deferred tax expense due to the foreign currency translation adjustment on deferred tax liabilities booked through equity. |
Schedule of balance sheet classification of deferred income tax assets and liabilities | Deferred tax assets and liabilities that relate to the same jurisdiction are recorded net on our Consolidated Balance Sheets as non-current balances and as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Deferred tax assets, net (included in other non-current assets) $ 1.1 $ 8.3 Deferred tax liabilities, net (574.6) (619.2) Total deferred tax (liabilities) $ (573.5) $ (610.9) |
Reconciliation of beginning and ending tax contingencies liability | A reconciliation of the beginning and ending liability for the years ended December 31, 2022, 2021 and 2020, is as follows (in millions): Year ended December 31, 2022 2021 2020 Beginning balance $ 19.2 $ 15.8 $ 14.1 Additions for tax positions of current year 9.7 5.0 — Additions for tax positions of prior years — — 3.5 Reduction due to settlement with taxing authorities (1.4) (1.2) — Reduction due to statute expirations (0.5) (0.4) (1.9) Foreign currency translation (0.3) — 0.1 Ending balance $ 26.7 $ 19.2 $ 15.8 |
Other Financial Statement Cap_2
Other Financial Statement Captions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Financial Statement Captions | |
Other current assets | Other current assets on our Consolidated Balance Sheets at December 31, 2022 and 2021, are composed of the following (in millions): December 31, 2022 2021 Prepaid expenses $ 42.4 $ 38.1 Current corporation tax 31.1 10.9 Derivatives (including collateral and margin) 22.0 56.4 Other current assets 24.8 44.8 Total other current assets $ 120.3 $ 150.2 |
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities on our Consolidated Balance Sheets at December 31, 2022 and 2021, comprise the following (in millions): December 31, 2022 2021 Accrued distribution commissions $ 60.9 $ 65.3 Accrued rebates 18.7 24.5 Other accrued liabilities 72.0 76.8 Total other accrued liabilities $ 151.6 $ 166.6 Current corporation tax (including interest) 14.9 17.6 Operating and financing leases 24.5 29.1 Derivatives 5.1 15.5 Other current liabilities 36.5 42.0 Total accounts payable and accrued liabilities $ 232.6 $ 270.8 |
Other non-current liabilities | Other non-current liabilities on our Consolidated Balance Sheets at December 31, 2022 and 2021, comprise the following (in millions): December 31, 2022 2021 Non-current tax liabilities (including interest) $ 23.0 $ 19.8 Operating leases 67.1 104.6 Other creditors 8.7 10.0 Total other non-current liabilities $ 98.8 $ 134.4 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interests. | |
Summary of redeemable noncontrolling interests | Redeemable noncontrolling interests as of December 31, 2022 and 2021, consisted of the following (in millions): December 31, 2022 2021 Consolidated seeded investment products $ 233.9 $ 148.5 Intech: Employee appreciation rights — 12.6 Founding member ownership interests — 2.3 Total redeemable noncontrolling interests $ 233.9 $ 163.4 |
Schedule of movement in redeemable noncontrolling interests in consolidated seeded investment products | The following table presents the movement in redeemable noncontrolling interests in consolidated seeded investment products for the years ended December 31, 2022, 2021, and 2020 (in millions): Year ended December 31, 2022 2021 2020 Opening balance $ 148.5 $ 70.6 $ 662.8 Changes in market value (97.9) (6.2) 22.2 Changes in ownership 184.2 84.3 (612.2) Foreign currency translation (0.9) (0.2) (2.2) Closing balance $ 233.9 $ 148.5 70.6 |
Summary of nonredeemable noncontrolling interests | Nonredeemable noncontrolling interests as of December 31, 2022 and 2021, are as follows (in millions): December 31, 2022 2021 Nonredeemable noncontrolling interests in: Seed capital investments $ 2.8 $ 2.8 Intech — 12.6 Total nonredeemable noncontrolling interests $ 2.8 $ 15.4 |
Long-Term Incentive Compensat_2
Long-Term Incentive Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of summary of PSUs granted to our CEO | The following table presents a summary of PSUs granted to our former CEO (1) Grant date February 28, 2018 February 28, 2019 February 28, 2020 February 26, 2021 Units granted 108,184 (2) 83,863 (2) 96,933 (3) 77,228 (3) Value at grant (in millions) $3.7 $2.0 $2.0 $2.0 Units vested 59,903 125,795 121,166 50,900 Vesting date February 4, 2021 February 4, 2022 December 31, 2022 December 31, 2023 (1) Units granted on February 28, 2018, were granted to our then Co-CEOs. (2) Vesting of these price-vesting units was subject to our three-year Total Shareholder Return (“TSR”) performance relative to a peer group over a three-year period following the grant date. (3) These price-vesting units may or may not vest in whole or in part three years after the date of grant, depending on our three-year TSR performance relative to a peer group during the vesting period. The February 28, 2020, and February 26, 2021, awards performance was determined as of June 30, 2022. |
Components of long-term incentive compensation expense | The components of our long-term incentive compensation expense for the years ended December 31, 2022, 2021 and 2020, are summarized as follows (in millions): Year ended December 31, 2022 2021 2020 DIP $ 84.0 $ 52.1 $ 27.4 DEP 0.3 2.8 8.7 RSP 0.2 0.9 3.5 RSA (including PSUs) 1.9 8.8 22.0 Other 3.9 3.3 3.0 Stock-based payments expense 90.3 67.9 64.6 DIP funds — liability settled 84.7 71.3 41.3 DEP funds — liability settled 0.6 13.1 23.7 MFSA — liability settled (1.5) 12.9 28.2 Profits Interests and Other (3.9) 2.9 0.9 Social Security costs 10.5 12.9 11.4 Total long-term incentive compensation expense $ 180.7 $ 181.0 $ 170.1 |
Summary of unrecognized compensation, net of estimated forfeitures, and the weighted-average number of years over which the compensation cost will be recognized | Unrecognized and unearned compensation expense based on expected vesting outcomes as of December 31, 2022, including the weighted-average number of years over which the compensation cost will be recognized, is summarized as follows (in millions): Unrecognized Weighted-average compensation years DIP $ 59.5 1.8 Other 2.6 1.4 Stock-based payments expense 62.1 1.8 DIP funds — liability settled 57.9 1.7 Other — liability settled 0.3 1.3 Social Security costs 16.8 0.7 Total unrecognized long-term incentive compensation expense $ 137.1 1.6 |
Schedule of assumptions used for fair value of stock options granted | Year ended December 31, 2022 2021 2020 SAYE SAYE SAYE Fair value of options granted £ 9.25 £ 10.28 £ 4.59 Assumptions: Dividend yield 4.27 % 3.68 % 6.50 % Expected volatility 41.82 % 41.37 % 37.59 % Risk-free interest rate 1.43 % 0.17 % 0.01 % Expected life (years) 3.17 3.00 3.00 |
Summary of outstanding options | 2022 2021 2020 Weighted-average Weighted-average Weighted-average Shares price Shares price Shares price Outstanding at January 1 492,889 $ 20.83 1,255,398 $ 27.13 1,873,927 $ 28.41 Granted 127,903 $ 24.83 83,648 $ 23.85 212,550 $ 16.06 Exercised (193,821) $ 24.34 (418,292) $ 29.04 (147,408) $ 7.21 Forfeited (40,387) $ 22.78 (427,865) $ 36.87 (683,671) $ 31.86 Outstanding at December 31 386,584 $ 19.18 492,889 $ 20.83 1,255,398 $ 27.13 Exercisable (1) 32,710 $ 10.46 92,630 $ 26.62 254,779 $ 22.74 Vested or expected to vest 386,584 $ 19.18 92,630 $ 26.62 902,633 $ 30.86 (1) The number of exercisable options represents instruments for which all vesting criteria have been satisfied and whose exercise price was below the closing price of our common stock as of the end of the period. |
Summary of intrinsic value of exercised, outstanding and exercisable options | The following table summarizes the intrinsic value of exercised, outstanding and exercisable options at December 31, 2022, 2021 and 2020 (in millions): December 31, 2022 2021 2020 Exercised $ 1.3 $ 0.3 $ — Outstanding $ 2.4 $ 7.4 $ 4.1 Exercisable $ 0.5 $ 1.0 $ 0.7 |
Deferred Equity Plan | |
Summary of unvested stock awards | 2022 2021 2020 Weighted-average Weighted-average Weighted-average Shares price Shares price Shares price Outstanding at January 1 4,949,927 $ 26.42 5,602,828 $ 24.56 5,516,920 $ 28.41 Granted 3,581,420 $ 32.44 2,285,257 $ 29.94 2,736,264 $ 20.69 Vested (2,733,825) $ 26.29 (2,699,721) $ 26.78 (2,443,459) $ 29.00 Forfeited (155,683) $ 31.48 (238,437) $ 27.37 (206,897) $ 25.42 Unvested at December 31 5,641,839 $ 29.99 4,949,927 $ 26.42 5,602,828 $ 24.56 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefit Plans | |
Schedule of plans assets and benefit obligations | Our plan assets, benefit obligations and funded status as of the December 31 measurement date were as follows (in millions): December 31, 2022 2021 Change in plan assets: Fair value of plan assets as of January 1 $ 1,142.6 $ 1,232.5 Return on plan assets (335.0) (41.5) Employer contributions 2.1 1.9 Benefits paid (15.8) (17.2) Settlements (9.7) (21.2) Foreign currency translation (123.7) (11.9) Fair value of plan assets as of December 31 660.5 1,142.6 Change in benefit obligation: Benefit obligation as of January 1 (975.2) (1,026.5) Service cost — (0.6) Interest cost (16.9) (13.5) Settlements 9.7 21.2 Curtailments — (0.3) Benefits paid 15.8 17.2 Actuarial gain 295.4 18.1 Foreign currency translation 105.6 9.2 Benefit obligation as of December 31 (565.6) (975.2) Funded status as of year-end 94.9 167.4 Tax at source — (7.1) Net retirement benefit asset recognized in the Consolidated Balance Sheets $ 94.9 $ 160.3 |
Schedule of retirement benefit asset recognized in the Consolidated Balance Sheets | Amounts recognized on our Consolidated Balance Sheets, net of tax at source, as of December 31, 2022 and 2021, consist of the following (in millions): December 31, 2022 2021 Retirement benefit assets recognized in the Consolidated Balance Sheets: Janus Henderson Group UK Pension Scheme $ 97.9 $ 165.1 Retirement benefit obligations recognized in the Consolidated Balance Sheets: Janus Henderson Group unapproved pension scheme (3.0) (4.8) Net retirement benefit asset recognized in the Consolidated Balance Sheets $ 94.9 $ 160.3 |
Schedule of key assumptions used in determining the defined benefit obligation | December 31, 2022 2021 Discount rate 4.8 % 1.9 % Inflation — Retail Price Index ("RPI") 3.3 % 3.4 % Inflation — Consumer Price Index ("CPI") 2.7 % 2.8 % Pension increases (RPI capped at 5% per annum ("p.a.")) 3.2 % 3.3 % Pension increases (RPI capped at 2.5% p.a.) 2.1 % 2.2 % Life expectancy of male aged 60 at accounting date 29.4 29.6 Life expectancy of male aged 60 in 15 years' time 30.3 30.5 |
Schedule of fair values of the JHGPS plan assets | The fair values of the JHGPS plan assets as of December 31, 2022 and 2021, by major asset class are as follows (in millions): December 31, 2022 2021 Cash and cash equivalents $ 1.8 $ 1.5 Money market instruments 8.0 17.5 Bulk annuity policy 230.7 386.6 Fixed income investments 249.3 479.7 Equity investments 170.7 257.3 Total assets at fair value $ 660.5 $ 1,142.6 |
Schedule of plan assets at fair value on a recurring basis | The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2022 (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 Cash and cash equivalents $ 1.8 $ — $ — $ 1.8 Money market instruments 8.0 — — 8.0 Bulk annuity contract — — 230.7 230.7 Fixed income investments 249.3 — — 249.3 Equity investments 170.7 — — 170.7 Total $ 429.8 $ — $ 230.7 $ 660.5 The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2021 (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 Cash and cash equivalents $ 1.5 $ — $ — $ 1.5 Money market instruments 17.5 — — 17.5 Bulk annuity contract — — 386.6 386.6 Fixed income investments 479.7 — — 479.7 Equity investments 257.3 — — 257.3 Total $ 756.0 $ — $ 386.6 $ 1,142.6 |
Schedule of actuarial gains and losses | Cumulative amounts recognized in accumulated other comprehensive income and the actuarial gain, net of tax deducted at source, credited to other comprehensive income for the years ended December 31, 2022 and 2021, are shown below (in millions): December 31, 2022 2021 Opening accumulated unamortized actuarial loss $ (32.8) $ (10.4) Actuarial loss (53.1) (35.3) Tax at source on current year actuarial gain 15.1 11.8 Prior service cost 0.4 0.4 Release of actuarial gain (loss) due to settlement event — 1.1 Release of tax at source due to settlement event — (0.4) Closing accumulated unamortized actuarial loss $ (70.4) $ (32.8) |
Schedule of key assumptions used in determining the net periodic benefit cost | December 31, 2022 2021 2020 Service cost $ — $ (0.6) $ (0.9) Settlement gain (loss) — (1.1) 1.3 Curtailment loss — (0.3) — Interest cost (16.9) (13.5) (14.1) Amortization of prior service cost (0.4) (0.4) (0.4) Expected return on plan assets 13.8 11.3 12.5 Net periodic benefit cost (3.5) (4.6) (1.6) Contributions to money purchase section (11.5) (11.3) (8.2) Total cost $ (15.0) $ (15.9) $ (9.8) The following key assumptions were used in determining the net periodic benefit cost for the years ended December 31, 2022, 2021 and 2020 (in millions): December 31, 2022 2021 2020 Discount rate 1.9 % 1.3 % 2.1 % Inflation — salaries N/A % 2.5 % 2.5 % Inflation — RPI 3.4 % 2.9 % 3.0 % Inflation — CPI 2.8 % 2.2 % 1.9 % Pension increases (RPI capped at 5% p.a.) 3.3 % 2.9 % 2.9 % Pension increases (RPI capped at 2.5% p.a.) 2.2 % 2.1 % 2.0 % Expected return on plan assets 1.6 % 1.2 % 1.7 % Amortization period for net actuarial gains at beginning of the year 9.0 9.0 9.0 |
Schedule of expected future cash flows | The expected future benefit payments for our pension plan are as follows (in millions): 2023 $ 20.0 2024 $ 20.9 2025 $ 21.3 2026 $ 22.6 2027 $ 23.6 2028-2032 $ 127.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 years ended December 31, 2022 and 2021, are as follows (in millions): Year ended December 31, 2022 2021 Foreign Retirement benefit Foreign Retirement benefit currency asset, net Total currency asset, net Total Beginning balance $ (354.2) $ (32.8) $ (387.0) $ (304.5) $ (10.4) $ (314.9) Other comprehensive loss (221.0) (38.0) (259.0) (46.9) (23.5) (70.4) Amounts reclassified from accumulated other comprehensive loss (4.1) 0.4 (3.7) (3.2) 1.1 (2.1) Total other comprehensive loss (225.1) (37.6) (262.7) (50.1) (22.4) (72.5) Less: other comprehensive loss attributable to noncontrolling interests 2.0 — 2.0 0.4 — 0.4 Ending balance $ (577.3) $ (70.4) $ (647.7) $ (354.2) $ (32.8) $ (387.0) |
Components of other comprehensive income (loss), net of tax | The components of other comprehensive income (loss), net of tax, for the years ended December 31, 2022, 2021 and 2020, are as follows (in millions): Pre-tax Tax Year ended December 31, 2022 amount expense Net amount Foreign currency translation adjustments $ (224.2) $ 3.2 $ (221.0) Retirement benefit asset, net (46.8) 8.8 (38.0) Reclassifications to net income (3.7) — (3.7) Total other comprehensive loss $ (274.7) $ 12.0 $ (262.7) Pre-tax Tax Year ended December 31, 2021 amount expense Net amount Foreign currency translation adjustments $ (48.2) $ 1.3 $ (46.9) Retirement benefit asset, net (23.5) — (23.5) Reclassifications to net income (2.1) — (2.1) Total other comprehensive loss $ (73.8) $ 1.3 $ (72.5) Pre-tax Tax Year ended December 31, 2020 amount expense Net amount Foreign currency translation adjustments $ 73.1 $ 0.3 $ 73.4 Retirement benefit asset, net (29.0) (0.1) (29.1) Reclassifications to net income 7.1 — 7.1 Total other comprehensive income $ 51.2 $ 0.2 $ 51.4 |
Earnings and Dividends Per Sh_2
Earnings and Dividends Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings and Dividends Per Share | |
Summary of earnings (loss) per share calculation | The following is a summary of the earnings per share calculation for the years ended December 31, 2022, 2021 and 2020 (in millions, except per share data): Year ended December 31, 2022 2021 2020 Net income attributable to JHG $ 372.4 $ 620.0 $ 130.3 Allocation of earnings to participating stock-based awards (11.3) (17.7) (3.8) Net income attributable to JHG common shareholders $ 361.1 $ 602.3 $ 126.5 Weighted-average common shares outstanding — basic 161.7 167.9 179.4 Dilutive effect of nonparticipating stock-based awards 0.3 0.6 0.5 Weighted-average common shares outstanding — diluted 162.0 168.5 179.9 Earnings per share: Basic (two class) $ 2.23 $ 3.59 $ 0.70 Diluted (two class) $ 2.23 $ 3.57 $ 0.70 |
Schedule of cash dividends declared and paid | Year ended December 31, 2022 2021 2020 Dividends paid per share $ 1.55 $ 1.50 $ 1.44 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Schedule of related party activity | The following table reflects amounts in our Consolidated Balance Sheets relating to fees receivable from managed funds as of December 31, 2022 and 2021 (in millions): As of December 31 2022 2021 Accrued income $ 125.3 $ 204.1 Accounts receivable 80.7 77.4 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Geographic Information | |
Summary information of entity's geographic areas | The following table provides our operating revenues by principal geographic area for the years ended December 31, 2022, 2021 and 2020 (in millions): Year ended December 31, Operating revenues 2022 2021 2020 U.S. $ 1,324.6 $ 1,634.4 $ 1,401.5 UK 315.1 639.7 562.7 Luxembourg 512.5 437.2 281.5 Australia and other 51.4 55.7 52.9 Total $ 2,203.6 $ 2,767.0 $ 2,298.6 As of December 31, Long-lived assets 2022 2021 U.S. $ 2,099.8 $ 2,153.1 UK 326.2 374.6 Australia 37.5 76.0 Other 3.0 2.3 Total $ 2,466.5 $ 2,606.0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revision of Previously Issued Financial Statements | ||||||
Impairment of goodwill | $ 123.5 | |||||
ASSETS | ||||||
Goodwill | $ 1,253.1 | $ 1,341.5 | $ 1,351.1 | |||
Other non-current assets | 205.5 | 180.6 | ||||
Total assets | 6,237.8 | 6,702.4 | ||||
LIABILITIES | ||||||
Accounts payable and accrued liabilities | 232.6 | 270.8 | ||||
Total current liabilities | 610.5 | 785.6 | ||||
Total liabilities | 1,641.3 | 1,900.1 | ||||
EQUITY | ||||||
Accumulated other comprehensive loss, net of tax | (647.7) | (387) | ||||
Retained earnings | 1,060.7 | 1,040.2 | ||||
Total shareholders' equity | 4,359.8 | 4,623.5 | ||||
Total equity | 4,362.6 | 4,638.9 | $ 4,711.6 | $ 4,906.2 | ||
Total liabilities, redeemable noncontrolling interests and equity | $ 6,237.8 | 6,702.4 | ||||
Error Correction, Adjustment | ||||||
Revision of Previously Issued Financial Statements | ||||||
Impairment of goodwill | $ 32.8 | |||||
As Previously Reported | ||||||
ASSETS | ||||||
Goodwill | 1,374.3 | |||||
Other non-current assets | 172.9 | |||||
Total assets | 6,727.5 | |||||
LIABILITIES | ||||||
Accounts payable and accrued liabilities | 271.6 | |||||
Total current liabilities | 786.4 | |||||
Total liabilities | 1,900.9 | |||||
EQUITY | ||||||
Accumulated other comprehensive loss, net of tax | (396.1) | |||||
Retained earnings | 1,073.6 | |||||
Total shareholders' equity | 4,647.8 | |||||
Total equity | 4,663.2 | |||||
Total liabilities, redeemable noncontrolling interests and equity | 6,727.5 | |||||
Impact of Revisions | ||||||
ASSETS | ||||||
Goodwill | (32.8) | |||||
Other non-current assets | 7.7 | |||||
Total assets | (25.1) | |||||
LIABILITIES | ||||||
Accounts payable and accrued liabilities | (0.8) | |||||
Total current liabilities | (0.8) | |||||
Total liabilities | (0.8) | |||||
EQUITY | ||||||
Accumulated other comprehensive loss, net of tax | 9.1 | |||||
Retained earnings | (33.4) | |||||
Total shareholders' equity | (24.3) | |||||
Total equity | (24.3) | |||||
Total liabilities, redeemable noncontrolling interests and equity | $ (25.1) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Income Statement (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses: | |||
Impairment of goodwill and intangible assets | $ 35.8 | $ 121.9 | $ 546.5 |
Distribution expenses | 498.3 | 554.1 | 461.1 |
Total operating expenses | 1,713.8 | 1,946.1 | 2,170.3 |
Operating income (loss) | 489.8 | 820.9 | 128.3 |
Other non-operating income (expenses), net | 11.5 | 8.8 | 30.6 |
Income (loss) before taxes | 375.4 | 817.7 | 203.5 |
Income tax benefit (provision) | (100.9) | (205.3) | (52.2) |
Net income (loss) | 274.5 | 612.4 | 151.3 |
Net income (loss) attributable to JHG | $ 372.4 | $ 620 | $ 130.3 |
Earnings (loss) per share attributable to JHG common shareholders: | |||
Basic (in dollars per share) | $ 2.23 | $ 3.59 | $ 0.70 |
Diluted (in dollars per share) | $ 2.23 | $ 3.57 | $ 0.70 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | $ (225.1) | $ (50.1) | $ 80.9 |
Other comprehensive income (loss), net of tax | (262.7) | (72.5) | 51.4 |
Other comprehensive income (loss) attributable to JHG | (260.7) | (72.1) | 52.2 |
Total comprehensive income | 11.8 | 539.9 | 202.7 |
Total comprehensive income attributable to JHG | $ 111.7 | 547.9 | 182.5 |
As Previously Reported | |||
Operating expenses: | |||
Impairment of goodwill and intangible assets | 513.7 | ||
Distribution expenses | 551.6 | 464.4 | |
Total operating expenses | 1,943.6 | 2,140.8 | |
Operating income (loss) | 823.4 | 157.8 | |
Other non-operating income (expenses), net | 39.7 | ||
Income (loss) before taxes | 820.2 | 242.1 | |
Income tax benefit (provision) | (205.7) | (59.5) | |
Net income (loss) | 614.5 | 182.6 | |
Net income (loss) attributable to JHG | $ 622.1 | $ 161.6 | |
Earnings (loss) per share attributable to JHG common shareholders: | |||
Basic (in dollars per share) | $ 3.60 | $ 0.87 | |
Diluted (in dollars per share) | $ 3.59 | $ 0.87 | |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | $ 71.8 | ||
Other comprehensive income (loss), net of tax | 42.3 | ||
Other comprehensive income (loss) attributable to JHG | 43.1 | ||
Total comprehensive income | $ 542 | 224.9 | |
Total comprehensive income attributable to JHG | 550 | 204.7 | |
Impact of Revisions | |||
Operating expenses: | |||
Impairment of goodwill and intangible assets | 32.8 | ||
Distribution expenses | 2.5 | (3.3) | |
Total operating expenses | 2.5 | 29.5 | |
Operating income (loss) | (2.5) | (29.5) | |
Other non-operating income (expenses), net | (9.1) | ||
Income (loss) before taxes | (2.5) | (38.6) | |
Income tax benefit (provision) | 0.4 | 7.3 | |
Net income (loss) | (2.1) | (31.3) | |
Net income (loss) attributable to JHG | $ (2.1) | $ (31.3) | |
Earnings (loss) per share attributable to JHG common shareholders: | |||
Basic (in dollars per share) | $ (0.01) | $ (0.17) | |
Diluted (in dollars per share) | $ (0.02) | $ (0.17) | |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation gains (losses) | $ 9.1 | ||
Other comprehensive income (loss), net of tax | 9.1 | ||
Other comprehensive income (loss) attributable to JHG | 9.1 | ||
Total comprehensive income | $ (2.1) | (22.2) | |
Total comprehensive income attributable to JHG | $ (2.1) | $ (22.2) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Financial Instruments (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Financial Instruments | |||
Minimum controlling interest required for consolidation (as a percent) | 9% | ||
Impairments of long-lived assets | $ 0 | $ 0 | $ 0 |
Employer contributions to deferred compensation plan | $ 0 | $ 0 | $ 0 |
Revenue Recognition | |||
Performance fee adjustment, base measurement period | 36 months | ||
Mutual funds | |||
Revenue Recognition | |||
Number of components involved in investment advisory fee payment | item | 2 | ||
Maximum | Mutual funds | |||
Revenue Recognition | |||
Performance fee adjustment, variable rate | 0.15% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Stock Based Compensation, Common Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | |
Summary of Significant Accounting Policies | |||
Stock-based compensation costs | $ 90.6 | $ 68.2 | $ 66.7 |
Proceeds from stock-based compensation plans | $ 4.3 | $ 12.5 | $ 1 |
Goodwill and Intangible Assets, Net | |||
Number of reporting unit for goodwill impairment testing purposes | segment | 1 | ||
Gain or loss recognized on purchase, issue, sale or cancellation of Henderson's own equity shares | $ 0 | ||
Par value | $ / shares | $ 1.50 | $ 1.50 |
Dispositions (Details)
Dispositions (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) tranche | Mar. 17, 2020 USD ($) | Nov. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Dispositions | |||||
Net loss on sale, before taxes | $ (9.1) | $ 16.2 | |||
Funding of term note | 15.9 | ||||
Intech Investment Management LLC | |||||
Dispositions | |||||
Ownership sold (as a percent) | 97% | ||||
Net loss on sale, before taxes | $ 9.1 | ||||
Contingent consideration receivable | 17.5 | ||||
Contingent consideration | 12.1 | ||||
Cash proceeds | 14.9 | ||||
Fair value of option agreement | $ 3.9 | 0.8 | |||
Intech Investment Management LLC | Term Note | |||||
Dispositions | |||||
Number of Tranches | tranche | 2 | ||||
Commitment for term note | $ 20 | ||||
Outstanding principle of notes receivable | 15.9 | ||||
Interest receivable included in outstanding principle balance | $ 0.4 | ||||
Term of term note | 7 years | ||||
Intech Investment Management LLC | Tranche One | Term Note | |||||
Dispositions | |||||
Funding of term note | $ 10 | ||||
Interest rate of term note | 5.50% | ||||
Intech Investment Management LLC | Tranche Two | Term Note | |||||
Dispositions | |||||
Funding of term note | $ 10 | ||||
Interest rate of term note | 6% | ||||
Geneva | |||||
Dispositions | |||||
Ownership sold (as a percent) | 100% | ||||
Net loss on sale, before taxes | $ 16.2 | ||||
Consideration received | $ 38.4 | ||||
Period of time for earnout payments | 5 years | ||||
Contingent consideration remaining earnout | $ 20 | ||||
Contingent consideration remaining base earnout | 12.5 | ||||
Contingent consideration excess earnout payment | $ 7.5 | ||||
Geneva | Minimum | |||||
Dispositions | |||||
Contingent consideration | $ 20.5 | ||||
Geneva | Maximum | |||||
Dispositions | |||||
Contingent consideration | $ 35 |
Consolidation - VIEs (Details)
Consolidation - VIEs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Consolidated VIEs | ||
Investment securities | $ 334.3 | $ 250.9 |
Unconsolidated VIEs | ||
Investment securities | $ 1.5 | $ 102.7 |
Consolidation - VREs (Details)
Consolidation - VREs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets | $ 120.3 | $ 150.2 |
Accounts payable and accrued liabilities | (232.6) | (270.8) |
Consolidated VRE's | ||
Investment securities | 206 | 179.6 |
Cash and cash equivalents | 5.8 | 1.3 |
Other current assets | 1.8 | 0.7 |
Accounts payable and accrued liabilities | (1) | (1.2) |
Total | 212.6 | 180.4 |
Redeemable noncontrolling interests in consolidated VREs | (35.1) | (17.5) |
JHG's net interest in consolidated VREs | 177.5 | 162.9 |
Unconsolidated VRE's | ||
Investment securities | $ 3.4 | $ 56.6 |
Investment Securities - General
Investment Securities - General Disclosure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term investments: | |||
Estimated Fair Value | $ 595.9 | $ 702.3 | |
Seeded Investment Products | |||
Short-term investments: | |||
Seeded investment products | 574.9 | 646.6 | |
Investment securities | Seeded Investment Products | |||
Short-term investments: | |||
Unrealized gains (losses) on investment securities held at period end | (23.5) | (0.2) | $ 69.8 |
Investment securities | Separately Managed Accounts | |||
Short-term investments: | |||
Seeded investment products | 29.7 | 56.7 | |
Investment securities | Pooled investment funds | |||
Short-term investments: | |||
Seeded investment products | 0.1 | ||
Investment securities | Investments related to deferred compensation plans | |||
Short-term investments: | |||
Estimated Fair Value | 10.7 | 50.3 | |
Investment securities | Other investments | |||
Short-term investments: | |||
Estimated Fair Value | 10.3 | 5.4 | |
Consolidated VIEs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 334.3 | 250.9 | |
Consolidated VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | 206 | 179.6 | |
Unconsolidated VIEs and VREs | Investment securities | |||
Short-term investments: | |||
Seeded investment products | $ 4.9 | $ 159.3 |
Investment Securities - Offsett
Investment Securities - Offsetting Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | $ (113.3) | $ 0.8 | $ 57.5 |
Cash flows related to investment securities | |||
Purchases and settlements | 44.6 | (177.1) | 134.8 |
Seeded investment products and hedges, net | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (15.2) | 2 | 26.6 |
Third-party ownership interests in seeded investment products | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (97.9) | (8) | 20.1 |
Long Tail Alpha investment | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | 2.9 | 3 | 6 |
Deferred Equity Plan | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (0.9) | 2.8 | 2.1 |
Other investments | |||
Derivative Instrument Denominated in Foreign Currency | |||
Investment gains (losses), net | (2.2) | 1 | 2.7 |
Investment securities | |||
Cash flows related to investment securities | |||
Purchases and settlements | (143.1) | (303) | (120.4) |
Sales, settlements and maturities | 187.7 | 125.9 | 255.2 |
Investment securities | Seeded Investment Products | Consolidated | |||
Cash flows related to investment securities | |||
Purchases and settlements | (88.4) | (100.4) | (103.9) |
Sales, settlements and maturities | $ 44.5 | $ 3 | $ 83.7 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Net gains (losses) in net income related to: | ||
Securities sold, not yet purchased | $ 0.5 | $ 3.1 |
Seeded Investment Products | ||
Derivatives | ||
Derivative assets | 0.1 | 0.6 |
Derivative liabilities | 0.6 | 0.4 |
Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Gain (losses) from derivative instruments | 56.2 | (27.9) |
Derivative assets | $ 5.3 | $ 8.8 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Derivative liabilities | $ 4 | $ 15.5 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Futures | Seeded Investment Products | ||
Derivatives | ||
Notional value of derivative | $ 141.3 | $ 190.1 |
Futures | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Gain (losses) from derivative instruments | 40.8 | (24.6) |
Futures | Derivative Instruments | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Notional value of derivative | 196.8 | 368.7 |
Credit default swaps | Seeded Investment Products | ||
Derivatives | ||
Notional value of derivative | 2.2 | 6.1 |
Credit default swaps | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Gain (losses) from derivative instruments | 3.7 | (1.6) |
Credit default swaps | Derivative Instruments | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Notional value of derivative | 115.1 | 207.2 |
Total return swaps | Seeded Investment Products | ||
Derivatives | ||
Notional value of derivative | 10.4 | |
Total return swaps | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Gain (losses) from derivative instruments | 21.3 | (13.3) |
Total return swaps | Derivative Instruments | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Notional value of derivative | 37.2 | 55 |
Options | Seeded Investment Products | ||
Derivatives | ||
Notional value of derivative | 0.1 | 0.1 |
Forward foreign exchange contracts and swaps | ||
Derivatives | ||
Notional value of derivative | 74.7 | 171.4 |
Derivative assets | 0.4 | 3.2 |
Derivative liabilities | 1.1 | |
Net gains (losses) in net income related to: | ||
Gain (loss) on change in fair value of derivatives | (2.4) | 0.4 |
Forward foreign exchange contracts and swaps | Seeded Investment Products | ||
Derivatives | ||
Notional value of derivative | 18.3 | 22.1 |
Forward foreign exchange contracts and swaps | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Gain (losses) from derivative instruments | (9.6) | 11.6 |
Forward foreign exchange contracts and swaps | Derivative Instruments | Not Designated as Hedging Instrument Trading | ||
Derivatives | ||
Notional value of derivative | $ 131.7 | $ 415.6 |
Property, Equipment, and Soft_3
Property, Equipment, and Software - Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Equipment, and Software | |||
Depreciation | $ 21.6 | $ 23.5 | $ 26 |
Property, Equipment, and Soft_4
Property, Equipment, and Software (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 142.1 | $ 157.5 |
Accumulated depreciation | (90.3) | (94.2) |
Property, equipment and software, net | 51.8 | 63.3 |
Furniture, fixtures and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 23.9 | $ 24.8 |
Furniture, fixtures and computer equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period | 3 years | 3 years |
Furniture, fixtures and computer equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period | 10 years | 10 years |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 27.6 | $ 40.6 |
Computer software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and software, gross | $ 90.6 | $ 92.1 |
Computer software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period | 3 years | 3 years |
Computer software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation period | 7 years | 7 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2021 | |
Indefinite-lived intangible assets: | ||||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible assets impairment | |||||
Definite-lived intangible assets: | ||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible assets impairment | |||||
Accumulated amortization, balance at the beginning of the period | $ (107.2) | $ (107.2) | $ (100.7) | |||
Amortization | (3.7) | (7.7) | ||||
Disposal | 44.7 | |||||
Foreign currency translation | 5.5 | 1.2 | ||||
Accumulated amortization, balance at the end of the period | (60.7) | (107.2) | $ (100.7) | |||
Net intangible assets | ||||||
Net intangible assets, balance at the beginning of the period | 2,542.7 | 2,542.7 | 2,686.3 | |||
Amortization | (3.7) | (7.7) | ||||
Disposal | (44.8) | |||||
Impairment | (35.8) | (121.9) | ||||
Foreign currency translation | (43.7) | (14) | ||||
Net intangible assets, balance at the end of the period | 2,414.7 | 2,542.7 | 2,686.3 | |||
Goodwill | ||||||
Goodwill, balance at the beginning of the period | 1,341.5 | 1,341.5 | 1,351.1 | |||
Disposal | (7) | |||||
Impairment | $ (123.5) | |||||
Foreign currency translation | (81.4) | (9.6) | ||||
Goodwill, balance at the end of the period | 1,253.1 | 1,341.5 | 1,351.1 | |||
Goodwill and intangible assets impairment | 35.8 | 121.9 | 546.5 | |||
Intech Investment Management LLC | ||||||
Goodwill | ||||||
Disposal | (7) | |||||
Client relationships | ||||||
Indefinite-lived intangible assets: | ||||||
Disposal | (84.8) | |||||
Definite-lived intangible assets: | ||||||
Balance at the beginning of the period | 168.4 | 168.4 | 170.9 | |||
Disposal | 84.8 | |||||
Impairment | 7.9 | |||||
Foreign currency translation | (6.8) | (2.5) | ||||
Balance at the end of the period | $ 68.9 | 168.4 | 170.9 | |||
Estimated life | 16 years | |||||
Client relationships | Intech Investment Management LLC | ||||||
Goodwill | ||||||
Disposal | (40.1) | |||||
Finite-Lived Intangible Assets | ||||||
Indefinite-lived intangible assets: | ||||||
Balance at the end of the period | $ 6.9 | |||||
Indefinite-Lived Intangible Assets | 6.9 | |||||
Goodwill | ||||||
Goodwill and intangible assets impairment | 7.9 | |||||
Investment management agreements | ||||||
Indefinite-lived intangible assets: | ||||||
Balance at the beginning of the period | 2,114.8 | 2,114.8 | 2,242.9 | |||
Impairment | (25.9) | (115.6) | ||||
Foreign currency translation | (42.4) | (12.5) | ||||
Balance at the end of the period | 2,046.5 | 2,114.8 | 2,242.9 | |||
Indefinite-Lived Intangible Assets | 2,046.5 | 2,114.8 | 2,242.9 | |||
Certain indefinite-lived Intangible Assets | ||||||
Indefinite-lived intangible assets: | ||||||
Balance at the beginning of the period | 17.7 | 17.7 | ||||
Balance at the end of the period | 17.7 | |||||
Indefinite-Lived Intangible Assets | 17.7 | |||||
Goodwill | ||||||
Goodwill and intangible assets impairment | 22.3 | |||||
Trademarks | ||||||
Indefinite-lived intangible assets: | ||||||
Balance at the beginning of the period | 366.7 | 366.7 | 373.2 | |||
Disposal | (4.7) | |||||
Impairment | (2) | $ (6.3) | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Goodwill and intangible assets impairment | |||||
Foreign currency translation | $ (0.2) | |||||
Balance at the end of the period | 360 | 366.7 | 373.2 | |||
Indefinite-Lived Intangible Assets | 360 | 366.7 | $ 373.2 | |||
Definite-lived intangible assets: | ||||||
Disposal | 4.7 | |||||
Trademarks | Intech Investment Management LLC | ||||||
Goodwill | ||||||
Disposal | (4.7) | |||||
Certain Trademarks | ||||||
Indefinite-lived intangible assets: | ||||||
Balance at the beginning of the period | $ 0 | 0 | ||||
Balance at the end of the period | 0 | 0 | ||||
Indefinite-Lived Intangible Assets | 0 | $ 0 | $ 2 | |||
Goodwill | ||||||
Goodwill and intangible assets impairment | $ 3.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Future Amortization (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Future Amortization: | |
2023 | $ 1.8 |
2024 | 0.4 |
2025 | 0.4 |
2026 | 0.4 |
2027 | 0.4 |
Thereafter | 4.8 |
Total | $ 8.2 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Option to extend - Operating | true |
Option to extend - Finance | true |
Option to terminate - Operating | true |
Option to terminate - Finance | true |
Minimum | |
Leases | |
Remaining lease term | 1 year |
Maximum | |
Leases | |
Remaining lease term | 10 years |
Leases - Balance Sheet (Details
Leases - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease right-of-use assets | $ 79.7 | $ 115.5 |
Financial position | Other non-current assets | Other non-current assets |
Operating lease liabilities - current | $ 23.7 | $ 28.4 |
Financial position | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Operating lease liabilities - noncurrent | $ 67.1 | $ 104.6 |
Financial position | Other non-current liabilities | Other non-current liabilities |
Total Operating lease liabilities | $ 90.8 | $ 133 |
Property and equipment, at cost | 16.3 | 15.4 |
Accumulated depreciation | (14.2) | (13.4) |
Finance lease right-of-use assets | $ 2.1 | $ 2 |
Financial position | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Finance lease liabilities - current | $ 0.8 | $ 0.7 |
Financial position | Accounts payable and accrued liabilities | Accounts payable and accrued liabilities |
Finance lease liabilities - noncurrent | $ 1.4 | $ 1.4 |
Financial position | Other non-current liabilities | Other non-current liabilities |
Total Finance lease liabilities | $ 2.2 | $ 2.1 |
Leases - Statement of Comprehen
Leases - Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of lease cost: | |||
Operating lease cost | $ 27.5 | $ 30.2 | $ 31.2 |
Amortization of right-of-use asset | 0.8 | 0.5 | 0.9 |
Interest on lease liabilities | 0.1 | ||
Total finance lease cost | 0.8 | 0.5 | 1 |
Sublease income | 5.9 | $ 7.2 | 3 |
Impairment of a subleased right-of-use operating asset | $ 0.3 | $ 1.4 |
Leases - Cash Flow Statement (D
Leases - Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Operating cash flows from operating leases | $ 26.9 | $ 27.9 | $ 32.4 |
Financing cash flows from finance leases | $ 0.9 | $ 0.4 | $ 0.7 |
Leases - Supplemental non-cash
Leases - Supplemental non-cash lease Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Increase (decrease) in ROU assets related to modified operating lease liabilities | $ (3.2) | $ 11.4 | $ 1.2 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Operating leases -Weighted-average remaining lease term (in months) | 57 months | 67 months |
Finance leases - Weighted-average remaining lease term (in months) | 38 months | 42 months |
Operating leases - Weighted-average discount rate | 4.30% | 4.20% |
Finance leases - Weighted-average discount rate | 2.20% | 3.50% |
Leases - Future lease obligatio
Leases - Future lease obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases | ||
2023 | $ 23.9 | |
2024 | 22.8 | |
2025 | 16.5 | |
2026 | 12.5 | |
2027 | 11.6 | |
Thereafter | 8.7 | |
Total lease payments | 96 | |
Less interest | 5.2 | |
Total | 90.8 | $ 133 |
Finance leases | ||
2023 | 0.8 | |
2024 | 0.7 | |
2025 | 0.5 | |
2026 | 0.2 | |
2027 | 0.1 | |
Total lease payments | 2.3 | |
Less interest | 0.1 | |
Total | $ 2.2 | $ 2.1 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Method Investments | ||
Gains (losses) from equity-method investments, net | $ 2.9 | $ 3 |
Other non-current assets | ||
Equity Method Investments | ||
Equity method investments | $ 18.7 | $ 16.3 |
Long Tail Alpha investment | ||
Equity Method Investments | ||
Percentage owned | 20% |
Fair Value Measurements - Level
Fair Value Measurements - Level of Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current | ||
Liabilities | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current | ||
Securities sold, not yet purchased | $ 0.5 | $ 3.1 | ||
Total redeemable noncontrolling interests | 233.9 | 163.4 | ||
Forward foreign exchange contracts and swaps | ||||
Assets | ||||
Derivative assets | 0.4 | 3.2 | ||
Liabilities | ||||
Derivative liabilities | 1.1 | |||
Intech Investment Management LLC | ||||
Assets | ||||
Contingent consideration | 12.1 | |||
Seeded Investment Products | ||||
Assets | ||||
Derivative assets | 0.1 | 0.6 | ||
Liabilities | ||||
Derivative liabilities | 0.6 | 0.4 | ||
Total redeemable noncontrolling interests | 233.9 | 148.5 | $ 70.6 | $ 662.8 |
INTECH Founders | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 2.3 | |||
Consolidated | Seeded Investment Products | ||||
Liabilities | ||||
Total redeemable noncontrolling interests | 233.9 | 148.5 | ||
Consolidated VIEs | ||||
Assets | ||||
Total investment securities | 334.3 | 250.9 | ||
Unconsolidated VIEs | ||||
Assets | ||||
Total investment securities | 1.5 | 102.7 | ||
Fair value measurements, recurring | ||||
Assets | ||||
Cash equivalents | 688.4 | 585.4 | ||
Total investment securities | 702.3 | |||
Total assets | 1,303.2 | 1,301.2 | ||
Liabilities | ||||
Securities sold, not yet purchased | 0.5 | 3.1 | ||
Long-term debt | 295.4 | 328.7 | ||
Total liabilities | 348.1 | 398.2 | ||
Fair value measurements, recurring | Deferred bonus | ||||
Liabilities | ||||
Derivative liabilities | 46.5 | 50.5 | ||
Fair value measurements, recurring | Forward foreign exchange contracts and swaps | ||||
Assets | ||||
Derivative assets | 0.4 | 3.2 | ||
Liabilities | ||||
Derivative liabilities | 1.1 | |||
Fair value measurements, recurring | Intech Investment Management LLC | ||||
Assets | ||||
Contingent consideration | 12.1 | |||
Fair value measurements, recurring | Intech Investment Management LLC | Option Agreement | ||||
Assets | ||||
Derivative assets | 0.8 | |||
Fair value measurements, recurring | Volantis | ||||
Assets | ||||
Contingent consideration | 0.2 | 0.9 | ||
Fair value measurements, recurring | Investment securities. | ||||
Assets | ||||
Total investment securities | 595.9 | |||
Fair value measurements, recurring | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 5.3 | 8.8 | ||
Liabilities | ||||
Derivative liabilities | 4 | 15.5 | ||
Fair value measurements, recurring | Seeded Investment Products | ||||
Assets | ||||
Derivative assets | 0.6 | |||
Fair value measurements, recurring | Level 1 | ||||
Assets | ||||
Cash equivalents | 688.4 | 585.4 | ||
Total investment securities | 640.9 | |||
Total assets | 1,135.7 | 1,226.3 | ||
Liabilities | ||||
Securities sold, not yet purchased | 0.5 | 3.1 | ||
Total liabilities | 0.5 | 3.1 | ||
Fair value measurements, recurring | Level 1 | Investment securities. | ||||
Assets | ||||
Total investment securities | 447.3 | |||
Fair value measurements, recurring | Level 2 | ||||
Assets | ||||
Total investment securities | 53.5 | |||
Total assets | 149.2 | 66.1 | ||
Liabilities | ||||
Long-term debt | 295.4 | 328.7 | ||
Total liabilities | 301.1 | 344.6 | ||
Fair value measurements, recurring | Level 2 | Forward foreign exchange contracts and swaps | ||||
Assets | ||||
Derivative assets | 0.4 | 3.2 | ||
Liabilities | ||||
Derivative liabilities | 1.1 | |||
Fair value measurements, recurring | Level 2 | Investment securities. | ||||
Assets | ||||
Total investment securities | 143.4 | |||
Fair value measurements, recurring | Level 2 | Seed hedge derivatives | ||||
Assets | ||||
Derivative assets | 5.3 | 8.8 | ||
Liabilities | ||||
Derivative liabilities | 4 | 15.5 | ||
Fair value measurements, recurring | Level 2 | Seeded Investment Products | ||||
Assets | ||||
Derivative assets | 0.6 | |||
Fair value measurements, recurring | Level 3 | ||||
Assets | ||||
Total investment securities | 7.9 | |||
Total assets | 18.3 | 8.8 | ||
Liabilities | ||||
Total liabilities | 46.5 | 50.5 | ||
Fair value measurements, recurring | Level 3 | Deferred bonus | ||||
Liabilities | ||||
Derivative liabilities | 46.5 | 50.5 | ||
Fair value measurements, recurring | Level 3 | Intech Investment Management LLC | ||||
Assets | ||||
Contingent consideration | 12.1 | |||
Fair value measurements, recurring | Level 3 | Intech Investment Management LLC | Option Agreement | ||||
Assets | ||||
Derivative assets | 0.8 | |||
Fair value measurements, recurring | Level 3 | Volantis | ||||
Assets | ||||
Contingent consideration | 0.2 | 0.9 | ||
Fair value measurements, recurring | Level 3 | Investment securities. | ||||
Assets | ||||
Total investment securities | 5.2 | |||
Fair value measurements, recurring | Consolidated | Seeded Investment Products | ||||
Assets | ||||
Derivative assets | 0.1 | |||
Liabilities | ||||
Derivative liabilities | 0.6 | 0.4 | ||
Fair value measurements, recurring | Consolidated | Level 2 | Seeded Investment Products | ||||
Assets | ||||
Derivative assets | 0.1 | |||
Liabilities | ||||
Derivative liabilities | 0.6 | 0.4 | ||
Fair value measurements, recurring | Consolidated VIEs | ||||
Assets | ||||
Total investment securities | 250.9 | |||
Fair value measurements, recurring | Consolidated VIEs | Investment securities. | ||||
Assets | ||||
Total investment securities | 334.3 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | ||||
Assets | ||||
Total investment securities | 216.8 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 1 | Investment securities. | ||||
Assets | ||||
Total investment securities | 275.4 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | ||||
Assets | ||||
Total investment securities | 26.2 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 2 | Investment securities. | ||||
Assets | ||||
Total investment securities | 54 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | ||||
Assets | ||||
Total investment securities | 7.9 | |||
Fair value measurements, recurring | Consolidated VIEs | Level 3 | Investment securities. | ||||
Assets | ||||
Total investment securities | 4.9 | |||
Fair value measurements, recurring | Unconsolidated VIEs | ||||
Assets | ||||
Total investment securities | 451.4 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Investment securities. | ||||
Assets | ||||
Total investment securities | 261.6 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | ||||
Assets | ||||
Total investment securities | 424.1 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Level 1 | Investment securities. | ||||
Assets | ||||
Total investment securities | 171.9 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | ||||
Assets | ||||
Total investment securities | $ 27.3 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Level 2 | Investment securities. | ||||
Assets | ||||
Total investment securities | 89.4 | |||
Fair value measurements, recurring | Unconsolidated VIEs | Level 3 | Investment securities. | ||||
Assets | ||||
Total investment securities | $ 0.3 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation techniques and significant unobservable inputs (Details) $ in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair value measurements, recurring | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | $ 702.3 | |
Fair value measurements, nonrecurring | Goodwill and Intangible Assets | Terminal Growth Rate | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Asset, measurement input | 0.03 | |
Level 3 | Fair value measurements, recurring | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | 7.9 | |
Level 3 | Fair value measurements, nonrecurring | Goodwill and Intangible Assets | Discounted cash flow | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Asset, measurement input | 0.128 | |
Consolidated VIEs | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | $ 334.3 | 250.9 |
Consolidated VIEs | Fair value measurements, recurring | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | 250.9 | |
Consolidated VIEs | Level 3 | Fair value measurements, recurring | ||
Changes in fair value of the recurring Level 3 fair value measurement | ||
Investment securities | $ 7.9 |
Fair Value Measurements - Intec
Fair Value Measurements - Intech Option Agreement and Contingent Consideration (Details) - Intech Investment Management LLC - USD ($) $ in Millions | Dec. 31, 2022 | Mar. 31, 2022 |
Dispositions | ||
Contingent consideration receivable | $ 17.5 | |
Fair value of option agreement | $ 0.8 | |
Fair value of contingent consideration | $ 12.1 |
Fair Value Measurements - Lev_2
Fair Value Measurements - Level 3 Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in fair value of Level 3 assets | ||
Balance at the beginning of period, Asset value | $ 8.8 | $ 31.4 |
Intech option agreement | 0.8 | |
Contingent consideration from sale of Intech | 12.1 | |
Settlement of contingent consideration | (19.4) | |
Fair value adjustments | (2) | (6.6) |
Transfers from level 1 | 0.3 | |
Transfers to Level 1 | (2.1) | |
Purchases of securities | 1 | 4.6 |
Sales of securities | (0.3) | (1.2) |
Foreign currency translation | (0.3) | |
Balance at the end of period, Asset value | $ 18.3 | $ 8.8 |
Change in fair value of Level 3 liabilities | ||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Investments | Gain (Loss) on Investments |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax |
Level 3 | Fair value measurements, recurring | Deferred bonuses | ||
Change in fair value of Level 3 liabilities | ||
Balance at the beginning of period, Liability Value | $ 50.5 | $ 65.2 |
Fair value adjustments | (2.1) | 6.8 |
Vesting of deferred bonuses | (36.5) | (53) |
Amortization of deferred bonuses | (38) | (31.5) |
Foreign currency translation | (3.4) | |
Balance at the end of period, Liability Value | $ 46.5 | $ 50.5 |
Debt (Details)
Debt (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
4.875% Senior Notes due 2025 | ||
Components of debt | ||
Interest rate (as a percent) | 4.875% | 4.875% |
Other Disclosures | ||
Face value of debt issued | $ 300 | |
Periodic interest payments | 14.6 | |
4.875% Senior Notes due 2025 | Carrying value | ||
Components of debt | ||
Total debt | 307.5 | $ 310.4 |
4.875% Senior Notes due 2025 | Fair value | ||
Components of debt | ||
Total debt | 295.4 | $ 328.7 |
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 | |
Janus Capital Group Inc | 4.875% Senior Notes due 2025 | ||
Other Disclosures | ||
Unamortized premium, net | $ 7.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Total Current income taxes | $ 115.2 | $ 207.5 | $ 164.9 |
Deferred: | |||
Total deferred income taxes (benefits) | (14.3) | (2.2) | (112.7) |
Total income tax expense (benefit) | 100.9 | 205.3 | 52.2 |
Components of income before taxes | |||
Income before taxes | 375.4 | 817.7 | 203.5 |
UK | |||
Current: | |||
Non-US | 10.5 | 41.1 | 18.7 |
Deferred: | |||
Non-US | (10.3) | 29.6 | 4.4 |
Components of income before taxes | |||
UK | $ (44.1) | $ 217.8 | $ 104.5 |
Reconciliation between statutory rate and effective tax rate: | |||
UK statutory corporation tax rate (as a percentage) | 19% | 19% | 19% |
Effect of foreign tax rates (as a percentage) | 6.30% | 3.50% | 4% |
Equity-based compensation (as a percentage) | 0.70% | 0.10% | 2.60% |
Tax adjustments (as a percentage) | 2% | 0.40% | 0.60% |
Impact of changes in statutory tax rates on deferred taxes (as a percentage) | (1.30%) | 3.60% | 3.40% |
Goodwill impairments | 1.80% | ||
Taxes applicable to prior years (as a percentage) | (4.50%) | (1.40%) | (2.90%) |
Other, net (as a percentage) | (0.30%) | (0.80%) | |
Effective income tax rate, controlling interest (as a percentage) | 22.20% | 24.90% | 27.70% |
Net income attributable to noncontrolling interests (as a percentage) | 4.70% | 0.20% | (2.00%) |
Total effective income tax rate (as a percentage) | 26.90% | 25.10% | 25.70% |
U.S. | |||
Current: | |||
U.S. including state and local | $ 95.9 | $ 154 | $ 136.4 |
Deferred: | |||
U.S. including state and local | 10 | (8.7) | (99.9) |
Components of income before taxes | |||
U.S. | 428.7 | 627.1 | 109.7 |
International. | |||
Current: | |||
Non-US | 8.8 | 12.4 | 9.8 |
Deferred: | |||
Non-US | (14) | (23.1) | (17.2) |
Components of income before taxes | |||
UK | $ (9.2) | $ (27.2) | $ (10.7) |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets: | |||
Compensation and staff benefits | $ 57.6 | $ 65.3 | |
Loss carryforwards | 76.7 | 83.8 | |
Accrued liabilities | 6.3 | 4.3 | |
Debt premium | 2.1 | 2.9 | |
Lease liabilities | 19.6 | 27.8 | |
Other | 13.9 | 17.6 | |
Gross deferred tax assets | 176.2 | 201.7 | |
Valuation allowance | (68.3) | (83.6) | |
Deferred tax assets, net of valuation allowance | 107.9 | 118.1 | |
Deferred tax liabilities: | |||
Retirement benefits | (24.2) | (36.5) | |
Goodwill and acquired intangible assets | (631.2) | (657.1) | |
Lease right-of-use assets | (18.9) | (26.3) | |
Other | (7.1) | (9.1) | |
Gross deferred tax liabilities | (681.4) | (729) | |
Total deferred tax (liabilities) | (573.5) | (610.9) | |
Deferred tax assets and liabilities reflected on the balance sheet | |||
Deferred tax liabilities, net | (574.6) | (619.2) | |
Total deferred tax (liabilities) | (573.5) | $ (610.9) | |
Change in valuation allowance for deferred tax assets | $ (15.3) | ||
UK | |||
Deferred tax assets and liabilities reflected on the balance sheet | |||
Corporation tax rate (as a percent) | 19% | 19% | 19% |
Tax loss carryforwards | $ 279 | ||
Other non-current assets | |||
Deferred tax assets and liabilities reflected on the balance sheet | |||
Deferred tax assets, net (included in other non-current assets) | $ 1.1 | $ 8.3 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of beginning and ending liability: | |||
Balance at the beginning of the year | $ 19.2 | $ 15.8 | $ 14.1 |
Additions for tax positions of current year | 9.7 | 5 | |
Additions for tax positions of prior years | 3.5 | ||
Reduction due to settlement with taxing authorities | (1.4) | (1.2) | |
Reduction due to statute expirations | (0.5) | (0.4) | (1.9) |
Foreign currency translation | 0.1 | ||
Foreign currency translation | (0.3) | ||
Balance at the end of the year | 26.7 | 19.2 | 15.8 |
Accrued interest included in liability for income tax contingencies | 3.9 | $ 2.6 | $ 2.1 |
Anticipated decrease in income tax benefits in the next 12 months | $ 6.3 |
Other Financial Statement Cap_3
Other Financial Statement Captions (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other current assets | ||
Prepaid expenses | $ 42.4 | $ 38.1 |
Current corporation tax | 31.1 | 10.9 |
Derivatives (including collateral and margin) | 22 | 56.4 |
Other current assets | 24.8 | 44.8 |
Total other current assets | 120.3 | 150.2 |
Other non-current assets | 205.5 | 180.6 |
Other accrued liabilities | ||
Accrued distribution commissions | 60.9 | 65.3 |
Accrued rebates | 18.7 | 24.5 |
Other accrued liabilities | 72 | 76.8 |
Total other accrued liabilities | 151.6 | 166.6 |
Accounts payable and accrued liabilities | ||
Current corporation tax (including interest) | 14.9 | 17.6 |
Operating and financing leases | 24.5 | 29.1 |
Derivatives | 5.1 | 15.5 |
Other current liabilities | 36.5 | 42 |
Total accounts payable and accrued liabilities | 232.6 | 270.8 |
Other non-current liabilities | ||
Non-current tax liabilities (including interest) | 23 | 19.8 |
Operating leases | $ 67.1 | $ 104.6 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total other non-current liabilities | Total other non-current liabilities |
Other creditors | $ 8.7 | $ 10 |
Total other non-current liabilities | $ 98.8 | $ 134.4 |
Noncontrolling Interests - Rede
Noncontrolling Interests - Redeemable (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2019 | |
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | $ 163.4 | $ 233.9 | ||
Seeded Investment Products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 148.5 | 233.9 | $ 70.6 | $ 662.8 |
INTECH Founders | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 2.3 | |||
Consolidated | Seeded Investment Products | ||||
Redeemable Noncontrolling Interests | ||||
Total redeemable noncontrolling interests | 148.5 | $ 233.9 | ||
Intech | Subsidiaries | ||||
Redeemable Noncontrolling Interests | ||||
INTECH employee appreciation rights | $ 12.6 |
Noncontrolling interests - Seed
Noncontrolling interests - Seeded Investment Products (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||
Opening balance | $ 163.4 | ||
Closing balance | 233.9 | $ 163.4 | |
Seeded Investment Products | |||
Roll forward of redeemable noncontrolling interests in consolidated seed investment products | |||
Opening balance | 148.5 | 70.6 | $ 662.8 |
Changes in market value | (97.9) | (6.2) | 22.2 |
Changes in ownership | 184.2 | 84.3 | (612.2) |
Foreign currency translation | (0.9) | (0.2) | (2.2) |
Closing balance | $ 233.9 | $ 148.5 | $ 70.6 |
Noncontrolling Interests - Nonr
Noncontrolling Interests - Nonredeemable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Nonredeemable noncontrolling interests | |||
Total nonredeemable noncontrolling interests | $ 2.8 | $ 15.4 | |
Intech Investment Management LLC | |||
Nonredeemable noncontrolling interests | |||
Ownership sold (as a percent) | 97% | ||
Seeded Investment Products | |||
Nonredeemable noncontrolling interests | |||
Total nonredeemable noncontrolling interests | $ 2.8 | 2.8 | |
Subsidiaries | |||
Nonredeemable noncontrolling interests | |||
Total nonredeemable noncontrolling interests | $ 12.6 |
Long-Term Incentive Compensat_3
Long-Term Incentive Compensation - (Details) - 12 months ended Dec. 31, 2022 $ in Millions | USD ($) tranche | GBP (£) tranche |
Deferred Incentive Plan | Minimum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 3 years | 3 years |
Deferred Incentive Plan | Maximum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 4 years | 4 years |
Deferred Equity Plan | ||
Long-Term Incentive and Employee Compensation | ||
Number of years awards are deferred | 3 years | 3 years |
Number of tranches | tranche | 3 | 3 |
Restricted Share Plan | ||
Long-Term Incentive and Employee Compensation | ||
Consideration from employees | £ 0 | |
Minimum amount of awards required for approval of remuneration committee | £ 500,000 | |
INTECH Long-Term Incentive Awards | ||
Vesting period | 3 years | 3 years |
Restricted Stock Awards | Minimum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 3 years | 3 years |
Restricted Stock Awards | Maximum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 4 years | 4 years |
Mutual Fund Share Awards | ||
Price-Vesting Units | ||
Awards granted (in dollars) | $ | $ 185.3 | |
Time-based mutual fund share awards | Minimum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 3 years | 3 years |
Time-based mutual fund share awards | Maximum | ||
INTECH Long-Term Incentive Awards | ||
Vesting period | 4 years | 4 years |
Long-Term Incentive Compensat_4
Long-Term Incentive Compensation - Performance Stock Units (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 26, 2021 | Feb. 28, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Dec. 31, 2022 | |
Performance Stock Units ("PSU") | |||||
Long Term Incentive Compensation | |||||
Units granted | 77,228 | 96,933 | 83,863 | 108,184 | |
Value at grant (in millions) | $ 2 | $ 2 | $ 2 | $ 3.7 | |
Units vested | 50,900 | 121,166 | 125,795 | 59,903 | |
Vesting in full subject to total shareholder return performance relative to peer group over the vesting period following grant date | |||||
Long Term Incentive Compensation | |||||
Vesting period | 3 years | ||||
Vesting in part of full subject to total shareholder return performance relative to peer group | |||||
Long Term Incentive Compensation | |||||
Vesting period | 3 years |
Long-Term Incentive Compensat_5
Long-Term Incentive Compensation - Compensation Plans (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) £ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2021 £ / shares | Dec. 31, 2020 USD ($) | Dec. 31, 2020 £ / shares | |
Share Plan | ||||||
Stock-based compensation plan expense | $ 90.3 | $ 67.9 | $ 64.6 | |||
MFSA - liability settled | (1.5) | 12.9 | 28.2 | |||
Profits interests and other | (3.9) | 2.9 | 0.9 | |||
Social Security costs | 10.5 | 12.9 | 11.4 | |||
Total long-term incentive compensation expense | 180.7 | 181 | 170.1 | |||
Stock-based payments expense unrecognized | $ 62.1 | $ 62.1 | ||||
Stock-based payments expense, weighted average years | 1 year 9 months 18 days | |||||
Profits interests, Unrecognized compensation | $ 0.3 | |||||
Social security costs, Unrecognized compensation | 16.8 | |||||
Total unrecognized long-term incentive compensation expense | $ 137.1 | |||||
Profits Interests and Other | 1 year 3 months 18 days | |||||
Social Security costs, weighted average years | 8 months 12 days | |||||
Weighted average years, remaining charge to comprehensive income | 1 year 7 months 6 days | |||||
Deferred Incentive Plan | ||||||
Share Plan | ||||||
Stock-based compensation plan expense | $ 84 | 52.1 | 27.4 | |||
Liability settled | 84.7 | 71.3 | 41.3 | |||
Stock-based payments expense unrecognized | $ 59.5 | $ 59.5 | ||||
Stock-based payments expense, weighted average years | 1 year 9 months 18 days | |||||
Liability settled, Unrecognized compensation | $ 57.9 | |||||
Liability settled | 1 year 8 months 12 days | |||||
Deferred Incentive Plan | Minimum | ||||||
Share Plan | ||||||
Vesting period | 3 years | |||||
Deferred Incentive Plan | Maximum | ||||||
Share Plan | ||||||
Vesting period | 4 years | |||||
Deferred Equity Plan | ||||||
Share Plan | ||||||
Stock-based compensation plan expense | $ 0.3 | 2.8 | 8.7 | |||
Liability settled | $ 0.6 | 13.1 | 23.7 | |||
Restricted Share Plan | ||||||
Share Plan | ||||||
Vesting period | 3 years | |||||
Stock-based compensation plan expense | $ 0.2 | $ 0.9 | $ 3.5 | |||
Sharesave Plan | ||||||
Share Plan | ||||||
Market price at grant date | £ / shares | $ 9.25 | £ 10.28 | £ 4.59 | |||
Black Scholes options pricing model | ||||||
Fair value of options granted (pence) | £ / shares | $ 9.25 | £ 10.28 | £ 4.59 | |||
Dividend yield (as a percent) | 4.27% | 3.68% | 6.50% | |||
Expected volatility (as a percent) | 41.82% | 41.37% | 37.59% | |||
Risk-free interest rate (as a percent) | 1.43% | 0.17% | 0.01% | |||
Expected life (in years) | 3 years 2 months 1 day | 3 years | 3 years | |||
RSA | ||||||
Share Plan | ||||||
Stock-based compensation plan expense | $ 1.9 | $ 8.8 | $ 22 | |||
Other. | ||||||
Share Plan | ||||||
Stock-based compensation plan expense | 3.9 | $ 3.3 | $ 3 | |||
Stock-based payments expense unrecognized | $ 2.6 | $ 2.6 | ||||
Stock-based payments expense, weighted average years | 1 year 4 months 24 days |
Long-Term Incentive Compensat_6
Long-Term Incentive Compensation - ESOP and RSA (Details) £ / shares in Units, £ in Millions | 12 Months Ended | |||||||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 GBP (£) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 GBP (£) £ / shares shares | Dec. 31, 2020 GBP (£) $ / shares £ / shares shares | Dec. 31, 2020 GBP (£) £ / shares shares | Dec. 31, 2022 GBP (£) shares | Dec. 31, 2021 GBP (£) shares | |
Deferred Incentive Plan, Deferred Equity Plan and Restricted Stock Awards | ||||||||
Summary of unvested restricted stock awards | ||||||||
Unvested at the beginning of the year (in shares) | 4,949,927 | 5,602,828 | 5,516,920 | 5,516,920 | ||||
Granted (in shares) | 3,581,420 | 2,285,257 | 2,736,264 | 2,736,264 | ||||
Vested (in shares) | (2,733,825) | (2,699,721) | (2,443,459) | (2,443,459) | ||||
Forfeited (in shares) | (155,683) | (238,437) | (206,897) | (206,897) | ||||
Unvested at the end of the year (in shares) | 5,641,839 | 4,949,927 | 5,602,828 | 5,602,828 | ||||
Weighted-average grant date fair value | ||||||||
Balance at the beginning of the year (in dollars per share) | (per share) | $ 26.42 | $ 24.56 | £ 24.56 | £ 28.41 | ||||
Granted (in dollars per share) | (per share) | 32.44 | 29.94 | 20.69 | |||||
Vested (in dollars per share) | (per share) | 26.29 | 26.78 | 29 | |||||
Forfeited (in dollars per share) | (per share) | 31.48 | 27.37 | 25.42 | |||||
Balance at the end of the year (in dollars per share) | (per share) | 29.99 | 26.42 | $ 24.56 | £ 24.56 | ||||
Stock Options | ||||||||
Shares | ||||||||
Outstanding at the beginning of the year (in shares) | 492,889 | 1,255,398 | 1,873,927 | 1,873,927 | ||||
Granted (in shares) | 127,903 | 83,648 | 212,550 | 212,550 | ||||
Exercised (in shares) | (193,821) | (418,292) | (147,408) | (147,408) | ||||
Forfeited (in shares) | (40,387) | (427,865) | (683,671) | (683,671) | ||||
Outstanding at the end of the year (in shares) | 386,584 | 492,889 | 1,255,398 | 1,255,398 | ||||
Exercisable (in shares) | 254,779 | 254,779 | 32,710 | 92,630 | ||||
Vested or expected to vest (in shares) | 902,633 | 902,633 | 386,584 | 92,630 | ||||
Weighted-average price | ||||||||
Outstanding at the beginning of the year (in dollars per share) | (per share) | 20.83 | 27.13 | £ 27.13 | £ 28.41 | ||||
Granted (in dollars per share) | (per share) | 24.83 | 23.85 | 16.06 | |||||
Exercised (in dollars per share) | (per share) | 24.34 | 29.04 | 7.21 | |||||
Forfeited (in dollars per share) | (per share) | 22.78 | 36.87 | 31.86 | |||||
Outstanding at the end of the year (in dollars per share) | (per share) | 19.18 | 20.83 | $ 27.13 | 27.13 | ||||
Exercisable (in dollars per share) | (per share) | 10.46 | 26.62 | $ 22.74 | 22.74 | ||||
Vested or expected to vest (in dollars per share) | (per share) | $ 19.18 | $ 26.62 | $ 30.86 | £ 30.86 | ||||
Intrinsic value of options | ||||||||
Exercised | £ | £ 1.3 | £ 0.3 | ||||||
Outstanding | £ | $ 4.1 | £ 4.1 | £ 2.4 | £ 7.4 | ||||
Exercisable | £ | $ 0.7 | £ 0.7 | £ 0.5 | £ 1 |
Retirement benefit plans (Detai
Retirement benefit plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Net periodic benefit credit | |||
Retirement benefit plan | item | 2 | ||
Expenses related to 401(k) plan | $ 8.6 | $ 8.3 | $ 8 |
Defined benefit pension Plan | |||
Net periodic benefit credit | |||
Surplus on a technical provisions basis | 2.4 | ||
Foreign Plan | |||
Net periodic benefit credit | |||
Amounts charged to consolidated statements of comprehensive income | $ 15.7 | $ 19 | $ 14 |
Maximum | U.S. | |||
Net periodic benefit credit | |||
Employer matching contribution per calendar year (as a percent of compensation) | 5% |
Retirement benefit plans - Chan
Retirement benefit plans - Change in plan assets and benefit obligations, net retirement benefit recognized in balance sheet, assumptions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Change in benefit obligation: | |||
Service cost | $ (0.6) | $ (0.9) | |
Interest cost | $ (16.9) | $ (13.5) | $ (14.1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Settlements | $ 9.7 | ||
Defined benefit pension Plan | |||
Change in plan assets: | |||
Fair value of plan assets at the beginning of the year | 1,142.6 | $ 1,232.5 | |
Return on plan assets | (335) | (41.5) | |
Employer contributions | 2.1 | 1.9 | |
Benefits paid | (15.8) | (17.2) | |
Settlements | (9.7) | (21.2) | |
Foreign currency translation | (123.7) | (11.9) | |
Fair value of plan assets at the end of the year | 660.5 | 1,142.6 | $ 1,232.5 |
Change in benefit obligation: | |||
Benefit obligations at the beginning of the year | (975.2) | (1,026.5) | |
Service cost | (0.6) | ||
Interest cost | (16.9) | (13.5) | |
Settlements | 9.7 | 21.2 | |
Curtailments | (0.3) | ||
Benefits paid | 15.8 | 17.2 | |
Actuarial gain (loss) | 295.4 | 18.1 | |
Foreign currency translation | 105.6 | 9.2 | |
Benefit obligations at the end of the year | (565.6) | (975.2) | $ (1,026.5) |
Funded status as at year end | 94.9 | 167.4 | |
Tax at source | (7.1) | ||
Net retirement benefit asset recognized in the Consolidated Balance Sheets | 94.9 | 160.3 | |
Retirement benefit assets recognized in the Consolidated Balance Sheets: | |||
Janus Henderson Group UK Pension Scheme | 97.9 | 165.1 | |
Retirement benefit obligations recognized in the Consolidated Balance Sheets: | |||
Janus Henderson Group unapproved pension scheme | (3) | (4.8) | |
Net retirement benefit asset recognized in the Consolidated Balance Sheets | $ 94.9 | $ 160.3 | |
Key assumptions used in determining the defined benefit obligation | |||
Discount rate | 4.80% | 1.90% | |
Inflation - Retail Price Index ("RPI") | 3.3 | 3.4 | |
Inflation - Consumer Price Index ("CPI") | 2.7 | 2.8 | |
Pension increases (RPI capped at 5% p.a.) | 3.2 | 3.3 | |
Pension increases (RPI capped at 2.5% p.a.) | 2.1 | 2.2 | |
Life expectancy of male aged 60 at accounting date | 29 years 4 months 24 days | 29 years 7 months 6 days | |
Life expectancy of male aged 60 in 15 years time | 30 years 3 months 18 days | 30 years 6 months |
Retirement benefit plans - Plan
Retirement benefit plans - Plan assets (Details) - Defined benefit pension Plan £ in Millions, $ in Millions | 12 Months Ended | |||
Sep. 05, 2019 USD ($) | Sep. 05, 2019 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Fair value of plan assets | ||||
Value of Plan assets | $ 660.5 | $ 1,142.6 | ||
Assets held in JHG managed funds | 148.4 | 230.2 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Premium for pension buy-in agreement | $ 404 | £ 328 | ||
Fair value of plan assets at the beginning of the year | 1,142.6 | 1,232.5 | ||
Losses recognized in the period | (335) | (41.5) | ||
Fair value of plan assets at the end of the year | 660.5 | 1,142.6 | ||
Foreign currency translation | $ (123.7) | $ (11.9) | ||
Expected rate of return on plan assets (as a percent) | 1.6 | 1.2 | ||
Cash and cash equivalents | ||||
Fair value of plan assets | ||||
Value of Plan assets | $ 1.8 | $ 1.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 1.5 | |||
Fair value of plan assets at the end of the year | 1.8 | 1.5 | ||
Money market instruments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 8 | 17.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 17.5 | |||
Fair value of plan assets at the end of the year | 8 | 17.5 | ||
Bulk annuity policy | ||||
Fair value of plan assets | ||||
Value of Plan assets | 230.7 | 386.6 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 386.6 | |||
Fair value of plan assets at the end of the year | 230.7 | 386.6 | ||
Change in financial conditions | (102.1) | |||
Change in demographic assumptions | (2.4) | |||
Cash payments received under the contract terms | 13.1 | |||
Foreign currency translation | 43.2 | |||
Interest on the bulk annuity asset | 5.1 | |||
Fixed income investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | $ 249.3 | $ 479.7 | ||
Strategic allocation of plan assets | 80% | 80% | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | $ 479.7 | |||
Fair value of plan assets at the end of the year | 249.3 | $ 479.7 | ||
Equity investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 170.7 | 257.3 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 257.3 | |||
Fair value of plan assets at the end of the year | $ 170.7 | $ 257.3 | ||
Growth portfolio | ||||
Fair value of plan assets | ||||
Strategic allocation of plan assets | 20% | 20% | ||
Fair value measurements, recurring | ||||
Fair value of plan assets | ||||
Value of Plan assets | $ 660.5 | $ 1,142.6 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 1,142.6 | |||
Fair value of plan assets at the end of the year | 660.5 | 1,142.6 | ||
Fair value measurements, recurring | Cash and cash equivalents | ||||
Fair value of plan assets | ||||
Value of Plan assets | 1.8 | 1.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 1.5 | |||
Fair value of plan assets at the end of the year | 1.8 | 1.5 | ||
Fair value measurements, recurring | Money market instruments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 8 | 17.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 17.5 | |||
Fair value of plan assets at the end of the year | 8 | 17.5 | ||
Fair value measurements, recurring | Bulk annuity policy | ||||
Fair value of plan assets | ||||
Value of Plan assets | 230.7 | 386.6 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 386.6 | |||
Fair value of plan assets at the end of the year | 230.7 | 386.6 | ||
Fair value measurements, recurring | Fixed income investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 249.3 | 479.7 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 479.7 | |||
Fair value of plan assets at the end of the year | 249.3 | 479.7 | ||
Fair value measurements, recurring | Equity investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 170.7 | 257.3 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 257.3 | |||
Fair value of plan assets at the end of the year | 170.7 | 257.3 | ||
Fair value measurements, recurring | Level 1 | ||||
Fair value of plan assets | ||||
Value of Plan assets | 429.8 | 756 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 756 | |||
Fair value of plan assets at the end of the year | 429.8 | 756 | ||
Fair value measurements, recurring | Level 1 | Cash and cash equivalents | ||||
Fair value of plan assets | ||||
Value of Plan assets | 1.8 | 1.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 1.5 | |||
Fair value of plan assets at the end of the year | 1.8 | 1.5 | ||
Fair value measurements, recurring | Level 1 | Money market instruments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 8 | 17.5 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 17.5 | |||
Fair value of plan assets at the end of the year | 8 | 17.5 | ||
Fair value measurements, recurring | Level 1 | Fixed income investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 249.3 | 479.7 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 479.7 | |||
Fair value of plan assets at the end of the year | 249.3 | 479.7 | ||
Fair value measurements, recurring | Level 1 | Equity investments | ||||
Fair value of plan assets | ||||
Value of Plan assets | 170.7 | 257.3 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 257.3 | |||
Fair value of plan assets at the end of the year | 170.7 | 257.3 | ||
Fair value measurements, recurring | Level 3 | ||||
Fair value of plan assets | ||||
Value of Plan assets | 230.7 | 386.6 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 386.6 | |||
Fair value of plan assets at the end of the year | 230.7 | 386.6 | ||
Fair value measurements, recurring | Level 3 | Bulk annuity policy | ||||
Fair value of plan assets | ||||
Value of Plan assets | 230.7 | 386.6 | ||
Change in fair value of plan assets level 3 reconciliation | ||||
Fair value of plan assets at the beginning of the year | 386.6 | |||
Fair value of plan assets at the end of the year | $ 230.7 | $ 386.6 |
Retirement benefit plans - Actu
Retirement benefit plans - Actuarial gains (losses), benefit cost, cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of net periodic benefit cost | ||||
Service cost | $ (0.6) | $ (0.9) | ||
Settlement gain (loss) | (1.1) | $ 1.3 | ||
Curtailment loss | $ (0.3) | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Curtailment Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Interest cost | $ (16.9) | $ (13.5) | $ (14.1) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Amortization of prior service cost | $ (0.4) | $ (0.4) | $ (0.4) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Expected return on plan assets | $ 13.8 | $ 11.3 | $ 12.5 | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Net periodic benefit cost | $ (3.5) | $ (4.6) | $ (1.6) | |
Contributions to money purchase section | (11.5) | (11.3) | (8.2) | |
Total cost | (15) | (15.9) | $ (9.8) | |
Defined benefit pension Plan | ||||
Actuarial gains and losses | ||||
Opening accumulated unamortized actuarial loss | (32.8) | (10.4) | ||
Actuarial loss | (53.1) | (35.3) | ||
Tax at source on current year actuarial gain | 15.1 | 11.8 | ||
Prior service cost | 0.4 | 0.4 | ||
Release of actuarial gain (loss) due to settlement event | 1.1 | |||
Release of tax at source due to settlement event | (0.4) | |||
Closing accumulated unamortized actuarial loss | (70.4) | (32.8) | ||
Actuarial gains amortized from AOCI | 0 | |||
Percentage of all plan participants | 33.33% | |||
Employer contributions to the plan | 2.1 | 1.9 | ||
Components of net periodic benefit cost | ||||
Service cost | (0.6) | |||
Interest cost | $ (16.9) | $ (13.5) | ||
Key assumptions used in determining the net periodic benefit cost | ||||
Discount rate | 1.90% | 1.30% | 2.10% | |
Inflation - salaries | 2.5 | 2.5 | ||
Inflation - RPI | 3.4 | 2.9 | 3 | |
Inflation - CPI | 2.8 | 2.2 | 1.9 | |
Pension increases (RPI capped at 5% p.a.) | 3.3 | 2.9 | 2.9 | |
Pension increases (RPI capped at 2.5% p.a.) | 2.2 | 2.1 | 2 | |
Expected return on plan assets | 1.60% | 1.20% | 1.70% | |
Amortization period for net actuarial gains at beginning of the year | 9 years | 9 years | 9 years | |
Employer contributions to the plan excluding credits to member's Money Purchase Accounts | $ 2.1 | |||
Expected contributions to the scheme during 2018 | 1.2 | |||
Expected future benefit payments | ||||
2023 | 20 | |||
2024 | 20.9 | |||
2025 | 21.3 | |||
2026 | 22.6 | |||
2027 | 23.6 | |||
2028-2032 | 127.9 | |||
Value of Plan assets | 660.5 | $ 1,142.6 | $ 1,232.5 | |
Defined benefit pension Plan | Bulk annuity policy | ||||
Expected future benefit payments | ||||
Value of Plan assets | $ 230.7 | $ 386.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | $ (4,623.5) | ||
Other comprehensive income (loss), net of tax | (262.7) | $ (72.5) | $ 51.4 |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 2 | 0.4 | 0.8 |
Ending balance | (4,359.8) | (4,623.5) | |
Accumulated other comprehensive loss | |||
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | 387 | 314.9 | |
Other comprehensive income (loss) | (259) | (70.4) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (3.7) | (2.1) | |
Other comprehensive income (loss), net of tax | (262.7) | (72.5) | 51.4 |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 2 | 0.4 | |
Ending balance | 647.7 | 387 | 314.9 |
Foreign currency | |||
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | 354.2 | 304.5 | |
Other comprehensive income (loss) | (221) | (46.9) | |
Amounts reclassified from accumulated other comprehensive income (loss) | (4.1) | (3.2) | |
Other comprehensive income (loss), net of tax | (225.1) | (50.1) | |
Less: other comprehensive loss (income) attributable to noncontrolling interests | 2 | 0.4 | |
Ending balance | 577.3 | 354.2 | 304.5 |
Retirement benefit asset, net | |||
Changes in accumulated other comprehensive loss, net of tax | |||
Beginning balance | 32.8 | 10.4 | |
Other comprehensive income (loss) | (38) | (23.5) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.4 | 1.1 | |
Other comprehensive income (loss), net of tax | (37.6) | (22.4) | |
Ending balance | $ 70.4 | $ 32.8 | $ 10.4 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other comprehensive income, net of tax | |||
Other comprehensive income (loss), net of tax | $ (262.7) | $ (72.5) | $ 51.4 |
Accumulated other comprehensive loss | |||
Other comprehensive income, net of tax | |||
Pre-tax amount | (274.7) | (73.8) | 51.2 |
Tax expense (benefit) | 12 | 1.3 | 0.2 |
Other comprehensive income (loss), net of tax | (262.7) | (72.5) | 51.4 |
Foreign currency | |||
Other comprehensive income, net of tax | |||
Pre-tax amount | (224.2) | (48.2) | 73.1 |
Tax impact | 3.2 | 1.3 | 0.3 |
Net amount | (221) | (46.9) | 73.4 |
Other comprehensive income (loss), net of tax | (225.1) | (50.1) | |
Retirement benefit asset, net | |||
Other comprehensive income, net of tax | |||
Pre-tax amount | (46.8) | (23.5) | (29) |
Tax impact | 8.8 | (0.1) | |
Net amount | (38) | (23.5) | (29.1) |
Other comprehensive income (loss), net of tax | (37.6) | (22.4) | |
Reclassification to net income | |||
Other comprehensive income, net of tax | |||
Pre-tax amount | (3.7) | (2.1) | 7.1 |
Net amount | $ (3.7) | $ (2.1) | $ 7.1 |
Earnings and Dividends Per Sh_3
Earnings and Dividends Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings (loss) per share | |||
Net income (loss) attributable to JHG | $ 372.4 | $ 620 | $ 130.3 |
Allocation of earnings to participating stock-based awards | (11.3) | (17.7) | (3.8) |
Net income (loss) attributable to JHG common shareholders | $ 361.1 | $ 602.3 | $ 126.5 |
Weighted-average common shares outstanding - basic | 161.7 | 167.9 | 179.4 |
Dilutive effect of non-participating stock-based awards | 0.3 | 0.6 | 0.5 |
Weighted-average common shares outstanding - diluted | 162 | 168.5 | 179.9 |
Earnings per share: | |||
Basic (two class) | $ 2.23 | $ 3.59 | $ 0.70 |
Diluted (two class) | 2.23 | 3.57 | 0.70 |
Dividends Per Share | |||
Dividends paid (per share) | $ 1.55 | $ 1.50 | $ 1.44 |
Cash dividends paid | $ 259.4 | $ 256 | $ 262.9 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions | |||
Revenue recognized from managed funds | $ 2,017.2 | $ 2,507.9 | $ 1,974.6 |
Accrued income | 125.3 | 204.1 | |
Accounts receivable | 80.7 | 77.4 | |
Shares repurchased amount | $ 98.9 | $ 372.1 | $ 130.8 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue: | |||
Operating revenues | $ 2,203.6 | $ 2,767 | $ 2,298.6 |
Long-lived assets: | |||
Long-lived assets | 2,466.5 | 2,606 | |
Intangible assets | 2,414.7 | 2,542.7 | 2,686.3 |
U.S. | |||
Revenue: | |||
Operating revenues | 1,324.6 | 1,634.4 | 1,401.5 |
Long-lived assets: | |||
Long-lived assets | 2,099.8 | 2,153.1 | |
Intangible assets | 2,074.2 | 2,122.2 | |
UK | |||
Revenue: | |||
Operating revenues | 315.1 | 639.7 | 562.7 |
Long-lived assets: | |||
Long-lived assets | 326.2 | 374.6 | |
Intangible assets | 303.5 | 345.1 | |
Australia | |||
Long-lived assets: | |||
Long-lived assets | 37.5 | 76 | |
Intangible assets | 37 | 75.4 | |
Luxembourg | |||
Revenue: | |||
Operating revenues | 512.5 | 437.2 | 281.5 |
Australia and other | |||
Revenue: | |||
Operating revenues | 51.4 | 55.7 | $ 52.9 |
Other | |||
Long-lived assets: | |||
Long-lived assets | $ 3 | $ 2.3 |