Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 1-13908 |
Entity Registrant Name | Invesco Ltd. |
Entity Incorporation, State or Country Code | D0 |
Entity Tax Identification Number | 98-0557567 |
Entity Address, Address Line One | 1555 Peachtree Street, N.E., |
Entity Address, Address Line Two | SuiteĀ 1800, |
Entity Address, City or Town | Atlanta, |
Entity Address, State or Province | GA |
Entity Address, Postal Zip Code | 30309 |
City Area Code | 404 |
Local Phone Number | 892-0896 |
Title of 12(b) Security | Common stock, $.20 par value |
Trading Symbol | IVZ |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 458,895,646 |
Entity Central Index Key | 0000914208 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 940.5 | $ 1,049 |
Unsettled fund receivables | 213.5 | 162.7 |
Accounts receivable | 701 | 855.6 |
Investments | 744.5 | 829.5 |
Cash and cash equivalents of CIP | 289 | 652.2 |
Accounts receivable and other assets of CIP | 359.5 | 172.9 |
Investments of CIP | 7,563.9 | 7,808 |
Assets held for policyholders | 9,137.3 | 10,835.6 |
Prepaid assets | 124.5 | 144 |
Other assets | 505 | 459.6 |
Property, equipment and software, net | 562.8 | 583.5 |
Intangible assets, net | 7,325.1 | 7,358.3 |
Goodwill | 8,544.1 | 8,509.4 |
Total assets | 37,010.7 | 39,420.3 |
LIABILITIES | ||
Accrued compensation and benefits | 481.1 | 1,030.7 |
Accounts payable and accrued expenses | 1,933.5 | 1,904 |
Debt of CIP | 6,172.7 | 6,234.6 |
Other liabilities of CIP | 881.6 | 949.6 |
Policyholder payables | 9,137.3 | 10,835.6 |
Unsettled fund payables | 196 | 154.2 |
Long-term debt | 2,588.8 | 2,080.3 |
Deferred tax liabilities, net | 1,500.8 | 1,529.5 |
Total liabilities | 22,891.8 | 24,718.5 |
Commitments and contingencies | ||
TEMPORARY EQUITY | ||
Redeemable noncontrolling interests in consolidated entities | 176.5 | 383.5 |
Equity attributable to Invesco Ltd.: | ||
Preferred shares ($0.20 par value; $1,000 liquidation preference; 4.0 million authorized, issued and outstanding as of March 31, 2020 and December 31, 2019) | 4,010.5 | 4,010.5 |
Common shares ($0.20 par value; 1,050.0 million authorized; 566.1 million shares issued as of March 31, 2020 and December 31, 2019) | 113.2 | 113.2 |
Additional paid-in-capital | 7,747.7 | 7,860.8 |
Treasury shares | (3,323.2) | (3,452.5) |
Retained earnings | 5,856.6 | 5,917.8 |
Accumulated other comprehensive income/(loss), net of tax | (905.5) | (587.3) |
Total equity attributable to Invesco Ltd. | 13,499.3 | 13,862.5 |
Equity attributable to nonredeemable noncontrolling interests in consolidated entities | 443.1 | 455.8 |
Total permanent equity | 13,942.4 | 14,318.3 |
Total liabilities, temporary and permanent equity | $ 37,010.7 | $ 39,420.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in usd per share) | $ 0.2 | $ 0.2 |
Preferred stock liquidation preference (in usd per share) | $ 1,000 | $ 1,000 |
Preferred stock authorized (shares) | 4,000,000 | 4,000,000 |
Preferred stock issued (shares) | 4,000,000 | 4,000,000 |
Preferred stock outstanding (shares) | 4,000,000 | 4,000,000 |
Common stock par value (in usd per share) | $ 0.2 | $ 0.2 |
Common stock authorized (shares) | 1,050,000,000 | 1,050,000,000 |
Common stock issued (shares) | 566,100,000 | 566,100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating revenues: | ||
Total operating revenues | $ 1,598.9 | $ 1,214.6 |
Operating expenses: | ||
Third-party distribution, service and advisory | 515.1 | 368 |
Employee compensation | 421.9 | 381.3 |
Marketing | 32.7 | 28 |
Property, office and technology | 130.4 | 107.2 |
General and administrative | 106.3 | 83.8 |
Transaction, integration, and restructuring | 75.5 | 46.1 |
Total operating expenses | 1,281.9 | 1,014.4 |
Operating income | 317 | 200.2 |
Other income/(expense): | ||
Equity in earnings of unconsolidated affiliates | 16.9 | 15 |
Interest and dividend income | 6.4 | 4.7 |
Interest expense | (36.3) | (33.1) |
Other gains and losses, net | (106.5) | 31.1 |
Other income/(expense) of CIP, net | (20.1) | 38.9 |
Income before income taxes | 177.4 | 256.8 |
Income tax provision | (57.4) | (66.2) |
Net income | 120 | 190.6 |
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 20.7 | (12.9) |
Dividends declared on preferred shares | (59.2) | 0 |
Net income attributable to Invesco Ltd. | $ 81.5 | $ 177.7 |
Earnings per common share: | ||
- basic (usd per share) | $ 0.18 | $ 0.44 |
- diluted (usd per share) | $ 0.18 | $ 0.44 |
Investment management fees | ||
Operating revenues: | ||
Total operating revenues | $ 1,168.3 | $ 923.7 |
Service and distribution fees | ||
Operating revenues: | ||
Total operating revenues | 365.8 | 219.3 |
Performance fees | ||
Operating revenues: | ||
Total operating revenues | 4.8 | 21.8 |
Other | ||
Operating revenues: | ||
Total operating revenues | $ 60 | $ 49.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 120 | $ 190.6 |
Other comprehensive income/(loss), net of tax: | ||
Currency translation differences on investments in foreign subsidiaries | (315) | 60.9 |
Other comprehensive income/(loss), net of tax | (3.2) | 0.5 |
Other comprehensive income/(loss) | (318.2) | 61.4 |
Total comprehensive income/(loss) | (198.2) | 252 |
Comprehensive loss/(income) attributable to noncontrolling interests in consolidated entities | 20.7 | (12.9) |
Dividends declared on preferred shares | (59.2) | 0 |
Comprehensive income/(loss) attributable to Invesco Ltd. | $ (236.7) | $ 239.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income | $ 120 | $ 190.6 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||
Amortization and depreciation | 48.4 | 36.3 |
Common share-based compensation expense | 47.4 | 49.8 |
Other (gains)/losses, net | 106.5 | (31.1) |
Other (gains)/losses of CIP, net | 48.4 | (12.2) |
Equity in earnings of unconsolidated affiliates | (16.9) | (15) |
Distributions from equity method investees | 2 | 2 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
(Purchase)/sale of investments by CIP, net | (12.6) | (56.4) |
(Purchase)/sale of investments, net | 98.6 | 29.6 |
(Increase)/decrease in receivables | 1,223.3 | (720.3) |
Increase/(decrease) in payables | (1,742.1) | 406.3 |
Net cash provided by/(used in) operating activities | (77) | (120.4) |
Investing activities: | ||
Purchase of property, equipment and software | (19.2) | (21.1) |
Purchase of investments by CIP | (1,587.8) | (745) |
Sale of investments by CIP | 1,209.5 | 395.1 |
Purchase of investments | (36.8) | (72.9) |
Sale of investments | 28.5 | 27.9 |
Capital distributions from equity method investees | 3.9 | 40.2 |
Collateral received/(posted), net | (50.1) | 42.4 |
Net cash provided by/(used in) investing activities | (452) | (333.4) |
Financing activities: | ||
Purchases of treasury shares | (31.5) | (78.6) |
Dividends paid - preferred | (59.2) | 0 |
Dividends paid - common | (140.9) | (120.1) |
Third-party capital invested into CIP | 39.7 | 74.5 |
Third-party capital distributed by CIP | (91.8) | (27.4) |
Borrowings of debt by CIP | 579.3 | 8.4 |
Repayments of debt by CIP | (503.8) | (46.1) |
Payment on forward contracts | (190.6) | 0 |
Net borrowings/(repayments) under credit facility | 508 | 106.3 |
Payment of contingent consideration | (12.9) | (4) |
Net cash provided by/(used in) financing activities | 96.3 | (87) |
Increase/(decrease) in cash and cash equivalents | (432.7) | (540.8) |
Foreign exchange movement on cash and cash equivalents | (33.7) | 8.8 |
Foreign exchange movement on cash and cash equivalents of CIP | (5) | (5.2) |
Net cash inflows (outflows) upon consolidation/deconsolidation of CIP | (0.3) | 0.1 |
Cash and cash equivalents, beginning of period | 1,701.2 | 1,805.4 |
Cash and cash equivalents, end of period | 1,229.5 | 1,268.3 |
Total cash and cash equivalents per consolidated statement of cash flows | $ 1,229.5 | $ 1,268.3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred Shares | Common Shares | Additional Paid-in-Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total Equity Attributable to Invesco Ltd. | Nonredeemable Noncontrolling Interests in Consolidated Entities | Redeemable Noncontrolling Interests in Consolidated Entities Temporary Equity |
Beginning balance at Dec. 31, 2018 | $ 8,936.2 | $ 98.1 | $ 6,334.8 | $ (3,003.6) | $ 5,884.5 | $ (735) | $ 8,578.8 | $ 357.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 171.6 | 177.7 | 177.7 | (6.1) | ||||||
Other comprehensive income/(loss) | 61.4 | 61.4 | 61.4 | |||||||
Change in noncontrolling interests in consolidated entities, net | (11.2) | (11.2) | ||||||||
Dividends - common | (120.1) | (120.1) | (120.1) | |||||||
Common share-based compensation | 49.8 | 49.8 | 49.8 | |||||||
Vested common shares | (110.8) | 110.8 | ||||||||
Other common share awards | 0.3 | (0.1) | 0.4 | 0.3 | ||||||
Purchase of common shares | (78.6) | (78.6) | (78.6) | |||||||
Ending balance at Mar. 31, 2019 | 9,009.4 | 98.1 | 6,273.7 | (2,971) | 5,942.1 | (673.6) | 8,669.3 | 340.1 | ||
Beginning balance at Dec. 31, 2018 | $ 396.2 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net income | 19 | |||||||||
Change in noncontrolling interests in consolidated entities, net | 35.9 | |||||||||
Ending balance at Mar. 31, 2019 | 451.1 | |||||||||
Beginning balance at Dec. 31, 2019 | 14,318.3 | $ 4,010.5 | 113.2 | 7,860.8 | (3,452.5) | 5,917.8 | (587.3) | 13,862.5 | 455.8 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 165.1 | 140.7 | 140.7 | 24.4 | ||||||
Other comprehensive income/(loss) | (318.2) | (318.2) | (318.2) | |||||||
Change in noncontrolling interests in consolidated entities, net | (37.1) | (37.1) | ||||||||
Dividends - preferred | (59.2) | (59.2) | (59.2) | |||||||
Dividends - common | (142.7) | (142.7) | (142.7) | |||||||
Common share-based compensation | 47.4 | 47.4 | 47.4 | |||||||
Vested common shares | 0 | (160.4) | 160.4 | 0 | ||||||
Other common share awards | 0.3 | (0.1) | 0.4 | 0.3 | ||||||
Purchase of common shares | (31.5) | (31.5) | (31.5) | |||||||
Ending balance at Mar. 31, 2020 | 13,942.4 | $ 4,010.5 | $ 113.2 | $ 7,747.7 | $ (3,323.2) | $ 5,856.6 | $ (905.5) | $ 13,499.3 | $ 443.1 | |
Beginning balance at Dec. 31, 2019 | 383.5 | 383.5 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net income | (45.1) | |||||||||
Change in noncontrolling interests in consolidated entities, net | (161.9) | |||||||||
Ending balance at Mar. 31, 2020 | $ 176.5 | $ 176.5 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock dividend declared (in usd per share) | $ 14.75 | |
Common stock dividends declared per share (usd per share) | $ 0.31 | $ 0.30 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Corporate Information Invesco Ltd. (Parent) and all of its consolidated entities (collectively, the company or Invesco) provide retail and institutional clients with an array of global investment management capabilities. The company operates globally, and its sole business is investment management. Certain disclosures included in the companyās annual report on Form 10-K for the year ended December 31, 2019 (annual report or Form 10-K) are not required to be included on an interim basis in the companyās quarterly reports on Forms 10-Q (Report). The company has condensed or omitted these disclosures. Therefore, this Report should be read in conjunction with the companyās annual report. Basis of Accounting and Consolidation The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with rules and regulations of the Securities and Exchange Commission and consolidate the financial statements of the Parent and all of its controlled subsidiaries. In the opinion of management, the financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair statement of the financial condition and results of operations for the periods presented. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. Use of Estimates The three months ended March 31, 2020 were characterized by heightened uncertainty due to the COVID-19 pandemic which could impact estimates and assumptions made by management. The primary estimates and assumptions made relate to goodwill and intangible impairment, the impact of legal contingencies, certain investments which are carried at fair value, post-employment benefit plan obligations and taxes. Additionally, estimation is involved when determining investment and debt valuation for certain CIP; however, changes in the fair values of these amounts are largely offset by noncontrolling interests. Use of available information and application of judgment are inherent in the formation of estimates. Actual results in the future could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements. Accounting Pronouncements Recently Adopted Financial Instruments. On January 1, 2020 the company adopted Accounting Standard Update 2016-13, āFinancial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instrumentsā (ASU 2016-13) using the modified retrospective approach. ASU 2016-13 amends guidance related to reporting credit losses for financial assets measured at amortized cost and available for sale securities and adds an impairment model that is based on expected losses rather than incurred losses. Under the modified retrospective approach, entities are required to report any effect from adoption as a cumulative effect adjustment to retained earnings at the adoption date. The company has determined that there is no material impact upon adoption of this amendment. Goodwill. On January 1, 2020 the company adopted Accounting Standards Update 2017-04, āIntangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairmentā (ASU 2017-04), which revised the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The company has adopted ASU 2017-04 using a prospective approach. In the event a reporting unitās carrying amount exceeds fair value, the amount of impairment will equal the excess carrying value, not to exceed the total amount of goodwill allocated to the reporting unit. To the extent carrying amount exceeds fair value in a future goodwill impairment test, the amendment will change the amount of impairment expense the company records. Cloud Computing Arrangements. On January 1, 2020 the company adopted Accounting Standards Update 2018-15, āIntangibles-Goodwill and Other-Internal-Use Software: Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contractā (ASU 2018-15), 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 company has adopted ASU 2018-15 using a prospective approach to all implementation costs incurred after adoption. The company has determined that there is no material impact upon adoption of this standard. Pending Accounting Pronouncements None. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On May 24, 2019 , the company acquired OppenheimerFunds, an investment management subsidiary of Massachusetts Mutual Life Insurance Companyās (MassMutual), with consideration to MassMutual and OppenheimerFunds employee shareholders consisting of $35.0 million in cash, 81.9 million shares of common stock and $4.0 billion in perpetual, non-cumulative preferred shares with a 21 -year non-call period and a fixed rate of 5.9% . The 81.9 million shares are composed of 75.7 million common shares issued on the closing date and 6.2 million Invesco restricted common stock awards granted to employee shareholders. MassMutual has an approximate 16.5% stake in the common stock of the combined firm as of March 31, 2020 . Invesco and MassMutual entered into a shareholder agreement, in which MassMutual has customary minority shareholder rights, including representation on Invescoās board of directors. The shareholder agreement with MassMutual specifies a lock-up period of two years for the common stock and five years for the preferred stock. MassMutual may not sell common or preferred shares received as purchase consideration during the respective lock-up periods. The acquired business enhances the companyās ability to meet client needs through its comprehensive range of high-conviction active, passive and alternative capabilities. The transaction was accounted for under the acquisition method of accounting. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of the transaction. The issuance of common stock and preferred stock consideration represents a non-cash financing activity related to the statement of cash flows. The following table summarizes the estimate of amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the consideration transferred to acquire OppenheimerFunds. Additional changes to the allocation to certain assets, liabilities and tax estimates are not expected but could occur. The company will finalize the acquisition accounting (including the valuation) within the required measurement period, but in no event not later than one year from May 24, 2019 . March 31, 2020 $ in millions Fair Value Estimate ASSETS Cash and cash equivalents 360.0 Accounts receivable 133.1 Investments 178.4 Prepaid assets 24.8 Other assets 181.2 Property, equipment and software, net 104.1 Intangible assets (1) 5,189.0 Goodwill (2) 1,507.6 Total assets 7,678.2 LIABILITES Accrued compensation and benefits 263.9 Accounts payable and accrued expenses (2) 730.4 Deferred tax liabilities, net 1,088.0 Total liabilities 2,082.3 Total identifiable net assets 5,595.9 Summary of consideration Cash consideration 35.0 Common stock consideration (3) 1,453.6 Preferred stock consideration (4) 4,010.5 Other consideration (5) 96.8 Total cash and stock consideration 5,595.9 ____________ (1) Intangible assets are comprised of the following: ā¢ indefinite-lived intangible asset related to management contracts of $4,907.0 million consists primarily of contracts related to mutual funds. ā¢ finite-lived intangible asset related to management contracts of $255.0 million consists primarily of contracts related to sub-advised accounts and has an estimated useful life of eight years . ā¢ acquired trade name asset of $27.0 million has an estimated useful life of six years . The intangible assets created in the acquisition are not expected to be deductible for tax purposes. (2) Goodwill is calculated as the difference between the acquisition date fair value of the total consideration transferred and the aggregate values assigned to the assets acquired and liabilities assumed. The goodwill created in the acquisition is not expected to be deductible for tax purposes. The goodwill balance resulted primarily from the opening balance sheet net deferred tax liability. Additionally, an adjustment was made to goodwill during first quarter 2020 as a result of the matter described below. See Note 6 -- "Goodwill" for additional details regarding the accounting matter. As part of the acquisition, the company acquired the management contracts of the Invesco Oppenheimer SteelPath-branded MLP funds and became the Adviser to the funds. In the fourth quarter 2019, the company identified an accounting matter related to the fundsā financial statements and concluded that it was reasonably possible, but not probable, that the company would incur at least some costs associated with the matter. Accordingly, no accrual was made at December 31, 2019. Following a regulatory consultation on the matter that concluded after the company filed its 2019 Annual Report on Form 10-K, the company changed its assessment of the likelihood of a loss to probable. Based on this new information about the facts and circumstances, the company adjusted the initial accounting for the acquisition by recording a liability of an estimated amount of $380.5 million and a deferred tax asset of $93.5 million (for expected future tax benefits) during the first quarter of 2020 for pre-acquisition activity related to the matter. The liability and associated deferred tax asset recorded represents managementās current best estimate based on its current understanding of the relevant facts. As this accounting adjustment was recorded during the measurement period of one year after the acquisition date, a corresponding adjustment of $287.0 million ( $380.5 million net of $93.5 million of deferred tax asset) was made to goodwill. As additional information about the matter is finalized, the estimate may change. In accordance with ASC 805 Business Combinations, any further adjustments made during the measurement period, will be recorded as an adjustment to goodwill. See Note 15 -- "Commitments and Contingencies" for additional details regarding the accounting matter. (3) The common shares were fair valued using the companyās market price on closing date and reflects a discount for the common shares issued to MassMutual ( 75,563,041 shares) with a two-year lock-up period, resulting in a value of approximately $19.195 per share. Common shares issued to OppenheimerFunds employee shareholders ( 153,574 shares) were valued at the market price on closing date, which was $20.42 . (4) The preferred shares were fair valued using a discounted cash flow model, resulting in a value of $1,000 per share. (5) Other consideration primarily consists of the fair value of the vested portion of replacement employee common share-based awards. The changes in the carrying amount of goodwill from December 31, 2019 to March 31, 2020 are primarily due to the OppenheimerFunds acquisition. See Note 6 -- "Goodwill" for additional details regarding changes in goodwill. Transaction and integration costs related to the OppenheimerFunds acquisition included within the Transaction, integration, and restructuring line item on the Condensed Consolidated Statements of Income were $71.1 million , for the three months ended March 31, 2020 . Included in this amount was a loss of $7.3 million , representing the post-acquisition activity and related costs for the MLP fund-related liability discussed above. Supplemental Pro Forma Information The following pro forma summary presents consolidated information of the company as if the business combination had occurred on January 1, 2019, the earliest period presented herein. Three months ended March 31, $ in millions 2019 Operating revenues 1,720.8 Net income 215.6 The pro forma adjustments include dividends on preferred shares, transaction costs, and adjustments to depreciation and intangible asset amortization expense. Cost savings or operating synergies expected to result from the acquisition are not included in the pro forma results. These pro forma results are not indicative of the actual results of operations that would have been achieved nor are they indicative of future results of operations. |
Fair Value Of Assets And Liabil
Fair Value Of Assets And Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | FAIR VALUE OF ASSETS AND LIABILITIES The fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CIP is presented in Note 16 , "Consolidated Investment Products" . See the companyās most recently filed Form 10-K for additional disclosures on valuation methodology and fair value. March 31, 2020 December 31, 2019 $ in millions Fair Value Fair Value Cash and cash equivalents 940.5 1,049.0 Equity investments 334.1 432.5 Foreign time deposits (1) 25.8 32.0 Assets held for policyholders 9,137.3 10,835.6 Policyholder payables (1) (9,137.3 ) (10,835.6 ) Contingent consideration liability (33.6 ) (60.2 ) Long-term debt (1) (2) (2,806.9 ) (2,281.5 ) ____________ (1) These financial instruments are not recorded on the balance sheet at fair value on a recurring basis. See the most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities. (2) All assets and liabilities are carried at fair value except debt which has a carrying value of $2,588.8 million as of March 31, 2020 ( December 31, 2019 : $2,080.3 million ). The following table presents, by hierarchy levels, the carrying value of the companyās assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the companyās Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 , respectively: As of March 31, 2020 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Cash equivalents: Money market funds 379.9 379.9 ā ā Investments:* Equity investments: Seed money 175.7 175.7 ā ā Investments related to deferred compensation plans 155.8 155.8 ā ā Other equity securities 2.6 2.6 ā ā Assets held for policyholders 9,137.3 9,137.3 ā ā Total 9,851.3 9,851.3 ā ā Liabilities: Contingent consideration liability (33.6 ) ā ā (33.6 ) Total (33.6 ) ā ā (33.6 ) As of December 31, 2019 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Cash equivalents: Money market funds 620.9 620.9 ā ā Investments:* Equity investments: Seed money 235.5 235.5 ā ā Investments related to deferred compensation plans 192.4 192.4 ā ā Other equity securities 4.6 4.6 ā ā Assets held for policyholders 10,835.6 10,835.6 ā ā Total 11,889.0 11,889.0 ā ā Liabilities: Contingent consideration liability (60.2 ) ā ā (60.2 ) Total (60.2 ) ā ā (60.2 ) ____________ * Foreign time deposits of $25.8 million ( December 31, 2019 : 32.0 million ) are excluded from this table. Equity method and other investments of $373.0 million and $11.6 million , respectively, ( December 31, 2019 : $350.8 million and $14.2 million , respectively) are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards. The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three months ended March 31, 2020 and March 31, 2019 , which are valued using significant unobservable inputs: Three months ended March 31, 2020 $ in millions Contingent Consideration Liability Beginning balance (60.2 ) Revision to purchase price allocation 5.5 Net unrealized gains and losses included in other gains and losses, net* 8.2 Disposition/settlements 12.9 Ending balance (33.6 ) Three months ended $ in millions Contingent Consideration Liability Beginning balance (40.9 ) Net unrealized gains and losses included in other gains and losses, net* (1.5 ) Disposition/settlements 4.0 Ending balance (38.4 ) _______________ * These unrealized gains and losses are attributable to balances still held at the respective period ends. Total Return Swaps In addition to holding equity investments, the company has a total return swap (TRS) to economically hedge certain deferred compensation liabilities. The notional value of the total return swap at March 31, 2020 was $215.3 million . During the three months ended March 31, 2020 , market valuation losses of $31.4 million were recognized in other gains and losses, net. Contingent Consideration Liability The contingent consideration liability related to the investment management contracts acquired from Deutsche Bank was recorded at fair value as of the date of acquisition using a discounted cash flow model and is categorized within level 3 of the valuation hierarchy. At March 31, 2020 inputs used in the model to determine the liability related to the pre-existing contingent consideration arrangement assumed no growth rates in forecasted AUM. Changes in fair value are recorded in other gains and losses, net in the period incurred. An increase in forecasted AUM levels and a decrease in the discount rate would increase the fair value of the contingent consideration liability while a decrease in forecasted AUM and an increase in the discount rate would decrease the liability. In connection with the OppenheimerFunds acquisition (see Note 2 , ā "Business Combinations" ā), Invesco acquired a $13.6 million contingent consideration liability related to a historical OppenheimerFunds transaction. The liability is contingent upon the attainment of certain revenue growth objectives during 2019 and 2020. As of March 31, 2020 , inputs used to determine the liability related to these arrangements primarily include an assumed growth rate in management fees of 4% and a discount rate of 10.7% . In 2019, the company made other digital wealth acquisitions, which, based on adjusted initial purchase price allocations, resulted in contingent consideration liabilities of $10.5 million |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
INVESTMENTS | INVESTMENTS The disclosures below include details of the companyās investments. Investments held by CIP are detailed in Note 16 , "Consolidated Investment Products" . $ in millions March 31, 2020 December 31, 2019 Equity investments: Seed money 175.7 235.5 Investments related to deferred compensation plans 155.8 192.4 Other equity securities 2.6 4.6 Equity method investments * 373.0 350.8 Foreign time deposits 25.8 32.0 Other 11.6 14.2 Total investments 744.5 829.5 ______________ * Certain co-investments in managed funds accounted for under the equity method are valued on a one-month or a three-month lag based upon the availability of fund financial information which means the equity in earnings may not reflect the market disruption that occurred during March 2020. Equity investments The unrealized gains and losses for the three months ended March 31, 2020 , that relate to equity investments still held at March 31, 2020 , was a $86.1 million net loss ( three months ended March 31, 2019 : $23.0 million net gain ). |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table presents the major classes of the company's intangible assets at March 31, 2020 and December 31, 2019 : $ in millions Gross Book Value Accumulated Amortization Net Book Value March 31, 2020 Management contracts - indefinite-lived 6,962.0 N/A 6,962.0 Management contracts - finite-lived 319.2 (92.7 ) 226.5 Developed technology 92.5 (35.0 ) 57.5 Other 106.1 (27.0 ) 79.1 Total 7,479.8 (154.7 ) 7,325.1 December 31, 2019 Management contracts - indefinite-lived 6,969.1 N/A 6,969.1 Management contracts - finite-lived 319.3 (84.5 ) 234.8 Developed technology 98.6 (31.7 ) 66.9 Other 112.2 (24.7 ) 87.5 Total 7,499.2 (140.9 ) 7,358.3 During the three months ended March 31, 2020 , the company did not acquire any intangible assets. During 2019 , the company acquired $4,907.0 million in indefinite lived management contracts, $255.0 million of finite-lived intangible asset related management contracts, and $27.0 million of trade name assets related to the Oppenheimer acquisition. Other 2019 additions to intangible assets related to the preliminary valuations of acquisitions of digital wealth technology companies. Amortizable intangible assets of $315.4 million related to 2019 acquisitions have a weighted-average amortization period of 7.15 years . The 2019 annual impairment review of indefinite-lived intangible assets determined that no impairment existed. Due to the decline in our assets under management in the three months ended March 31, 2020, management determined that an interim impairment test was necessary for certain of our indefinite-lived management contract assets. The impairment analysis involves determining whether the estimated fair value of each intangible asset exceeds its carrying amount. If the fair value of the intangible asset exceeds its carrying amount, then the asset is not impaired. However, if the carrying amount exceeds the fair value of the asset, the amount of impairment would equal the excess carrying value. The principal method of determining fair value of indefinite-lived intangible assets is an income approach where estimated future cash flows are discounted to arrive at a single present value amount. The discount rate used is derived based on the time value of money and the risk profile of the stream of future cash flows. Recent results and projections based on expectations regarding revenue, expenses, capital expenditure and acquisition earn out payments produce a present value for the company, or its fair value. The companyās impairment analysis at March 31, 2020 incorporated revised forecasts that took into account the market disruptions during the quarter and expectations for a continued strain on results over the remainder of the year. Given the significant level of uncertainty that currently exists, management applied several alternative scenarios for market and company performance over the next several years to determine fair value. Other key assumptions were updated as appropriate, including the discount rate, which increased as a result of an increase in the equity risk premium, which was partially offset by a decrease in the risk free rate. The analysis resulted in no impairment because the fair value of indefinite-lived intangible assets exceeded their carrying value, although the amount of excess has decreased since the last quantitative test. To the extent that markets remain depressed for a prolonged period of time and market conditions stagnate or worsen as a result of the COVID-19 pandemic, our assets under management, revenues, and profitability would likely be adversely affected. As a result, subsequent impairment tests may be based upon different assumptions and future cash flow projections, which may result in an impairment. Any impairment could reduce materially the recorded amount of indefinite-lived intangible assets with a corresponding charge to our earnings. Amortization expense for the three months ended March 31, 2020 was $15.9 million . Amortization expense for the three months ended December 31, 2019 was $20 million . Estimated amortization expense for each of the five succeeding fiscal years based upon the company's intangible assets at March 31, 2020 is as follows: $ in millions Years Ended December 31, Estimated Amortization Expense 2020 (excluding the three months ended March 31, 2020) (46.2 ) 2021 (62.5 ) 2022 (59.5 ) 2023 (52.0 ) 2024 (46.8 ) 2025 (38.9 ) |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 6. GOODWILL The table below details changes in the goodwill balance: $ in millions Net Book Value January 1, 2020 8,509.4 Business combinations 288.1 Foreign exchange and other (253.4 ) March 31, 2020 8,544.1 January 1, 2019 7,157.1 Business combinations 1,229.1 Foreign exchange and other 123.2 December 31, 2019 8,509.4 The 2020 additions to goodwill of $288.1 million related primarily to adjustments to the preliminary purchase price allocation of the Oppenheimer acquisition. See Note 2 , "Business Combinations" and Note 15 , "Commitments and Contingencies" for additional details. The 2019 addition to goodwill consists of the initial preliminary valuation of the Oppenheimer acquisition and other additions related to the preliminary valuations of acquired digital wealth technology companies. The 2019 annual impairment review determined that no impairment existed at the annual review dates. Due to the decline in our assets under management in the three months ended March 31, 2020, management determined that an interim impairment test was necessary as of March 31, 2020. The impairment analysis involves determining whether the estimated fair value of the company (a single reporting unit) exceeds its book value. If the fair value of the company exceeds its book value, then goodwill is not impaired. However, if the book value exceeds the fair value of the company, the amount of impairment would equal the excess book value. The principal method of determining fair value of the company is an income approach where estimated future cash flows are discounted to arrive at a single present value amount. The discount rate used is derived based on the time value of money and the risk profile of the stream of future cash flows. Recent results and projections based on expectations regarding revenue, expenses, capital expenditure and acquisition earn out payments produce a present value for the company, or its fair value. The companyās impairment analysis at March 31, 2020 incorporated revised forecasts that took into account the market disruptions during the quarter and expectations for a continued strain on results over the remainder of the year. Given the significant level of uncertainty that currently exists, management also considered several alternative scenarios for market and company performance over the next several years. Other key assumptions were updated as appropriate, including the discount rate, which increased as a result of an increase in the equity risk premium, which was partially offset by a decrease in the risk free rate. The analysis resulted in no impairment because fair value of the company exceeded book value, although the amount of excess has decreased significantly since the last quantitative test. To the extent that markets remain depressed for a prolonged period of time and market conditions stagnate or worsen as a result of the COVID-19 pandemic, our assets under management, revenues, and profitability would likely be adversely affected. As a result, subsequent impairment tests may be based upon different assumptions and future cash flow projections, which may result in an impairment of goodwill. Any impairment could reduce materially the recorded amount of goodwill with a corresponding charge to our earnings. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The disclosures below include details of the companyās debt. Debt of CIP is detailed in Note 16 , ā "Consolidated Investment Products" .ā March 31, 2020 December 31, 2019 $ in millions Carrying Value (2) Fair Value Carrying Value (2) Fair Value $1.5 billion floating rate credit facility expiring August 11, 2022 508.0 508.0 ā ā Unsecured Senior Notes (1) : $600 million 3.125% - due November 30, 2022 598.3 599.5 598.1 617.5 $600 million 4.000% - due January 30, 2024 596.1 629.3 595.8 639.2 $500 million 3.750% - due January 15, 2026 496.3 521.3 496.1 533.0 $400 million 5.375% - due November 30, 2043 390.1 548.8 390.3 491.8 Long-term debt 2,588.8 2,806.9 2,080.3 2,281.5 ____________ (1) The companyās senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures. (2) The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts. The company maintains approximately $10.3 million in letters of credit from a variety of banks. The letters of credit are generally one -year automatically-renewable facilities and are maintained for various commercial reasons. |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL The preferred shares issued in connection with the acquisition of OppenheimerFunds have a $0.20 par value, liquidation preference of $1,000 per share and fixed cash dividend rate of 5.90% per annum, payable quarterly on a non-cumulative basis. Shares of preferred stock are not redeemable prior to the 21 st anniversary of their original issue date of May 24, 2019. The number of preferred shares issued and outstanding is represented in the table below: As of in millions March 31, 2020 December 31, 2019 Preferred shares issued (1) 4.0 4.0 Preferred shares outstanding (1) 4.0 4.0 __________ (1) Preferred shares are held by MassMutual and are subject to a lock-up period of five years , which disallows the sale of preferred shares by MassMutual during the five-year period beginning on the original issue date of May 24, 2019. The number of common shares and common share equivalents issued are represented in the table below: As of In millions March 31, 2020 December 31, 2019 Common shares issued 566.1 566.1 Less: Treasury shares for which dividend and voting rights do not apply (107.2 ) (112.8 ) Common shares outstanding 458.9 453.3 In 2019, the company entered into three forward contracts to purchase its common shares. The details of the forward contracts as of March 31, 2020 and December 31, 2019 , are as follows: In millions, except strike price March 31, 2020 Common Shares Purchased Initial Strike Price Forward Price Hedge Completion Date Total Treasury Shares Recorded Settlement Date Total Liability Recorded $200 million - entered on May 13, 2019 9.8 $ 20.51 $ 12.00 05/30/2019 $ 198.7 01/04/2021 $ (116.6 ) $200 million - entered on July 2, 2019 10.0 $ 20.00 $ 12.00 07/30/2019 $ 193.7 04/01/2021 $ (117.7 ) $100 million - entered on August 27, 2019 6.0 $ 16.59 $ 12.00 09/27/2019 $ 102.6 04/01/2021 $ (73.5 ) 25.8 $ 495.0 $ (307.8 ) In millions, except strike price December 31, 2019 Common Shares Purchased Initial Strike Price Forward Price Hedge Completion Date Total Treasury Shares Recorded Settlement Date Total Liability Recorded $200 million - entered on May 13, 2019 9.8 $ 20.51 $ 20.51 05/30/2019 $ 198.7 01/04/2021 $ (199.1 ) $200 million - entered on July 2, 2019 10.0 $ 20.00 $ 20.00 07/30/2019 $ 193.7 04/01/2021 $ (195.3 ) $100 million - entered on August 27, 2019 6.0 $ 16.59 $ 16.59 09/27/2019 $ 102.6 04/01/2021 $ (102.1 ) 25.8 $ 495.0 $ (496.5 ) During the three months ended March 31, 2020 , the company amended its forward contracts resulting in a reduced forward price of $12.00 . The company applied $190.6 million of collateral already paid against the forward payable which reduced the amount the company will be required to pay at the time of settlement. The forward liability is recorded in accounts payable and accrued expenses on Condensed Consolidated Balance Sheet. The net collateral paid balance of $87.9 million at March 31, 2020 (December 31, 2019: $37.8 million |
Other Comprehensive Income_(Los
Other Comprehensive Income/(Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME/(LOSS) | OTHER COMPREHENSIVE INCOME/(LOSS) The components of accumulated other comprehensive income/(loss) were as follows: For the three months ended March 31, 2020 $ in millions Foreign currency translation Employee benefit plans Equity method investments Available-for-sale investments Total Other comprehensive income/(loss) net of tax: Currency translation differences on investments in foreign subsidiaries (315.0 ) ā ā ā (315.0 ) Other comprehensive income, net ā (3.1 ) ā (0.1 ) (3.2 ) Other comprehensive income/(loss), net of tax (315.0 ) (3.1 ) ā (0.1 ) (318.2 ) Beginning balance (462.0 ) (126.1 ) 0.1 0.7 (587.3 ) Other comprehensive income/(loss), net of tax (315.0 ) (3.1 ) ā (0.1 ) (318.2 ) Ending balance (777.0 ) (129.2 ) 0.1 0.6 (905.5 ) For the three months ended March 31, 2019 $ in millions Foreign currency translation Employee benefit plans Equity method investments Available-for-sale investments Total Other comprehensive income/(loss) net of tax: Currency translation differences on investments in foreign subsidiaries 60.9 ā ā ā 60.9 Other comprehensive income, net ā 0.2 ā 0.3 0.5 Other comprehensive income/(loss), net of tax 60.9 0.2 ā 0.3 61.4 Beginning balance (617.6 ) (117.7 ) ā 0.3 (735.0 ) Other comprehensive income/(loss), net of tax 60.9 0.2 ā 0.3 61.4 Ending balance (556.7 ) (117.5 ) ā 0.6 (673.6 ) Net Investment Hedge The company designated certain intercompany debt as a non-derivative net investment hedging instrument against foreign currency exposure related to its net investment in foreign operations. At March 31, 2020 and December 31, 2019 , Ā£130 million ( $160.8 million and $172.1 million , respectively) of intercompany debt was designated as a net investment hedge. For the three months ended March 31, 2020 , the Company recognized foreign currency gains of $11.3 million ( three months ended March 31, 2019 : losses of $4.1 million ) resulting from the net investment hedge within currency translation differences on investments in foreign subsidiaries in other comprehensive income. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The geographic disaggregation of revenue for the three months ended March 31, 2020 and 2019 are presented below. There are no revenues attributed to the companyās country of domicile, Bermuda. For the three months ended March 31, $ in millions 2020 2019 Americas 1,180.7 760.0 UK 170.8 210.7 EMEA ex UK (Europe, Middle East, and Africa) 164.4 169.6 Asia 83.0 74.3 Total operating revenues 1,598.9 1,214.6 The opening and closing balance of deferred carried interest liabilities for the three months ended March 31, 2020 were $45.8 million and $57.9 million , respectively ( December 31, 2019 : $61.3 million and $45.8 million , respectively). During the three months ended March 31, 2020 , no performance fee revenue was recognized that had been included in the deferred carried interest liability balance at the beginning of the period ( March 31, 2019 : $5.9 million ). |
Common Share-Based Compensation
Common Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
COMMON SHARE-BASED COMPENSATION | COMMON SHARE-BASED COMPENSATION The company recognized total expenses of $47.4 million and $49.8 million related to equity-settled common share-based payment transactions in the three months ended March 31, 2020 and 2019 , respectively. Movements on common share awards during the periods ended March 31 , are detailed below: For the three months ended For the three months ended March 31, 2019 Millions of common shares, except fair values Time- Vested Performance- Vested Weighted Average Grant Date Fair Value ($) Time- Vested Performance- Vested Unvested at the beginning of period 18.7 1.1 21.94 12.5 0.9 Granted during the period (1) 7.8 0.9 14.37 8.9 0.6 Forfeited during the period (0.2 ) ā 22.90 (0.3 ) ā Vested and distributed during the period (6.1 ) (0.2 ) 25.65 (4.6 ) (0.1 ) Unvested at the end of the period 20.2 1.8 19.70 16.5 1.4 ___________ (1) With respect to the time-vested awards granted in 2019, includes 6.2 million restricted shares as employment inducement awards in connection with completed acquisitions. The total fair value of common shares that vested during the three months ended March 31, 2020 was $91.8 million ( three months ended March 31, 2019 : $89.8 million ). The weighted average grant date fair value of the common share awards that were granted during the three months ended March 31, 2020 was $14.37 ( three months ended March 31, 2019 : $19.34 ). At March 31, 2020 , there was $369.0 million of total unrecognized compensation cost related to non-vested common share awards; that cost is expected to be recognized over a weighted average period of 2.78 years . |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES The company leases office space in almost all its locations of business, data centers and certain equipment under non-cancelable operating leases. The operating leases have a weighted-average remaining lease term of 6.22 years and generally include one or more options to renew, with renewal terms that can extend the lease term from 1 to 10 years. Certain lease arrangements include an option to terminate the lease if a notification is provided to the landlord within 1 to 9 years prior to the end of the lease term. The company has sole discretion in exercising lease renewal and termination options. The lease terms used in the companyās lease measurements do not include renewal options as they are not reasonably certain to be exercised as of the date of this report. The company elected to combine lease and non-lease components in calculating the lease liability and right-of-use asset for operating leases. Variable lease payments are determined based on the terms and conditions outlined in the lease contracts and are primarily determined in relation to the extent of the companyās usage of the right-of use-asset or the nature and extent of services received from the lessor. As of March 31, 2020 , the right-of-use asset of $312.4 million was included within Other assets, and the lease liability of $353.1 million was included within Accounts payable and accrued expenses, on the Condensed Consolidated Balance Sheet. The components of lease expense for the three months ended March 31, 2020 were as follows: $ in millions Three months ended March 31, 2020 Three months ended March 31, 2019 Operating lease cost 20.6 12.8 Variable lease cost 5.3 6.8 Less: sublease income (0.2 ) (0.1 ) Total lease expense 25.7 19.5 Supplemental cash flow information related to leases for the three months ended March 31, 2020 was as follows: $ in millions Three months ended March 31, 2020 Three months ended March 31, 2019 Operating cash flows from operating leases included in the measurement of lease liabilities 18.7 15.0 Right-of-use assets obtained in exchange for new operating lease liabilities 9.5 4.1 In determining the discount rate, the company considered the interest rate yield for specific interest rate environments and the companyās credit spread at the inception of the lease. The weighted-average discount rate for the operating lease liability for the three months ended March 31, 2020 was 3.49% . As of March 31, 2020 the maturities of the companyās lease liabilities (primarily related to real estate leases) were as follows: $ in millions Year Ending December 31, Lease Liabilities 2020 (excluding the three months ended March 31, 2020) 59.2 2021 73.0 2022 64.6 2023 55.8 2024 42.0 Thereafter 99.3 Total lease payments 393.9 Less: interest (40.8 ) Present value of lease liabilities 353.1 Excluded from the table above is an additional operating lease for the companyās new Atlanta headquarters that was entered into during third quarter of 2019, but has not yet commenced. The expected lease obligations are approximately $232.5 million which will be paid over an expected lease term of 15 years . This operating lease will commence in fiscal year 2022 and will replace the companyās existing lease for the current headquarters. |
Taxation
Taxation | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
TAXATION | TAXATION On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act as a result of the Coronavirus pandemic, which contains among other things, numerous income tax provisions. Some of these tax provisions are expected to be effective retroactively for years ending before the date of enactment. The company has evaluated the current legislation and at this time, does not anticipate the CARES Act to have a material impact on its financial statements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: $ in millions Gross Unrecognized Income Tax Benefits Balance at December 31, 2019 69.9 Additions for tax positions related to the current year 0.7 Additions for tax positions related to prior years 1.0 Other reductions for tax positions related to prior years (0.8 ) Reductions for statute closings (9.3 ) Balance at March 31, 2020 61.5 At March 31, 2020 , the total amount of gross unrecognized tax benefits was $61.5 million as compared to the December 31, 2019 total of $69.9 million . During the three months ended March 31, 2020 the company recognized a $9.3 million tax benefit that resulted primarily from the expiration of a state statute of limitations for a previously recorded position. The remainder of the movement is comprised of additions to existing positions net of other settlements and reductions. Of the total amount of gross unrecognized tax benefits, $47.8 million (net of tax benefits in other jurisdictions and the federal benefit of state taxes) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. As a result of potential legislative changes; settlements with taxing authorities and the expiration of statutes of limitations for certain jurisdictions, it is reasonably possible that the company's gross unrecognized tax benefits balance may change within the next twelve months by a range of $5.0 million to $10.0 million . |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The calculation of earnings per common share is as follows: For the three months ended March 31, In millions, except per share data 2020 2019 Net income attributable to Invesco Ltd. 81.5 177.7 Invesco Ltd: Weighted average common shares outstanding - basic 455.7 401.6 Dilutive effect of non-participating common share-based awards 3.2 0.3 Weighted average common shares outstanding - diluted 458.9 401.9 Earnings per common share: -basic $0.18 $0.44 -diluted $0.18 $0.44 See Note 11 , "Common Share-Based Compensation" , for a summary of common share awards outstanding under the companyās common share-based compensation programs. These programs could result in the issuance of common shares from time to time that would affect the measurement of basic and diluted earnings per common share. There were 0.3 million common shares of performance-vested awards excluded from the computation of diluted earnings per common share during the three months ended March 31 , 2020 due to their inclusion being anti-dilutive ( three months ended March 31, 2019 : 0.7 million ). There were no common shares of time-vested awards excluded from the computation of diluted earnings per common share during three months ended March 31 , 2020 ( three months ended March 31, 2019 : none |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments and contingencies may arise in the ordinary course of business. Off Balance Sheet Commitments The company has committed to co-invest in certain investment products which may be called in future periods. At March 31, 2020 , the companyās undrawn capital commitments were $352.3 million ( December 31, 2019 : $357.0 million ). The Parent and various company subsidiaries have entered into agreements with financial institutions to guarantee certain obligations of other company subsidiaries. The company would be required to perform under these guarantees in the event of certain defaults. The company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. On October 18, 2018, the company announced plans to buy back $1.2 billion of the company's common shares within the next two years . In connection with this effort, the company entered into several forward contracts to purchase its common shares. See Note 8. "Share Capital" for details of these forward contracts and the related liability outstanding at March 31, 2020 . Pursuant to an agreement entered into at the consummation of the acquisition of OppenheimerFunds, MassMutual, as the holder of seed capital investments in certain funds and accounts included in the acquisition, has the right to redeem its seed capital investments in accordance with an agreed upon schedule. In the event MassMutual exercises its redemption rights and the applicable fund or account is unable to meet such redemption (for example, due to illiquid investments or the need to maintain a level of investment in the fund), the company would be required to fund such redemption to MassMutual and seek reimbursement from the applicable fund or account at a later time when the fund or account is able to fulfill a redemption request. At March 31, 2020 , the total amount of seed capital subject to this agreement is approximately $445.8 million . Since March 31, 2020 , MassMutual exercised its redemption rights and redeemed a portion of the seed capital per the agreed upon schedule. As of the date of this report, the company was not required to fund these redemptions nor does the company anticipate having to fund any of the seed capital subject to this agreement. Legal Contingencies The company is from time to time involved in pending or threatened litigation relating to claims arising in the ordinary course of its business. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit or claim will have on the company. There are many reasons that the company cannot make these assessments, including, among others, one or more of the following: the proceeding is in its early stages (or merely threatened); the damages sought are unspecified, unsupportable, unexplained or uncertain; the claimant is seeking relief other than compensatory damages; the matter presents novel legal claims or other meaningful legal uncertainties; discovery has not started or is not complete; there are significant facts in dispute; and there are other parties who may share in any ultimate liability. In assessing the impact that a legal or regulatory matter will have on the company, management evaluates the need for an accrual on a case-by-case basis. If the likelihood of a loss is deemed probable and is reasonably estimable, the estimated loss is accrued. If the likelihood of a loss is assessed as less than probable, or an amount or range of loss cannot be reasonably estimated, a loss is not accrued. In managementās opinion, adequate accrual has been made as of March 31, 2020 to provide for any such losses that may arise from matters for which the company could reasonably estimate an amount. Management is of the opinion that the ultimate resolution of such claims will not materially affect the companyās business, financial position, results of operation or liquidity. Furthermore, in managementās opinion, it is not possible to estimate a range of reasonably possible losses with respect to other litigation contingencies. The investment management industry also is subject to extensive levels of ongoing regulatory oversight and examination. In the United States, United Kingdom, and other jurisdictions in which the company operates, governmental authorities regularly make inquiries, hold investigations and administer market conduct examinations with respect to the companyās compliance with applicable laws and regulations. Additional lawsuits or regulatory enforcement actions arising out of these inquiries may in the future be filed against the company and related entities and individuals in the United States, United Kingdom, and other jurisdictions in which the company and its affiliates operate. Any material loss of investor and/or client confidence as a result of such inquiries and/or litigation could result in a significant decline in AUM, which would have an adverse effect on the companyās future financial results and its ability to grow its business. OppenheimerFunds acquisition-related matter In the fourth quarter 2019, the company identified an accounting matter which has required that the historical financial statements for certain funds identified below be restated. This matter also will result in remediation costs, all or at least some portion of which the company expects to bear. Uncertainties remain as of the date of this report regarding the nature, scope and amounts of such costs, as well as the degree to which the company will ultimately be financially responsible for bearing such costs. Set forth below is a more detailed description of this matter, based on information available as of the date of this report. This matter pertains to the following four Master Limited Partnership ("MLP") funds: (1) the Invesco Oppenheimer Steelpath MLP Income Fund; (2) the Invesco Oppenheimer Steelpath MLP Select 40 Fund; (3) the Invesco Oppenheimer Steelpath MLP Alpha Fund; and (4) the Invesco Oppenheimer Steelpath MLP Alpha Plus Fund (each a āFundā and together the āFundsā). The company acquired sponsorship and management of the Funds on May 24, 2019 as part of its acquisition of OppenheimerFunds. The Funds invest substantially all their assets in entities that are MLPs for tax purposes. As a result, the Funds are taxable entities subject to Subchapter C of the Internal Revenue Code of 1986, as amended (the āTax Codeā). This is unusual, as most mutual funds are instead subject to Subchapter M of the Tax Code (and, in general, operate as flow through vehicles for tax purposes thereunder). Because of their tax status, the Funds have tax attributes, including deferred tax assets and deferred tax liabilities, and must make assessments as to the amount of deferred tax assets that may be realizable in accordance with ASC 740 Income Taxes (āASC 740ā). In preparing their financial statements for the fiscal year ended November 30, 2019, questions arose as to whether the Fundsā previously issued financial statements for certain years failed to include appropriate valuation allowances against the Fundsā deferred tax assets in accordance with ASC 740. Following a regulatory consultation on these matters that concluded after the company filed its 2019 Annual Report on Form 10-K, the Funds determined that certain previously issued financial statements had to be restated (which the Funds have now done), and the Funds have recorded incorrect Net Asset Values (āNAVsā) for periods dating back to 2015. Remediating these matters has, will or may produce the following costs: ā¢ Costs of processing the restated historical financial statements, and related costs of communicating with present and former Fund shareholders; ā¢ Costs of reimbursing shareholders for transactions in Fund shares made at incorrect NAVs and for certain fees paid by the Funds based thereon; and ā¢ Certain additional costs in connection with these matters. As stated above, uncertainties remain regarding the nature, scope and amount of these costs. Furthermore, there is uncertainty as to the degree to which the company will become ultimately responsible to absorb some or all such costs. The sources of such uncertainties include, among other things, the following: ā¢ The process and method for determining such remediation is subject to various factors that are not yet certain and information that is not yet readily available. In this regard, a significant amount of the investors in the Funds are held in omnibus accounts where the company does not at this time have access to the level of data necessary to determine the appropriate remediation. ā¢ The company and/or the Funds may be entitled to seek reimbursement for certain of such costs under applicable insurance policies (subject to the terms of such policies, including applicable deductibles and policy limits). ā¢ The company may be entitled to seek indemnification for certain of such costs from MassMutual under the OppenheimerFunds acquisition agreement (subject to the terms of such indemnification, including the specified deductible and limit). During first quarter 2020, the company concluded that it is probable that the company will incur at least some costs regarding this matter. Accordingly, the company recorded an estimated liability of $387.8 million for both pre and post-acquisition activity related to the matter. For pre-acquisition activity, the company recorded an adjustment to the initial acquisition accounting for a liability of an estimated amount of $380.5 million in accordance with ASC 805 Business Combinations and a corresponding adjustment was recorded to goodwill and deferred tax assets. (See Note 2. "Business Combinations" for additional information.) This estimate excludes any amounts that may be recovered through seller indemnifications and insurance recoveries. The estimate also excludes other costs related to the matter, such as the costs of remediation or the costs of communicating with fund shareholders. Additionally, the company recognized a liability of an estimated amount of $7.3 million |
Consolidated Investment Product
Consolidated Investment Products (CIP) | 3 Months Ended |
Mar. 31, 2020 | |
Consolidated Investment Products [Abstract] | |
CONSOLIDATED INVESTMENT PRODUCTS (CIP) | CONSOLIDATED INVESTMENT PRODUCTS (CIP) The following table presents the balances related to CIP that are included on the Condensed Consolidated Balance Sheets as well as Invescoās net interest in the CIP for each period presented. See the companyās most recently filed Form 10-K for additional disclosures on valuation methodology and fair value. As of $ in millions March 31, 2020 December 31, 2019 Cash and cash equivalents of CIP 289.0 652.2 Accounts receivable and other assets of CIP 359.5 172.9 Investments of CIP 7,563.9 7,808.0 Less: Debt of CIP (6,172.7 ) (6,234.6 ) Less: Other liabilities of CIP (881.6 ) (949.6 ) Less: Retained earnings 9.6 9.5 Less: Accumulated other comprehensive income, net of tax (9.5 ) (9.4 ) Less: Equity attributable to redeemable noncontrolling interests (176.5 ) (383.5 ) Less: Equity attributable to nonredeemable noncontrolling interests (442.2 ) (454.9 ) Invescoās net interests in CIP 539.5 610.6 The following table reflects the impact of consolidation of investment products into the Condensed Consolidated Statements of Income for the three months ended March 31 , 2020 and 2019 : Three months ended March 31, $ in millions 2020 2019 Total operating revenues (8.9 ) (8.7 ) Total operating expenses 17.0 2.8 Operating income (25.9 ) (11.5 ) Equity in earnings of unconsolidated affiliates (16.6 ) 6.5 Interest and dividend income (0.1 ) (1.3 ) Other gains and losses, net 41.8 (20.7 ) Interest and dividend income of CIP 85.2 84.7 Interest expense of CIP (56.9 ) (58.0 ) Other gains/(losses) of CIP, net (48.4 ) 12.2 Income before income taxes (20.8 ) 11.9 Income tax provision ā ā Net income (20.8 ) 11.9 Net (income)/loss attributable to noncontrolling interests in consolidated entities 20.7 (12.9 ) Net income attributable to Invesco Ltd. (0.1 ) (1.0 ) Non-consolidated VIEs At March 31, 2020 , the companyās carrying value and maximum risk of loss with respect to variable interest entities (VIEs) in which the company is not the primary beneficiary was $163 million ( December 31, 2019 : $188 million ). Balance Sheet information - newly consolidated VIEs/VOEs During the three months ended March 31, 2020 , there were three newly consolidated VIEs and no newly consolidated voting rights entities (VOEs) ( March 31, 2019 : there was one newly consolidated VIE). The table below illustrates the summary balance sheet amounts related to these products before consolidation into the company. The balances below are reflective of the balances existing at the consolidation date after the initial funding of the investments by the company and unrelated third-party investors. The current period activity for the consolidated funds, including the initial funding and subsequent investment of initial cash balances into underlying investments of CIP, is reflected in the companyās Condensed Consolidated Financial Statements. For the three months ended March 31, 2020 For the three months ended March 31, 2019 $ in millions VIEs VIEs Cash and cash equivalents of CIP 2.4 0.4 Accounts receivable and other assets of CIP 0.1 2.7 Investments of CIP 26.3 105.9 Total assets 28.8 109.0 Debt of CIP 2.0 97.8 Other liabilities of CIP 15.9 11.2 Total liabilities 17.9 109.0 Total equity 10.9 ā Total liabilities and equity 28.8 109.0 Balance Sheet information - deconsolidated VIEs/VOEs During the three months ended March 31, 2020 , the company determined that it was no longer the primary beneficiary of five VIEs and no longer held the majority voting interest in nine VOEs ( March 31, 2019 : the company determined that it was no longer the primary beneficiary of one VIE and no longer held the majority voting interest in two VOEs). The amounts deconsolidated from the Condensed Consolidated Balance Sheets are illustrated in the table below. There was no net impact to the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 from the deconsolidation of these investment products. For the three months ended March 31, 2020 For the three months ended March 31, 2019 $ in millions VIEs VOEs VIEs VOEs Cash and cash equivalents of CIP 0.1 0.2 ā ā Accounts receivable and other assets of CIP 2.9 1.0 ā ā Investments of CIP 127.3 106.0 6.3 4.6 Total assets 130.3 107.2 6.3 4.6 Debt of CIP ā ā ā ā Other liabilities of CIP 1.5 ā ā ā Total liabilities 1.5 ā ā ā Total equity 128.8 107.2 6.3 4.6 Total liabilities and equity 130.3 107.2 6.3 4.6 The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Measured at NAV as a practical expedient Assets: Bank loans 6,467.6 ā 6,467.6 ā ā Bonds 552.3 0.4 551.9 ā ā Equity securities 206.8 124.9 81.9 ā ā Equity and fixed income mutual funds 27.0 17.5 9.5 ā ā Investments in other private equity funds 220.8 ā 9.0 ā 211.8 Real estate investments 89.4 ā ā 89.4 ā Total assets at fair value 7,563.9 142.8 7,119.9 89.4 211.8 As of December 31, 2019 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Measured at NAV as a practical expedient Assets: Bank loans 6,504.4 ā 6,504.4 ā ā Bonds 705.9 0.5 705.4 ā ā Equity securities 275.9 204.4 71.5 ā ā Equity and fixed income mutual funds 29.8 20.3 9.5 ā ā Investments in other private equity funds 213.4 ā ā ā 213.4 Real estate investments 78.6 ā ā 78.6 ā Total assets at fair value 7,808.0 225.2 7,290.8 78.6 213.4 The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs: Three months ended March 31, 2020 Three months ended March 31, 2019 $ in millions Level 3 Assets Level 3 Assets Beginning balance 78.6 11.8 Purchases ā ā Gains and losses included in the Condensed Consolidated Statements of Income (1) 10.8 0.3 Ending balance 89.4 12.2 ____________ (1) Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 are $10.8 million in net unrealized gains attributable to investments still held at March 31, 2020 by CIP (for the three months ended March 31, 2019 : $0.3 million in net unrealized gains are attributable to investments still held at March 31, 2019 by CIP). The collateral assets held by consolidated CLOs are primarily invested in senior secured bank loans, bonds, and equity securities. Bank loan investments of $6,427.7 million , which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans from a variety of industries, including but not limited to the aerospace and defense, broadcasting, technology, utilities, household products, healthcare, oil and gas, and finance industries. Bank loan investments mature at various dates between 2020 and 2029 , pay interest at LIBOR plus a spread of up to 10.0% , and typically range in S&P credit rating categories from BBB down to unrated. Approximately less than 0.09% of the collateral assets were in default as of March 31, 2020 and 2019 . Interest income on bank loans and bonds is recognized based on the unpaid principal balance and stated interest rate of these investments on an accrual basis. At March 31, 2020 , the unpaid principal balance exceeds the fair value of the senior secured bank loans and bonds by approximately $198.5 million ( December 31, 2019 : the unpaid principal balance exceeded the fair value of the senior secured bank loans and bonds by approximately $181.2 million ). However, these investments are accounted for on a one-month lag based on the availability of fund financial information which means the fair value does not reflect the market disruption that occurred during March 2020. CLO investments are valued based on price quotations provided by third-party pricing sources. These third-party sources aggregate indicative price quotations to provide the company with a price for the CLO investments. The company has developed internal controls to review the reasonableness and completeness of these price quotations. If necessary, price quotations are challenged through a third-party pricing challenge process. Notes issued by consolidated CLOs mature at various dates between 2026 and 2032 and have a weighted average maturity of 10.61 years . The notes are issued in various tranches with different risk profiles. The interest rates are generally variable rates based on LIBOR plus a pre-defined spread, which varies from 0.55% for the more senior tranches to 8.07% for the more subordinated tranches. The investors in this debt are not affiliated with the company and have no recourse to the general credit of the company for this debt . Quantitative Information about Level 3 Fair Value Measurements At March 31, 2020 , there were $89.4 million of investments held by consolidated real estate funds that were valued using recent private market transactions. At December 31, 2019, there were $78.6 million of investments held by consolidated real estate funds that were valued using recent private market transactions. The table below summarizes as of March 31, 2020 and December 31, 2019 , the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized. These investments are valued on a three-month lag based on the availability of fund financial information. March 31, 2020 December 31, 2019 in millions, except term data Fair Value Total Unfunded Commitments Weighted Average Remaining Term (2) Fair Value Total Unfunded Commitments Weighted Average Remaining Term (2) Private equity funds (1) $211.8 $72.3 6.8 years $213.4 $78.3 6.7 years ____________ (1) These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds. (2) These investments are expected to be returned through distributions because of liquidations of the fundsā underlying assets over the weighted average periods indicated. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES Certain managed funds are deemed to be affiliated entities under the related party definition in ASC 850, āRelated Party Disclosures.ā Related parties include those defined in the companyās proxy statement. As a result of the OppenheimerFunds acquisition (see Note 2 , ā "Business Combinations" ā), MassMutual has an approximate 16.5% stake in the common stock of the company and owns all of the outstanding $4.0 billion in perpetual, non-cumulative preferred shares. Based on the level of shares owned by MassMutual and the corresponding customary minority shareholder rights, which includes representation on Invescoās board of directors, the company considers MassMutual a related party. Affiliated balances are illustrated in the tables below: Three months ended March 31, $ in millions 2020 2019 Affiliated operating revenues: Investment management fees 1,055.9 816.3 Service and distribution fees 349.2 209.9 Performance fees 1.0 10.5 Other 59.4 46.8 Total affiliated operating revenues 1,465.5 1,083.5 $ in millions March 31, 2020 December 31, 2019 Affiliated asset balances: Cash and cash equivalents 379.9 620.9 Unsettled fund receivables 136.4 113.6 Accounts receivable 466.9 599.8 Investments 584.6 633.5 Assets held for policyholders 9,137.0 10,835.3 Other assets 22.5 24.5 Total affiliated asset balances 10,727.3 12,827.6 Affiliated liability balances: Accrued compensation and benefits 48.6 65.7 Accounts payable and accrued expenses 61.3 53.8 Unsettled fund payables 153.4 116.6 Total affiliated liability balances 263.3 236.1 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 23, 2020 , the company announced a first quarter 2020 dividend of $0.155 per common share, payable on June 3, 2020 , to common shareholders of record at the close of business on May 11, 2020 with an ex-dividend date of May 8, 2020 . On April 23, 2020 the company declared a preferred dividend of $14.75 per preferred share, representing the period from March 1, 2020 through May 31, 2020 . The preferred dividend is payable on June 1, 2020 , to preferred shareholders of record at the close of business on May 15, 2020 |
Accounting Policies (Policy)
Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Consolidation | Basis of Accounting and Consolidation The unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) for interim financial information and with rules and regulations of the Securities and Exchange Commission and consolidate the financial statements of the Parent and all of its controlled subsidiaries. In the opinion of management, the financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair statement of the financial condition and results of operations for the periods presented. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. |
Use of Estimates | Use of Estimates The three months ended March 31, 2020 were characterized by heightened uncertainty due to the COVID-19 pandemic which could impact estimates and assumptions made by management. The primary estimates and assumptions made relate to goodwill and intangible impairment, the impact of legal contingencies, certain investments which are carried at fair value, post-employment benefit plan obligations and taxes. Additionally, estimation is involved when determining investment and debt valuation for certain CIP; however, changes in the fair values of these amounts are largely offset by noncontrolling interests. Use of available information and application of judgment are inherent in the formation of estimates. Actual results in the future could differ from such estimates, and the differences may be material to the Condensed Consolidated Financial Statements. |
Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements | Accounting Pronouncements Recently Adopted Financial Instruments. On January 1, 2020 the company adopted Accounting Standard Update 2016-13, āFinancial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instrumentsā (ASU 2016-13) using the modified retrospective approach. ASU 2016-13 amends guidance related to reporting credit losses for financial assets measured at amortized cost and available for sale securities and adds an impairment model that is based on expected losses rather than incurred losses. Under the modified retrospective approach, entities are required to report any effect from adoption as a cumulative effect adjustment to retained earnings at the adoption date. The company has determined that there is no material impact upon adoption of this amendment. Goodwill. On January 1, 2020 the company adopted Accounting Standards Update 2017-04, āIntangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairmentā (ASU 2017-04), which revised the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The company has adopted ASU 2017-04 using a prospective approach. In the event a reporting unitās carrying amount exceeds fair value, the amount of impairment will equal the excess carrying value, not to exceed the total amount of goodwill allocated to the reporting unit. To the extent carrying amount exceeds fair value in a future goodwill impairment test, the amendment will change the amount of impairment expense the company records. Cloud Computing Arrangements. On January 1, 2020 the company adopted Accounting Standards Update 2018-15, āIntangibles-Goodwill and Other-Internal-Use Software: Customerās Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contractā (ASU 2018-15), 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 company has adopted ASU 2018-15 using a prospective approach to all implementation costs incurred after adoption. The company has determined that there is no material impact upon adoption of this standard. Pending Accounting Pronouncements None. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimate of amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the consideration transferred to acquire OppenheimerFunds. Additional changes to the allocation to certain assets, liabilities and tax estimates are not expected but could occur. The company will finalize the acquisition accounting (including the valuation) within the required measurement period, but in no event not later than one year from May 24, 2019 . March 31, 2020 $ in millions Fair Value Estimate ASSETS Cash and cash equivalents 360.0 Accounts receivable 133.1 Investments 178.4 Prepaid assets 24.8 Other assets 181.2 Property, equipment and software, net 104.1 Intangible assets (1) 5,189.0 Goodwill (2) 1,507.6 Total assets 7,678.2 LIABILITES Accrued compensation and benefits 263.9 Accounts payable and accrued expenses (2) 730.4 Deferred tax liabilities, net 1,088.0 Total liabilities 2,082.3 Total identifiable net assets 5,595.9 Summary of consideration Cash consideration 35.0 Common stock consideration (3) 1,453.6 Preferred stock consideration (4) 4,010.5 Other consideration (5) 96.8 Total cash and stock consideration 5,595.9 ____________ (1) Intangible assets are comprised of the following: ā¢ indefinite-lived intangible asset related to management contracts of $4,907.0 million consists primarily of contracts related to mutual funds. ā¢ finite-lived intangible asset related to management contracts of $255.0 million consists primarily of contracts related to sub-advised accounts and has an estimated useful life of eight years . ā¢ acquired trade name asset of $27.0 million has an estimated useful life of six years . The intangible assets created in the acquisition are not expected to be deductible for tax purposes. (2) Goodwill is calculated as the difference between the acquisition date fair value of the total consideration transferred and the aggregate values assigned to the assets acquired and liabilities assumed. The goodwill created in the acquisition is not expected to be deductible for tax purposes. The goodwill balance resulted primarily from the opening balance sheet net deferred tax liability. Additionally, an adjustment was made to goodwill during first quarter 2020 as a result of the matter described below. See Note 6 -- "Goodwill" for additional details regarding the accounting matter. As part of the acquisition, the company acquired the management contracts of the Invesco Oppenheimer SteelPath-branded MLP funds and became the Adviser to the funds. In the fourth quarter 2019, the company identified an accounting matter related to the fundsā financial statements and concluded that it was reasonably possible, but not probable, that the company would incur at least some costs associated with the matter. Accordingly, no accrual was made at December 31, 2019. Following a regulatory consultation on the matter that concluded after the company filed its 2019 Annual Report on Form 10-K, the company changed its assessment of the likelihood of a loss to probable. Based on this new information about the facts and circumstances, the company adjusted the initial accounting for the acquisition by recording a liability of an estimated amount of $380.5 million and a deferred tax asset of $93.5 million (for expected future tax benefits) during the first quarter of 2020 for pre-acquisition activity related to the matter. The liability and associated deferred tax asset recorded represents managementās current best estimate based on its current understanding of the relevant facts. As this accounting adjustment was recorded during the measurement period of one year after the acquisition date, a corresponding adjustment of $287.0 million ( $380.5 million net of $93.5 million of deferred tax asset) was made to goodwill. As additional information about the matter is finalized, the estimate may change. In accordance with ASC 805 Business Combinations, any further adjustments made during the measurement period, will be recorded as an adjustment to goodwill. See Note 15 -- "Commitments and Contingencies" for additional details regarding the accounting matter. (3) The common shares were fair valued using the companyās market price on closing date and reflects a discount for the common shares issued to MassMutual ( 75,563,041 shares) with a two-year lock-up period, resulting in a value of approximately $19.195 per share. Common shares issued to OppenheimerFunds employee shareholders ( 153,574 shares) were valued at the market price on closing date, which was $20.42 . (4) The preferred shares were fair valued using a discounted cash flow model, resulting in a value of $1,000 per share. (5) Other consideration primarily consists of the fair value of the vested portion of replacement employee common share-based awards. |
Schedule of Pro Forma Information | The following pro forma summary presents consolidated information of the company as if the business combination had occurred on January 1, 2019, the earliest period presented herein. Three months ended March 31, $ in millions 2019 Operating revenues 1,720.8 Net income 215.6 |
Fair Value Of Assets And Liab_2
Fair Value Of Assets And Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value By Balance Sheet Grouping | The fair value of financial instruments are presented in the below summary table. The fair value of financial instruments held by CIP is presented in Note 16 , "Consolidated Investment Products" . See the companyās most recently filed Form 10-K for additional disclosures on valuation methodology and fair value. March 31, 2020 December 31, 2019 $ in millions Fair Value Fair Value Cash and cash equivalents 940.5 1,049.0 Equity investments 334.1 432.5 Foreign time deposits (1) 25.8 32.0 Assets held for policyholders 9,137.3 10,835.6 Policyholder payables (1) (9,137.3 ) (10,835.6 ) Contingent consideration liability (33.6 ) (60.2 ) Long-term debt (1) (2) (2,806.9 ) (2,281.5 ) ____________ (1) These financial instruments are not recorded on the balance sheet at fair value on a recurring basis. See the most recently filed Form 10-K for additional information about the carrying and fair values of these financial instruments. Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities. (2) All assets and liabilities are carried at fair value except debt which has a carrying value of $2,588.8 million as of March 31, 2020 ( December 31, 2019 : $2,080.3 million ). |
Tri-Level Hierarchy, Carrying Value | The following table presents, by hierarchy levels, the carrying value of the companyās assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the companyās Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 , respectively: As of March 31, 2020 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Cash equivalents: Money market funds 379.9 379.9 ā ā Investments:* Equity investments: Seed money 175.7 175.7 ā ā Investments related to deferred compensation plans 155.8 155.8 ā ā Other equity securities 2.6 2.6 ā ā Assets held for policyholders 9,137.3 9,137.3 ā ā Total 9,851.3 9,851.3 ā ā Liabilities: Contingent consideration liability (33.6 ) ā ā (33.6 ) Total (33.6 ) ā ā (33.6 ) As of December 31, 2019 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Assets: Cash equivalents: Money market funds 620.9 620.9 ā ā Investments:* Equity investments: Seed money 235.5 235.5 ā ā Investments related to deferred compensation plans 192.4 192.4 ā ā Other equity securities 4.6 4.6 ā ā Assets held for policyholders 10,835.6 10,835.6 ā ā Total 11,889.0 11,889.0 ā ā Liabilities: Contingent consideration liability (60.2 ) ā ā (60.2 ) Total (60.2 ) ā ā (60.2 ) ____________ * Foreign time deposits of $25.8 million ( December 31, 2019 : 32.0 million ) are excluded from this table. Equity method and other investments of $373.0 million and $11.6 million , respectively, ( December 31, 2019 : $350.8 million and $14.2 million , respectively) are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards. |
Reconciliation of Balance, Fair Value Measurement, Level 3 | The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets and liabilities during the three months ended March 31, 2020 and March 31, 2019 , which are valued using significant unobservable inputs: Three months ended March 31, 2020 $ in millions Contingent Consideration Liability Beginning balance (60.2 ) Revision to purchase price allocation 5.5 Net unrealized gains and losses included in other gains and losses, net* 8.2 Disposition/settlements 12.9 Ending balance (33.6 ) Three months ended $ in millions Contingent Consideration Liability Beginning balance (40.9 ) Net unrealized gains and losses included in other gains and losses, net* (1.5 ) Disposition/settlements 4.0 Ending balance (38.4 ) _______________ * These unrealized gains and losses are attributable to balances still held at the respective period ends. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Marketable securities | The disclosures below include details of the companyās investments. Investments held by CIP are detailed in Note 16 , "Consolidated Investment Products" . $ in millions March 31, 2020 December 31, 2019 Equity investments: Seed money 175.7 235.5 Investments related to deferred compensation plans 155.8 192.4 Other equity securities 2.6 4.6 Equity method investments * 373.0 350.8 Foreign time deposits 25.8 32.0 Other 11.6 14.2 Total investments 744.5 829.5 ______________ * Certain co-investments in managed funds accounted for under the equity method are valued on a one-month or a three-month lag based upon the availability of fund financial information which means the equity in earnings may not reflect the market disruption that occurred during March 2020. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets by Major Class | The following table presents the major classes of the company's intangible assets at March 31, 2020 and December 31, 2019 : $ in millions Gross Book Value Accumulated Amortization Net Book Value March 31, 2020 Management contracts - indefinite-lived 6,962.0 N/A 6,962.0 Management contracts - finite-lived 319.2 (92.7 ) 226.5 Developed technology 92.5 (35.0 ) 57.5 Other 106.1 (27.0 ) 79.1 Total 7,479.8 (154.7 ) 7,325.1 December 31, 2019 Management contracts - indefinite-lived 6,969.1 N/A 6,969.1 Management contracts - finite-lived 319.3 (84.5 ) 234.8 Developed technology 98.6 (31.7 ) 66.9 Other 112.2 (24.7 ) 87.5 Total 7,499.2 (140.9 ) 7,358.3 |
Schedule of Future Amortization Expense Of Intangible Assets | Estimated amortization expense for each of the five succeeding fiscal years based upon the company's intangible assets at March 31, 2020 is as follows: $ in millions Years Ended December 31, Estimated Amortization Expense 2020 (excluding the three months ended March 31, 2020) (46.2 ) 2021 (62.5 ) 2022 (59.5 ) 2023 (52.0 ) 2024 (46.8 ) 2025 (38.9 ) |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The table below details changes in the goodwill balance: $ in millions Net Book Value January 1, 2020 8,509.4 Business combinations 288.1 Foreign exchange and other (253.4 ) March 31, 2020 8,544.1 January 1, 2019 7,157.1 Business combinations 1,229.1 Foreign exchange and other 123.2 December 31, 2019 8,509.4 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt Instruments | The disclosures below include details of the companyās debt. Debt of CIP is detailed in Note 16 , ā "Consolidated Investment Products" .ā March 31, 2020 December 31, 2019 $ in millions Carrying Value (2) Fair Value Carrying Value (2) Fair Value $1.5 billion floating rate credit facility expiring August 11, 2022 508.0 508.0 ā ā Unsecured Senior Notes (1) : $600 million 3.125% - due November 30, 2022 598.3 599.5 598.1 617.5 $600 million 4.000% - due January 30, 2024 596.1 629.3 595.8 639.2 $500 million 3.750% - due January 15, 2026 496.3 521.3 496.1 533.0 $400 million 5.375% - due November 30, 2043 390.1 548.8 390.3 491.8 Long-term debt 2,588.8 2,806.9 2,080.3 2,281.5 ____________ (1) The companyās senior note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures. (2) The difference between the principal amounts and the carrying values of the senior notes in the table above reflect the unamortized debt issuance costs and discounts. |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Movements In Shares Issued And Outstanding | The number of preferred shares issued and outstanding is represented in the table below: As of in millions March 31, 2020 December 31, 2019 Preferred shares issued (1) 4.0 4.0 Preferred shares outstanding (1) 4.0 4.0 __________ (1) Preferred shares are held by MassMutual and are subject to a lock-up period of five years , which disallows the sale of preferred shares by MassMutual during the five-year period beginning on the original issue date of May 24, 2019. The number of common shares and common share equivalents issued are represented in the table below: As of In millions March 31, 2020 December 31, 2019 Common shares issued 566.1 566.1 Less: Treasury shares for which dividend and voting rights do not apply (107.2 ) (112.8 ) Common shares outstanding 458.9 453.3 |
Schedule of Forward Contracts Indexed to Issuer's Equity | The details of the forward contracts as of March 31, 2020 and December 31, 2019 , are as follows: In millions, except strike price March 31, 2020 Common Shares Purchased Initial Strike Price Forward Price Hedge Completion Date Total Treasury Shares Recorded Settlement Date Total Liability Recorded $200 million - entered on May 13, 2019 9.8 $ 20.51 $ 12.00 05/30/2019 $ 198.7 01/04/2021 $ (116.6 ) $200 million - entered on July 2, 2019 10.0 $ 20.00 $ 12.00 07/30/2019 $ 193.7 04/01/2021 $ (117.7 ) $100 million - entered on August 27, 2019 6.0 $ 16.59 $ 12.00 09/27/2019 $ 102.6 04/01/2021 $ (73.5 ) 25.8 $ 495.0 $ (307.8 ) In millions, except strike price December 31, 2019 Common Shares Purchased Initial Strike Price Forward Price Hedge Completion Date Total Treasury Shares Recorded Settlement Date Total Liability Recorded $200 million - entered on May 13, 2019 9.8 $ 20.51 $ 20.51 05/30/2019 $ 198.7 01/04/2021 $ (199.1 ) $200 million - entered on July 2, 2019 10.0 $ 20.00 $ 20.00 07/30/2019 $ 193.7 04/01/2021 $ (195.3 ) $100 million - entered on August 27, 2019 6.0 $ 16.59 $ 16.59 09/27/2019 $ 102.6 04/01/2021 $ (102.1 ) 25.8 $ 495.0 $ (496.5 ) |
Other Comprehensive Income_(L_2
Other Comprehensive Income/(Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income/(loss) were as follows: For the three months ended March 31, 2020 $ in millions Foreign currency translation Employee benefit plans Equity method investments Available-for-sale investments Total Other comprehensive income/(loss) net of tax: Currency translation differences on investments in foreign subsidiaries (315.0 ) ā ā ā (315.0 ) Other comprehensive income, net ā (3.1 ) ā (0.1 ) (3.2 ) Other comprehensive income/(loss), net of tax (315.0 ) (3.1 ) ā (0.1 ) (318.2 ) Beginning balance (462.0 ) (126.1 ) 0.1 0.7 (587.3 ) Other comprehensive income/(loss), net of tax (315.0 ) (3.1 ) ā (0.1 ) (318.2 ) Ending balance (777.0 ) (129.2 ) 0.1 0.6 (905.5 ) For the three months ended March 31, 2019 $ in millions Foreign currency translation Employee benefit plans Equity method investments Available-for-sale investments Total Other comprehensive income/(loss) net of tax: Currency translation differences on investments in foreign subsidiaries 60.9 ā ā ā 60.9 Other comprehensive income, net ā 0.2 ā 0.3 0.5 Other comprehensive income/(loss), net of tax 60.9 0.2 ā 0.3 61.4 Beginning balance (617.6 ) (117.7 ) ā 0.3 (735.0 ) Other comprehensive income/(loss), net of tax 60.9 0.2 ā 0.3 61.4 Ending balance (556.7 ) (117.5 ) ā 0.6 (673.6 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Geographic disaggregation of revenue | The geographic disaggregation of revenue for the three months ended March 31, 2020 and 2019 are presented below. There are no revenues attributed to the companyās country of domicile, Bermuda. For the three months ended March 31, $ in millions 2020 2019 Americas 1,180.7 760.0 UK 170.8 210.7 EMEA ex UK (Europe, Middle East, and Africa) 164.4 169.6 Asia 83.0 74.3 Total operating revenues 1,598.9 1,214.6 |
Common Share-Based Compensati_2
Common Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Movements Of Share Awards | Movements on common share awards during the periods ended March 31 , are detailed below: For the three months ended For the three months ended March 31, 2019 Millions of common shares, except fair values Time- Vested Performance- Vested Weighted Average Grant Date Fair Value ($) Time- Vested Performance- Vested Unvested at the beginning of period 18.7 1.1 21.94 12.5 0.9 Granted during the period (1) 7.8 0.9 14.37 8.9 0.6 Forfeited during the period (0.2 ) ā 22.90 (0.3 ) ā Vested and distributed during the period (6.1 ) (0.2 ) 25.65 (4.6 ) (0.1 ) Unvested at the end of the period 20.2 1.8 19.70 16.5 1.4 ___________ (1) With respect to the time-vested awards granted in 2019, includes 6.2 million restricted shares as employment inducement awards in connection with completed acquisitions. |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information Related to Leases | The components of lease expense for the three months ended March 31, 2020 were as follows: $ in millions Three months ended March 31, 2020 Three months ended March 31, 2019 Operating lease cost 20.6 12.8 Variable lease cost 5.3 6.8 Less: sublease income (0.2 ) (0.1 ) Total lease expense 25.7 19.5 Supplemental cash flow information related to leases for the three months ended March 31, 2020 was as follows: $ in millions Three months ended March 31, 2020 Three months ended March 31, 2019 Operating cash flows from operating leases included in the measurement of lease liabilities 18.7 15.0 Right-of-use assets obtained in exchange for new operating lease liabilities 9.5 4.1 |
Maturities of Company's Lease Liabilities | As of March 31, 2020 the maturities of the companyās lease liabilities (primarily related to real estate leases) were as follows: $ in millions Year Ending December 31, Lease Liabilities 2020 (excluding the three months ended March 31, 2020) 59.2 2021 73.0 2022 64.6 2023 55.8 2024 42.0 Thereafter 99.3 Total lease payments 393.9 Less: interest (40.8 ) Present value of lease liabilities 353.1 |
Taxation (Tables)
Taxation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: $ in millions Gross Unrecognized Income Tax Benefits Balance at December 31, 2019 69.9 Additions for tax positions related to the current year 0.7 Additions for tax positions related to prior years 1.0 Other reductions for tax positions related to prior years (0.8 ) Reductions for statute closings (9.3 ) Balance at March 31, 2020 61.5 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation Of Earnings Per Share | The calculation of earnings per common share is as follows: For the three months ended March 31, In millions, except per share data 2020 2019 Net income attributable to Invesco Ltd. 81.5 177.7 Invesco Ltd: Weighted average common shares outstanding - basic 455.7 401.6 Dilutive effect of non-participating common share-based awards 3.2 0.3 Weighted average common shares outstanding - diluted 458.9 401.9 Earnings per common share: -basic $0.18 $0.44 -diluted $0.18 $0.44 |
Consolidated Investment Produ_2
Consolidated Investment Products (CIP) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Consolidated Investment Products [Abstract] | |
Balances Related To CIP | The following table presents the balances related to CIP that are included on the Condensed Consolidated Balance Sheets as well as Invescoās net interest in the CIP for each period presented. See the companyās most recently filed Form 10-K for additional disclosures on valuation methodology and fair value. As of $ in millions March 31, 2020 December 31, 2019 Cash and cash equivalents of CIP 289.0 652.2 Accounts receivable and other assets of CIP 359.5 172.9 Investments of CIP 7,563.9 7,808.0 Less: Debt of CIP (6,172.7 ) (6,234.6 ) Less: Other liabilities of CIP (881.6 ) (949.6 ) Less: Retained earnings 9.6 9.5 Less: Accumulated other comprehensive income, net of tax (9.5 ) (9.4 ) Less: Equity attributable to redeemable noncontrolling interests (176.5 ) (383.5 ) Less: Equity attributable to nonredeemable noncontrolling interests (442.2 ) (454.9 ) Invescoās net interests in CIP 539.5 610.6 |
Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income | The following table reflects the impact of consolidation of investment products into the Condensed Consolidated Statements of Income for the three months ended March 31 , 2020 and 2019 : Three months ended March 31, $ in millions 2020 2019 Total operating revenues (8.9 ) (8.7 ) Total operating expenses 17.0 2.8 Operating income (25.9 ) (11.5 ) Equity in earnings of unconsolidated affiliates (16.6 ) 6.5 Interest and dividend income (0.1 ) (1.3 ) Other gains and losses, net 41.8 (20.7 ) Interest and dividend income of CIP 85.2 84.7 Interest expense of CIP (56.9 ) (58.0 ) Other gains/(losses) of CIP, net (48.4 ) 12.2 Income before income taxes (20.8 ) 11.9 Income tax provision ā ā Net income (20.8 ) 11.9 Net (income)/loss attributable to noncontrolling interests in consolidated entities 20.7 (12.9 ) Net income attributable to Invesco Ltd. (0.1 ) (1.0 ) |
VIE Balance Sheets Consolidated In Period | The amounts deconsolidated from the Condensed Consolidated Balance Sheets are illustrated in the table below. There was no net impact to the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 from the deconsolidation of these investment products. For the three months ended March 31, 2020 For the three months ended March 31, 2019 $ in millions VIEs VOEs VIEs VOEs Cash and cash equivalents of CIP 0.1 0.2 ā ā Accounts receivable and other assets of CIP 2.9 1.0 ā ā Investments of CIP 127.3 106.0 6.3 4.6 Total assets 130.3 107.2 6.3 4.6 Debt of CIP ā ā ā ā Other liabilities of CIP 1.5 ā ā ā Total liabilities 1.5 ā ā ā Total equity 128.8 107.2 6.3 4.6 Total liabilities and equity 130.3 107.2 6.3 4.6 For the three months ended March 31, 2020 For the three months ended March 31, 2019 $ in millions VIEs VIEs Cash and cash equivalents of CIP 2.4 0.4 Accounts receivable and other assets of CIP 0.1 2.7 Investments of CIP 26.3 105.9 Total assets 28.8 109.0 Debt of CIP 2.0 97.8 Other liabilities of CIP 15.9 11.2 Total liabilities 17.9 109.0 Total equity 10.9 ā Total liabilities and equity 28.8 109.0 |
Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products | The following tables present the fair value hierarchy levels of certain CIP balances which are measured at fair value as of March 31, 2020 and December 31, 2019 : As of March 31, 2020 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Measured at NAV as a practical expedient Assets: Bank loans 6,467.6 ā 6,467.6 ā ā Bonds 552.3 0.4 551.9 ā ā Equity securities 206.8 124.9 81.9 ā ā Equity and fixed income mutual funds 27.0 17.5 9.5 ā ā Investments in other private equity funds 220.8 ā 9.0 ā 211.8 Real estate investments 89.4 ā ā 89.4 ā Total assets at fair value 7,563.9 142.8 7,119.9 89.4 211.8 As of December 31, 2019 $ in millions Fair Value Measurements Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Measured at NAV as a practical expedient Assets: Bank loans 6,504.4 ā 6,504.4 ā ā Bonds 705.9 0.5 705.4 ā ā Equity securities 275.9 204.4 71.5 ā ā Equity and fixed income mutual funds 29.8 20.3 9.5 ā ā Investments in other private equity funds 213.4 ā ā ā 213.4 Real estate investments 78.6 ā ā 78.6 ā Total assets at fair value 7,808.0 225.2 7,290.8 78.6 213.4 |
Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities | The following tables show a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs: Three months ended March 31, 2020 Three months ended March 31, 2019 $ in millions Level 3 Assets Level 3 Assets Beginning balance 78.6 11.8 Purchases ā ā Gains and losses included in the Condensed Consolidated Statements of Income (1) 10.8 0.3 Ending balance 89.4 12.2 ____________ (1) Included in gains/(losses) of CIP, net in the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 are $10.8 million in net unrealized gains attributable to investments still held at March 31, 2020 by CIP (for the three months ended March 31, 2019 : $0.3 million in net unrealized gains are attributable to investments still held at March 31, 2019 by CIP). |
Fair Value Inputs, Assets and Liabilities, Quantitative Information, Consolidated Investment Products | The table below summarizes as of March 31, 2020 and December 31, 2019 , the nature of investments that are valued using the NAV as a practical expedient and any related liquidation restrictions or other factors which may impact the ultimate value realized. These investments are valued on a three-month lag based on the availability of fund financial information. March 31, 2020 December 31, 2019 in millions, except term data Fair Value Total Unfunded Commitments Weighted Average Remaining Term (2) Fair Value Total Unfunded Commitments Weighted Average Remaining Term (2) Private equity funds (1) $211.8 $72.3 6.8 years $213.4 $78.3 6.7 years ____________ (1) These investments are not subject to redemption; however, for certain funds, the investors may sell or transfer their interest, which may require approval by the general partner of the underlying funds. (2) These investments are expected to be returned through distributions because of liquidations of the fundsā underlying assets over the weighted average periods indicated. |
Related Parties (Tables)
Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Affiliated balances are illustrated in the tables below: Three months ended March 31, $ in millions 2020 2019 Affiliated operating revenues: Investment management fees 1,055.9 816.3 Service and distribution fees 349.2 209.9 Performance fees 1.0 10.5 Other 59.4 46.8 Total affiliated operating revenues 1,465.5 1,083.5 $ in millions March 31, 2020 December 31, 2019 Affiliated asset balances: Cash and cash equivalents 379.9 620.9 Unsettled fund receivables 136.4 113.6 Accounts receivable 466.9 599.8 Investments 584.6 633.5 Assets held for policyholders 9,137.0 10,835.3 Other assets 22.5 24.5 Total affiliated asset balances 10,727.3 12,827.6 Affiliated liability balances: Accrued compensation and benefits 48.6 65.7 Accounts payable and accrued expenses 61.3 53.8 Unsettled fund payables 153.4 116.6 Total affiliated liability balances 263.3 236.1 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2020 | May 24, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Business Acquisition [Line Items] | ||||
Transaction, integration, and restructuring | $ 75.5 | $ 46.1 | ||
OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 35 | $ 35 | ||
Preferred shares dividend rate (percent) | 5.90% | |||
Liability adjustment | $ 380.5 | |||
Deferred tax asset adjustment | 93.5 | |||
Goodwill adjustment | 287 | |||
Liquidation preference per share (in usd per share) | $ 1,000 | |||
Transaction, integration, and restructuring | 71.1 | |||
Additional losses recognized for post-acquisition and related costs | $ 7.3 | |||
Common and Restricted Stock | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued (shares) | 81,900,000 | |||
Preferred shares | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Perpetual, non-cumulative preferred shares issued | 4,010.5 | $ 4,000 | ||
Non-call period | 21 years | |||
Preferred shares dividend rate (percent) | 5.90% | |||
Lock-up period | 5 years | |||
Other equity securities | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued (shares) | 75,700,000 | |||
Perpetual, non-cumulative preferred shares issued | $ 1,453.6 | |||
Lock-up period | 2 years | |||
Restricted stock awards | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued (shares) | 6,200,000 | |||
MassMutual | Preferred shares | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Approximate stake help in common stock of combined firm (percent) | 16.50% | 16.50% | ||
Management contracts | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | $ 255 | |||
Estimated useful life | 8 years | |||
Trade names | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Finite lived intangible assets acquired | $ 27 | |||
Estimated useful life | 6 years | |||
Management contracts | Management contracts | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 4,907 | |||
MassMutual | Other equity securities | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued (shares) | 75,563,041 | |||
Share price (in usd per share) | $ 19.195 | |||
Others | Other equity securities | OppenheimerFunds | ||||
Business Acquisition [Line Items] | ||||
Shares of common stock issued (shares) | 153,574 | |||
Share price (in usd per share) | $ 20.42 |
Business Combinations - Schedul
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2020 | May 24, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||||
Goodwill | $ 8,544.1 | $ 8,509.4 | $ 7,157.1 | |
OppenheimerFunds | ||||
ASSETS | ||||
Cash and cash equivalents | 360 | |||
Accounts receivable | 133.1 | |||
Investments | 178.4 | |||
Prepaid assets | 24.8 | |||
Other assets | 181.2 | |||
Property, equipment and software, net | 104.1 | |||
Intangible assets | 5,189 | |||
Goodwill | 1,507.6 | |||
Total assets | 7,678.2 | |||
LIABILITES | ||||
Accrued compensation and benefits | 263.9 | |||
Accounts payable and accrued expenses | 730.4 | |||
Deferred tax liabilities, net | 1,088 | |||
Total liabilities | 2,082.3 | |||
Total identifiable net assets | 5,595.9 | |||
Summary of consideration | ||||
Cash consideration | 35 | $ 35 | ||
Total cash and stock consideration | 5,595.9 | |||
Common Shares | OppenheimerFunds | ||||
Summary of consideration | ||||
Stock consideration | 1,453.6 | |||
Preferred Shares | OppenheimerFunds | ||||
Summary of consideration | ||||
Stock consideration | 4,010.5 | $ 4,000 | ||
Other consideration | OppenheimerFunds | ||||
Summary of consideration | ||||
Stock consideration | $ 96.8 |
Business Combinations - Sched_2
Business Combinations - Schedule of Changes in Carrying Amounts of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 8,509.4 | $ 7,157.1 |
Business combinations | 288.1 | 1,229.1 |
Foreign exchange | (253.4) | 123.2 |
Goodwill | $ 8,544.1 | $ 8,509.4 |
Business Combinations - Sched_3
Business Combinations - Schedule of Pro Forma Information (Details) - OppenheimerFunds $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Operating revenues | $ 1,720.8 |
Net income | $ 215.6 |
Fair Value Of Assets And Liab_3
Fair Value Of Assets And Liabilities - Fair Value Of Financial Instruments Held By Consolidated Investments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 940.5 | $ 1,049 | $ 1,017.1 |
Foreign time deposits | 25.8 | 32 | |
Policyholder payables | (9,137.3) | (10,835.6) | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 940.5 | 1,049 | |
Equity investments | 334.1 | 432.5 | |
Foreign time deposits | 25.8 | 32 | |
Assets held for policyholders | 9,137.3 | 10,835.6 | |
Policyholder payables | (9,137.3) | (10,835.6) | |
Contingent consideration liability | (33.6) | (60.2) | |
Long-term debt | $ (2,806.9) | $ (2,281.5) |
Fair Value Of Assets And Liab_4
Fair Value Of Assets And Liabilities - Tri-Level Hierarchy, Carrying Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for policyholders | $ 9,137.3 | $ 10,835.6 |
Total | 9,851.3 | 11,889 |
Total | (33.6) | (60.2) |
Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | (33.6) | (60.2) |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 379.9 | 620.9 |
Seed money | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 175.7 | 235.5 |
Investments related to deferred compensation plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 155.8 | 192.4 |
Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 2.6 | 4.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for policyholders | 9,137.3 | 10,835.6 |
Total | 9,851.3 | 11,889 |
Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 379.9 | 620.9 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Seed money | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 175.7 | 235.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Investments related to deferred compensation plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 155.8 | 192.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 2.6 | 4.6 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for policyholders | 0 | 0 |
Total | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Seed money | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Investments related to deferred compensation plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for policyholders | 0 | 0 |
Total | 0 | 0 |
Total | (33.6) | (60.2) |
Significant Unobservable Inputs (Level 3) | Contingent consideration liability | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | (33.6) | (60.2) |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Seed money | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Investments related to deferred compensation plans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity investments: | $ 0 | $ 0 |
Fair Value Of Assets And Liab_5
Fair Value Of Assets And Liabilities - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 24, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign time deposits | $ 25.8 | $ 32 | |
Equity method investments | 373 | 350.8 | |
Other investments | $ 11.6 | 14.2 | |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assumed growth rate of Assets under Management (percent) | 0.00% | ||
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | $ 2,588.8 | 2,080.3 | |
Total Return Swap | Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative notional amount | 215.3 | ||
Market valuation loss recognized | $ (31.4) | ||
OppenheimerFunds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability acquired | $ 13.6 | ||
OppenheimerFunds | Assumed growth rate | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Inputs used to determine liability (percent) | 0.04 | ||
OppenheimerFunds | Discount rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Inputs used to determine liability (percent) | 0.107 | ||
Other Digital Wealth Acquisitions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration liability acquired | $ 10.5 |
Fair Value Of Assets And Liab_6
Fair Value Of Assets And Liabilities - Reconciliation Of Balance, Fair Value Measurement, Level 3 (Details) - Contingent consideration liability - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance (Liability) | $ (60.2) | $ (40.9) |
Revision to purchase price allocation | 5.5 | |
Net unrealized gains and losses included in other gains and losses, net | 8.2 | (1.5) |
Disposition/settlements | 12.9 | 4 |
Ending balance (Liability) | $ (33.6) | $ (38.4) |
Investments - Details Of Compan
Investments - Details Of Company Investments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investment Holdings [Line Items] | ||
Equity method investments | $ 373 | $ 350.8 |
Foreign time deposits | 25.8 | 32 |
Other | 11.6 | 14.2 |
Total investments | 744.5 | 829.5 |
Seed money | ||
Investment Holdings [Line Items] | ||
Equity investments | 175.7 | 235.5 |
Investments related to deferred compensation plans | ||
Investment Holdings [Line Items] | ||
Equity investments | 155.8 | 192.4 |
Other equity securities | ||
Investment Holdings [Line Items] | ||
Equity investments | $ 2.6 | $ 4.6 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Short-term Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Net gains (loss) | $ (86.1) | $ 23 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 24, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 315,400,000 | |||
Weighted average amortization period (years) | 7 years 1 month 24 days | |||
Impairment of intangible asset | $ 0 | |||
Amortization expense | $ 15,900,000 | $ 20,000,000 | ||
OppenheimerFunds | Management Contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite lived intangible assets acquired | $ 255,000,000 | |||
OppenheimerFunds | Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite lived intangible assets acquired | 27,000,000 | |||
OppenheimerFunds | Management Contracts | Management Contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived intangible assets acquired | $ 4,907,000,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-lived Intangible Assets by Major Class (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (154.7) | $ (140.9) |
Gross Book Value | 7,479.8 | 7,499.2 |
Net Book Value | 7,325.1 | 7,358.3 |
Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 319.2 | 319.3 |
Accumulated Amortization | (92.7) | (84.5) |
Net Book Value | 226.5 | 234.8 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 92.5 | 98.6 |
Accumulated Amortization | (35) | (31.7) |
Net Book Value | 57.5 | 66.9 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Book Value | 106.1 | 112.2 |
Accumulated Amortization | (27) | (24.7) |
Net Book Value | 79.1 | 87.5 |
Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Book Value | $ 6,962 | $ 6,969.1 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense of Intangible Assets (Details) $ in Millions | Mar. 31, 2020USD ($) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
2020 (excluding the three months ended March 31, 2020) | $ (46.2) |
2021 | (62.5) |
2022 | (59.5) |
2023 | (52) |
2024 | (46.8) |
2025 | $ (38.9) |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 8,509,400,000 | $ 7,157,100,000 |
Business combinations | 288,100,000 | 1,229,100,000 |
Foreign exchange | (253,400,000) | 123,200,000 |
Goodwill | $ 8,544,100,000 | 8,509,400,000 |
Goodwill impairment | $ 0 |
Long-Term Debt - Schedule Of Lo
Long-Term Debt - Schedule Of Long-Term Debt Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Unsecured Senior Notes | $600 million 3.125% - due November 30, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.125% | |
Debt instrument, face amount | $ 600,000,000 | |
Unsecured Senior Notes | $600 million 4.000% - due January 30, 2024 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.00% | |
Debt instrument, face amount | $ 600,000,000 | |
Unsecured Senior Notes | $500 million 3.750% - due January 15, 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 3.75% | |
Debt instrument, face amount | $ 500,000,000 | |
Unsecured Senior Notes | $400 million 5.375% - due November 30, 2043 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.375% | |
Debt instrument, face amount | $ 400,000,000 | |
$1.5 billion floating rate credit facility expiring August 11, 2022 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 1,500,000,000 | |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,588,800,000 | $ 2,080,300,000 |
Carrying Value | Unsecured Senior Notes | $600 million 3.125% - due November 30, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 598,300,000 | 598,100,000 |
Carrying Value | Unsecured Senior Notes | $600 million 4.000% - due January 30, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 596,100,000 | 595,800,000 |
Carrying Value | Unsecured Senior Notes | $500 million 3.750% - due January 15, 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 496,300,000 | 496,100,000 |
Carrying Value | Unsecured Senior Notes | $400 million 5.375% - due November 30, 2043 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 390,100,000 | 390,300,000 |
Carrying Value | $1.5 billion floating rate credit facility expiring August 11, 2022 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | 508,000,000 | 0 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,806,900,000 | 2,281,500,000 |
Fair Value | Unsecured Senior Notes | $600 million 3.125% - due November 30, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 599,500,000 | 617,500,000 |
Fair Value | Unsecured Senior Notes | $600 million 4.000% - due January 30, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 629,300,000 | 639,200,000 |
Fair Value | Unsecured Senior Notes | $500 million 3.750% - due January 15, 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 521,300,000 | 533,000,000 |
Fair Value | Unsecured Senior Notes | $400 million 5.375% - due November 30, 2043 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 548,800,000 | 491,800,000 |
Fair Value | $1.5 billion floating rate credit facility expiring August 11, 2022 | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 508,000,000 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - Letter of Credit $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |
Capacity on letters of credit | $ 10.3 |
Letters of credit, renewable term | 1 year |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 31, 2020 | Mar. 18, 2020 | Mar. 31, 2020 | Mar. 17, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||
Preferred stock par value (in usd per share) | $ 0.2 | $ 0.2 | $ 0.2 | |||
Liquidation preference per share (in usd per share) | $ 1,000 | $ 1,000 | $ 1,000 | |||
Preferred shares lock-up period | 5 years | |||||
Immediate payment applied from collateral already paid | $ 190.6 | $ 0 | ||||
Forward contract | ||||||
Class of Stock [Line Items] | ||||||
Strike price (in usd per share) | $ 12 | |||||
Immediate payment applied from collateral already paid | $ 190.6 | |||||
Net collateral paid balance | $ 87.9 | $ 87.9 | $ 37.8 | |||
OppenheimerFunds | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock par value (in usd per share) | $ 0.20 | $ 0.20 | ||||
Liquidation preference per share (in usd per share) | 1,000 | $ 1,000 | ||||
Preferred shares dividend rate (percent) | 5.90% | |||||
Forward Contract, $200 Million, Entered On May 13th, 2019 | Forward contract | ||||||
Class of Stock [Line Items] | ||||||
Strike price (in usd per share) | $ 12 | $ 20.51 | $ 20.51 |
Share Capital - Movements In Sh
Share Capital - Movements In Shares Issued And Outstanding (Details) - shares shares in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Preferred shares issued (shares) | 4 | 4 |
Preferred shares outstanding (shares) | 4 | 4 |
Common shares issued (shares) | 566.1 | 566.1 |
Less: Treasury shares for which dividend and voting rights do not apply (shares) | (107.2) | (112.8) |
Common shares outstanding (shares) | 458.9 | 453.3 |
Share Capital - Forward Contrac
Share Capital - Forward Contracts to Purchase Common Shares (Details) - Forward contract - USD ($) $ / shares in Units, shares in Millions | Mar. 31, 2020 | Mar. 18, 2020 | Mar. 31, 2020 | Mar. 17, 2020 | Dec. 31, 2019 |
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||
Common shares purchased (shares) | 25.8 | 25.8 | |||
Strike price (in usd per share) | $ 12 | ||||
Total treasury shares recorded | $ 495,000,000 | $ 495,000,000 | $ 495,000,000 | ||
Derivative liability | $ (307,800,000) | $ (307,800,000) | (496,500,000) | ||
Forward Contract, $200 Million, Entered On May 13th, 2019 | |||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||
Notional value of futures contracts | $ 200,000,000 | ||||
Common shares purchased (shares) | 9.8 | 9.8 | |||
Strike price (in usd per share) | $ 12 | $ 20.51 | $ 20.51 | ||
Total treasury shares recorded | $ 198,700,000 | $ 198,700,000 | $ 198,700,000 | ||
Derivative liability | $ (116,600,000) | $ (116,600,000) | (199,100,000) | ||
Forward Contract, $200 Million, Entered On July 2nd, 2019 | |||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||
Notional value of futures contracts | $ 200,000,000 | ||||
Common shares purchased (shares) | 10 | 10 | |||
Strike price (in usd per share) | $ 12 | 20 | $ 20 | ||
Total treasury shares recorded | $ 193,700,000 | $ 193,700,000 | $ 193,700,000 | ||
Derivative liability | $ (117,700,000) | $ (117,700,000) | (195,300,000) | ||
Forward Contract, $100 Million, Entered On August 27th, 2019 | |||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||
Notional value of futures contracts | $ 100,000,000 | ||||
Common shares purchased (shares) | 6 | 6 | |||
Strike price (in usd per share) | $ 12 | $ 16.59 | $ 16.59 | ||
Total treasury shares recorded | $ 102,600,000 | $ 102,600,000 | $ 102,600,000 | ||
Derivative liability | $ (73,500,000) | $ (73,500,000) | $ (102,100,000) |
Other Comprehensive Income_(L_3
Other Comprehensive Income/(Loss) - Accumulated other comprehensive income (Details) Ā£ in Millions, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020GBP (Ā£) | Dec. 31, 2019USD ($) | Dec. 31, 2019GBP (Ā£) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Currency translation differences on investments in foreign subsidiaries | $ (315) | $ 60.9 | |||
Other comprehensive income, net | (3.2) | 0.5 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 14,318.3 | 8,936.2 | |||
Other comprehensive income/(loss) | (318.2) | 61.4 | |||
Ending balance | 13,942.4 | 9,009.4 | |||
Foreign currency transaction and translation gain (loss) | 11.3 | (4.1) | |||
Foreign currency translation | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Currency translation differences on investments in foreign subsidiaries | (315) | 60.9 | |||
Other comprehensive income, net | 0 | 0 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (462) | (617.6) | |||
Other comprehensive income/(loss) | (315) | 60.9 | |||
Ending balance | (777) | (556.7) | |||
Employee benefit plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Currency translation differences on investments in foreign subsidiaries | 0 | 0 | |||
Other comprehensive income, net | (3.1) | 0.2 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (126.1) | (117.7) | |||
Other comprehensive income/(loss) | (3.1) | 0.2 | |||
Ending balance | (129.2) | (117.5) | |||
Equity method investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Currency translation differences on investments in foreign subsidiaries | 0 | 0 | |||
Other comprehensive income, net | 0 | 0 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0.1 | 0 | |||
Other comprehensive income/(loss) | 0 | 0 | |||
Ending balance | 0.1 | 0 | |||
Available-for-sale investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Currency translation differences on investments in foreign subsidiaries | 0 | 0 | |||
Other comprehensive income, net | (0.1) | 0.3 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 0.7 | 0.3 | |||
Other comprehensive income/(loss) | (0.1) | 0.3 | |||
Ending balance | 0.6 | 0.6 | |||
Accumulated Other Comprehensive Income/(Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (587.3) | (735) | |||
Other comprehensive income/(loss) | (318.2) | 61.4 | |||
Ending balance | (905.5) | $ (673.6) | |||
Designated as Hedging Instrument | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Intercompany debt | $ 160.8 | Ā£ 130 | $ 172.1 | Ā£ 130 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | $ 1,598,900,000 | $ 1,214,600,000 | ||
Deferred carried interest liabilities | 57,900,000 | $ 45,800,000 | $ 61,300,000 | |
Performance revenue recognized | 0 | 5,900,000 | ||
Bermuda | ||||
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | 0 | 0 | ||
Americas | ||||
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | 1,180,700,000 | 760,000,000 | ||
UK | ||||
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | 170,800,000 | 210,700,000 | ||
EMEA ex UK (Europe, Middle East, and Africa) | ||||
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | 164,400,000 | 169,600,000 | ||
Asia | ||||
Revenue, Major Customer [Line Items] | ||||
Total operating revenues | $ 83,000,000 | $ 74,300,000 |
Common Share-Based Compensati_3
Common Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 24, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common share-based compensation expense | $ 47.4 | $ 49.8 | |
Fair value of vested shares | $ 91.8 | $ 89.8 | |
Weighted average fair value of shares granted (usd per share) | $ 14.37 | $ 19.34 | |
Unrecognized compensation cost related to non-vested shares | $ 369 | ||
Weighted average non-vested shares compensation cost expected to recognize | 2 years 9 months 10 days | ||
Restricted stock awards | OppenheimerFunds | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock issued (shares) | 6.2 |
Common Share-Based Compensati_4
Common Share-Based Compensation - Movements On Share Awards (Details) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at beginning of year Weighted Average Grant Date Fair Value (usd per share) | $ 21.94 | |
Granted during period Weighted Average Grant Date Fair Value (usd per share) | 14.37 | $ 19.34 |
Forfeited during period Weighted Average Grant Date Fair Value (usd per share) | 22.90 | |
Vested and distributed during the period Weighted Average Grant Date Fair Value (usd per share) | 25.65 | |
Unvested at the end of the year Weighted Average Grant Date Fair Value (usd per share) | $ 19.70 | |
Time- Vested | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at the beginning of year (shares) | 18.7 | 12.5 |
Granted during the year (shares) | 7.8 | 8.9 |
Forfeited during the period (shares) | (0.2) | (0.3) |
Vested and distributed during the year (shares) | (6.1) | (4.6) |
Unvested at the end of the year (shares) | 20.2 | 16.5 |
Performance- Vested | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at the beginning of year (shares) | 1.1 | 0.9 |
Granted during the year (shares) | 0.9 | 0.6 |
Forfeited during the period (shares) | 0 | 0 |
Vested and distributed during the year (shares) | (0.2) | (0.1) |
Unvested at the end of the year (shares) | 1.8 | 1.4 |
Operating Leases (Details)
Operating Leases (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)lease_renewal_option | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term | 6 years 2 months 19 days |
Number of lease renewal options (at least) | lease_renewal_option | 1 |
Right-of-use asset | $ 312.4 |
Lease liability | $ 353.1 |
Weighted average discount rate for the operating leases (percent) | 3.49% |
Expected lease obligation for lease not yet commenced | $ 232.5 |
Expected lease term | 15 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal lease terms | 1 year |
Options to terminate leases within period | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal lease terms | 10 years |
Options to terminate leases within period | 9 years |
Operating Leases - Components o
Operating Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 20.6 | $ 12.8 |
Variable lease cost | 5.3 | 6.8 |
Less: sublease income | (0.2) | (0.1) |
Total lease expense | 25.7 | 19.5 |
Operating cash flows from operating leases included in the measurement of lease liabilities | 18.7 | 15 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 9.5 | $ 4.1 |
Operating Leases - Maturities o
Operating Leases - Maturities of Leases (Details) $ in Millions | Mar. 31, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 (excluding the three months ended March 31, 2020) | $ 59.2 |
2021 | 73 |
2022 | 64.6 |
2023 | 55.8 |
2024 | 42 |
Thereafter | 99.3 |
Total lease payments | 393.9 |
Less: interest | (40.8) |
Present value of lease liabilities | $ 353.1 |
Taxation - Reconciliation of Un
Taxation - Reconciliation of Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at December 31, 2019 | $ 69.9 |
Additions for tax positions related to the current year | 0.7 |
Additions for tax positions related to prior years | 1 |
Other reductions for tax positions related to prior years | (0.8) |
Reductions for statute closings | (9.3) |
Balance at March 31, 2020 | $ 61.5 |
Taxation - Narrative (Details)
Taxation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits | $ 61.5 | $ 69.9 |
Reductions for statute closings | 9.3 | |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 47.8 | |
Other reductions for tax positions related to prior years | 0.8 | |
Minimum | ||
Income Tax Contingency [Line Items] | ||
Range of possible change in gross unrecognized tax benefits | 5 | |
Maximum | ||
Income Tax Contingency [Line Items] | ||
Range of possible change in gross unrecognized tax benefits | $ 10 |
Earnings Per Common Share - Cal
Earnings Per Common Share - Calculation Of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Invesco Ltd. | $ 81.5 | $ 177.7 |
Weighted average shares outstanding - basic (in shares) | 455.7 | 401.6 |
Dilutive effect of non-participating common share-based awards (in shares) | 3.2 | 0.3 |
Weighted average shares outstanding - diluted (in shares) | 458.9 | 401.9 |
Earnings per common share: | ||
- basic (usd per share) | $ 0.18 | $ 0.44 |
- diluted (usd per share) | $ 0.18 | $ 0.44 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Performance- Vested | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 300,000 | 700,000 |
Time- Vested | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 18, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Undrawn capital commitments | $ 352.3 | $ 357 | |
Common stock to be bought back under repurchase plan | $ 1,200 | ||
Stock buyback period | 2 years | ||
Seed Capital Subject to Massmutual Redemption Agreement | |||
Loss Contingencies [Line Items] | |||
Seed capital subject to redemption agreement | 445.8 | ||
OppenheimerFunds | |||
Loss Contingencies [Line Items] | |||
Estimated liability recognized | 387.8 | ||
Liability adjustment | 380.5 | ||
Additional losses recognized for post-acquisition and related costs | $ 7.3 |
Consolidated Investment Produ_3
Consolidated Investment Products (CIP) - Balances Related To CIP (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Consolidated Investment Products [Abstract] | |||
Cash and cash equivalents of CIP | $ 289 | $ 652.2 | $ 251.2 |
Accounts receivable and other assets of CIP | 359.5 | 172.9 | |
Investments of CIP | 7,563.9 | 7,808 | |
Less: Debt of CIP | (6,172.7) | (6,234.6) | |
Less: Other liabilities of CIP | (881.6) | (949.6) | |
Less: Retained earnings | 9.6 | 9.5 | |
Less: Accumulated other comprehensive income, net of tax | (9.5) | (9.4) | |
Less: Equity attributable to redeemable noncontrolling interests | (176.5) | (383.5) | |
Less: Equity attributable to nonredeemable noncontrolling interests | (442.2) | (454.9) | |
Invescoās net interests in CIP | $ 539.5 | $ 610.6 |
Consolidated Investment Produ_4
Consolidated Investment Products (CIP) - Condensed Consolidating Statement Of Income Line Items Reflecting Impact Of Consolidation Of Investment Products Into The Condensed Consolidated Statements Of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Total operating expenses | $ 1,281.9 | $ 1,014.4 |
Operating income | 317 | 200.2 |
Equity in earnings of unconsolidated affiliates | 16.9 | 15 |
Interest and dividend income | 6.4 | 4.7 |
Other gains and losses, net | (106.5) | 31.1 |
Other gains/(losses) of CIP, net | (20.1) | 38.9 |
Income before income taxes | 177.4 | 256.8 |
Income tax provision | (57.4) | (66.2) |
Net income | 120 | 190.6 |
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 20.7 | (12.9) |
Net income attributable to Invesco Ltd. | 81.5 | 177.7 |
Impact of CIP | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Total operating revenues | (8.9) | (8.7) |
Total operating expenses | 17 | 2.8 |
Operating income | (25.9) | (11.5) |
Equity in earnings of unconsolidated affiliates | (16.6) | 6.5 |
Interest and dividend income | (0.1) | (1.3) |
Other gains and losses, net | 41.8 | (20.7) |
Interest and dividend income of CIP | 85.2 | 84.7 |
Interest expense of CIP | (56.9) | (58) |
Other gains/(losses) of CIP, net | (48.4) | 12.2 |
Income before income taxes | (20.8) | 11.9 |
Income tax provision | 0 | 0 |
Net income | (20.8) | 11.9 |
Net (income)/loss attributable to noncontrolling interests in consolidated entities | 20.7 | (12.9) |
Net income attributable to Invesco Ltd. | $ (0.1) | $ (1) |
Consolidated Investment Produ_5
Consolidated Investment Products (CIP) - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)entity | Mar. 31, 2019USD ($)entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||||
Carrying amounts of nonconsolidated VIEs' assets | $ 163,000,000 | $ 188,000,000 | ||
Maximum loss exposure of VIEs | $ 194,100,000 | 188,000,000 | ||
Number of deconsolidated voting right entities | entity | 9 | |||
Number of entities no longer consolidated | entity | 5 | 1 | ||
Gain (loss) on deconsolidation | $ 0 | $ 0 | ||
Net unrealized losses | $ 10,800,000 | $ 300,000 | ||
Pay interest at Libor or Euribor plus | 10.00% | |||
Collateral assets in default (percent) | 0.09% | 0.28% | ||
Notes issued by collateralized loan obligations terms of arrangements interest rate margin spread low | 0.55% | |||
Notes issued by collateralized loan obligations terms of arrangements interest rate margin spread high | 8.07% | |||
Investments of CIP | $ 7,563,900,000 | 7,808,000,000 | ||
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Investments of CIP | 127,300,000 | $ 6,300,000 | ||
VOEs | ||||
Variable Interest Entity [Line Items] | ||||
Investments of CIP | $ 106,000,000 | 4,600,000 | ||
Collateralized Loan Obligations (CLOs) | ||||
Variable Interest Entity [Line Items] | ||||
Weighted average maturity (years) | 10 years 7 months 9 days | |||
Bank loans | ||||
Variable Interest Entity [Line Items] | ||||
CLO Collateral Assets | $ 6,467,600,000 | 6,504,400,000 | ||
Senior Secured Bank Loans And Bonds | Collateralized Loan Obligations (CLOs) | ||||
Variable Interest Entity [Line Items] | ||||
Fair value, option, aggregate differences, long-term debt instruments | 198,500,000 | 181,200,000 | ||
Eliminations | Bank loans | Collateralized Loan Obligations (CLOs) | ||||
Variable Interest Entity [Line Items] | ||||
CLO Collateral Assets | 6,427,700,000 | |||
Significant Unobservable Inputs (Level 3) | ||||
Variable Interest Entity [Line Items] | ||||
Real Estate Investments, Net | 89,400,000 | $ 12,200,000 | 78,600,000 | $ 11,800,000 |
Investments of CIP | 89,400,000 | 78,600,000 | ||
Significant Unobservable Inputs (Level 3) | Bank loans | ||||
Variable Interest Entity [Line Items] | ||||
CLO Collateral Assets | $ 0 | $ 0 | ||
Consolidated Entities | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Number of consolidated VIEs | entity | 3 | 1 | ||
Investments of CIP | $ 26,300,000 | $ 105,900,000 | ||
Consolidated Entities | VOEs | ||||
Variable Interest Entity [Line Items] | ||||
Number of consolidated voting right entities | entity | 0 |
Consolidated Investment Produ_6
Consolidated Investment Products (CIP) - VIE Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents of CIP | $ 289 | $ 652.2 | $ 251.2 | |
Accounts receivable and other assets of CIP | 359.5 | 172.9 | ||
Investments of CIP | 7,563.9 | 7,808 | ||
Total assets | 37,010.7 | 39,420.3 | ||
Debt of CIP | 6,172.7 | 6,234.6 | ||
Other liabilities of CIP | 881.6 | 949.6 | ||
Total liabilities | 22,891.8 | 24,718.5 | ||
Total equity | 13,942.4 | 14,318.3 | 9,009.4 | $ 8,936.2 |
Total liabilities, temporary and permanent equity | 37,010.7 | $ 39,420.3 | ||
VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents of CIP | 0.1 | 0 | ||
Accounts receivable and other assets of CIP | 2.9 | 0 | ||
Investments of CIP | 127.3 | 6.3 | ||
Total assets | 130.3 | 6.3 | ||
Debt of CIP | 0 | 0 | ||
Other liabilities of CIP | 1.5 | 0 | ||
Total liabilities | 1.5 | 0 | ||
Total equity | 128.8 | 6.3 | ||
Total liabilities, temporary and permanent equity | 130.3 | 6.3 | ||
VOEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents of CIP | 0.2 | 0 | ||
Accounts receivable and other assets of CIP | 1 | 0 | ||
Investments of CIP | 106 | 4.6 | ||
Total assets | 107.2 | 4.6 | ||
Debt of CIP | 0 | 0 | ||
Other liabilities of CIP | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total equity | 107.2 | 4.6 | ||
Total liabilities, temporary and permanent equity | 107.2 | 4.6 | ||
Consolidated Entities | VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Cash and cash equivalents of CIP | 2.4 | 0.4 | ||
Accounts receivable and other assets of CIP | 0.1 | 2.7 | ||
Investments of CIP | 26.3 | 105.9 | ||
Total assets | 28.8 | 109 | ||
Debt of CIP | 2 | 97.8 | ||
Other liabilities of CIP | 15.9 | 11.2 | ||
Total liabilities | 17.9 | 109 | ||
Total equity | 10.9 | 0 | ||
Total liabilities, temporary and permanent equity | $ 28.8 | $ 109 |
Consolidated Investment Produ_7
Consolidated Investment Products (CIP) - Fair Value Hierarchy Levels Of Investments Held And Notes Issued By Consolidated Investment Products (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Real estate investments | $ 89.4 | $ 78.6 |
Total assets at fair value | 7,563.9 | 7,808 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Real estate investments | 0 | 0 |
Total assets at fair value | 142.8 | 225.2 |
Significant Other Observable Inputs (Level 2) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Real estate investments | 0 | 0 |
Total assets at fair value | 7,119.9 | 7,290.8 |
Significant Unobservable Inputs (Level 3) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Real estate investments | 89.4 | 78.6 |
Total assets at fair value | 89.4 | 78.6 |
Investments Measured at NAV as a practical expedient | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Real estate investments | 0 | 0 |
Total assets at fair value | 211.8 | 213.4 |
Bank loans | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 6,467.6 | 6,504.4 |
Bank loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Bank loans | Significant Other Observable Inputs (Level 2) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 6,467.6 | 6,504.4 |
Bank loans | Significant Unobservable Inputs (Level 3) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Bank loans | Investments Measured at NAV as a practical expedient | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Bonds | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 552.3 | 705.9 |
Bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0.4 | 0.5 |
Bonds | Significant Other Observable Inputs (Level 2) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 551.9 | 705.4 |
Bonds | Significant Unobservable Inputs (Level 3) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Bonds | Investments Measured at NAV as a practical expedient | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Equity securities, Equity and fixed income mutual funds | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 206.8 | 275.9 |
Equity and fixed income mutual funds, and investments in other private equity funds | 27 | 29.8 |
Equity securities, Equity and fixed income mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 124.9 | 204.4 |
Equity and fixed income mutual funds, and investments in other private equity funds | 17.5 | 20.3 |
Equity securities, Equity and fixed income mutual funds | Significant Other Observable Inputs (Level 2) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 81.9 | 71.5 |
Equity and fixed income mutual funds, and investments in other private equity funds | 9.5 | 9.5 |
Equity securities, Equity and fixed income mutual funds | Significant Unobservable Inputs (Level 3) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Equity and fixed income mutual funds, and investments in other private equity funds | 0 | 0 |
Equity securities, Equity and fixed income mutual funds | Investments Measured at NAV as a practical expedient | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Bank loan, bonds and equity securities | 0 | 0 |
Equity and fixed income mutual funds, and investments in other private equity funds | 0 | 0 |
Investments in other private equity funds | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Equity and fixed income mutual funds, and investments in other private equity funds | 220.8 | 213.4 |
Investments in other private equity funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Equity and fixed income mutual funds, and investments in other private equity funds | 0 | 0 |
Investments in other private equity funds | Significant Other Observable Inputs (Level 2) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Equity and fixed income mutual funds, and investments in other private equity funds | 9 | 0 |
Investments in other private equity funds | Significant Unobservable Inputs (Level 3) | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Equity and fixed income mutual funds, and investments in other private equity funds | 0 | 0 |
Investments in other private equity funds | Investments Measured at NAV as a practical expedient | ||
Segment Reporting, Other Significant Reconciling Items [Line Items] | ||
Equity and fixed income mutual funds, and investments in other private equity funds | $ 211.8 | $ 213.4 |
Consolidated Investment Produ_8
Consolidated Investment Products (CIP) - Beginning And Ending Fair Value Measurements For Level 3 Assets And Liabilities (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance (Asset) | $ 78.6 | $ 11.8 |
Purchases (Asset) | 0 | 0 |
Gains and losses included in the Condensed Consolidated Statements of Income | 10.8 | 0.3 |
Ending balance (Asset) | $ 89.4 | $ 12.2 |
Consolidated Investment Produ_9
Consolidated Investment Products (CIP) - Investments Measured at NAV as a practical expedient (Details) - Investments in other private equity funds - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Fair Value | $ 211.8 | $ 213.4 |
Total Unfunded Commitments | $ 72.3 | $ 78.3 |
Weighted Average Remaining Term | 6 years 9 months 18 days | 6 years 8 months 12 days |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - Preferred Shares - OppenheimerFunds - USD ($) $ in Millions | Mar. 31, 2020 | May 24, 2019 |
Related Party Transactions [Line Items] | ||
Stock consideration | $ 4,010.5 | $ 4,000 |
MassMutual | ||
Related Party Transactions [Line Items] | ||
Approximate stake help in common stock of combined firm (percent) | 16.50% |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transactions [Line Items] | |||
Total operating revenues | $ 1,598.9 | $ 1,214.6 | |
Cash and cash equivalents | 940.5 | 1,017.1 | $ 1,049 |
Unsettled fund receivables | 213.5 | 162.7 | |
Accounts receivable | 701 | 855.6 | |
Investments | 744.5 | 829.5 | |
Other assets | 505 | 459.6 | |
Total assets | 37,010.7 | 39,420.3 | |
Accrued compensation and benefits | 481.1 | 1,030.7 | |
Accounts payable and accrued expenses | 1,933.5 | 1,904 | |
Unsettled fund payables | 196 | 154.2 | |
Total liabilities | 22,891.8 | 24,718.5 | |
Affiliated Entity | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 1,465.5 | 1,083.5 | |
Cash and cash equivalents | 379.9 | 620.9 | |
Unsettled fund receivables | 136.4 | 113.6 | |
Accounts receivable | 466.9 | 599.8 | |
Investments | 584.6 | 633.5 | |
Assets held for policyholders | 9,137 | 10,835.3 | |
Other assets | 22.5 | 24.5 | |
Total assets | 10,727.3 | 12,827.6 | |
Accrued compensation and benefits | 48.6 | 65.7 | |
Accounts payable and accrued expenses | 61.3 | 53.8 | |
Unsettled fund payables | 153.4 | 116.6 | |
Total liabilities | 263.3 | $ 236.1 | |
Investment management fees | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 1,168.3 | 923.7 | |
Investment management fees | Affiliated Entity | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 1,055.9 | 816.3 | |
Service and distribution fees | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 365.8 | 219.3 | |
Service and distribution fees | Affiliated Entity | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 349.2 | 209.9 | |
Performance fees | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 4.8 | 21.8 | |
Performance fees | Affiliated Entity | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 1 | 10.5 | |
Other | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | 60 | 49.8 | |
Other | Affiliated Entity | |||
Related Party Transactions [Line Items] | |||
Total operating revenues | $ 59.4 | $ 46.8 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Apr. 23, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Subsequent Event [Line Items] | |||
Common stock dividends declared per share (usd per share) | $ 0.31 | $ 0.30 | |
Preferred stock dividend declared (in usd per share) | $ 14.75 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividends declared per share (usd per share) | $ 0.155 | ||
Preferred stock dividend declared (in usd per share) | $ 14.75 |