Document and Entity Information
Document and Entity Information Document - USD ($) $ / shares in Units, $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35826 | ||
Entity Registrant Name | Artisan Partners Asset Management Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-0969585 | ||
Entity Address, Address Line One | 875 E. Wisconsin Avenue | ||
Entity Address, Address Line Two | Suite 800 | ||
Entity Address, City or Town | Milwaukee | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53202 | ||
City Area Code | 414 | ||
Local Phone Number | 390-6100 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | APAM | ||
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 Central Index Key | 0001517302 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 1.5 | ||
Share Price (in dollars per share) | $ 27.52 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 56,450,900 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,803,364 | ||
Class C Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,568,665 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 134,621 | $ 160,463 |
Accounts receivable | 81,868 | 67,691 |
Investment securities | 23,878 | 18,109 |
Prepaid expenses | 9,589 | 9,881 |
Property and equipment, net | 39,495 | 29,138 |
Operating lease assets | 87,155 | 0 |
Restricted cash | 629 | 629 |
Deferred tax assets | 435,897 | 429,128 |
Other | 3,099 | 3,793 |
Cash and Cash Equivalents of Consolidated Investment Products | 9,005 | 14,443 |
Accounts Receivable and Other of Consolidated Investment Products | 1,647 | 5,566 |
Investment Assets, at Fair Value, of Consolidated Investment Products | 106,736 | 66,173 |
Total assets | 933,619 | 805,014 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY | ||
Accounts payable, accrued expenses, and other | 19,926 | 16,772 |
Accrued incentive compensation | 16,159 | 12,689 |
Deferred lease obligations | 0 | 10,449 |
Operating lease liabilities | 101,154 | 0 |
Borrowings | 199,103 | 199,296 |
Amounts payable under tax receivable agreements | 375,324 | 369,355 |
Accounts Payable, Accrued Expenses, and Other of Consolidated Investment Products | 34,156 | 4,712 |
Investment Liabilities, at Fair Value, of Consolidated Investment Products | 6,186 | 16,905 |
Total liabilities | 752,008 | 630,178 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 43,110 | 34,349 |
Additional paid-in capital | 89,149 | 97,553 |
Retained earnings | 44,455 | 38,617 |
Accumulated other comprehensive income (loss) | (1,425) | (1,895) |
Total Artisan Partners Asset Management Inc. stockholders’ equity | 132,957 | 135,044 |
Noncontrolling interests - Artisan Partners Holdings | 5,544 | 5,443 |
Total stockholders’ equity | 138,501 | 140,487 |
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | 933,619 | 805,014 |
Class A Common Stock | ||
Common stock | 564 | 541 |
Class B Common Stock | ||
Common stock | 78 | 86 |
Class C Common Stock | ||
Common stock | $ 136 | $ 142 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) | Dec. 31, 2019$ / sharesshares |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Outstanding | 77,801,854 |
Class A Common Stock | |
Authorized | 500,000,000 |
Outstanding | 56,429,825 |
Class B Common Stock | |
Authorized | 200,000,000 |
Outstanding | 7,803,364 |
Class C Common Stock | |
Authorized | 400,000,000 |
Outstanding | 13,568,665 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Total revenues | $ 798,952 | $ 828,635 | $ 795,624 |
Compensation and benefits | |||
Salaries, incentive compensation and benefits | 400,456 | 413,166 | 390,202 |
Pre-offering related compensation - share-based awards | 0 | 0 | 12,678 |
Total compensation and benefits | 400,456 | 413,166 | 402,880 |
Distribution, servicing and marketing | 23,170 | 26,561 | 29,620 |
Occupancy | 23,319 | 18,700 | 14,490 |
Communication and technology | 39,499 | 37,164 | 34,073 |
General and administrative | 29,053 | 28,103 | 28,150 |
Total operating expenses | 515,497 | 523,694 | 509,213 |
Operating Income (Loss), Total | 283,455 | 304,941 | 286,411 |
Non-operating income (expense) | |||
Interest expense | (11,054) | (11,223) | (11,449) |
Net investment gain (loss) of consolidated investment products | 10,084 | 5,721 | 4,241 |
Net investment income | 6,338 | 2,098 | 1,123 |
Net gain (loss) on the tax receivable agreements | (19,557) | 251 | 290,919 |
Total non-operating income (expense) | (14,189) | (3,153) | 284,834 |
Income before income taxes | 269,266 | 301,788 | 571,245 |
Provision for income taxes | 27,809 | 47,598 | 420,508 |
Net income before noncontrolling interests | 241,457 | 254,190 | 150,737 |
Net income attributable to Artisan Partners Asset Management Inc. | $ 156,536 | $ 158,309 | $ 49,599 |
Earnings (loss) per share | |||
Basic and diluted earnings per share | $ 2.65 | $ 2.84 | $ 0.75 |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Basic and diluted weighted average number of common shares outstanding (in shares) | 51,127,929 | 48,862,435 | 44,647,318 |
Dividends declared per Class A common share | $ 3.39 | $ 3.19 | $ 2.76 |
Artisan Partners Holdings LP | |||
Net Income (Loss) Attributable to Noncontrolling Interest | |||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 80,055 | $ 91,054 | $ 99,038 |
Consolidated Investment Products | |||
Net Income (Loss) Attributable to Noncontrolling Interest | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 4,866 | 4,827 | 2,100 |
Management fees | |||
Revenues | |||
Total revenues | 794,338 | 825,679 | 795,276 |
Performance fees | |||
Revenues | |||
Total revenues | $ 4,614 | $ 2,956 | $ 348 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income before noncontrolling interests | $ 241,457 | $ 254,190 | $ 150,737 |
Other Comprehensive Income (Loss) | |||
Unrealized gain (loss) on investment securities, net of tax of $0, $0 and $131, respectively | 0 | 0 | 542 |
Less: reclassification adjustment for net gains included in net income | 0 | 0 | 159 |
Net unrealized gain (loss) on investment securities | 0 | 0 | 383 |
Foreign currency translation gain (loss) | 732 | (1,002) | 1,277 |
Total other comprehensive income (loss) | 732 | (1,002) | 1,660 |
Comprehensive income | 242,189 | 253,188 | 152,397 |
Comprehensive income attributable to Artisan Partners Asset Management Inc. | 157,006 | 157,545 | 50,375 |
Artisan Partners Holdings LP | |||
Other Comprehensive Income (Loss) | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 80,317 | 90,816 | 99,922 |
Consolidated Investment Products | |||
Other Comprehensive Income (Loss) | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | $ 4,866 | $ 4,827 | $ 2,100 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | $ 0 | $ 0 | $ 131 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Common StockClass B Common Stock | Common StockClass C Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling interests - Artisan Partners Holdings |
Increase (Decrease) in Stockholders' Equity | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | $ 0 | |||||||
Balance at beginning of period at Dec. 31, 2016 | 117,714 | $ 421 | $ 151 | $ 171 | $ 119,221 | $ 13,395 | $ (1,648) | $ (13,997) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 150,737 | 49,599 | 99,038 | |||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 148,637 | |||||||
Comprehensive income attributable to noncontrolling interests - consolidated investment products | 2,100 | |||||||
Other comprehensive income - foreign currency translation | 1,277 | 830 | 447 | |||||
Other comprehensive income - available for sale investments, net of tax | 388 | 215 | 173 | |||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | (5) | (5,994) | (270) | 6,259 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 62,892 | 40,177 | 0 | 22,715 | ||||
Adjustments to Paid In Capital Establishment of Deferred Tax Assets Net Of Amounts Payable Under Tax Receivable Agreements | 25,922 | 25,922 | ||||||
Issuance of Class A common stock, net of issuance costs | 162,036 | 56 | 161,980 | |||||
Forfeitures and employee/partner terminations | (1) | 1 | 0 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | 13 | 13 | |||||
Employee net share settlement | (1,477) | (891) | (586) | |||||
Exchange of subsidiary equity | 15 | (10) | (5) | 0 | ||||
Purchase of equity and subsidiary equity | (162,494) | (21) | (35) | (162,438) | ||||
Capital contributions, net | 60,481 | |||||||
Distributions | (115,804) | (115,804) | ||||||
Dividends | (131,021) | (30,054) | (100,864) | (103) | ||||
Balance at end of period at Dec. 31, 2017 | 108,065 | 505 | 119 | 132 | 147,910 | (37,870) | (873) | (1,858) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | 62,581 | |||||||
Net income | 254,190 | 158,309 | 91,054 | |||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 249,363 | |||||||
Comprehensive income attributable to noncontrolling interests - consolidated investment products | 4,827 | |||||||
Other comprehensive income - foreign currency translation | (1,002) | (717) | (285) | |||||
Other comprehensive income - available for sale investments, net of tax | 98 | 358 | (260) | 0 | ||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | 0 | (4,878) | (45) | 4,923 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 53,554 | 37,589 | 0 | 15,965 | ||||
Adjustments to Paid In Capital Establishment of Deferred Tax Assets Net Of Amounts Payable Under Tax Receivable Agreements | 4,376 | 4,376 | ||||||
Issuance of Class A common stock, net of issuance costs | 21,289 | 6 | 21,283 | |||||
Forfeitures and employee/partner terminations | 0 | 5 | (20) | 15 | 0 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | 15 | 15 | |||||
Employee net share settlement | (2,564) | (2) | (1,742) | (820) | ||||
Exchange of subsidiary equity | 0 | 12 | (7) | (5) | 0 | 0 | ||
Purchase of equity and subsidiary equity | (21,478) | (6) | 0 | (21,472) | ||||
Capital contributions, net | 46,572 | |||||||
Distributions | (103,434) | (103,434) | ||||||
Dividends | (167,780) | (85,498) | (82,180) | (102) | ||||
Impact of deconsolidation of CIPs | (79,631) | |||||||
Balance at end of period at Dec. 31, 2018 | 140,487 | 541 | 86 | 142 | 97,553 | 38,617 | (1,895) | 5,443 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | 34,349 | |||||||
Net income | 241,457 | 156,536 | 80,055 | |||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | 236,591 | |||||||
Comprehensive income attributable to noncontrolling interests - consolidated investment products | 4,866 | |||||||
Other comprehensive income - foreign currency translation | 732 | 521 | 211 | |||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | 0 | (3,533) | (51) | 3,584 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 43,095 | 31,268 | 0 | 11,827 | ||||
Adjustments to Paid In Capital Establishment of Deferred Tax Assets Net Of Amounts Payable Under Tax Receivable Agreements | 2,716 | 2,716 | ||||||
Issuance of Class A common stock, net of issuance costs | 22 | 0 | 22 | |||||
Forfeitures and employee/partner terminations | 0 | 0 | 0 | 0 | 0 | |||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 0 | 10 | 10 | |||||
Employee net share settlement | (2,078) | (1) | (1,470) | (607) | ||||
Exchange of subsidiary equity | 0 | 14 | (8) | (6) | 0 | 0 | ||
Capital contributions, net | 3,895 | |||||||
Distributions | (94,842) | (94,842) | ||||||
Dividends | (188,178) | (37,353) | (150,698) | (127) | ||||
Balance at end of period at Dec. 31, 2019 | 138,501 | $ 564 | $ 78 | $ 136 | $ 89,149 | $ 44,455 | $ (1,425) | $ 5,544 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount | $ 43,110 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income before noncontrolling interests | $ 241,457 | $ 254,190 | $ 150,737 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,233 | 5,668 | 5,297 |
Deferred income taxes | 7,356 | 24,863 | 395,416 |
Other Asset Impairment Charges | 2,107 | 0 | 0 |
Noncash lease expense | 1,533 | 4,086 | 2,391 |
Net (gain) loss on seed investment securities | (5,101) | (688) | (519) |
Net (gain) loss on the tax receivable agreements | 19,557 | (251) | (290,919) |
Loss on disposal of property and equipment | 275 | 18 | 69 |
Amortization of debt issuance costs | 463 | 457 | 452 |
Share-based compensation | 43,095 | 53,554 | 62,892 |
Net Investment Gain (Loss) of Consolidated Investment Products | (10,084) | (5,721) | (4,241) |
Purchase of Investments by Consolidated Investment Products | (123,366) | (643,548) | (252,047) |
Proceeds from Sale of Investments by Consolidated Investment Products | 75,468 | 611,117 | 190,353 |
Change in assets and liabilities resulting in an increase (decrease) in cash: | |||
Accounts receivable | (14,178) | 9,002 | (16,955) |
Prepaid expenses and other assets | 1,031 | (2,275) | 1,629 |
Accounts payable and accrued expenses | 6,881 | 10,027 | (9,202) |
Class B liability awards | 0 | 0 | (506) |
Net Change in Operating Assets and Liabilities of Consolidated Investment Products | 40,066 | 12,823 | (8,893) |
Net cash provided by operating activities | 292,793 | 333,322 | 225,954 |
Cash flows from investing activities | |||
Acquisition of property and equipment | (3,498) | (2,834) | (1,578) |
Payments For Leasehold Improvements | 14,286 | 11,007 | 4,257 |
Proceeds from sale of investment securities | 288 | 0 | 6,382 |
Purchase of investment securities | (10) | (500) | (5,250) |
Net cash used in investing activities | (17,506) | (14,341) | (4,703) |
Cash flows from financing activities | |||
Partnership distributions | 94,842 | 103,434 | 115,804 |
Dividends paid | (188,178) | (167,780) | (131,021) |
Payment of debt issuance costs | (366) | 0 | (512) |
Proceeds from issuance of notes payable | 50,000 | 0 | 60,000 |
Principal payments on notes payable | (50,000) | 0 | (60,000) |
Tax Receivable Agreement Payments | 24,998 | 36,111 | 30,234 |
Net proceeds from issuance of common stock | 0 | 21,478 | 162,494 |
Payment of costs directly associated with the issuance of Class A common stock | 0 | (166) | (294) |
Purchase of equity and subsidiary equity | 0 | (21,478) | (162,494) |
Taxes paid related to employee net share settlement | (2,078) | (2,564) | (1,477) |
Capital contributions to consolidated investment products, net | 3,895 | 46,572 | 60,481 |
Net cash used in financing activities | (306,567) | (263,483) | (218,861) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (31,280) | 55,498 | 2,390 |
Net cash impact of deconsolidation of CIPs | 0 | (39,759) | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 175,535 | 159,796 | 157,406 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 144,255 | 175,535 | 159,796 |
Cash, cash equivalents and restricted cash | |||
Cash and cash equivalents | 134,621 | 160,463 | 137,286 |
Restricted cash | 629 | 629 | 629 |
Cash and Cash Equivalents of Consolidated Investment Products | 9,005 | 14,443 | 21,881 |
Noncash activity: | |||
Establishment of deferred tax assets | 35,999 | 24,679 | 146,241 |
Establishment of amounts payable under tax receivable agreements | 30,967 | 20,303 | 120,320 |
Increase in investment securities due to deconsolidation of CIPs | 0 | 11,381 | 0 |
Operating lease assets obtained in exchange for operating leases | 4,162 | 0 | 0 |
Cash paid for: | |||
Interest on borrowings | 10,649 | 10,694 | 11,019 |
Income tax | $ 18,593 | $ 20,731 | $ 25,296 |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Organization | Note 1. Nature of Business and Organization Nature of Business Artisan Partners Asset Management Inc. (“APAM”), through its subsidiaries, is an investment management firm focused on providing high-value added, active investment strategies to sophisticated clients globally. APAM and its subsidiaries are hereafter referred to collectively as “Artisan” or the “Company”. Artisan’s autonomous investment teams manage a broad range of U.S., non-U.S. and global investment strategies that are diversified by asset class, market cap and investment style. Strategies are offered through multiple investment vehicles to accommodate a broad range of client mandates. Artisan offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. Organization On March 12, 2013, APAM completed its initial public offering (the “IPO”). APAM was formed for the purpose of becoming the general partner of Artisan Partners Holdings LP (“Artisan Partners Holdings” or “Holdings”) in connection with the IPO. Holdings is a holding company for the investment management business conducted under the name “Artisan Partners”. The reorganization (“IPO Reorganization”) established the necessary corporate structure to complete the IPO while at the same time preserving the ability of the firm to conduct operations through Holdings and its subsidiaries. As the sole general partner, APAM controls the business and affairs of Holdings. As a result, APAM consolidates Holdings’ financial statements and records a noncontrolling interest for the equity interests in Holdings held by the limited partners of Holdings. At December 31, 2019, APAM held approximately 73% of the equity ownership interest in Holdings. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2. Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. Principles of consolidation Artisan’s policy is to consolidate all subsidiaries or other entities in which it has a controlling financial interest. The consolidation guidance requires an analysis to determine if an entity should be evaluated for consolidation using the voting interest entity (“VOE”) model or the variable interest entity (“VIE”) model. Under the VOE model, controlling financial interest is generally defined as a majority ownership of voting interests. Under the VIE model, controlling financial interest is defined as (i) the power to direct activities that most significantly impact the economic performance of the entity and (ii) the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. Artisan generally consolidates VIEs in which it meets the power criteria and holds an equity ownership interest of greater than 10%. The consolidated financial statements include the accounts of APAM and all subsidiaries or other entities in which APAM has a direct or indirect controlling financial interest. All material intercompany balances have been eliminated in consolidation. Artisan serves as the investment adviser to Artisan Funds, Artisan Global Funds and Artisan Private Funds. Artisan Funds and Artisan Global Funds are corporate entities the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain voting rights, including rights to elect and reelect members of their respective boards of directors. Each series of Artisan Funds is a VOE and is separately evaluated for consolidation under the VOE model. The shareholders of Artisan Global Funds lack simple majority liquidation rights, and as a result, each sub-fund of Artisan Global Funds is evaluated for consolidation under the VIE model. Artisan Private Funds are also evaluated for consolidation under the VIE model because third-party equity holders of the funds generally lack the ability to divest Artisan of its control of the funds. From time to time, the Company makes investments in Artisan Funds, Artisan Global Funds and Artisan Private Funds. If the investment results in a controlling financial interest, APAM consolidates the fund, and the underlying activity of the entire fund is included in Artisan’s Consolidated Financial Statements. As of December 31, 2019, Artisan had a controlling financial interest in three sub-funds of Artisan Global Funds and one Artisan Private Fund and, as a result, these funds are included in Artisan’s Consolidated Financial Statements. Because these consolidated investment products meet the definition of investment companies under U.S. GAAP, Artisan has retained the specialized industry accounting principles for investment companies in the consolidated financial statements. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details. Operating segments Artisan operates in one segment, the investment management industry. Artisan provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. Management assesses the financial performance of these vehicles on a combined basis. Cash and cash equivalents Artisan defines cash and cash equivalents as money market funds and other highly liquid investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost, which approximates fair value due to the short-term nature and liquidity of these financial instruments. For disclosure purposes, cash equivalents are categorized as Level 1 in the fair value hierarchy. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions or treasury money market funds. Interest and dividends related to cash and cash equivalents is recorded in net investment income in the Consolidated Statements of Operations. Foreign currency translation Assets and liabilities of foreign operations whose functional currency is not the U.S. dollar are translated at prevailing year-end exchange rates. Revenue and expenses of such foreign operations are translated at average exchange rates during the year. The net effect of the translation adjustment for foreign operations is included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. The cumulative effect of translation adjustments is included in accumulated other comprehensive income (loss) and noncontrolling interests - Artisan Partners Holdings in the Consolidated Statements of Financial Condition, based on period-end ownership levels. Accounts receivable Accounts receivable are carried at invoiced amounts and consist primarily of investment management fees that have been earned, but not yet received from clients. Due to the short-term nature of the receivables, the carrying values of these assets approximate fair value. The accounts receivable balance does not include any allowance for doubtful accounts as Artisan believes all accounts receivable balances are fully collectible. There has not been any bad debt expense recorded for the years ended December 31, 2019, 2018 and 2017. Investment securities Investment securities consist of unconsolidated investments in shares of Artisan Funds, Artisan Global Funds, and Artisan Private Funds. Investments provide exposure to various risks, including price risk (the risk of a potential future decline in value of the investment) and foreign currency risk. Investments are carried at fair value based on net asset values as of the valuation date. Realized and unrealized gains (losses) on unconsolidated investment securities are recorded in other investment gain (loss) in the Consolidated Statements of Operations. Dividend income from these investments is recognized when earned and is also included in other investment gain (loss). Prior to 2018, unrealized investments gains (losses) were recorded as a component of other comprehensive income in equity. Property and equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is generally recognized on a straight-line basis over the estimated useful lives of the respective assets or the remaining lease term, whichever is shorter. The estimated useful lives of property and equipment as of December 31, 2019 are as follows: Property and Equipment Type Useful Life Computers and equipment Five years Computer software Three years Furniture and fixtures Seven years Leasehold improvements Three Property and equipment is tested for impairment when there is an indication that the carrying amount of an asset may not be recoverable. When an asset is determined to not be recoverable, the impairment loss is measured based on the excess, if any, of the carrying value of the asset over its fair value. Leases Artisan has lease commitments for office space, parking structures, and equipment, which are all accounted for as operating leases. Artisan records expense for operating leases on a straight-line basis over the lease term. Any lease incentives received by Artisan are also amortized on a straight-line basis over the lease term. Artisan assesses its contractual arrangements for the existence of a lease at inception. Operating leases with an initial term greater than 12 months are recorded as operating lease assets and operating lease liabilities in the Consolidated Statements of Financial Condition. Lease components (e.g. fixed rental payments) and non-lease components (e.g. fixed common-area maintenance costs) are generally accounted for as a single component. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Operating lease assets are recognized at the lease commencement date based on the present value of lease payments over the lease term, adjusted for prepaid rent and the remaining balance of lease incentives received. Artisan's lease agreements generally do not provide an implicit interest rate, and therefore the present value calculation uses Artisan's estimated incremental borrowing rate. A market-based approach was used to estimate the incremental borrowing rate for each individual lease using observable market interest rates and Artisan specific inputs. The lease terms include periods covered by options to extend or exclude periods covered by options to terminate the lease when it is reasonably certain that Artisan will exercise that option. Restricted cash Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation. Cash and cash equivalents of consolidated investment products Cash and cash equivalents of consolidated investment products consist of highly liquid investments, including money market funds. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details. Investment assets and liabilities of consolidated investment products Investment assets and liabilities of consolidated investment products primarily consist of equity and fixed income securities. The carrying value of the investment assets and liabilities is also their fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. Equity securities are generally valued based upon closing market prices of the security on the principal exchange on which the security is traded. Fixed income securities include corporate bonds, convertible bonds and bank loans. Fixed income securities are generally valued based on the judgment of pricing vendors. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details. Redeemable noncontrolling interests Redeemable noncontrolling interests represent third-party investors’ ownership interest in consolidated investment products. Third-party investors in consolidated investment products generally have the right to withdraw their capital, subject to certain conditions. Noncontrolling interests of consolidated investment products that are currently redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity. Revenue recognition Artisan’s revenue is derived from contracts with customers in the form of investment management fees, performance-based fees and incentive allocations. Investment Management Fees Investment management fees are generally computed as a percentage of assets under management and are recognized as revenue at the end of each distinct service period. Fees for providing investment advisory services are computed and billed in accordance with the underlying investment management agreements, which is generally on a monthly or quarterly basis. Investment management fees are presented net of cash rebates and fees waived pursuant to contractual expense limitations of certain funds or voluntary waivers. Performance Fees A number of investment management agreements provide for performance-based fees or incentive allocations, collectively “performance fees”. Performance fees, if earned, are recognized upon completion of the contractually determined measurement period, which is generally quarterly or annually. Performance fees are not subject to claw back as a result of performance declines subsequent to the most recent measurement date. Revenue Recognition Artisan accounts for asset management services as a single performance obligation that is satisfied over time, using a time-based measure of progress to recognize revenue. Customer consideration is variable due to the uncertainty of the value of assets under management during each distinct service period. At the end of each quarter, Artisan records revenue for the actual amount of investment management fees earned for that quarter because the uncertainty has been resolved. Performance fees are subject to the uncertainty of market volatility, and as a result, the entire amount of the variable consideration related to performance fees is constrained until the end of each measurement period. At the end of the quarterly or annual measurement period, revenue is recorded for the actual amount of performance fees earned during that period because the uncertainty has been resolved. For performance fees with annual measurement periods, revenue recognized in the current quarter relates to performance obligations that were partially satisfied in prior periods. Customer Rebates, Waivers and Expense Reimbursements Artisan has contractually agreed to waive its investment management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain funds to not more than a fixed percentage of the funds’ average daily net assets. Artisan may also contractually agree to pay fee rebates to certain clients. Artisan accounts for all waivers, reimbursements, and rebates as a reduction of the transaction price (and, hence, of revenue) because the billing adjustments and payments represent consideration payable to customers and Artisan does not receive any distinct goods or services from the customers in exchange. Pre-offering related compensation - share-based awards Prior to the IPO Reorganization, Holdings granted Class B share-based awards to certain employees. These awards vested over a period of five years and became fully vested on July 1, 2017. Share-based compensation Share-based compensation expense is recognized based on the estimated grant date fair value on a straight-line basis over the requisite service period of the award. The initial requisite service period is generally five years for restricted share-based awards. The Company’s accounting policy is to record the impact of forfeitures when they occur. Distribution, servicing and marketing Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other intermediaries, and in some cases other organizations designated by an authorized intermediary, to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the funds’ behalf. Many intermediaries charge a fee for accounting and shareholder services provided to fund shareholders on the funds’ behalf. Those services typically include recordkeeping, transaction processing for shareholders’ accounts, and other services. The fee is either based on the number of accounts to which the intermediary provides such services or a percentage of the average daily value of fund shares held in such accounts. The funds pay a portion of such fees directly to the intermediaries, which are intended to compensate the intermediary for its provision of services of the type that would be provided by the funds’ transfer agent or other service providers if the shares were registered directly on the books of the funds’ transfer agent. Artisan pays the balance of those fees which includes compensation to the intermediary for its distribution, servicing and marketing of Artisan Funds shares. Artisan Global Funds also have arrangements pursuant to which Artisan is required to pay a portion of its investment management fee for distribution, servicing and marketing of Artisan Global Funds shares. Distribution, servicing and marketing fees paid by Artisan are presented as an operating expense as Artisan is the principal in its role as the primary obligor related to these services. Fees paid to intermediaries were as follows: For the Years Ended December 31, 2019 2018 2017 Fees paid with respect to Artisan Funds $ 20,096 $ 22,822 $ 25,697 Fees paid with respect to Global Funds 424 1,002 1,731 Other marketing expenses 2,650 2,737 2,192 Total distribution, servicing and marketing $ 23,170 $ 26,561 $ 29,620 Accrued fees to intermediaries were $3.3 million and $2.7 million as of December 31, 2019 and 2018, respectively, and are included in accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition. Loss contingencies Artisan considers the assessment of loss contingencies as a significant accounting policy because of the significant uncertainty relating to the outcome of any potential legal actions and other claims and the difficulty of predicting the likelihood and range of the potential liability involved, coupled with the material impact on Artisan’s results of operations that could result from legal actions or other claims and assessments. Artisan recognizes estimated costs to defend as incurred. Potential loss contingencies are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on Artisan’s results of operations, financial position, or cash flows. Recoveries of losses are recognized in the Consolidated Statements of Operations when receipt is deemed probable. No loss contingencies were recorded at December 31, 2019, 2018 and 2017. Currently, there are no legal or administrative proceedings that management believes may have a material effect on Artisan’s consolidated financial position, cash flows or results of operations. Income taxes Artisan accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Artisan recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Artisan accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Artisan believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position. Comprehensive income (loss) Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of foreign currency translation. Prior to 2018, other comprehensive income (loss) also includes the change in unrealized gains (losses) on available-for-sale investments, net of related tax effects. Partnership distributions Artisan makes distributions to its partners for purposes of paying income taxes as required under the terms of Artisan Partners Holdings’ partnership agreement. Tax distributions are calculated utilizing the highest combined individual federal, state and local income tax rate among the various locations in which the partners, as a result of owning their interests in the partnership, are subject to tax, assuming maximum applicability of the phase-out of itemized deductions contained in the Internal Revenue Code for tax years prior to 2018. Artisan also makes additional distributions under the terms of the partnership agreement. Distributions are recorded in the financial statements on the declaration date. Earnings per Share Basic earnings per share is computed under the two-class method by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Unvested restricted share-based awards are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by employees. Income available to Class A common stockholders is computed by reducing net income attributable to APAM by earnings (both distributed and undistributed) allocated to participating securities, according to their respective rights to participate in those earnings. Unvested share-based awards are participating securities because the awards include non-forfeitable dividend rights during the vesting period. Class B and Class C common shares do not share in profits of APAM and therefore are not reflected in the calculations. Diluted earnings per share is computed by increasing the denominator by the amount of additional Class A common shares that would have been outstanding if all potential Class A common shares had been issued. The numerator is also increased for the net income allocated to the potential Class A common shares. Potential dilutive Class A common shares consist of (1) the Class A common shares issuable upon exchange of Holdings limited partnership units for APAM Class A common stock and (2) unvested restricted share-based awards. Recent accounting pronouncements Accounting standards adopted as of January 1, 2019 In February 2016, the FASB issued ASU 2016-02, Leases, which introduced a lessee model that brings most leases on the balance sheet. The Company adopted the new standard on January 1, 2019, using the modified retrospective transition method that does not adjust comparative periods. The adoption had no impact on previously reported results, and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. In accordance with the adoption of the new lease standard, the Company recorded operating lease assets and operating lease liabilities in the Consolidated Statements of Financial Condition. The adoption of ASU 2016-02 had no impact on the Consolidated Statements of Operations for the year ended December 31, 2019, and did not impact operating, financing or investing cash flows in the Consolidated Statements of Cash Flows for the year ended December 31, 2019. Artisan elected to adopt the short-term lease exemption, which allows companies to exclude contracts that have an initial term of 12 months or less. Artisan also elected the package of practical expedients available for existing contracts which allowed the Company to carry forward historical assessments of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. Additionally, Artisan elected the practical expedient to account for lease and non-lease components as a single component. See Note 16, “Leases” for additional information. Accounting standards not yet adopted In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The Company currently expenses implementation costs in hosting arrangements as the costs are incurred. The new guidance was effective on January 1, 2020. The Company expects certain types of costs will be capitalized that would have previously been expensed as incurred, but does not expect the impact to be material to the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires entities to measure credit losses on financial assets based on expected losses rather than incurred losses. The guidance was effective on January 1, 2020 and requires a modified retrospective approach to adoption. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Note 3. Investment Securities The disclosures below include details of Artisan’s investments, excluding money market funds and consolidated investment products. Investments held by consolidated investment products are described in Note 6, “Variable Interest Entities and Consolidated Investment Products”. As of December 31, 2019 As of December 31, 2018 Investments in equity securities $ 7,543 $ 5,857 Investments in equity securities accounted for under the equity method 16,335 12,252 Total investment securities $ 23,878 $ 18,109 Artisan’s investments in equity securities consist of investments in shares of Artisan Funds, Artisan Global Funds and Artisan Private Funds. The table below presents the net investment income activity related to these investment securities: For the year ended December 31, 2019 For the year ended December 31, 2018 Net gains (losses) recognized on investment securities $ 5,101 $ 688 Less: Net realized gains (losses) recognized on investment securities sold during the period 250 157 Unrealized gains (losses) recognized on investment securities held as of the end of the period $ 4,851 $ 531 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The table below presents information about Artisan’s assets and liabilities that are measured at fair value and the valuation techniques Artisan utilized to determine such fair value. The financial instruments held by consolidated investment products are excluded from the table below and are presented in Note 6, “Variable Interest Entities and Consolidated Investment Products”. In accordance with ASC 820, fair value is defined as the price that Artisan would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. The following three-tier fair value hierarchy prioritizes the inputs used in measuring fair value: • Level 1 – Observable inputs such as quoted (unadjusted) market prices in active markets for identical securities. • Level 2 – Other significant observable inputs (including but not limited to quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, etc.). • Level 3—Significant unobservable inputs (including Artisan’s own assumptions in determining fair value). The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of December 31, 2019 and 2018: Assets and Liabilities at Fair Value Total NAV Practical Expedient (No Fair Value Level) Level 1 Level 2 Level 3 December 31, 2019 Assets Money market funds $ 30,673 $ — $ 30,673 $ — $ — Equity securities 23,878 15,068 8,810 — — December 31, 2018 Assets Money market funds $ 57,790 $ — $ 57,790 $ — $ — Equity securities 18,109 12,252 5,857 — — |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 5. Borrowings Artisan’s borrowings consist of the following as of December 31, 2019 and 2018: Maturity As of December 31, 2019 As of December 31, 2018 Interest Rate Per Annum Revolving credit agreement August 2022 — — NA Senior notes Series B August 2019 — 50,000 5.32 % Series C August 2022 90,000 90,000 5.82 % Series D August 2025 60,000 60,000 4.29 % Series E August 2027 50,000 — 4.53 % Total borrowings $ 200,000 $ 200,000 The fair value of borrowings was approximately $202.8 million as of December 31, 2019. Fair value was determined based on future cash flows, discounted to present value using current market interest rates. The inputs are categorized as Level 2 in the fair value hierarchy, as defined in Note 4, “Fair Value Measurements”. Senior notes - On August 16, 2017, Holdings issued $60 million of 4.29% Series D senior notes and used the proceeds to repay the $60 million of 4.98% Series A senior notes that matured on August 16, 2017. In addition, Holdings amended and extended its $100 million revolving credit facility for an additional five-year period. On August 16, 2019, Holdings issued $50 million of 4.53% Series E senior notes and used the proceeds to repay the $50 million of 5.32% Series B senior notes that matured on August 16, 2019. The fixed interest rate on each series of unsecured notes is subject to a one percentage point increase in the event Holdings receives a below-investment grade rating and any such increase will continue to apply until an investment grade rating is received. Revolving credit agreement - Any loans outstanding under the revolving credit agreement bear interest at a rate per annum equal to, at the Company’s election, (i) LIBOR adjusted by a statutory reserve percentage plus an applicable margin ranging from 1.50% to 2.50%, depending on Holdings’ leverage ratio (as defined in the revolving credit agreement) or (ii) an alternate base rate equal to the highest of (a) Citibank, N.A.’s prime rate, (b) the federal funds effective rate plus 0.50%, and (c) the daily one-month LIBOR adjusted by a statutory reserve percentage plus 1.00%, plus, in each case, an applicable margin ranging from 0.50% to 1.50%, depending on Holdings’ leverage ratio. Unused commitments will bear interest at a rate that ranges from 0.175% to 0.500%, depending on Holdings’ leverage ratio. As of and for the year-ended December 31, 2019, there were no borrowings outstanding under the revolving credit agreement and the interest rate on the unused commitment was 0.175%. The unsecured notes and the revolving credit agreement contain certain restrictive financial covenants including a limitation on the leverage ratio of Holdings and a minimum interest coverage ratio. The Company was in compliance with all debt covenants as of December 31, 2019. Interest expense incurred on the unsecured notes and revolving credit agreement was $10.5 million, $10.6 million, and $10.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: 2020 $ — 2021 — 2022 90,000 2023 — 2024 — Thereafter 110,000 Total $ 200,000 |
Variable Interest Entities and
Variable Interest Entities and Consolidated Investment Products (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Variable Interest Entities and Consolidated Investment Products | Note 6. Variable Interest Entities and Consolidated Investment Products Artisan serves as the investment adviser for various types of investment products, consisting of both VIEs and VOEs. Artisan consolidates an investment product if it has a controlling financial interest in the entity. See Note 2, “Summary of Significant Accounting Policies”. Any such entities are collectively referred to herein as consolidated investment products or CIPs. As of December 31, 2019, Artisan is considered to have a controlling financial interest in three sub-funds of Artisan Global Funds and one Artisan Private Fund with an aggregate direct equity investment in the consolidated investment products of $33.9 million. Artisan’s maximum exposure to loss in connection with the assets and liabilities of CIPs is limited to its direct equity investment, while the potential benefit is limited to the management fee and incentive allocation received and the return on its equity investment. With the exception of Artisan’s direct equity investment, the assets of CIPs are not available to Artisan’s creditors, nor are they available to Artisan for general corporate purposes. In addition, third-party investors in the CIPs have no recourse to the general credit of the Company. Management fees and incentive allocations earned from CIPs are eliminated from revenue upon consolidation. See Note 17, “Related Party Transactions” for additional information on management fees and incentive allocations earned from CIPs. Third-party investors’ ownership interest in CIPs is presented as redeemable noncontrolling interest in the Consolidated Statements of Financial Condition as third-party investors have the right to withdraw their capital, subject to certain conditions. Net income attributable to third-party investors is reported as net income attributable to noncontrolling interests - consolidated investment products in the Consolidated Statements of Operations. During the year ended December 31, 2019, the Company determined that it no longer had a controlling financial interest in one sub-fund of Artisan Global Funds as a result of third party capital contributions. Upon loss of control, the VIE was deconsolidated and the related assets, liabilities and equity of the fund were derecognized from the Company’s Consolidated Statements of Financial Condition. There was no net impact to the Consolidated Statements of Operations for the year ended December 31, 2019. Artisan generally does not recognize a gain or loss upon deconsolidation of investment products because the assets and liabilities of CIPs are carried at fair value. Upon deconsolidation, Artisan's $0.9 million direct equity investment was reclassified from investment assets of consolidated investment products to investment securities in the Company's Consolidated Statements of Financial Condition. As of December 31, 2019, Artisan held direct equity investments of $16.3 million in VIEs for which the Company does not hold a controlling financial interest. These direct equity investments consisted of seed investments in sub-funds of Artisan Global Funds and Artisan Private Funds, both of which are accounted for under the equity method of accounting because Artisan has significant influence over the funds. Fair Value Measurements - Consolidated Investment Products The carrying value of CIPs’ investments is also their fair value. Short and long positions on equity securities are valued based upon closing prices of the security on the exchange or market designated by the accounting agent or pricing vendor as the principal exchange. The closing price may represent last sale price, official closing price, a closing auction or other information depending on market convention. Short and long positions on fixed income instruments are valued at market value. Market values are generally evaluations based on the judgment of pricing vendors, which may consider, among other factors, the prices at which securities actually trade, broker-dealer quotations, pricing formulas, estimates of market values obtained from yield data relating to investments or securities with similar characteristics and/or discounted cash flow models that might be applicable. The following tables present the fair value hierarchy levels of assets and liabilities held by CIPs measured at fair value as of December 31, 2019 and 2018: Assets and Liabilities at Fair Value Total Level 1 Level 2 Level 3 December 31, 2019 Assets Money market funds $ 5,005 $ 5,005 $ — $ — Equity securities - long position 9,933 9,933 — — Fixed income instruments - long position 96,681 — 96,681 — Derivative assets 122 22 100 — Liabilities Fixed income instruments - short position $ 6,005 $ — $ 6,005 $ — Derivative liabilities 181 — 181 — December 31, 2018 Assets Money market funds $ 13,141 $ 13,141 $ — $ — Equity securities - long position 7,817 7,196 — 621 Fixed income instruments - long position 57,621 — 57,621 — Derivative assets 735 — 735 — Liabilities Fixed income instruments - short position $ 16,567 $ — $ 16,567 $ — Derivative liabilities 338 — 338 — CIP balances included in the Company's consolidated statements of financial condition were as follows: As of December 31, As of December 31, Net CIP assets included in the table above $ 105,555 $ 62,409 Net CIP assets not included in the table above (28,509) 2,156 Total Net CIP assets 77,046 64,565 Less: redeemable noncontrolling interests 43,110 34,349 Artisan’s direct equity investment in CIPs $ 33,936 $ 30,216 |
Noncontrolling Interest - Holdi
Noncontrolling Interest - Holdings | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest - Holdings | Note 7. Noncontrolling Interests - Holdings Net income attributable to noncontrolling interests - Artisan Partners Holdings in the Consolidated Statements of Operations represents the portion of earnings or loss attributable to the equity ownership interests in Holdings held by the limited partners of Holdings. As of December 31, 2019, APAM held approximately 73% of the equity ownership interests in Holdings. Limited partners of Artisan Partners Holdings are entitled to exchange partnership units (along with a corresponding number of shares of Class B or C common stock of APAM) for shares of Class A common stock from time to time (the "Holdings Common Unit Exchanges"). The Holdings Common Unit Exchanges increase APAM's equity ownership interest in Holdings and result in an increase to deferred tax assets and amounts payable under the tax receivable agreements. See Note 11, “Income Taxes and Related Payments”. In order to maintain the one-to-one correspondence of the number of Holdings partnership units and APAM common shares, Holdings will issue one general partner (“GP”) unit to APAM for each share of Class A common stock issued by APAM. For the years ended December 31, 2019, 2018 and 2017, APAM’s equity ownership interest in Holdings has increased as a result of the following transactions: Holdings GP Units Limited Partnership Units Total APAM Ownership % Balance at January 1, 2017 42,149,436 32,205,433 74,354,869 57 % Issuance of APAM Restricted Shares, Net 1,218,604 — 1,218,604 1 % 2017 Follow-On Offering 5,626,517 (5,626,517) — 7 % Holdings Common Unit Exchanges 1,472,197 (1,472,197) — 2 % Forfeitures from Employee Terminations (1) (3,628) — (3,628) — % Balance at December 31, 2017 50,463,126 25,106,719 75,569,845 67 % Issuance of APAM Restricted Shares, Net (1) 1,440,282 — 1,440,282 — % 2018 Follow-On Offering 644,424 (644,424) — 1 % Holdings Common Unit Exchanges 1,590,611 (1,590,611) — 2 % Forfeitures from Employee Terminations (1) (67,255) — (67,255) — % Balance at December 31, 2018 54,071,188 22,871,684 76,942,872 70 % Issuance of APAM Restricted Shares, Net (1) 876,271 — 876,271 — % Holdings Common Unit Exchanges 1,499,655 (1,499,655) — 3 % Forfeitures from Employee Terminations (1) (17,289) — (17,289) — % Balance at December 31, 2019 56,429,825 21,372,029 77,801,854 73 % (1) The impact of the transaction on APAM’s ownership percentage was less than 1%. Changes in ownership of Holdings are accounted for as equity transactions because APAM continues to have a controlling interest in Holdings. Additional paid-in capital and noncontrolling interests - Artisan Partners Holdings in the Consolidated Statements of Financial Condition are adjusted to reallocate Holdings’ historical equity to reflect the change in APAM’s ownership of Holdings. The reallocation of equity had the following impact on the Consolidated Statements of Financial Condition: Statement of Financial Condition For the Years Ended December 31, 2019 2018 Additional paid-in capital $ (3,533) $ (4,878) Noncontrolling interest - Artisan Partners Holdings 3,584 4,923 Accumulated other comprehensive income (loss) (51) (45) Net impact to financial condition $ — $ — |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 8. Stockholders’ Equity APAM - Stockholders’ Equity APAM had the following authorized and outstanding equity as of December 31, 2019 and 2018, respectively: Outstanding Authorized December 31, 2019 December 31, 2018 Voting Rights (1) Economic Rights Common shares Class A, par value $0.01 per share 500,000,000 56,429,825 54,071,188 1 vote per share Proportionate Class B, par value $0.01 per share 200,000,000 7,803,364 8,645,249 1 vote per share None Class C, par value $0.01 per share 400,000,000 13,568,665 14,226,435 1 vote per share None (1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of December 31, 2019, Artisan’s employees held 4,898,297 restricted shares of Class A common stock and all 7,803,364 outstanding shares of Class B common stock, all of which were subject to the agreement. APAM is dependent on cash generated by Holdings to fund any dividends. Generally, Holdings will make distributions to all of its partners, including APAM, based on the proportionate ownership each holds in Holdings. APAM will fund dividends to its stockholders from its proportionate share of those distributions after provision for its taxes and other obligations. APAM declared and paid the following dividends per share during the years ended December 31, 2019, 2018 and 2017: Type of Dividend Class of Stock For the Years Ended December 31, 2019 2018 2017 Quarterly Common Class A $ 2.36 $ 2.40 $ 2.40 Special Annual Common Class A $ 1.03 $ 0.79 $ 0.36 The following table summarizes APAM’s stock transactions for the years ended December 31, 2019, 2018 and 2017: Total Stock Outstanding Class A Common Stock (1) Class B Common Stock Class C Common Stock Balance at January 1, 2017 74,354,869 42,149,436 15,142,049 17,063,384 2017 Follow-On Offering — 5,626,517 (2,104,517) (3,522,000) Holdings Common Unit Exchanges — 1,472,197 (1,048,917) (423,280) Restricted Share Award Grants 1,267,250 1,267,250 — — Restricted Share Award Net Share Settlement (48,646) (48,646) — — Employee/Partner Terminations (3,628) (3,628) (66,423) 66,423 Balance at December 31, 2017 75,569,845 50,463,126 11,922,192 13,184,527 2018 Follow-On Offering — 644,424 (644,424) — Holdings Common Unit Exchanges — 1,590,611 (606,066) (984,545) Restricted Share Award Grants 1,517,724 1,517,724 — — Restricted Share Award Net Share Settlement (77,442) (77,442) — — Employee/Partner Terminations (67,255) (67,255) (2,026,453) 2,026,453 Balance at December 31, 2018 76,942,872 54,071,188 8,645,249 14,226,435 Holdings Common Unit Exchanges — 1,499,655 (841,885) (657,770) Restricted Share Award Grants 959,000 959,000 — — Restricted Share Award Net Share Settlement (82,729) (82,729) — — Employee/Partner Terminations (17,289) (17,289) — — Balance at December 31, 2019 77,801,854 56,429,825 7,803,364 13,568,665 (1) There were 297,891, 246,581, and 178,401 restricted stock units outstanding at December 31, 2019, 2018, and 2017, respectively. Restricted stock units are not reflected in the table because they are not considered outstanding or issued stock. Each Class A, Class B, Class D and Class E common unit of Holdings (together with the corresponding share of Class B or Class C common stock) is exchangeable for one share of Class A common stock. The corresponding shares of Class B and Class C common stock are immediately canceled upon any such exchange. Upon termination of employment with Artisan, an employee-partner’s Class B common units are exchanged for Class E common units and the corresponding shares of Class B common stock are canceled. APAM issues the former employee-partner a number of shares of Class C common stock equal to the former employee-partner’s number of Class E common units. Class E common units are exchangeable for Class A common stock subject to the same restrictions and limitations on exchange applicable to the other common units of Holdings. Artisan Partners Holdings - Partners’ Equity Holdings makes distributions of its net income to the holders of its partnership units for income taxes as required under the terms of the partnership agreement and also makes additional distributions under the terms of the partnership agreement. The distributions are recorded in the financial statements on the declaration date, or on the payment date in lieu of a declaration date. Holdings’ partnership distributions for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 Holdings Partnership Distributions to Limited Partners $ 94,842 $ 103,434 $ 115,804 Holdings Partnership Distributions to APAM 226,245 217,396 197,070 Total Holdings Partnership Distributions $ 321,087 $ 320,830 $ 312,874 |
Revenue from Contract with Cust
Revenue from Contract with Customer (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Text Block] | Note 9. Revenue From Contracts with Customers The following table presents a disaggregation of revenue by type and vehicle for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 2018 2017 Management fees Artisan Funds $ 452,504 $ 487,041 $ 472,502 Artisan Global Funds 32,332 35,007 30,107 Separate accounts (1) 309,502 303,631 292,667 Performance fees Separate accounts (1) 4,614 2,956 348 Total revenues (2) $ 798,952 $ 828,635 $ 795,624 (1) Separate account revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, which includes traditional separate accounts, Artisan-branded collective investment trusts and funds (both public and private) that Artisan advises, including Artisan Private Funds. (2) All management fees and performance fees from consolidated investment products were eliminated upon consolidation and therefore are omitted from this table. The following table presents the balances of receivables related to contracts with customers: December 31, December 31, Customer Artisan Funds $ 6,703 $ 5,418 Artisan Global Funds 3,588 417 Separate accounts 69,413 59,787 Total receivables from contracts with customers $ 79,704 $ 65,622 Non-customer receivables 2,164 2,069 Accounts receivable $ 81,868 $ 67,691 Artisan Funds and Artisan Global Funds are billed on the last day of each month. Artisan Funds and Artisan Global Funds make payments on the same day the invoice is received for the majority of the invoiced amount. The remainder of the invoice is generally paid in the month following receipt of the invoice. Separate account clients are generally billed on a monthly or quarterly basis, with payments due within 30 days of billing. Artisan had no other contract assets or liabilities from contracts with customers as of December 31, 2019 or December 31, 2018. |
Compensation and Benefits
Compensation and Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Compensation and Benefits | Note 10. Compensation and Benefits Total compensation and benefits consists of the following: For the Years Ended December 31, 2019 2018 2017 Salaries, incentive compensation and benefits (1) $ 358,339 $ 360,287 $ 341,060 Restricted share-based award compensation expense 42,117 52,879 49,142 Total salaries, incentive compensation and benefits 400,456 413,166 390,202 Pre-offering related compensation - share-based awards — — 12,678 Total compensation and benefits $ 400,456 $ 413,166 $ 402,880 (1) Excluding restricted share-based award compensation expense Incentive compensation Cash incentive compensation paid to members of Artisan’s investment teams and members of its distribution teams is generally based on formulas that are tied directly to revenues. These payments are made in the quarter following the quarter in which the incentive was earned with the exception of fourth quarter payments which are paid in the fourth quarter of the year. Cash incentive compensation paid to most other employees is discretionary and subjectively determined based on individual performance and Artisan’s overall results during the applicable year and is generally paid on an annual basis. Restricted share-based awards Artisan has registered 14,000,000 shares of Class A common stock for issuance under the 2013 Omnibus Incentive Compensation Plan (the “Plan”). Pursuant to the Plan, APAM has granted a combination of restricted stock awards and restricted stock units (collectively referred to as “restricted share-based awards” or "awards") of Class A common stock to employees. Restricted share-based awards have a pro-rata five A portion of the restricted share-based awards granted to portfolio managers contain a Franchise Protection Clause, which provides that the number of awards that ultimately vest depends on meeting certain conditions related to client cash flows. If such conditions are not met, compensation cost will be reversed for any awards that do not vest. The fair value, requisite service period and expense recognition for these awards are determined in the same manner as the other restricted share-based awards. Unvested restricted share-based awards are subject to forfeiture. Grantees are entitled to dividends or dividend equivalents on unvested and vested awards. 5,601,288 shares of Class A common stock were reserved and available for issuance under the Plan as of December 31, 2019. The following table summarizes the restricted share-based award activity for the years ended December 31, 2019, 2018 and 2017: Weighted-Average Grant Date Fair Value Number of Awards Unvested at January 1, 2017 $ 44.47 3,394,910 Granted 28.30 1,268,500 Forfeited 39.56 (3,628) Vested 48.06 (645,796) Unvested at January 1, 2018 $ 38.79 4,013,986 Granted 39.32 1,518,974 Forfeited 36.09 (67,255) Vested 44.50 (787,248) Unvested at January 1, 2019 $ 38.04 4,678,457 Granted 22.92 963,000 Forfeited 34.61 (17,289) Vested 39.21 (618,746) Unvested at December 31, 2019 $ 35.00 5,005,422 The aggregate vesting date fair value of awards that vested during the years ended December 31, 2019, 2018 and 2017 was approximately $15.9 million , $25.8 million, and $19.8 million, respectively. The unrecognized compensation expense for the unvested restricted share-based awards as of December 31, 2019 was $82.0 million with a weighted average recognition period of 3.2 years remaining. During the years ended December 31, 2019 and 2018, the Company withheld a total of 82,729 and 77,442 restricted shares, respectively, as a result of net share settlements to satisfy employee tax withholding obligations. The Company paid $2.1 million and $2.6 million in employee tax withholding obligations related to these settlements during the years ended December 31, 2019 and 2018, respectively. These net share settlements had the effect of shares repurchased and retired by the Company, as they reduced the number of shares outstanding. Pre-offering related compensation - share-based awards Prior to the IPO, Holdings granted Class B share-based awards to certain employees. These awards vested over a period of five years and became fully vested on July 1, 2017. |
Income Taxes and Related Paymen
Income Taxes and Related Payments | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes and Related Payments | Note 11. Income Taxes and Related Payments APAM is subject to U.S. federal, state and local income taxation on APAM’s allocable portion of Holdings’ income, as well as foreign income taxes payable by Holdings’ subsidiaries. Components of the provision for income taxes consist of the following: For the Years Ended December 31, 2019 2018 2017 Current: Federal $ 13,609 $ 18,247 $ 21,960 State and local 6,315 3,993 2,663 Foreign 529 495 469 Total 20,453 22,735 25,092 Deferred: Federal 22,310 22,218 396,502 State and local (14,954) 2,645 (1,086) Total 7,356 24,863 395,416 Income tax expense $ 27,809 $ 47,598 $ 420,508 The provision for income taxes differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows: Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local taxes, net of federal tax effect 2.8 2.1 0.9 Non-deductible share-based compensation — — 0.5 Rate benefit from the flow through entity (6.7) (6.7) (6.2) Tax Reform - change in federal corporate tax rate — — 43.9 Change in state tax rate (6.8) — — Unrecognized tax benefits 0.6 — — Other (0.6) (0.6) (0.5) Effective tax rate 10.3 % 15.8 % 73.6 % The effective tax rate includes a rate benefit attributable to the fact that, for the years ended December 31, 2019 , 2018 and 2017, approximately 31%, 33% and 38%, respectively, of Artisan Partners Holdings’ taxable earnings were attributable to other partners and not subject to corporate-level taxes. The effective tax rate was also reduced in the year ended December 31, 2019, due to the remeasurement of existing deferred tax assets resulting from an increase in Artisan's state deferred income tax rates. The effective tax rate was also lower than the statutory rate due to dividends paid on unvested restricted share-based awards, net of higher tax expense related to the vesting of restricted share-based awards. The Tax Cuts and Jobs Act (“Tax Reform”) was enacted in December 2017. As a result of Tax Reform, existing deferred tax assets were remeasured to reflect the reduction in the enacted U.S. federal corporate tax rate. The tax rate used to measure deferred tax assets changed from 37.0% to 23.5% as of December 31, 2017, which resulted in a reduction to deferred tax assets of $352.0 million with a corresponding increase to the provision for income taxes for the year ended December 31, 2017. In connection with the IPO, APAM entered into two tax receivable agreements (“TRAs”). The first TRA, generally provides for the payment by APAM to a private equity fund (the “Pre-H&F Corp Merger Shareholder”) or its assignees of 85% of the applicable cash savings, if any, of U.S. federal, state and local income taxes that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) the tax attributes of the preferred units APAM acquired in the merger of a wholly-owned subsidiary of the Pre-H&F Corp Merger Shareholder into APAM in March 2013, (ii) net operating losses available as a result of the merger and (iii) tax benefits related to imputed interest. The second TRA generally provides for the payment by APAM to current or former limited partners of Holdings or their assignees of 85% of the applicable cash savings, if any, of U.S. federal, state and local income taxes that APAM actually realizes (or is deemed to realize in certain circumstances) as a result of (i) certain tax attributes of their partnership units sold to APAM or exchanged (for shares of Class A common stock, convertible preferred stock or other consideration) and that are created as a result of such sales or exchanges and payments under the TRAs and (ii) tax benefits related to imputed interest. Under both agreements, APAM generally will retain the benefit of the remaining 15% of the applicable tax savings. For purposes of the TRAs, cash savings of income taxes are calculated by comparing APAM’s actual income tax liability to the amount it would have been required to pay had it not been able to utilize any of the tax benefits subject to the TRAs, unless certain assumptions apply. The TRAs will continue in effect until all such tax benefits have been utilized or expired, unless APAM exercises its right to terminate the agreements or payments under the agreements are accelerated in the event that APAM materially breaches any of its material obligations under the agreements. The actual increase in tax basis, as well as the amount and timing of any payments under these agreements, will vary depending upon a number of factors, including the timing of sales or exchanges by the holders of limited partnership units, the price of the Class A common stock at the time of such sales or exchanges, whether such sales or exchanges are taxable, the amount and timing of the taxable income APAM generates in the future and the tax rate then applicable and the portion of APAM’s payments under the TRAs constituting imputed interest or depreciable basis or amortizable basis. Payments under the TRAs, if any, will be made pro rata among all TRA counterparties entitled to payments on an annual basis to the extent APAM has sufficient taxable income to utilize the increased depreciation and amortization charges and imputed interest deductions. Artisan expects to make one or more payments under the TRAs, to the extent they are required, prior to or within 125 days after APAM’s U.S. federal income tax return is filed for each fiscal year. Interest on the TRA payments will accrue at a rate equal to one-year LIBOR plus 100 basis points from the due date (without extension) of such tax return until such payments are made. Amounts payable under tax receivable agreements are estimates which may be impacted by factors, including but not limited to, expected tax rates, projected taxable income, and projected ownership levels and are subject to change. Changes in the estimates of amounts payable under tax receivable agreements are recorded as non-operating income (loss) in the Consolidated Statements of Operations. The change in the Company’s deferred tax assets related to the tax benefits described above and the change in corresponding amounts payable under the TRAs for the years ended December 31, 2019 and 2018 is summarized as follows: Deferred Tax Asset - Amortizable Basis Amounts Payable Under Tax Receivable Agreements December 31, 2017 $ 410,690 $ 385,413 2018 Follow-On Offering 7,687 6,534 2018 Holdings Common Unit Exchanges 16,199 13,770 Amortization (29,851) — Payments under TRAs (1) — (36,111) Change in estimate (10) (251) December 31, 2018 $ 404,715 $ 369,355 2019 Holdings Common Unit Exchanges 13,424 11,410 Amortization (31,872) — Payments under TRAs (1) — (24,998) Change in estimate 21,873 19,557 December 31, 2019 $ 408,140 $ 375,324 (1) Interest payments of $78 thousand and $115 thousand were paid in addition to these TRA payments for the years ended December 31, 2019 and 2018, respectively. Net deferred tax assets comprise the following: As of December 31, 2019 As of December 31, 2018 Deferred tax assets: Amortizable basis (1) $ 408,140 $ 404,715 Other (2) 27,757 24,413 Total deferred tax assets 435,897 429,128 Less: valuation allowance (3) — — Net deferred tax assets $ 435,897 $ 429,128 (1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements. (2) Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements. (3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. Accounting standards establish a minimum threshold for recognizing, and a process for measuring, the benefits of income tax return positions in financial statements. The change in the Company’s gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is summarized as follows: For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ — $ — $ — Additions for tax positions of prior years 1,667 — — Reductions for tax positions of prior years — — — Tax positions related to the current year — — — Settlements with taxing authorities — — — Expirations of statute of limitations — — — Balance at End of Year $ 1,667 $ — $ — If recognized, $1.6 million of the benefits would favorably impact the effective tax rate in future periods. The total amount of unrecognized tax benefits is currently not expected to significantly increase or decrease within the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Accrued interest on uncertain tax positions was $0.3 million as of December 31, 2019, and is excluded from the unrecognized tax benefits total above. The gross unrecognized tax benefit is recorded within accounts payable, accrued expenses, and other in the Company's Consolidated Statements of Financial Condition. In the normal course of business, Artisan is subject to examination by federal and certain state, local and foreign tax regulators. As of December 31, 2019, U.S. federal income tax returns for the years 2016 through 2018 are open and therefore subject to examination. State, local and foreign income tax returns filed are generally subject to examination from 2015 to 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12. Earnings Per Share The computation of basic and diluted earnings per share under the two-class method for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, Basic and Diluted Earnings Per Share 2019 2018 2017 Numerator: Net income attributable to APAM $ 156,536 $ 158,309 $ 49,599 Less: Allocation to participating securities 21,154 19,447 16,026 Net income available to common stockholders $ 135,382 $ 138,862 $ 33,573 Denominator: Weighted average shares outstanding 51,127,929 48,862,435 44,647,318 Earnings per share $ 2.65 $ 2.84 $ 0.75 Allocation to participating securities in the table above primarily represents dividends paid to holders of unvested restricted share-based awards, which reduces net income available to common stockholders. There were no dilutive securities outstanding during the years ended December 31, 2019, 2018 and 2017. The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards are considered participating securities and are therefore anti-dilutive. The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive: For the Years Ended December 31, Anti-Dilutive Weighted Average Shares Outstanding 2019 2018 2017 Holdings limited partnership units 21,827,809 23,351,440 26,837,118 Unvested restricted share-based awards 5,026,357 4,813,895 4,153,260 Total 26,854,166 28,165,335 30,990,378 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 13. Benefit Plans Artisan has a 401(k) plan and similar foreign arrangements for its non-U.S. employees, under which it provides a matching contribution on employees’ pre-tax contributions. Expenses related to Artisan’s benefits plans for the years ended December 31, 2019, 2018 and 2017 were $7.2 million, $6.9 million and $6.4 million, respectively, and are included in compensation and benefits in the Consolidated Statements of Operations. Artisan provides an opportunity for eligible employees to participate in Artisan’s financial growth and success through phantom equity awards, pursuant to the Artisan Partners Holdings LP Phantom Equity Plan. The phantom equity awards provide participants the right to receive cash payments upon vesting based on the trading price of APAM’s Class A common stock. Awards made under the Phantom Equity Plan are liability awards and are subject to vesting on a pro-rata basis over five years. Award recipients must be employed by Artisan on the vesting date in order to receive payment. Expense related to the plan for the years ended December 31, 2019, 2018 and 2017 was $0.9 million, $0.5 million and $0.6 million, respectively, and is included in compensation and benefits in the Consolidated Statements of Operations. The liability at December 31, 2019 and 2018 for the plan was $0.9 million and $0.4 million, respectively. |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnifications | Note 14. Indemnifications In the normal course of business, APAM enters into agreements that include indemnities in favor of third parties. Holdings has also agreed to indemnify APAM as its general partner, Artisan Investment Corporation (“AIC”) as its former general partner, the directors and officers of APAM, the directors and officers of AIC as its former general partner, the members of its former Advisory Committee, and its partners, directors, officers, employees and agents. Holdings’ subsidiaries may also have similar agreements to indemnify their respective general partner(s), directors, officers, directors and officers of their general partner(s), partners, members, employees, and agents. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against us that have not yet occurred. APAM maintains insurance policies that may provide coverage against certain claims under these indemnities. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 15. Property and Equipment The composition of property and equipment at December 31, 2019 and 2018 are as follows: As of December 31, 2019 2018 Computers and equipment $ 7,105 $ 8,000 Computer software 4,112 4,554 Furniture and fixtures 11,780 10,566 Leasehold improvements 48,119 37,551 Total Cost $ 71,116 $ 60,671 Less: Accumulated depreciation (31,621) (31,533) Property and equipment, net of accumulated depreciation $ 39,495 $ 29,138 Depreciation expense totaled $6.8 million , |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Leases of Lessee Disclosure | Note 16. Leases Operating lease expense was as follows: Lease Type Classification For the year ended December 31, 2019 Parking leases Compensation and benefits $ 519 Office leases (1) Occupancy 15,931 Variable lease cost (2) Occupancy 118 Short-term lease cost (2) Occupancy 369 Sublease income Occupancy (286) Office equipment leases Communication and technology 305 Total operating lease expense $ 16,956 (1) Office lease expense includes a $1.5 million charge related to the abandonment of a leased office space during the year ended December 31, 2019, as discussed below. (2) Variable and short-term lease costs are excluded from the measurement of operating lease liabilities. During the year ended December 31, 2019, the Company recognized an asset impairment loss of $2.1 million related to the abandonment of a leased office location. The loss is recorded in occupancy expense based on the present value of expected future cash flows and consists of a $1.5 million lease asset impairment and a $0.6 million property impairment. Operating lease expense was $13.9 million and $10.5 million for the years ended December 31, 2018 and 2017, respectively, under ASC Topic 840. The table below presents the maturity of operating lease liabilities: As of December 31, 2019 2020 $ 16,483 2021 16,378 2022 14,949 2023 13,416 2024 13,111 Thereafter 47,839 Total undiscounted lease payments 122,176 Adjustment to discount to present value (21,022) Operating lease liabilities $ 101,154 As of December 31, 2019, there were not any leases that were signed but not yet commenced, and none of the options to extend lease terms were reasonably certain of being exercised. Other information related to leases was as follows: For the Year Ended December 31, 2019 Weighted average discount rate 4.7 % Weighted average remaining lease term 8.1 years Operating cash flows for operating leases 14,183 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 17. Related Party Transactions Several of the current executive officers and directors of APAM, or entities associated with those individuals, are limited partners of Holdings. As a result, certain transactions (such as TRA payments) between Artisan and the limited partners of Holdings are considered to be related party transactions with respect to these persons. Holdings also makes estimated state tax payments on behalf of certain limited partners, including related parties. These payments are then netted from subsequent distributions to the limited partners. At December 31, 2019 and 2018, accounts receivables included $0.9 million and $0.6 million, respectively, of partnership tax reimbursements due from Holdings’ limited partners, including related parties. Affiliate transactions—Artisan Funds Artisan has an agreement to serve as the investment adviser to Artisan Funds, with which certain Artisan employees are affiliated. Under the terms of the agreement, which generally is reviewed and continued by the board of directors of Artisan Funds annually, a fee is paid to Artisan based on an annual percentage of the average daily net assets of each Artisan Fund ranging from 0.625% to 1.05%. Artisan has contractually agreed to waive its management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain of the Artisan Funds to not more than a fixed percentage (ranging from 0.88% to 1.50%) of a fund’s average daily net assets. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Funds for other expenses. The officers and directors of Artisan Funds who are affiliated with Artisan receive no compensation from the funds. Fees for managing Artisan Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: For the Years Ended December 31, Artisan Funds 2019 2018 2017 Investment management fees (Gross of fee waivers/expense reimbursements) $ 452,895 $ 487,460 $ 472,501 Fee waivers / expense reimbursements $ 391 $ 419 $ 504 Affiliate transactions—Artisan Global Funds Artisan has an agreement to serve as the investment manager to Artisan Global Funds, with which certain Artisan employees are affiliated. Under the terms of these agreements, a fee is paid based on an annual percentage of the average daily net assets of each fund ranging from 0.75% to 1.85%. Artisan reimburses each sub-fund of Artisan Global Funds to the extent that sub-fund’s annual expenses, not including Artisan’s fee, exceed certain levels, which range from 0.10% to 0.20%. In addition, Artisan may voluntarily waive fees or reimburse any of the Artisan Global Funds for other expenses. The directors of Artisan Global Funds who are also employees of Artisan receive no compensation from the funds. Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: For the Years Ended December 31, Artisan Global Funds 2019 2018 2017 Investment management fees (Gross of fee waivers / expense reimbursements) $ 32,577 $ 35,070 $ 30,107 Elimination of management fees from consolidated investment products (1) (67) (62) — Consolidated investment management fees (Gross of fee waivers / expense reimbursements) $ 32,510 $ 35,008 $ 30,107 Fee waivers / expense reimbursements $ 514 $ 386 $ 218 Elimination of fee waivers / expense reimbursements from consolidated investment products (1) (336) (385) — Consolidated fee waivers / expense reimbursements $ 178 $ 1 $ 218 (1) Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation. Affiliate transactions - Artisan Private Funds Pursuant to written agreements, Artisan serves as the investment manager and acts as the general partner for certain Artisan Private Funds. Under the terms of these agreements, Artisan earns a management fee and for certain funds is entitled to receive either an allocation of profits or a performance-based fee. In addition, for a period of time following the formation of each private fund, Artisan has agreed to reimburse the fund to the extent that expenses, excluding Artisan’s management fee, performance fee and transaction related costs, exceed certain levels, which range from 0.10% to 1.00% per annum of the net assets of the fund. Artisan may also voluntarily waive fees or reimburse the funds for other expenses. Artisan and certain related parties, including employees, officers and members of the Company’s board have invested in one or more of the funds and currently do not pay a management fee, performance fee or incentive allocation. Fees for managing the Artisan Private Funds and amounts reimbursed to Artisan Private Funds by Artisan are as follows: For the Years Ended December 31, Artisan Private Funds 2019 2018 2017 Investment management fees (Gross of fee waivers / expense reimbursements) $ 3,042 $ 739 $ 39 Investment performance fees 211 559 50 Elimination of management fees and performance fees from consolidated investment products (1) (369) (286) (89) Consolidated investment management fees (Gross of fee waivers / expense reimbursements) $ 2,884 $ 1,012 $ — Fee waivers / expense reimbursements $ 219 $ 206 $ 290 Elimination of fee waivers / expense reimbursements from consolidated investment products (1) (114) (206) (290) Consolidated fee waivers / expense reimbursements $ 105 $ — $ — (1) Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation. |
Concentration of Credit Risk an
Concentration of Credit Risk and Significant Relationships | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Segment Reporting Disclosure | Note 18. Geographic Information Artisan generates a portion of its revenues from clients domiciled in various countries outside the United States. Revenues by geographic location based on client domicile for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 U.S. $ 666,650 $ 698,994 $ 679,331 Non-U.S. 132,302 129,641 116,293 Total revenues $ 798,952 $ 828,635 $ 795,624 The following table sets forth Artisan’s long-lived assets by geographic area, which consist of net property and equipment and operating lease assets: As of December 31, 2019 2018 U.S. $ 121,146 $ 28,313 Non-U.S. 5,504 825 Total long-lived assets $ 126,650 $ 29,138 |
Litigation Matters
Litigation Matters | 12 Months Ended |
Dec. 31, 2019 | |
Litigation Matters [Abstract] | |
Litigation Matters | Note 19. Litigation Matters In the normal course of business, Artisan may be subject to various legal and administrative proceedings. Currently, there are no legal or administrative proceedings that management believes may have a material effect on Artisan’s consolidated financial position, cash flows or results of operations. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 20. Selected Quarterly Financial Data (Unaudited) The following table presents unaudited quarterly results of operations for 2019 and 2018. These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results. Revenues and net income can vary significantly from quarter to quarter due to the nature of Artisan’s business activities. For the Quarters Ended March 31, 2019 June 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Total revenues $ 186,962 $ 200,727 $ 202,961 $ 208,302 Operating income $ 57,732 $ 70,858 $ 75,548 $ 79,317 Net income attributable to noncontrolling interests-Artisan Partners Holdings $ 17,309 $ 19,795 $ 20,556 $ 22,395 Net income attributable to noncontrolling interests- consolidated investment products $ 970 $ 990 $ 400 $ 2,506 Net income attributable to Artisan Partners Asset Management Inc. $ 31,539 $ 39,188 $ 41,256 $ 44,553 Earnings per basic and diluted share: $ 0.47 $ 0.66 $ 0.71 $ 0.76 For the Quarters Ended March 31, 2018 June 30, 2018 Sept. 30, 2018 Dec. 31, 2018 Total revenues $ 212,008 $ 212,296 $ 212,788 $ 191,543 Operating income $ 79,986 $ 78,877 $ 81,837 $ 64,241 Net income attributable to noncontrolling interests-Artisan Partners Holdings $ 26,052 $ 23,307 $ 24,021 $ 17,674 Net income (loss) attributable to noncontrolling interests- consolidated investment products $ 4,338 $ 2,332 $ 178 $ (2,021) Net income attributable to Artisan Partners Asset Management Inc. $ 41,274 $ 42,006 $ 42,518 $ 32,511 Earnings per basic and diluted share: $ 0.75 $ 0.72 $ 0.77 $ 0.57 The summation of quarterly earnings per share does not equal annual earnings per share because the calculations are performed independently. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21. Subsequent Events Restricted share-based awards During the first quarter of 2020, the board of directors of APAM approved the grant of 979,455 restricted share-based awards to certain employees pursuant to the Company’s 2013 Omnibus Incentive Plan. Compensation expense associated with these awards is expected to be approximately $34.2 million, which will be recognized on a straight-line basis over the requisite service period. Distributions and dividends APAM, acting as the general partner of Artisan Partners Holdings, declared, effective February 4, 2020, a distribution by Artisan Partners Holdings of $62.2 million to holders of Artisan Partners Holdings partnership units, including APAM. The board of directors of APAM declared, effective February 4, 2020, a quarterly dividend of $0.68 per share of Class A common stock and a special annual dividend of $0.60 per share of Class A common stock. Both APAM common stock dividends, a total of $1.28 per share, are payable on February 28, 2020 to shareholders of record as of February 14, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and related rules and regulations of the SEC. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates or assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates or assumptions. |
Principles of consolidation | Principles of consolidation Artisan’s policy is to consolidate all subsidiaries or other entities in which it has a controlling financial interest. The consolidation guidance requires an analysis to determine if an entity should be evaluated for consolidation using the voting interest entity (“VOE”) model or the variable interest entity (“VIE”) model. Under the VOE model, controlling financial interest is generally defined as a majority ownership of voting interests. Under the VIE model, controlling financial interest is defined as (i) the power to direct activities that most significantly impact the economic performance of the entity and (ii) the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. Artisan generally consolidates VIEs in which it meets the power criteria and holds an equity ownership interest of greater than 10%. The consolidated financial statements include the accounts of APAM and all subsidiaries or other entities in which APAM has a direct or indirect controlling financial interest. All material intercompany balances have been eliminated in consolidation. Artisan serves as the investment adviser to Artisan Funds, Artisan Global Funds and Artisan Private Funds. Artisan Funds and Artisan Global Funds are corporate entities the business and affairs of which are managed by their respective boards of directors. The shareholders of the funds retain voting rights, including rights to elect and reelect members of their respective boards of directors. Each series of Artisan Funds is a VOE and is separately evaluated for consolidation under the VOE model. The shareholders of Artisan Global Funds lack simple majority liquidation rights, and as a result, each sub-fund of Artisan Global Funds is evaluated for consolidation under the VIE model. Artisan Private Funds are also evaluated for consolidation under the VIE model because third-party equity holders of the funds generally lack the ability to divest Artisan of its control of the funds. |
Operating segments | Operating segments Artisan operates in one segment, the investment management industry. Artisan provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. Management assesses the financial performance of these vehicles on a combined basis. |
Cash and cash equivalents | Cash and cash equivalentsArtisan defines cash and cash equivalents as money market funds and other highly liquid investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost, which approximates fair value due to the short-term nature and liquidity of these financial instruments. For disclosure purposes, cash equivalents are categorized as Level 1 in the fair value hierarchy. Cash and cash equivalents are subject to credit risk and were primarily maintained in demand deposit accounts with financial institutions or treasury money market funds. |
Foreign currency translation | Foreign currency translation Assets and liabilities of foreign operations whose functional currency is not the U.S. dollar are translated at prevailing year-end exchange rates. Revenue and expenses of such foreign operations are translated at average exchange rates during the year. The net effect of the translation adjustment for foreign operations is included in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. The cumulative effect of translation adjustments is included in accumulated other comprehensive income (loss) and noncontrolling interests - Artisan Partners Holdings in the Consolidated Statements of Financial Condition, based on period-end ownership levels. |
Accounts receivable | Accounts receivable Accounts receivable are carried at invoiced amounts and consist primarily of investment management fees that have been earned, but not yet received from clients. Due to the short-term nature of the receivables, the carrying values of these assets approximate fair value. The accounts receivable balance does not include any allowance for doubtful accounts as Artisan believes all accounts receivable balances are fully collectible. There has not been any bad debt expense recorded for the years ended December 31, 2019, 2018 and 2017. |
Investment securities | Investment securities Investment securities consist of unconsolidated investments in shares of Artisan Funds, Artisan Global Funds, and Artisan Private Funds. Investments provide exposure to various risks, including price risk (the risk of a potential future decline in value of the investment) and foreign currency risk. Investments are carried at fair value based on net asset values as of the valuation date. Realized and unrealized gains (losses) on unconsolidated investment securities are recorded in other investment gain (loss) in the Consolidated Statements of Operations. Dividend income from these investments is recognized when earned and is also included in other investment gain (loss). Prior to 2018, unrealized investments gains (losses) were recorded as a component of other comprehensive income in equity. |
Property and equipment | Property and equipment Property and equipment are carried at cost, less accumulated depreciation. Depreciation is generally recognized on a straight-line basis over the estimated useful lives of the respective assets or the remaining lease term, whichever is shorter. The estimated useful lives of property and equipment as of December 31, 2019 are as follows: Property and Equipment Type Useful Life Computers and equipment Five years Computer software Three years Furniture and fixtures Seven years Leasehold improvements Three |
Restricted cash | Restricted cash Restricted cash represents cash that is restricted as collateral on a standby letter of credit related to a lease obligation. |
Cash and cash equivalents of consolidated investment products | Cash and cash equivalents of consolidated investment productsCash and cash equivalents of consolidated investment products consist of highly liquid investments, including money market funds. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details. |
Investment assets and liabilities of consolidated investment products | Investment assets and liabilities of consolidated investment productsInvestment assets and liabilities of consolidated investment products primarily consist of equity and fixed income securities. The carrying value of the investment assets and liabilities is also their fair value. Changes in the fair value of the investments are recognized as gains and losses in earnings. Equity securities are generally valued based upon closing market prices of the security on the principal exchange on which the security is traded. Fixed income securities include corporate bonds, convertible bonds and bank loans. Fixed income securities are generally valued based on the judgment of pricing vendors. See Note 6, “Variable Interest Entities and Consolidated Investment Products” for additional details. |
Redeemable noncontrolling interests | Redeemable noncontrolling interests Redeemable noncontrolling interests represent third-party investors’ ownership interest in consolidated investment products. Third-party investors in consolidated investment products generally have the right to withdraw their capital, subject to certain conditions. Noncontrolling interests of consolidated investment products that are currently redeemable or convertible for cash or other assets at the option of the holder are classified as temporary equity. |
Revenue recognition | Revenue recognition Artisan’s revenue is derived from contracts with customers in the form of investment management fees, performance-based fees and incentive allocations. Investment Management Fees Investment management fees are generally computed as a percentage of assets under management and are recognized as revenue at the end of each distinct service period. Fees for providing investment advisory services are computed and billed in accordance with the underlying investment management agreements, which is generally on a monthly or quarterly basis. Investment management fees are presented net of cash rebates and fees waived pursuant to contractual expense limitations of certain funds or voluntary waivers. Performance Fees A number of investment management agreements provide for performance-based fees or incentive allocations, collectively “performance fees”. Performance fees, if earned, are recognized upon completion of the contractually determined measurement period, which is generally quarterly or annually. Performance fees are not subject to claw back as a result of performance declines subsequent to the most recent measurement date. Revenue Recognition Artisan accounts for asset management services as a single performance obligation that is satisfied over time, using a time-based measure of progress to recognize revenue. Customer consideration is variable due to the uncertainty of the value of assets under management during each distinct service period. At the end of each quarter, Artisan records revenue for the actual amount of investment management fees earned for that quarter because the uncertainty has been resolved. Performance fees are subject to the uncertainty of market volatility, and as a result, the entire amount of the variable consideration related to performance fees is constrained until the end of each measurement period. At the end of the quarterly or annual measurement period, revenue is recorded for the actual amount of performance fees earned during that period because the uncertainty has been resolved. For performance fees with annual measurement periods, revenue recognized in the current quarter relates to performance obligations that were partially satisfied in prior periods. Customer Rebates, Waivers and Expense Reimbursements Artisan has contractually agreed to waive its investment management fees or reimburse for expenses incurred to the extent necessary to limit annualized ordinary operating expenses incurred by certain funds to not more than a fixed percentage of the funds’ average daily net assets. Artisan may also contractually agree to pay fee rebates to certain clients. Artisan accounts for all waivers, reimbursements, and rebates as a reduction of the transaction price (and, hence, of revenue) because the billing adjustments and payments represent consideration payable to customers and Artisan does not receive any distinct goods or services from the customers in exchange. |
Unit and share-based compensation | Pre-offering related compensation - share-based awards Prior to the IPO Reorganization, Holdings granted Class B share-based awards to certain employees. These awards vested over a period of five years and became fully vested on July 1, 2017. Share-based compensation Share-based compensation expense is recognized based on the estimated grant date fair value on a straight-line basis over the requisite service period of the award. The initial requisite service period is generally five years for restricted share-based awards. The Company’s accounting policy is to record the impact of forfeitures when they occur. |
Distribution fees | Distribution, servicing and marketing Artisan Funds has authorized certain financial services companies, broker-dealers, banks or other intermediaries, and in some cases other organizations designated by an authorized intermediary, to accept purchase, exchange, and redemption orders for shares of Artisan Funds on the funds’ behalf. Many intermediaries charge a fee for accounting and shareholder services provided to fund shareholders on the funds’ behalf. Those services typically include recordkeeping, transaction processing for shareholders’ accounts, and other services. The fee is either based on the number of accounts to which the intermediary provides such services or a percentage of the average daily value of fund shares held in such accounts. The funds pay a portion of such fees directly to the intermediaries, which are intended to compensate the intermediary for its provision of services of the type that would be provided by the funds’ transfer agent or other service providers if the shares were registered directly on the books of the funds’ transfer agent. Artisan pays the balance of those fees which includes compensation to the intermediary for its distribution, servicing and marketing of Artisan Funds shares. Artisan Global Funds also have arrangements pursuant to which Artisan is required to pay a portion of its investment management fee for distribution, servicing and marketing of Artisan Global Funds shares. Distribution, servicing and marketing fees paid by Artisan are presented as an operating expense as Artisan is the principal in its role as the primary obligor related to these services. Fees paid to intermediaries were as follows: For the Years Ended December 31, 2019 2018 2017 Fees paid with respect to Artisan Funds $ 20,096 $ 22,822 $ 25,697 Fees paid with respect to Global Funds 424 1,002 1,731 Other marketing expenses 2,650 2,737 2,192 Total distribution, servicing and marketing $ 23,170 $ 26,561 $ 29,620 Accrued fees to intermediaries were $3.3 million and $2.7 million as of December 31, 2019 and 2018, respectively, and are included in accounts payable, accrued expenses and other in the Consolidated Statements of Financial Condition. |
Leases | Leases Artisan has lease commitments for office space, parking structures, and equipment, which are all accounted for as operating leases. Artisan records expense for operating leases on a straight-line basis over the lease term. Any lease incentives received by Artisan are also amortized on a straight-line basis over the lease term. Artisan assesses its contractual arrangements for the existence of a lease at inception. Operating leases with an initial term greater than 12 months are recorded as operating lease assets and operating lease liabilities in the Consolidated Statements of Financial Condition. Lease components (e.g. fixed rental payments) and non-lease components (e.g. fixed common-area maintenance costs) are generally accounted for as a single component. Operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Operating lease assets are recognized at the lease commencement date based on the present value of lease payments over the lease term, adjusted for prepaid rent and the remaining balance of lease incentives received. Artisan's lease agreements generally do not provide an implicit interest rate, and therefore the present value calculation uses Artisan's estimated incremental borrowing rate. A market-based approach was used to estimate the incremental borrowing rate for each individual lease using observable market interest rates and Artisan specific inputs. The lease terms include periods covered by options to extend or exclude periods covered by options to terminate the lease when it is reasonably certain that Artisan will exercise that option. |
Loss contingencies | Loss contingencies Artisan considers the assessment of loss contingencies as a significant accounting policy because of the significant uncertainty relating to the outcome of any potential legal actions and other claims and the difficulty of predicting the likelihood and range of the potential liability involved, coupled with the material impact on Artisan’s results of operations that could result from legal actions or other claims and assessments. Artisan recognizes estimated costs to defend as incurred. Potential loss contingencies are reviewed at least quarterly and are adjusted to reflect the impact and status of settlements, rulings, advice of counsel and other information pertinent to a particular matter. Significant differences could exist between the actual cost required to investigate, litigate and/or settle a claim or the ultimate outcome of a suit and management’s estimate. These differences could have a material impact on Artisan’s results of operations, financial position, or cash flows. Recoveries of losses are recognized in the Consolidated Statements of Operations when receipt is deemed probable. No loss contingencies were recorded at December 31, 2019, 2018 and 2017. Currently, there are no legal or administrative proceedings that management believes may have a material effect on Artisan’s consolidated financial position, cash flows or results of operations. |
Income taxes | Income taxes Artisan accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be realized or settled. Artisan recognizes a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Artisan accounts for uncertain income tax positions by recognizing the impact of a tax position in its consolidated financial statements when Artisan believes it is more likely than not that the tax position would not be sustained upon examination by the appropriate tax authorities based on the technical merits of the position. |
Comprehensive income (loss) | Comprehensive income (loss) Total comprehensive income (loss) includes net income and other comprehensive income. Other comprehensive income (loss) consists of foreign currency translation. Prior to 2018, other comprehensive income (loss) also includes the change in unrealized gains (losses) on available-for-sale investments, net of related tax effects. |
Partnership distributions | Partnership distributions Artisan makes distributions to its partners for purposes of paying income taxes as required under the terms of Artisan Partners Holdings’ partnership agreement. Tax distributions are calculated utilizing the highest combined individual federal, state and local income tax rate among the various locations in which the partners, as a result of owning their interests in the partnership, are subject to tax, assuming maximum applicability of the phase-out of itemized deductions contained in the Internal Revenue Code for tax years prior to 2018. Artisan also makes additional distributions under the terms of the partnership agreement. Distributions are recorded in the financial statements on the declaration date. |
Earnings per share | Earnings per Share Basic earnings per share is computed under the two-class method by dividing income available to Class A common stockholders by the weighted average number of Class A common shares outstanding during the period. Unvested restricted share-based awards are excluded from the number of Class A common shares outstanding for the basic earnings per share calculation because the shares have not yet been earned by employees. Income available to Class A common stockholders is computed by reducing net income attributable to APAM by earnings (both distributed and undistributed) allocated to participating securities, according to their respective rights to participate in those earnings. Unvested share-based awards are participating securities because the awards include non-forfeitable dividend rights during the vesting period. Class B and Class C common shares do not share in profits of APAM and therefore are not reflected in the calculations. Diluted earnings per share is computed by increasing the denominator by the amount of additional Class A common shares that would have been outstanding if all potential Class A common shares had been issued. The numerator is also increased for the net income allocated to the potential Class A common shares. Potential dilutive Class A common shares consist of (1) the Class A common shares issuable upon exchange of Holdings limited partnership units for APAM Class A common stock and (2) unvested restricted share-based awards. |
Recent accounting pronouncements | Recent accounting pronouncements Accounting standards adopted as of January 1, 2019 In February 2016, the FASB issued ASU 2016-02, Leases, which introduced a lessee model that brings most leases on the balance sheet. The Company adopted the new standard on January 1, 2019, using the modified retrospective transition method that does not adjust comparative periods. The adoption had no impact on previously reported results, and did not result in a cumulative-effect adjustment to the opening balance of retained earnings. In accordance with the adoption of the new lease standard, the Company recorded operating lease assets and operating lease liabilities in the Consolidated Statements of Financial Condition. The adoption of ASU 2016-02 had no impact on the Consolidated Statements of Operations for the year ended December 31, 2019, and did not impact operating, financing or investing cash flows in the Consolidated Statements of Cash Flows for the year ended December 31, 2019. Artisan elected to adopt the short-term lease exemption, which allows companies to exclude contracts that have an initial term of 12 months or less. Artisan also elected the package of practical expedients available for existing contracts which allowed the Company to carry forward historical assessments of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. Additionally, Artisan elected the practical expedient to account for lease and non-lease components as a single component. See Note 16, “Leases” for additional information. Accounting standards not yet adopted In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The Company currently expenses implementation costs in hosting arrangements as the costs are incurred. The new guidance was effective on January 1, 2020. The Company expects certain types of costs will be capitalized that would have previously been expensed as incurred, but does not expect the impact to be material to the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires entities to measure credit losses on financial assets based on expected losses rather than incurred losses. The guidance was effective on January 1, 2020 and requires a modified retrospective approach to adoption. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Distribution And Marketing Fees | Fees paid to intermediaries were as follows: For the Years Ended December 31, 2019 2018 2017 Fees paid with respect to Artisan Funds $ 20,096 $ 22,822 $ 25,697 Fees paid with respect to Global Funds 424 1,002 1,731 Other marketing expenses 2,650 2,737 2,192 Total distribution, servicing and marketing $ 23,170 $ 26,561 $ 29,620 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Gain (Loss) on Securities [Line Items] | |
Gain (Loss) on Securities [Table Text Block] | Artisan’s investments in equity securities consist of investments in shares of Artisan Funds, Artisan Global Funds and Artisan Private Funds. The table below presents the net investment income activity related to these investment securities: For the year ended December 31, 2019 For the year ended December 31, 2018 Net gains (losses) recognized on investment securities $ 5,101 $ 688 Less: Net realized gains (losses) recognized on investment securities sold during the period 250 157 Unrealized gains (losses) recognized on investment securities held as of the end of the period $ 4,851 $ 531 |
Schedule of available-for-sale securities | The disclosures below include details of Artisan’s investments, excluding money market funds and consolidated investment products. Investments held by consolidated investment products are described in Note 6, “Variable Interest Entities and Consolidated Investment Products”. As of December 31, 2019 As of December 31, 2018 Investments in equity securities $ 7,543 $ 5,857 Investments in equity securities accounted for under the equity method 16,335 12,252 Total investment securities $ 23,878 $ 18,109 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value hierarchy of assets and liabilities | The following provides the hierarchy of inputs used to derive fair value of Artisan’s assets and liabilities that are financial instruments as of December 31, 2019 and 2018: Assets and Liabilities at Fair Value Total NAV Practical Expedient (No Fair Value Level) Level 1 Level 2 Level 3 December 31, 2019 Assets Money market funds $ 30,673 $ — $ 30,673 $ — $ — Equity securities 23,878 15,068 8,810 — — December 31, 2018 Assets Money market funds $ 57,790 $ — $ 57,790 $ — $ — Equity securities 18,109 12,252 5,857 — — |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of borrowings | Artisan’s borrowings consist of the following as of December 31, 2019 and 2018: Maturity As of December 31, 2019 As of December 31, 2018 Interest Rate Per Annum Revolving credit agreement August 2022 — — NA Senior notes Series B August 2019 — 50,000 5.32 % Series C August 2022 90,000 90,000 5.82 % Series D August 2025 60,000 60,000 4.29 % Series E August 2027 50,000 — 4.53 % Total borrowings $ 200,000 $ 200,000 |
Aggregate maturities of debt obligations | As of December 31, 2019, the aggregate maturities of debt obligations, based on their contractual terms, are as follows: 2020 $ — 2021 — 2022 90,000 2023 — 2024 — Thereafter 110,000 Total $ 200,000 |
Variable Interest Entities an_2
Variable Interest Entities and Consolidated Investment Products (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entity, Primary Beneficiary [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables present the fair value hierarchy levels of assets and liabilities held by CIPs measured at fair value as of December 31, 2019 and 2018: Assets and Liabilities at Fair Value Total Level 1 Level 2 Level 3 December 31, 2019 Assets Money market funds $ 5,005 $ 5,005 $ — $ — Equity securities - long position 9,933 9,933 — — Fixed income instruments - long position 96,681 — 96,681 — Derivative assets 122 22 100 — Liabilities Fixed income instruments - short position $ 6,005 $ — $ 6,005 $ — Derivative liabilities 181 — 181 — December 31, 2018 Assets Money market funds $ 13,141 $ 13,141 $ — $ — Equity securities - long position 7,817 7,196 — 621 Fixed income instruments - long position 57,621 — 57,621 — Derivative assets 735 — 735 — Liabilities Fixed income instruments - short position $ 16,567 $ — $ 16,567 $ — Derivative liabilities 338 — 338 — |
Noncontrolling Interest - Hol_2
Noncontrolling Interest - Holdings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Result of Increased Equity Ownership Interest in Holdings | For the years ended December 31, 2019, 2018 and 2017, APAM’s equity ownership interest in Holdings has increased as a result of the following transactions: Holdings GP Units Limited Partnership Units Total APAM Ownership % Balance at January 1, 2017 42,149,436 32,205,433 74,354,869 57 % Issuance of APAM Restricted Shares, Net 1,218,604 — 1,218,604 1 % 2017 Follow-On Offering 5,626,517 (5,626,517) — 7 % Holdings Common Unit Exchanges 1,472,197 (1,472,197) — 2 % Forfeitures from Employee Terminations (1) (3,628) — (3,628) — % Balance at December 31, 2017 50,463,126 25,106,719 75,569,845 67 % Issuance of APAM Restricted Shares, Net (1) 1,440,282 — 1,440,282 — % 2018 Follow-On Offering 644,424 (644,424) — 1 % Holdings Common Unit Exchanges 1,590,611 (1,590,611) — 2 % Forfeitures from Employee Terminations (1) (67,255) — (67,255) — % Balance at December 31, 2018 54,071,188 22,871,684 76,942,872 70 % Issuance of APAM Restricted Shares, Net (1) 876,271 — 876,271 — % Holdings Common Unit Exchanges 1,499,655 (1,499,655) — 3 % Forfeitures from Employee Terminations (1) (17,289) — (17,289) — % Balance at December 31, 2019 56,429,825 21,372,029 77,801,854 73 % (1) The impact of the transaction on APAM’s ownership percentage was less than 1%. |
Impact of the Reallocation of Equity | The reallocation of equity had the following impact on the Consolidated Statements of Financial Condition: Statement of Financial Condition For the Years Ended December 31, 2019 2018 Additional paid-in capital $ (3,533) $ (4,878) Noncontrolling interest - Artisan Partners Holdings 3,584 4,923 Accumulated other comprehensive income (loss) (51) (45) Net impact to financial condition $ — $ — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Authorized and outstanding equity | APAM had the following authorized and outstanding equity as of December 31, 2019 and 2018, respectively: Outstanding Authorized December 31, 2019 December 31, 2018 Voting Rights (1) Economic Rights Common shares Class A, par value $0.01 per share 500,000,000 56,429,825 54,071,188 1 vote per share Proportionate Class B, par value $0.01 per share 200,000,000 7,803,364 8,645,249 1 vote per share None Class C, par value $0.01 per share 400,000,000 13,568,665 14,226,435 1 vote per share None (1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of December 31, 2019, Artisan’s employees held 4,898,297 restricted shares of Class A common stock and all 7,803,364 outstanding shares of Class B common stock, all of which were subject to the agreement. |
Dividends Declared | APAM declared and paid the following dividends per share during the years ended December 31, 2019, 2018 and 2017: Type of Dividend Class of Stock For the Years Ended December 31, 2019 2018 2017 Quarterly Common Class A $ 2.36 $ 2.40 $ 2.40 Special Annual Common Class A $ 1.03 $ 0.79 $ 0.36 |
Schedule of Stock by Class | The following table summarizes APAM’s stock transactions for the years ended December 31, 2019, 2018 and 2017: Total Stock Outstanding Class A Common Stock (1) Class B Common Stock Class C Common Stock Balance at January 1, 2017 74,354,869 42,149,436 15,142,049 17,063,384 2017 Follow-On Offering — 5,626,517 (2,104,517) (3,522,000) Holdings Common Unit Exchanges — 1,472,197 (1,048,917) (423,280) Restricted Share Award Grants 1,267,250 1,267,250 — — Restricted Share Award Net Share Settlement (48,646) (48,646) — — Employee/Partner Terminations (3,628) (3,628) (66,423) 66,423 Balance at December 31, 2017 75,569,845 50,463,126 11,922,192 13,184,527 2018 Follow-On Offering — 644,424 (644,424) — Holdings Common Unit Exchanges — 1,590,611 (606,066) (984,545) Restricted Share Award Grants 1,517,724 1,517,724 — — Restricted Share Award Net Share Settlement (77,442) (77,442) — — Employee/Partner Terminations (67,255) (67,255) (2,026,453) 2,026,453 Balance at December 31, 2018 76,942,872 54,071,188 8,645,249 14,226,435 Holdings Common Unit Exchanges — 1,499,655 (841,885) (657,770) Restricted Share Award Grants 959,000 959,000 — — Restricted Share Award Net Share Settlement (82,729) (82,729) — — Employee/Partner Terminations (17,289) (17,289) — — Balance at December 31, 2019 77,801,854 56,429,825 7,803,364 13,568,665 (1) There were 297,891, 246,581, and 178,401 restricted stock units outstanding at December 31, 2019, 2018, and 2017, respectively. Restricted stock units are not reflected in the table because they are not considered outstanding or issued stock. |
Distributions | Holdings’ partnership distributions for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 Holdings Partnership Distributions to Limited Partners $ 94,842 $ 103,434 $ 115,804 Holdings Partnership Distributions to APAM 226,245 217,396 197,070 Total Holdings Partnership Distributions $ 321,087 $ 320,830 $ 312,874 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table presents a disaggregation of revenue by type and vehicle for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, 2019 2018 2017 Management fees Artisan Funds $ 452,504 $ 487,041 $ 472,502 Artisan Global Funds 32,332 35,007 30,107 Separate accounts (1) 309,502 303,631 292,667 Performance fees Separate accounts (1) 4,614 2,956 348 Total revenues (2) $ 798,952 $ 828,635 $ 795,624 (1) Separate account revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, which includes traditional separate accounts, Artisan-branded collective investment trusts and funds (both public and private) that Artisan advises, including Artisan Private Funds. (2) All management fees and performance fees from consolidated investment products were eliminated upon consolidation and therefore are omitted from this table. |
Contract with Customer, Asset and Liability [Table Text Block] | The following table presents the balances of receivables related to contracts with customers: December 31, December 31, Customer Artisan Funds $ 6,703 $ 5,418 Artisan Global Funds 3,588 417 Separate accounts 69,413 59,787 Total receivables from contracts with customers $ 79,704 $ 65,622 Non-customer receivables 2,164 2,069 Accounts receivable $ 81,868 $ 67,691 |
Compensation and Benefits (Tabl
Compensation and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Components of Compensation Expense | Total compensation and benefits consists of the following: For the Years Ended December 31, 2019 2018 2017 Salaries, incentive compensation and benefits (1) $ 358,339 $ 360,287 $ 341,060 Restricted share-based award compensation expense 42,117 52,879 49,142 Total salaries, incentive compensation and benefits 400,456 413,166 390,202 Pre-offering related compensation - share-based awards — — 12,678 Total compensation and benefits $ 400,456 $ 413,166 $ 402,880 (1) Excluding restricted share-based award compensation expense |
Restricted Share Activity | The following table summarizes the restricted share-based award activity for the years ended December 31, 2019, 2018 and 2017: Weighted-Average Grant Date Fair Value Number of Awards Unvested at January 1, 2017 $ 44.47 3,394,910 Granted 28.30 1,268,500 Forfeited 39.56 (3,628) Vested 48.06 (645,796) Unvested at January 1, 2018 $ 38.79 4,013,986 Granted 39.32 1,518,974 Forfeited 36.09 (67,255) Vested 44.50 (787,248) Unvested at January 1, 2019 $ 38.04 4,678,457 Granted 22.92 963,000 Forfeited 34.61 (17,289) Vested 39.21 (618,746) Unvested at December 31, 2019 $ 35.00 5,005,422 |
Income Taxes and Related Paym_2
Income Taxes and Related Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes | Components of the provision for income taxes consist of the following: For the Years Ended December 31, 2019 2018 2017 Current: Federal $ 13,609 $ 18,247 $ 21,960 State and local 6,315 3,993 2,663 Foreign 529 495 469 Total 20,453 22,735 25,092 Deferred: Federal 22,310 22,218 396,502 State and local (14,954) 2,645 (1,086) Total 7,356 24,863 395,416 Income tax expense $ 27,809 $ 47,598 $ 420,508 |
Reconciliation of effective tax rate | The provision for income taxes differs from the amount of income tax computed by applying the applicable U.S. statutory federal income tax rate to income before provision for income taxes as follows: Years Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local taxes, net of federal tax effect 2.8 2.1 0.9 Non-deductible share-based compensation — — 0.5 Rate benefit from the flow through entity (6.7) (6.7) (6.2) Tax Reform - change in federal corporate tax rate — — 43.9 Change in state tax rate (6.8) — — Unrecognized tax benefits 0.6 — — Other (0.6) (0.6) (0.5) Effective tax rate 10.3 % 15.8 % 73.6 % |
Schedule of DTA and TRA Payable | The change in the Company’s deferred tax assets related to the tax benefits described above and the change in corresponding amounts payable under the TRAs for the years ended December 31, 2019 and 2018 is summarized as follows: Deferred Tax Asset - Amortizable Basis Amounts Payable Under Tax Receivable Agreements December 31, 2017 $ 410,690 $ 385,413 2018 Follow-On Offering 7,687 6,534 2018 Holdings Common Unit Exchanges 16,199 13,770 Amortization (29,851) — Payments under TRAs (1) — (36,111) Change in estimate (10) (251) December 31, 2018 $ 404,715 $ 369,355 2019 Holdings Common Unit Exchanges 13,424 11,410 Amortization (31,872) — Payments under TRAs (1) — (24,998) Change in estimate 21,873 19,557 December 31, 2019 $ 408,140 $ 375,324 (1) Interest payments of $78 thousand and $115 thousand were paid in addition to these TRA payments for the years ended December 31, 2019 and 2018, respectively. |
Components of deferred tax assets | Net deferred tax assets comprise the following: As of December 31, 2019 As of December 31, 2018 Deferred tax assets: Amortizable basis (1) $ 408,140 $ 404,715 Other (2) 27,757 24,413 Total deferred tax assets 435,897 429,128 Less: valuation allowance (3) — — Net deferred tax assets $ 435,897 $ 429,128 (1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements. (2) Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements. (3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Schedule of Unrecognized Tax Benefits Roll Forward | The change in the Company’s gross unrecognized tax benefits for the years ended December 31, 2019, 2018 and 2017 is summarized as follows: For the Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ — $ — $ — Additions for tax positions of prior years 1,667 — — Reductions for tax positions of prior years — — — Tax positions related to the current year — — — Settlements with taxing authorities — — — Expirations of statute of limitations — — — Balance at End of Year $ 1,667 $ — $ — If recognized, $1.6 million of the benefits would favorably impact the effective tax rate in future periods. The total amount of unrecognized tax benefits is currently not expected to significantly increase or decrease within the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. Accrued interest on uncertain tax positions was $0.3 million as of December 31, 2019, and is excluded from the unrecognized tax benefits total above. The gross unrecognized tax benefit is recorded within accounts payable, accrued expenses, and other in the Company's Consolidated Statements of Financial Condition. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income (loss) per share | The computation of basic and diluted earnings per share under the two-class method for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, Basic and Diluted Earnings Per Share 2019 2018 2017 Numerator: Net income attributable to APAM $ 156,536 $ 158,309 $ 49,599 Less: Allocation to participating securities 21,154 19,447 16,026 Net income available to common stockholders $ 135,382 $ 138,862 $ 33,573 Denominator: Weighted average shares outstanding 51,127,929 48,862,435 44,647,318 Earnings per share $ 2.65 $ 2.84 $ 0.75 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive: For the Years Ended December 31, Anti-Dilutive Weighted Average Shares Outstanding 2019 2018 2017 Holdings limited partnership units 21,827,809 23,351,440 26,837,118 Unvested restricted share-based awards 5,026,357 4,813,895 4,153,260 Total 26,854,166 28,165,335 30,990,378 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The composition of property and equipment at December 31, 2019 and 2018 are as follows: As of December 31, 2019 2018 Computers and equipment $ 7,105 $ 8,000 Computer software 4,112 4,554 Furniture and fixtures 11,780 10,566 Leasehold improvements 48,119 37,551 Total Cost $ 71,116 $ 60,671 Less: Accumulated depreciation (31,621) (31,533) Property and equipment, net of accumulated depreciation $ 39,495 $ 29,138 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The table below presents the maturity of operating lease liabilities: As of December 31, 2019 2020 $ 16,483 2021 16,378 2022 14,949 2023 13,416 2024 13,111 Thereafter 47,839 Total undiscounted lease payments 122,176 Adjustment to discount to present value (21,022) Operating lease liabilities $ 101,154 |
Lease, Cost | Operating lease expense was as follows: Lease Type Classification For the year ended December 31, 2019 Parking leases Compensation and benefits $ 519 Office leases (1) Occupancy 15,931 Variable lease cost (2) Occupancy 118 Short-term lease cost (2) Occupancy 369 Sublease income Occupancy (286) Office equipment leases Communication and technology 305 Total operating lease expense $ 16,956 (1) Office lease expense includes a $1.5 million charge related to the abandonment of a leased office space during the year ended December 31, 2019, as discussed below. (2) Variable and short-term lease costs are excluded from the measurement of operating lease liabilities. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Artisan Funds | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Fees for managing Artisan Funds and amounts waived or reimbursed by Artisan for fees and expenses (including management fees) are as follows: For the Years Ended December 31, Artisan Funds 2019 2018 2017 Investment management fees (Gross of fee waivers/expense reimbursements) $ 452,895 $ 487,460 $ 472,501 Fee waivers / expense reimbursements $ 391 $ 419 $ 504 |
Artisan Global Funds | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | Fees for managing Artisan Global Funds and amounts reimbursed to Artisan Global Funds by Artisan are as follows: For the Years Ended December 31, Artisan Global Funds 2019 2018 2017 Investment management fees (Gross of fee waivers / expense reimbursements) $ 32,577 $ 35,070 $ 30,107 Elimination of management fees from consolidated investment products (1) (67) (62) — Consolidated investment management fees (Gross of fee waivers / expense reimbursements) $ 32,510 $ 35,008 $ 30,107 Fee waivers / expense reimbursements $ 514 $ 386 $ 218 Elimination of fee waivers / expense reimbursements from consolidated investment products (1) (336) (385) — Consolidated fee waivers / expense reimbursements $ 178 $ 1 $ 218 (1) Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation. |
Artisan Private Funds | |
Related Party Transaction [Line Items] | |
Schedule of related party transactions | For the Years Ended December 31, Artisan Private Funds 2019 2018 2017 Investment management fees (Gross of fee waivers / expense reimbursements) $ 3,042 $ 739 $ 39 Investment performance fees 211 559 50 Elimination of management fees and performance fees from consolidated investment products (1) (369) (286) (89) Consolidated investment management fees (Gross of fee waivers / expense reimbursements) $ 2,884 $ 1,012 $ — Fee waivers / expense reimbursements $ 219 $ 206 $ 290 Elimination of fee waivers / expense reimbursements from consolidated investment products (1) (114) (206) (290) Consolidated fee waivers / expense reimbursements $ 105 $ — $ — (1) Investment management fees and expense waivers related to consolidated investment products were eliminated from revenue upon consolidation. |
Concentration of Credit Risk _2
Concentration of Credit Risk and Significant Relationships (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Revenue from External Customers by Geographic Areas | Revenues by geographic location based on client domicile for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, 2019 2018 2017 U.S. $ 666,650 $ 698,994 $ 679,331 Non-U.S. 132,302 129,641 116,293 Total revenues $ 798,952 $ 828,635 $ 795,624 |
Long-lived Assets by Geographic Areas | The following table sets forth Artisan’s long-lived assets by geographic area, which consist of net property and equipment and operating lease assets: As of December 31, 2019 2018 U.S. $ 121,146 $ 28,313 Non-U.S. 5,504 825 Total long-lived assets $ 126,650 $ 29,138 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents unaudited quarterly results of operations for 2019 and 2018. These quarterly results reflect all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of the results. Revenues and net income can vary significantly from quarter to quarter due to the nature of Artisan’s business activities. For the Quarters Ended March 31, 2019 June 30, 2019 Sept. 30, 2019 Dec. 31, 2019 Total revenues $ 186,962 $ 200,727 $ 202,961 $ 208,302 Operating income $ 57,732 $ 70,858 $ 75,548 $ 79,317 Net income attributable to noncontrolling interests-Artisan Partners Holdings $ 17,309 $ 19,795 $ 20,556 $ 22,395 Net income attributable to noncontrolling interests- consolidated investment products $ 970 $ 990 $ 400 $ 2,506 Net income attributable to Artisan Partners Asset Management Inc. $ 31,539 $ 39,188 $ 41,256 $ 44,553 Earnings per basic and diluted share: $ 0.47 $ 0.66 $ 0.71 $ 0.76 For the Quarters Ended March 31, 2018 June 30, 2018 Sept. 30, 2018 Dec. 31, 2018 Total revenues $ 212,008 $ 212,296 $ 212,788 $ 191,543 Operating income $ 79,986 $ 78,877 $ 81,837 $ 64,241 Net income attributable to noncontrolling interests-Artisan Partners Holdings $ 26,052 $ 23,307 $ 24,021 $ 17,674 Net income (loss) attributable to noncontrolling interests- consolidated investment products $ 4,338 $ 2,332 $ 178 $ (2,021) Net income attributable to Artisan Partners Asset Management Inc. $ 41,274 $ 42,006 $ 42,518 $ 32,511 Earnings per basic and diluted share: $ 0.75 $ 0.72 $ 0.77 $ 0.57 |
Nature of Business and Organi_2
Nature of Business and Organization (Details) | Dec. 31, 2019 |
Artisan Partners Holdings LP | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 73.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 10.00% | |
Number of Operating Segments | segment | 1 | |
Accrued fees to authorized agents | $ 3,300,000 | $ 2,700,000 |
Loss Contingency Accrual | $ 0 | |
Computers and equipment | ||
Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Computer software | ||
Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture and fixtures | ||
Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Minimum | Leasehold improvements | ||
Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum | Leasehold improvements | ||
Significant Accounting Policies [Line Items] | ||
Property, Plant and Equipment, Useful Life | 14 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Distribution Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||
Distribution, servicing and marketing | $ 23,170 | $ 26,561 | $ 29,620 |
Other marketing expenses | 2,650 | 2,737 | 2,192 |
Artisan Funds | |||
Significant Accounting Policies [Line Items] | |||
Distribution, servicing and marketing | 20,096 | 22,822 | 25,697 |
Artisan Global Funds | |||
Significant Accounting Policies [Line Items] | |||
Distribution, servicing and marketing | $ 424 | $ 1,002 | $ 1,731 |
Investment Securities - Schedul
Investment Securities - Schedule of available-for-sale securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investments in equity securities | $ 7,543 | $ 5,857 |
Investments in equity securities accounted for under the equity method | 16,335 | 12,252 |
Total investment securities | 23,878 | 18,109 |
Net gains (losses) recognized on investment securities | 5,101 | 688 |
Less: Net realized gains (losses) recognized on investment securities sold during the period | 250 | 157 |
Unrealized gains (losses recognized on investment securities held as of the end of the period | $ 4,851 | $ 531 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair value hierarchy of assets and liabilities (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 30,673 | $ 57,790 |
Equity securities | 23,878 | 18,109 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 30,673 | 57,790 |
Equity securities | 8,810 | 5,857 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Equity securities | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Equity securities | $ 15,068 | $ 12,252 |
Borrowings - Components of Borr
Borrowings - Components of Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Interest Expense, Debt | $ 10,500 | $ 10,600 | $ 10,900 |
Outstanding Balance | 200,000 | 200,000 | |
Senior notes | Series B | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 0 | 50,000 | |
Interest Rate Per Annum | 5.32% | ||
Senior notes | Series C | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 90,000 | 90,000 | |
Interest Rate Per Annum | 5.82% | ||
Senior notes | Series D | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 60,000 | 60,000 | $ 60,000 |
Interest Rate Per Annum | 4.29% | ||
Senior notes | Series E Senior Notes | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 50,000 | 0 | |
Interest Rate Per Annum | 4.53% | ||
Revolving credit agreement | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 0 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 100,000 | ||
Outstanding Balance | 200,000 | $ 200,000 | |
Interest Expense, Debt | 10,500 | 10,600 | $ 10,900 |
Revolving credit agreement | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 0 | 0 | |
Commitment fee percentage | 0.175% | ||
Revolving credit agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.175% | ||
Revolving credit agreement | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.50% | ||
Revolving credit agreement | LIBOR adjusted by a statutory reserve percentage | Minimum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.50% | ||
Revolving credit agreement | LIBOR adjusted by a statutory reserve percentage | Maximum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 2.50% | ||
Revolving credit agreement | Federal funds effective rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 0.50% | ||
Revolving credit agreement | One-month LIBOR adjusted by a statutory reserve percentage | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.00% | ||
Revolving credit agreement | Margin based on leverage ratio | Minimum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 0.50% | ||
Revolving credit agreement | Margin based on leverage ratio | Maximum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 1.50% | ||
Level 2 | Recurring | |||
Debt Instrument [Line Items] | |||
Borrowings | $ 202,800 | ||
Series D | Senior notes | |||
Debt Instrument [Line Items] | |||
Interest Rate Per Annum | 4.29% | ||
Outstanding Balance | $ 60,000 | $ 60,000 | $ 60,000 |
Series A | Senior notes | |||
Debt Instrument [Line Items] | |||
Interest Rate Per Annum | 4.98% |
Borrowings - Aggregate Maturiti
Borrowings - Aggregate Maturities of Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 0 | |
2022 | 90,000 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 110,000 | |
Borrowings | $ 200,000 | $ 200,000 |
Variable Interest Entities an_3
Variable Interest Entities and Consolidated Investment Products (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities accounted for under the equity method | $ 16,335 | $ 12,252 | ||
Net CIP assets included in the table above | 105,555 | 62,409 | ||
Net CIP assets not included in the table above | (28,509) | 2,156 | ||
Total Net CIP Assets | 77,046 | 64,565 | ||
Less: redeemable noncontrolling interests | 43,110 | 34,349 | ||
Artisan's direct equity investment in CIPs | 33,936 | 30,216 | ||
Cash and Cash Equivalents of Consolidated Investment Products | 9,005 | 14,443 | $ 21,881 | |
Accounts Receivable and Other of Consolidated Investment Products | 1,647 | 5,566 | ||
Investment Assets, at Fair Value, of Consolidated Investment Products | 106,736 | 66,173 | ||
Total assets | 933,619 | 805,014 | ||
Accounts Payable, Accrued Expenses, and Other of Consolidated Investment Products | 34,156 | 4,712 | ||
Investment Liabilities, at Fair Value, of Consolidated Investment Products | 6,186 | 16,905 | ||
Total liabilities | 752,008 | 630,178 | ||
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | 933,619 | 805,014 | ||
Less: Amounts reclassified to investment securities | $ 900 | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 5,005 | 13,141 | ||
Equity securities - long position | 9,933 | 7,817 | ||
Fixed income instruments - long position | 96,681 | 57,621 | ||
Derivative assets | 122 | 735 | ||
Fixed income instruments - short position | 6,005 | 16,567 | ||
Derivative liabilities | 181 | 338 | ||
Fair Value, Inputs, Level 1 | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 5,005 | 13,141 | ||
Equity securities - long position | 9,933 | 7,196 | ||
Fixed income instruments - long position | 0 | 0 | ||
Derivative assets | 22 | 0 | ||
Fixed income instruments - short position | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 0 | 0 | ||
Equity securities - long position | 0 | 0 | ||
Fixed income instruments - long position | 96,681 | 57,621 | ||
Derivative assets | 100 | 735 | ||
Fixed income instruments - short position | 6,005 | 16,567 | ||
Derivative liabilities | 181 | 338 | ||
Fair Value, Inputs, Level 3 | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Money market funds | 0 | 0 | ||
Equity securities - long position | 0 | 621 | ||
Fixed income instruments - long position | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Fixed income instruments - short position | 0 | 0 | ||
Derivative liabilities | 0 | $ 0 | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in equity securities accounted for under the equity method | $ 16,300 |
Noncontrolling Interest - Hol_3
Noncontrolling Interest - Holdings - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Noncontrolling Interest [Line Items] | ||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | $ 0 | $ 0 |
Deferred Tax Assets | Additional Paid-in Capital | ||
Noncontrolling Interest [Line Items] | ||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | $ (700) | $ (800) |
Noncontrolling Interest - Hol_4
Noncontrolling Interest - Holdings - Result of Increased Equity Ownership Interest in Holdings (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling Interest [Line Items] | ||||
Cumulative impact of changes in ownership | $ 0 | $ 0 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 82,729 | 77,442 | 48,646 | |
Artisan Partners Holdings LP | ||||
Noncontrolling Interest [Line Items] | ||||
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 73.00% | |||
General Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Capital Units, Outstanding | 56,429,825 | 54,071,188 | 50,463,126 | 42,149,436 |
Shares repurchased and retired during the period (shares) | (17,289) | (67,255) | (3,628) | |
Stock Issued During Period, Shares, Conversion of Units | (1,499,655) | (1,590,611) | (1,472,197) | |
Limited Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Capital Units, Outstanding | 21,372,029 | 22,871,684 | 25,106,719 | 32,205,433 |
Shares repurchased and retired during the period (shares) | 0 | 0 | 0 | |
Stock Issued During Period, Shares, Conversion of Units | (1,499,655) | (1,590,611) | (1,472,197) | |
Capital Units | ||||
Noncontrolling Interest [Line Items] | ||||
Units of Partnership Interest, Amount | 77,801,854 | 76,942,872 | 75,569,845 | 74,354,869 |
Shares repurchased and retired during the period (shares) | (17,289) | (67,255) | (3,628) | |
Stock Issued During Period, Shares, Conversion of Units | 0 | 0 | 0 | |
Noncontrolling Interest, Increase (Decrease) Ownership Interest, Exchange of Units, Percent | 3.00% | 2.00% | 2.00% | |
Capital Units | Artisan Partners Holdings LP | ||||
Noncontrolling Interest [Line Items] | ||||
APAM economic interest in Artisan Partners Holdings LP (as a percent) | 73.00% | 70.00% | 67.00% | 57.00% |
Unvested restricted share-based awards | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (959,000) | (1,517,724) | (1,267,250) | |
Unvested restricted share-based awards | General Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (876,271) | (1,440,282) | (1,218,604) | |
Unvested restricted share-based awards | Limited Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 0 | 0 | 0 | |
Unvested restricted share-based awards | Capital Units | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (876,271) | (1,440,282) | (1,218,604) | |
Change in APAM Economic Ownership Interest in Artisan Partners Holdings LP (as a percent) | 0.00% | 0.00% | 1.00% | |
Capital Units | ||||
Noncontrolling Interest [Line Items] | ||||
Change in APAM Economic Ownership Interest in Artisan Partners Holdings LP (as a percent) | 0.00% | 0.00% | 0.00% | |
Follow On Offering | General Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (644,424) | (5,626,517) | ||
Follow On Offering | Limited Partnership Units | ||||
Noncontrolling Interest [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (644,424) | (5,626,517) | ||
Capital Units | Follow On Offering | ||||
Noncontrolling Interest [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 0 | 0 | ||
Change in APAM Economic Ownership Interest in Artisan Partners Holdings LP (as a percent) | 1.00% | 7.00% |
Noncontrolling Interest - Hol_5
Noncontrolling Interest - Holdings - Impact of the Reallocation of Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | $ 0 | $ 0 | $ (5) |
Cumulative impact of changes in ownership | 0 | 0 | |
Additional paid-in capital | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | (3,533) | (4,878) | (5,994) |
Noncontrolling interest - Artisan Partners Holdings | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | 3,584 | 4,923 | 6,259 |
Accumulated other comprehensive income (loss) | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP, net of tax | $ (51) | $ (45) | $ (270) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)vote$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016shares | |
Class of Stock [Line Items] | ||||
Outstanding | 77,801,854 | 76,942,872 | 75,569,845 | 74,354,869 |
Common Class A, dividends paid (in dollars per share) | $ / shares | $ 3.39 | $ 3.19 | $ 2.76 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 297,891 | 246,581 | 178,401 | |
Artisan Partners Holdings LP | ||||
Class of Stock [Line Items] | ||||
Holdings Partnership Distributions to Limited Partners | $ | $ 94,842 | $ 103,434 | $ 115,804 | |
General Partners' Capital Account, Period Distribution Amount | $ | 226,245 | 217,396 | 197,070 | |
Total Holdings Partnership Distributions | $ | $ 321,087 | $ 320,830 | $ 312,874 | |
Quarterly cash dividend | ||||
Class of Stock [Line Items] | ||||
Common Class A, dividends paid (in dollars per share) | $ / shares | $ 2.36 | $ 2.40 | $ 2.40 | |
Special annual dividend | ||||
Class of Stock [Line Items] | ||||
Common Class A, dividends paid (in dollars per share) | $ / shares | $ 1.03 | $ 0.79 | $ 0.36 | |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Authorized | 500,000,000 | |||
Outstanding | 56,429,825 | 54,071,188 | 50,463,126 | 42,149,436 |
Common stock votes per share | vote | 1 | |||
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Authorized | 200,000,000 | |||
Outstanding | 7,803,364 | 8,645,249 | 11,922,192 | 15,142,049 |
Common stock votes per share | vote | 1 | |||
Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Authorized | 400,000,000 | |||
Outstanding | 13,568,665 | 14,226,435 | 13,184,527 | 17,063,384 |
Common stock votes per share | vote | 1 |
Stockholders' Equity Share Acti
Stockholders' Equity Share Activity by Class (Details) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (82,729) | (77,442) | (48,646) | |
Outstanding | 77,801,854 | 76,942,872 | 75,569,845 | 74,354,869 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 297,891 | 246,581 | 178,401 | |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (644,424) | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (82,729) | (77,442) | (48,646) | |
Outstanding | 56,429,825 | 54,071,188 | 50,463,126 | 42,149,436 |
Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (644,424) | (2,104,517) | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 | 0 | 0 | |
Outstanding | 7,803,364 | 8,645,249 | 11,922,192 | 15,142,049 |
Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 0 | (3,522,000) | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 0 | 0 | 0 | |
Outstanding | 13,568,665 | 14,226,435 | 13,184,527 | 17,063,384 |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (17,289) | (67,255) | (3,628) | |
Common Stock | Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (67,255) | (3,628) | ||
Common Stock | Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | 0 | (2,026,453) | (66,423) | |
Common Stock | Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 0 | (2,026,453) | (66,423) | |
Common Stock | Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (1,590,611) | (1,472,197) | ||
Common Stock | Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (841,885) | (606,066) | (1,048,917) | |
Common Stock | Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | (657,770) | (984,545) | (423,280) | |
Unvested restricted share-based awards | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (959,000) | (1,517,724) | (1,267,250) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 5,005,422 | 4,678,457 | 4,013,986 | 3,394,910 |
Unvested restricted share-based awards | Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | (959,000) | (1,517,724) | (1,267,250) | |
Unvested restricted share-based awards | Class B Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | 0 | 0 | 0 | |
Unvested restricted share-based awards | Class C Common Stock | ||||
Class of Stock [Line Items] | ||||
Shares repurchased and retired during the period (shares) | 0 | 0 | 0 |
Revenue from Contract with Cu_3
Revenue from Contract with Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 0 | $ 0 | |||||||||
Total revenues | 208,302 | $ 202,961 | $ 200,727 | $ 186,962 | $ 191,543 | $ 212,788 | $ 212,296 | $ 212,008 | 798,952 | $ 828,635 | $ 795,624 |
Total receivables from contracts with customers | 79,704 | 65,622 | 79,704 | 65,622 | |||||||
Non-customer receivables | 2,164 | 2,069 | 2,164 | 2,069 | |||||||
Accounts receivable | 81,868 | 67,691 | 81,868 | 67,691 | |||||||
Artisan Funds | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total receivables from contracts with customers | 6,703 | 5,418 | 6,703 | 5,418 | |||||||
Artisan Global Funds | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total receivables from contracts with customers | 3,588 | 417 | 3,588 | 417 | |||||||
Separate Accounts [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total receivables from contracts with customers | $ 69,413 | $ 59,787 | 69,413 | 59,787 | |||||||
Management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 794,338 | 825,679 | 795,276 | ||||||||
Management fees | Artisan Funds | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 452,504 | 487,041 | 472,502 | ||||||||
Management fees | Artisan Global Funds | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 32,332 | 35,007 | 30,107 | ||||||||
Management fees | Separate Accounts [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 309,502 | 303,631 | 292,667 | ||||||||
Performance fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 4,614 | 2,956 | 348 | ||||||||
Performance fees | Separate Accounts [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 4,614 | $ 2,956 | $ 348 |
Compensation and Benefits - Com
Compensation and Benefits - Components of expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 15,900 | $ 25,800 | $ 19,800 |
Salaries, incentive compensation and benefits | 358,339 | 360,287 | 341,060 |
Total salaries, incentive compensation and benefits | 400,456 | 413,166 | 390,202 |
Pre-offering related compensation - share-based awards | 0 | 0 | 12,678 |
Total compensation and benefits | 400,456 | 413,166 | 402,880 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 82,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 2 months 12 days | ||
Unvested restricted share-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share-based award compensation expense | $ 42,117 | $ 52,879 | $ 49,142 |
Compensation and Benefits - Res
Compensation and Benefits - Restricted Share Activity and Class B Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 14,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,601,288 | ||
Number of Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 15,900 | $ 25,800 | $ 19,800 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 82,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 2 months 12 days | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 82,729 | 77,442 | 48,646 |
Taxes paid related to employee net share settlement | $ (2,078) | $ (2,564) | $ (1,477) |
Unvested restricted share-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested at beginning of period | 4,678,457 | 4,013,986 | 3,394,910 |
Granted in Period, Number of Shares | 963,000 | 1,518,974 | 1,268,500 |
Forfeited in Period, Number of Shares | (17,289) | (67,255) | (3,628) |
Vested in Period, Number of Shares | (618,746) | (787,248) | (645,796) |
Unvested at end of period | 5,005,422 | 4,678,457 | 4,013,986 |
Weighted-Average Grant Date Fair Value | |||
Unvested at beginning of period (in dollars per share) | $ 38.04 | $ 38.79 | $ 44.47 |
Granted in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 22.92 | 39.32 | 28.30 |
Forfeited in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 34.61 | 36.09 | 39.56 |
Vested in Period, Weighted Average Grant Date Fair Value (in dollars per share) | 39.21 | 44.50 | 48.06 |
Unvested at end of period (in dollars per share) | $ 35 | $ 38.04 | $ 38.79 |
Number of Awards | |||
Restricted share-based award compensation expense | $ 42,117 | $ 52,879 | $ 49,142 |
Class B Liability Awards | |||
Number of Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
General Partnership Units [Member] | Unvested restricted share-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested at end of period | 4,898,297 | ||
Class A Common Stock | |||
Number of Awards | |||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 82,729 | 77,442 | 48,646 |
Compensation and Benefits - Pre
Compensation and Benefits - Pre-Offering Related Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Class B Redemption Payments | $ 0 | $ 0 | $ 506 |
Pre-offering related compensation - share-based awards | 0 | $ 0 | $ 12,678 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 82,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 2 months 12 days | ||
Unvested restricted share-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeited (in dollars per share) | $ 34.61 | $ 36.09 | $ 39.56 |
Class B Liability Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years |
Unrecognized Tax Benefits Rollf
Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 1,667 | $ 0 | $ 0 | $ 0 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 1,667 | 0 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0 | 0 | 0 | |
Tax Adjustments, Settlements, and Unusual Provisions | 0 | 0 | 0 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 0 | $ 0 | $ 0 |
Income Taxes and Related Paym_3
Income Taxes and Related Payments - Components of provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | $ 13,609 | $ 18,247 | $ 21,960 |
State and local | 6,315 | 3,993 | 2,663 |
Foreign | 529 | 495 | 469 |
Total | 20,453 | 22,735 | 25,092 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal | 22,310 | 22,218 | 396,502 |
State and local | (14,954) | 2,645 | (1,086) |
Total | 7,356 | 24,863 | 395,416 |
Income tax expense | $ 27,809 | $ 47,598 | $ 420,508 |
Income Taxes and Related Paym_4
Income Taxes and Related Payments - Reconciliation of effective tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
State and local taxes, net of federal tax effect | 2.80% | 2.10% | 0.90% |
Non-deductible share-based compensation | 0.00% | 0.00% | 0.50% |
Rate benefit from the flow through entity | (6.70%) | (6.70%) | (6.20%) |
Tax Reform - change in federal corporate tax rate | 0.00% | 0.00% | 43.90% |
Change in state tax rate | (6.80%) | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Other, Percent | 0.60% | 0.00% | 0.00% |
Other | (0.60%) | (0.60%) | (0.50%) |
Effective tax rate | 10.30% | 15.80% | 73.60% |
Income Taxes and Related Paym_5
Income Taxes and Related Payments - Components of deferred tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortizable basis | $ 408,140 | $ 404,715 | $ 410,690 |
2018 Follow-On Offering | 30,967 | 20,303 | 120,320 |
Deferred Tax Assets, Exchanges | 13,424 | 16,199 | |
Amortization | (31,872) | (29,851) | |
Other Tax Expense (Benefit) | 21,873 | (10) | |
Amounts payable under tax receivable agreements | 375,324 | 369,355 | 385,413 |
Establishment of Amounts Payable Under Tax Receivable Agreements | 11,410 | 13,770 | |
Tax Receivable Agreement Payments | 24,998 | 36,111 | 30,234 |
Net (Gain) Loss On The Tax Receivable Agreements Other | 19,557 | (251) | |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 78 | 115 | |
Deferred tax assets: | |||
Amortizable basis | 408,140 | 404,715 | $ 410,690 |
Other | 27,757 | 24,413 | |
Total deferred tax assets | 435,897 | 429,128 | |
Less: valuation allowance | 0 | 0 | |
Net deferred tax assets | $ 435,897 | $ 429,128 | |
Tax rate used to measure deferred tax assets | 23.50% | 37.00% | |
Follow On Offering | |||
2018 Follow-On Offering | $ 7,687 | ||
Establishment of Amounts Payable Under Tax Receivable Agreements | $ 6,534 |
Income Taxes and Related Paym_6
Income Taxes and Related Payments - Additional information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Approximate percentage of earnings not subject to income taxes | 31.00% | 33.00% | 38.00% |
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Deferred Tax Asset, Existing Income Tax Expense | $ 352,000 | ||
Tax Receivable Agreement Percentage Savings Required to be Paid to Shareholders | 85.00% | ||
Tax Receivable Agreement Percentage To Be Retained by Entity | 15.00% | ||
Tax Receivable Agreement Payment Period | 125 days | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1,600 | ||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 300 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Tax Receivable, Basis Point Spread on Variable Rate, Basis Points | 100 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to APAM | $ 44,553 | $ 41,256 | $ 39,188 | $ 31,539 | $ 32,511 | $ 42,518 | $ 42,006 | $ 41,274 | $ 156,536 | $ 158,309 | $ 49,599 |
Less allocation to participating securities | 21,154 | 19,447 | 16,026 | ||||||||
Net income (loss) available to common stockholders | $ 135,382 | $ 138,862 | $ 33,573 | ||||||||
Weighted average shares outstanding | 51,127,929 | 48,862,435 | 44,647,318 | ||||||||
Earnings per share | $ 0.76 | $ 0.71 | $ 0.66 | $ 0.47 | $ 0.57 | $ 0.77 | $ 0.72 | $ 0.75 | $ 2.65 | $ 2.84 | $ 0.75 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive securities excluded from the computation of net income per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 26,854,166 | 28,165,335 | 30,990,378 |
Capital Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,827,809 | 23,351,440 | 26,837,118 |
Unvested restricted share-based awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,026,357 | 4,813,895 | 4,153,260 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 7.2 | $ 6.9 | $ 6.4 |
Share-based compensation | 0.9 | 0.5 | $ 0.6 |
Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Deferred Compensation Liability, Current and Noncurrent | $ 0.9 | $ 0.4 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Total Cost | $ 71,116 | $ 60,671 | |
Less: Accumulated depreciation | (31,621) | (31,533) | |
Property and equipment, net of accumulated depreciation | 39,495 | 29,138 | |
Depreciation expense | 6,800 | 5,600 | $ 5,300 |
Computers and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total Cost | $ 7,105 | 8,000 | |
Property, Plant and Equipment, Useful Life | 5 years | ||
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Total Cost | $ 4,112 | 4,554 | |
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total Cost | $ 11,780 | 10,566 | |
Property, Plant and Equipment, Useful Life | 7 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total Cost | $ 48,119 | $ 37,551 | |
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 14 years | ||
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | ||||
Operating Lease, Cost | $ 16,956 | |||
Short-term Lease, Cost | 369 | |||
Sublease Income | 286 | |||
Other Asset Impairment Charges | $ 2,107 | $ 0 | $ 0 | |
Rent expense | $ 13,900 | $ 10,500 | ||
Lessee, Operating Lease, Lease Not Yet Commenced, Option To Extend, Value | $ 0 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | 4.70% | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 1 month 6 days | 8 years 1 month 6 days | ||
Operating Lease, Payments | $ 14,183 | |||
Occupancy | ||||
Other Commitments [Line Items] | ||||
Operating Lease, Cost | 15,931 | |||
Variable Lease, Cost | 118 | |||
Occupancy | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations | ||||
Other Commitments [Line Items] | ||||
Operating Lease, Cost | 1,500 | |||
Other Asset Impairment Charges | 2,100 | |||
Occupancy | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment [Member] | ||||
Other Commitments [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | 600 | |||
Compensation and Benefits | ||||
Other Commitments [Line Items] | ||||
Operating Lease, Cost | 519 | |||
Communication and Technology | ||||
Other Commitments [Line Items] | ||||
Operating Lease, Cost | $ 305 |
Lease Commitments - Lease Matur
Lease Commitments - Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
2020 | $ 16,483 | |
2021 | 16,378 | |
2022 | 14,949 | |
2023 | 13,416 | |
2024 | 13,111 | |
Thereafter | 47,839 | |
Total undiscounted lease payments | 122,176 | |
Adjustment to discount to present value | (21,022) | |
Operating lease liabilities | $ 101,154 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Accounts Receivable, Related Parties | $ 900 | $ 600 | |
Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | 32,510 | 35,008 | $ 30,107 |
Fee waiver / expense reimbursement | $ 178 | 1 | 218 |
Artisan Global Funds | Minimum | |||
Related Party Transaction [Line Items] | |||
Management fee percentage of average daily net assets | 0.75% | ||
Management fee threshold for reimbursement, percentage average daily net assets | 0.10% | ||
Artisan Global Funds | Maximum | |||
Related Party Transaction [Line Items] | |||
Management fee percentage of average daily net assets | 1.85% | ||
Management fee threshold for reimbursement, percentage average daily net assets | 0.20% | ||
Artisan Funds | |||
Related Party Transaction [Line Items] | |||
Annualized operating expenses maximum percentage of average daily net assets | 0.88% | ||
Annualized operating expenses minimum percentage of average daily assets | 1.50% | ||
Investment management fees | $ 452,895 | 487,460 | 472,501 |
Fee waiver / expense reimbursement | $ 391 | 419 | 504 |
Artisan Funds | Minimum | |||
Related Party Transaction [Line Items] | |||
Management fee percentage of average daily net assets | 0.625% | ||
Artisan Funds | Maximum | |||
Related Party Transaction [Line Items] | |||
Management fee percentage of average daily net assets | 1.05% | ||
Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | $ 2,884 | 1,012 | 0 |
Fee waiver / expense reimbursement | $ 105 | 0 | 0 |
Artisan Global Funds | Minimum | |||
Related Party Transaction [Line Items] | |||
Management fee threshold for reimbursement, percentage average daily net assets | 0.10% | ||
Artisan Global Funds | Maximum | |||
Related Party Transaction [Line Items] | |||
Management fee threshold for reimbursement, percentage average daily net assets | 1.00% | ||
Subsidiaries [Member] | Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | $ 32,577 | 35,070 | 30,107 |
Fee waiver / expense reimbursement | 514 | 386 | 218 |
Subsidiaries [Member] | Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | 3,042 | 739 | 39 |
Fee waiver / expense reimbursement | 219 | 206 | 290 |
Consolidation, Eliminations [Member] | Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | (67) | (62) | 0 |
Fee waiver / expense reimbursement | (336) | (385) | 0 |
Consolidation, Eliminations [Member] | Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | (369) | (286) | (89) |
Fee waiver / expense reimbursement | (114) | (206) | (290) |
Performance fees | Artisan Global Funds | |||
Related Party Transaction [Line Items] | |||
Investment management fees | $ 211 | $ 559 | $ 50 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Significant Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Total revenues | $ 208,302 | $ 202,961 | $ 200,727 | $ 186,962 | $ 191,543 | $ 212,788 | $ 212,296 | $ 212,008 | $ 798,952 | $ 828,635 | $ 795,624 |
Total long-lived assets | 126,650 | 29,138 | 126,650 | 29,138 | |||||||
U.S. | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Total revenues | 666,650 | 698,994 | 679,331 | ||||||||
Total long-lived assets | 121,146 | 28,313 | 121,146 | 28,313 | |||||||
Non-U.S. | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Total revenues | 132,302 | 129,641 | $ 116,293 | ||||||||
Total long-lived assets | $ 5,504 | $ 825 | $ 5,504 | $ 825 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 208,302 | $ 202,961 | $ 200,727 | $ 186,962 | $ 191,543 | $ 212,788 | $ 212,296 | $ 212,008 | $ 798,952 | $ 828,635 | $ 795,624 |
Operating income | 79,317 | 75,548 | 70,858 | 57,732 | 64,241 | 81,837 | 78,877 | 79,986 | 283,455 | 304,941 | 286,411 |
Net income attributable to noncontrolling interests-Artisan Partners Holdings | 22,395 | 20,556 | 19,795 | 17,309 | 17,674 | 24,021 | 23,307 | 26,052 | |||
Comprehensive income attributable to noncontrolling interests - consolidated investment products | 2,506 | 400 | 990 | 970 | (2,021) | 178 | 2,332 | 4,338 | 4,866 | 4,827 | 2,100 |
Net income attributable to Artisan Partners Asset Management Inc. | $ 44,553 | $ 41,256 | $ 39,188 | $ 31,539 | $ 32,511 | $ 42,518 | $ 42,006 | $ 41,274 | $ 156,536 | $ 158,309 | $ 49,599 |
Earnings per share | $ 0.76 | $ 0.71 | $ 0.66 | $ 0.47 | $ 0.57 | $ 0.77 | $ 0.72 | $ 0.75 | $ 2.65 | $ 2.84 | $ 0.75 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 04, 2020 | Feb. 18, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 82,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 979,455 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 34,200 | ||
Distribution Made to Limited Partner, Cash Distributions Declared | $ 62,200 | ||
Subsequent Event | Class A Common Stock | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 1.28 | ||
Subsequent Event | Quarterly cash dividend | Class A Common Stock | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | 0.68 | ||
Subsequent Event | Special annual dividend | Class A Common Stock | |||
Subsequent Event [Line Items] | |||
Dividends declared (in dollars per share) | $ 0.60 |