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Segment Information | 6 Months Ended
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Jun. 30, 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, endowments and sovereign wealth funds. 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 June 30, 2011 |
--- | --- | --- | ---
|  | Mutual Fund |  | Institutional |  | High Net Worth |  | Total |
Revenue |  | $ | 192.5 |  | $ | 233.9 |  | $ | 35.9 |  | $ | 462.3 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and other amortization |  |  | 4.0 |  |  | 19.8 |  |  | 2.1 |  |  | 25.9 |
Other operating expenses |  |  | 130.0 |  |  | 144.2 |  |  | 22.2 |  |  | 296.4 |
|  |  | 134.0 |  |  | 164.0 |  |  | 24.3 |  |  | 322.3 |
Operating income |  |  | 58.5 |  |  | 69.9 |  |  | 11.6 |  |  | 140.0 |
Non-operating (income) and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment and other (income) loss |  |  | (1.2 | ) |  | (4.5 | ) |  | 11.8 |  |  | 6.1 |
(Income) loss from equity method investments |  |  | 0.9 |  |  | (19.9 | ) |  | (1.1 | ) |  | (20.1 | )
Interest expense |  |  | 5.5 |  |  | 11.0 |  |  | 1.6 |  |  | 18.1 |
Imputed interest and contingent payment arrangements |  |  | 4.5 |  |  | 3.3 |  |  | 0.5 |  |  | 8.3 |
|  |  | 9.7 |  |  | (10.1 | ) |  | 12.8 |  |  | 12.4 |
Income (loss) before income taxes |  |  | 48.8 |  |  | 80.0 |  |  | (1.2 | ) |  | 127.6 |
Income taxes |  |  | 11.0 |  |  | 17.4 |  |  | (1.8 | ) |  | 26.6 |
Net income |  |  | 37.8 |  |  | 62.6 |  |  | 0.6 |  |  | 101.0 |
Net income (non-controlling interests) |  |  | (19.0 | ) |  | (32.4 | ) |  | (4.1 | ) |  | (55.5 | )
Net income (loss) (controlling interest) |  | $ | 18.8 |  | $ | 30.2 |  | $ | (3.5 | ) | $ | 45.5 |
|  | For the Three Months Ended June 30, 2012 |
--- | --- | --- | ---
|  | Mutual Fund |  | Institutional |  | High Net Worth |  | Total |
Revenue |  | $ | 173.3 |  | $ | 219.5 |  | $ | 36.8 |  | $ | 429.6 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and other amortization |  |  | 97.7 |  |  | 18.8 |  |  | 1.8 |  |  | 118.3 |
Other operating expenses |  |  | 123.3 |  |  | 139.8 |  |  | 23.2 |  |  | 286.3 |
|  |  | 221.0 |  |  | 158.6 |  |  | 25.0 |  |  | 404.6 |
Operating income (loss) |  |  | (47.7 | ) |  | 60.9 |  |  | 11.8 |  |  | 25.0 |
Non-operating (income) and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment and other (income) loss |  |  | (0.3 | ) |  | (3.0 | ) |  | 0.3 |  |  | (3.0 | )
Income from equity method investments |  |  | (2.8 | ) |  | (9.3 | ) |  | (1.3 | ) |  | (13.4 | )
Interest expense |  |  | 5.9 |  |  | 10.9 |  |  | 1.7 |  |  | 18.5 |
Imputed interest and contingent payment arrangements |  |  | (22.7 | ) |  | (17.5 | ) |  | 0.2 |  |  | (40.0 | )
|  |  | (19.9 | ) |  | (18.9 | ) |  | 0.9 |  |  | (37.9 | )
Income (loss) before income taxes |  |  | (27.8 | ) |  | 79.8 |  |  | 10.9 |  |  | 62.9 |
Income taxes |  |  | (18.1 | ) |  | 18.0 |  |  | 2.1 |  |  | 2.0 |
Net income (loss) |  |  | (9.7 | ) |  | 61.8 |  |  | 8.8 |  |  | 60.9 |
Net income (non-controlling interests) |  |  | (21.6 | ) |  | (28.4 | ) |  | (4.3 | ) |  | (54.3 | )
Net income (loss) (controlling interest) |  | $ | (31.3 | ) | $ | 33.4 |  | $ | 4.5 |  | $ | 6.6 |
|  | For the Six Months Ended June 30, 2011 |
--- | --- | --- | ---
|  | Mutual Fund |  | Institutional |  | High Net Worth |  | Total |
Revenue |  | $ | 376.7 |  | $ | 440.9 |  | $ | 70.9 |  | $ | 888.5 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and other amortization |  |  | 8.1 |  |  | 39.5 |  |  | 4.2 |  |  | 51.8 |
Other operating expenses |  |  | 256.4 |  |  | 271.1 |  |  | 44.3 |  |  | 571.8 |
|  |  | 264.5 |  |  | 310.6 |  |  | 48.5 |  |  | 623.6 |
Operating income |  |  | 112.2 |  |  | 130.3 |  |  | 22.4 |  |  | 264.9 |
Non-operating (income) and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment and other (income) loss |  |  | (3.5 | ) |  | (9.5 | ) |  | 10.4 |  |  | (2.6 | )
Income from equity method investments |  |  | (0.5 | ) |  | (27.6 | ) |  | (2.2 | ) |  | (30.3 | )
Interest expense |  |  | 11.8 |  |  | 22.2 |  |  | 3.4 |  |  | 37.4 |
Imputed interest and contingent payment arrangements |  |  | 9.0 |  |  | 6.6 |  |  | 1.0 |  |  | 16.6 |
|  |  | 16.8 |  |  | (8.3 | ) |  | 12.6 |  |  | 21.1 |
Income before income taxes |  |  | 95.4 |  |  | 138.6 |  |  | 9.8 |  |  | 243.8 |
Income taxes |  |  | 22.7 |  |  | 30.3 |  |  | 0.4 |  |  | 53.4 |
Net income |  |  | 72.7 |  |  | 108.3 |  |  | 9.4 |  |  | 190.4 |
Net income (non-controlling interests) |  |  | (37.3 | ) |  | (59.7 | ) |  | (8.9 | ) |  | (105.9 | )
Net income (controlling interest) |  | $ | 35.4 |  | $ | 48.6 |  | $ | 0.5 |  | $ | 84.5 |
|  | For the Six Months Ended June 30, 2012 |
--- | --- | --- | ---
|  | Mutual Fund |  | Institutional |  | High Net Worth |  | Total |
Revenue |  | $ | 349.0 |  | $ | 426.2 |  | $ | 72.0 |  | $ | 847.2 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and other amortization |  |  | 109.7 |  |  | 38.8 |  |  | 3.7 |  |  | 152.2 |
Other operating expenses |  |  | 246.2 |  |  | 269.3 |  |  | 45.7 |  |  | 561.2 |
|  |  | 355.9 |  |  | 308.1 |  |  | 49.4 |  |  | 713.4 |
Operating income |  |  | (6.9 | ) |  | 118.1 |  |  | 22.6 |  |  | 133.8 |
Non-operating (income) and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Investment and other income |  |  | (4.3 | ) |  | (8.1 | ) |  | (1.0 | ) |  | (13.4 | )
Income from equity method investments |  |  | (5.4 | ) |  | (19.8 | ) |  | (2.7 | ) |  | (27.9 | )
Interest expense |  |  | 12.0 |  |  | 21.8 |  |  | 3.3 |  |  | 37.1 |
Imputed interest and contingent payment arrangements |  |  | (27.9 | ) |  | (15.2 | ) |  | 0.6 |  |  | (42.5 | )
|  |  | (25.6 | ) |  | (21.3 | ) |  | 0.2 |  |  | (46.7 | )
Income before income taxes |  |  | 18.7 |  |  | 139.4 |  |  | 22.4 |  |  | 180.5 |
Income taxes |  |  | (7.5 | ) |  | 29.8 |  |  | 4.3 |  |  | 26.6 |
Net income |  |  | 26.2 |  |  | 109.6 |  |  | 18.1 |  |  | 153.9 |
Net income (non-controlling interests) |  |  | (42.7 | ) |  | (57.3 | ) |  | (9.9 | ) |  | (109.9 | )
Net Income (loss) (controlling interest) |  | $ | (16.5 | ) | $ | 52.3 |  | $ | 8.2 |  | $ | 44.0 |
Balance Sheet Information |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets as of December 31, 2011 |  | $ | 1,920.6 |  | $ | 2,836.2 |  | $ | 462.1 |  | $ | 5,218.9 |
Total assets as of June 30, 2012 |  | $ | 2,302.7 |  | $ | 2,697.2 |  | $ | 614.8 |  | $ | 5,614.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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