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Business Combinations (Tables) | 9 Months Ended
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Sep. 30, 2018
Business Combinations [Abstract] |
Summary of Allocation Preliminary Purchase Price | The following table summarizes the allocation of the preliminary purchase price as of the acquisition date:
(in millions) |  |
Cash and Cash Equivalents |  | $ | 175.8 |
Other Current Assets 1 |  | 53.7 |
Goodwill 2 |  | 161.2 |
Intangible Assets 3 |  | 271.7 |
Other Long-Term Assets 4 |  | 34.7 |
Less: Long-Term Deferred Tax Liability, net |  | (20.9 | )
Less: Liabilities Acquired 5 |  | (162.3 | )
Less: Fair Value of Redeemable Noncontrolling Interest in Subsidiary 6 |  | (169.6 | )
Total Purchase Price Consideration |  | $ | 344.3 |
1 | Includes $31.9 million of receivables, substantially all of which has been collected as of September 30, 2018.
2 | The goodwill recognized is attributable to enhanced revenue and AUM growth opportunities from future investors and the assembled workforce of Hermes. In this instance, goodwill is not deductible for tax purposes.
3 | Includes $92.4 million for customer relationships with a weighted-average useful life of 8.4 years, $130.2 million for indefinite-lived renewable investment advisory contracts and $49.1 million for an indefinite-lived trade name, all of which are recorded in Intangible Assets, net on the Consolidated Balance Sheets.
4 | Includes $11.2 million of property and equipment.
5 | Includes $130.3 million related to accrued compensation and benefits.
6 | The fair value of the noncontrolling interest was determined utilizing the market approach and consideration of the overall business enterprise value.
Summary of Unaudited Pro Forma Financial Information | The following table summarizes unaudited pro forma financial information assuming the Hermes Acquisition occurred at the beginning of the periods presented. This pro forma financial information is for informational purposes only and is not indicative of actual results that would have occurred had the Hermes Acquisition been completed on the assumed dates and it is not indicative of future results. In addition, the following pro forma financial information does not reflect the realization of any cost savings (nor does management expect to realize any cost savings) or other synergies from the Hermes Acquisition following the completion of the business combination. The pro forma results include adjustments for the effect of acquisition-related expenses (including the loss on foreign currency forward transactions noted below, compensation and related expense, income tax expense and amortization related to newly acquired intangibles) as well as adjustments to conform to Federated's U.S. GAAP accounting policies.
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(in millions) | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
Revenue | $ | 308.6 |  |  | $ | 317.1 |  |  | $ | 923.3 |  |  | $ | 951.5 |
Net Income 1 | $ | 59.6 |  |  | $ | 76.5 |  |  | $ | 179.9 |  |  | $ | 229.6 |
1 | The nine months ended September 30, 2018 excludes a $29.0 million loss on foreign currency forward transactions entered into in order to hedge against foreign exchange rate fluctuations associated with the payment for the Hermes Acquisition.

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
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