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Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Information  
Segment Information

14.   Segment Information

        Management has assessed and determined that the Company operates in three business segments representing the Company's three principal distribution channels: Mutual Fund, Institutional and High Net Worth, each of which has different client relationships.

        Revenue in the Mutual Fund distribution channel is earned from advisory and sub-advisory relationships with all domestically-registered investment products as well as non-institutional investment products that are registered abroad. Revenue in the Institutional distribution channel is earned from relationships with public and private client entities, including pension plans, foundations and endowments. Revenue in the High Net Worth distribution channel is earned from relationships with wealthy individuals, family trusts and managed account programs.

        Revenue earned from client relationships managed by Affiliates accounted for under the equity method is not consolidated with the Company's reported Revenue but instead is included (net of operating expenses, including amortization) in Income from equity method investments, and reported in the distribution channel in which the Affiliate operates. Income tax attributable to the profits of the Company's equity method Affiliates is reported within the Company's consolidated income tax provision.

        In firms with revenue sharing arrangements, a certain percentage of revenue is allocated for use by management of an Affiliate in paying operating expenses of that Affiliate, including salaries and bonuses, and is called an "Operating Allocation." In reporting segment operating expenses, Affiliate expenses are allocated to a particular segment on a pro rata basis with respect to the revenue generated by that Affiliate in such segment. Generally, as revenue increases, additional compensation is typically paid to Affiliate management partners from the Operating Allocation. As a result, the contractual expense allocation pursuant to a revenue sharing arrangement may result in the characterization of any growth in profit margin beyond the Company's Owners' Allocation as an operating expense. All other operating expenses (excluding intangible amortization) and interest expense have been allocated to segments based on the proportion of cash flow distributions reported by Affiliates in each segment.

Statements of Income

 
   For the Three Months Ended March 31, 2011  
 
   Mutual Fund   Institutional   High Net Worth   Total  

Revenue

   $ 184.2   $ 207.0   $ 35.1   $ 426.3  

Operating expenses:

                          

Depreciation and other amortization

     4.1     19.7     2.1     25.9  

Other operating expenses

     126.4     127.0     22.1     275.5  
                   

 

     130.5     146.7     24.2     301.4  
                   

Operating income

     53.7     60.3     10.9     124.9  
                   

Non-operating (income) and expenses:

                          

Investment and other (income) loss

     (2.3 )   (5.0 )   (1.4 )   (8.7 )

Income from equity method investments

     (1.4 )   (7.7 )   (1.1 )   (10.2 )

Interest expense

     10.8     14.6     2.3     27.7  
                   

 

     7.1     1.9     (0.2 )   8.8  
                   

Income before income taxes

     46.6     58.4     11.1     116.1  

Income taxes

     11.7     12.8     2.2     26.7  
                   

Net income

     34.9     45.6     8.9     89.4  

Net income (non-controlling interests)

     (18.3 )   (27.2 )   (4.8 )   (50.3 )
                   

Net income (controlling interest)

   $ 16.6   $ 18.4   $ 4.1   $ 39.1  
                   

 

 
   For the Three Months Ended March 31, 2012  
 
   Mutual Fund   Institutional   High Net Worth   Total  

Revenue

   $ 175.7   $ 206.8   $ 35.2   $ 417.7  

Operating expenses:

                          

Depreciation and other amortization

     12.0     19.9     1.9     33.8  

Other operating expenses

     123.0     129.7     22.4     275.1  
                   

 

     135.0     149.6     24.3     308.9  
                   

Operating income

     40.7     57.2     10.9     108.8  
                   

Non-operating (income) and expenses:

                          

Investment and other (income) loss

     (4.0 )   (5.1 )   (1.3 )   (10.4 )

Income from equity method investments

     (2.6 )   (10.5 )   (1.4 )   (14.5 )

Interest expense

     0.9     13.2     2.0     16.1  
                   

 

     (5.7 )   (2.4 )   (0.7 )   (8.8 )
                   

Income before income taxes

     46.4     59.6     11.6     117.6  

Income taxes

     10.6     11.8     2.2     24.6  
                   

Net income

     35.8     47.8     9.4     93.0  

Net income (non-controlling interests)

     (21.1 )   (28.9 )   (5.6 )   (55.6 )
                   

Net income (controlling interest)

   $ 14.7   $ 18.9   $ 3.8   $ 37.4  
                   

Total assets as of December 31, 2011

   $ 1,920.6   $ 2,836.2   $ 462.1   $ 5,218.9  

Total assets as of March 31, 2012

   $ 1,965.9   $ 2,783.4   $ 460.6   $ 5,209.9