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Consolidated Sponsored Investment Products (Tables) | 12 Months Ended
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Dec. 31, 2014
Balances of Consolidated Sponsored Investment Products | The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2014 and 2013:
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
($ in thousands) |
Total cash |  | $ | 8,687 |  |  | $ | 531 |
Total investments |  |  | 236,652 |  |  |  | 139,054 |
All other assets |  |  | 6,960 |  |  |  | 9,595 |
Total liabilities |  |  | (12,556 | ) |  |  | (8,435 | )
Redeemable noncontrolling interest |  |  | (23,071 | ) |  |  | (42,186 | )
The Company’s net interests in consolidated sponsored investment products |  | $ | 216,672 |  |  | $ | 98,559 |
Consolidated Balance Sheets | The following tables reflect the impact of the consolidated sponsored investment products in the Consolidated Balance Sheets as of December 31, 2014 and 2013, respectively:
As of December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Before Consolidation of Investment Products |  |  | Consolidated Sponsored Investment Products |  |  | Eliminations and Adjustments (a) |  |  | Balances as Reported in Consolidated Balance Sheet |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Total cash |  | $ | 202,847 |  |  | $ | 8,687 |  |  | $ | — |  |  | $ | 211,534 |
Total investments |  |  | 279,863 |  |  |  | 236,652 |  |  |  | (216,415 | ) |  |  | 300,100 |
All other assets |  |  | 180,436 |  |  |  | 6,960 |  |  |  | (257 | ) |  |  | 187,139 |
Total assets |  | $ | 663,146 |  |  | $ | 252,299 |  |  | $ | (216,672 | ) |  | $ | 698,773 |
Total liabilities |  | $ | 99,794 |  |  | $ | 12,813 |  |  | $ | (257 | ) |  | $ | 112,350 |
Redeemable noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 23,071 |  |  |  | 23,071 |
Equity attributable to stockholders of the Company |  |  | 563,542 |  |  |  | 239,486 |  |  |  | (239,486 | ) |  |  | 563,542 |
Non-redeemable noncontrolling interest |  |  | (190 | ) |  |  | — |  |  |  | — |  |  |  | (190 | )
Total liabilities and equity |  | $ | 663,146 |  |  | $ | 252,299 |  |  | $ | (216,672 | ) |  | $ | 698,773 |
As of December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Before Consolidation of Investment Products |  |  | Consolidated Sponsored Investment Products |  |  | Eliminations and Adjustments (a) |  |  | Balances as Reported in Consolidated Balance Sheet |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Total cash |  | $ | 271,014 |  |  | $ | 531 |  |  | $ | — |  |  | $ | 271,545 |
Total investments |  |  | 135,692 |  |  |  | 139,054 |  |  |  | (98,434 | ) |  |  | 176,312 |
All other assets |  |  | 187,627 |  |  |  | 9,595 |  |  |  | (125 | ) |  |  | 197,097 |
Total assets |  | $ | 594,333 |  |  | $ | 149,180 |  |  | $ | (98,559 | ) |  | $ | 644,954 |
Total liabilities |  | $ | 101,465 |  |  | $ | 8,560 |  |  | $ | (125 | ) |  | $ | 109,900 |
Redeemable noncontrolling interest |  |  | — |  |  |  | — |  |  |  | 42,186 |  |  |  | 42,186 |
Equity attributable to stockholders of the Company |  |  | 492,930 |  |  |  | 140,620 |  |  |  | (140,620 | ) |  |  | 492,930 |
Non-redeemable noncontrolling interest |  |  | (62 | ) |  |  | — |  |  |  | — |  |  |  | (62 | )
Total liabilities and equity |  | $ | 594,333 |  |  | $ | 149,180 |  |  | $ | (98,559 | ) |  | $ | 644,954 |
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest.
Consolidated Statement of Operations | The following table reflects the impact of the consolidated sponsored investment products in the Consolidated Statement of Operations for the years ended December 31 2014, 2013 and 2012, respectively:
For the Year Ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Before Consolidation of Investment Products |  |  | Consolidated Sponsored Investment Products |  |  | Eliminations and Adjustments (a) |  |  | Balances as Reported in Consolidated Statement of Operations |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Total operating revenues |  | $ | 451,259 |  |  | $ | — |  |  | $ | (661 | ) |  | $ | 450,598 |
Total operating expenses |  |  | 316,840 |  |  |  | 3,699 |  |  |  | (661 | ) |  |  | 319,878 |
Operating income (loss) |  |  | 134,419 |  |  |  | (3,699 | ) |  |  | — |  |  |  | 130,720 |
Total other non-operating income (expense) |  |  | 2,502 |  |  |  | 2,619 |  |  |  | 473 |  |  |  | 5,594 |
Income (loss) before income tax expense |  |  | 136,921 |  |  |  | (1,080 | ) |  |  | 473 |  |  |  | 136,314 |
Income tax expense |  |  | 39,349 |  |  |  | — |  |  |  | — |  |  |  | 39,349 |
Net income (loss) |  |  | 97,572 |  |  |  | (1,080 | ) |  |  | 473 |  |  |  | 96,965 |
Noncontrolling interests |  |  | 128 |  |  |  | — |  |  |  | 607 |  |  |  | 735 |
Net income (loss) attributable to the Company |  | $ | 97,700 |  |  | $ | (1,080 | ) |  | $ | 1,080 |  |  | $ | 97,700 |
For the Year Ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Before Consolidation of Investment Products |  |  | Consolidated Sponsored Investment Products |  |  | Eliminations and Adjustments (a) |  |  | Balances as Reported in Consolidated Statement of Operations |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Total operating revenues |  | $ | 389,202 |  |  | $ | — |  |  | $ | 13 |  |  | $ | 389,215 |
Total operating expenses |  |  | 274,913 |  |  |  | 785 |  |  |  | 13 |  |  |  | 275,711 |
Operating income (loss) |  |  | 114,289 |  |  |  | (785 | ) |  |  | — |  |  |  | 113,504 |
Total other non-operating income (expense) |  |  | 5,620 |  |  |  | 6,098 |  |  |  | (3,314 | ) |  |  | 8,404 |
Income (loss) before income tax expense |  |  | 119,909 |  |  |  | 5,313 |  |  |  | (3,314 | ) |  |  | 121,908 |
Income tax expense |  |  | 44,778 |  |  |  | — |  |  |  | — |  |  |  | 44,778 |
Net income (loss) |  |  | 75,131 |  |  |  | 5,313 |  |  |  | (3,314 | ) |  |  | 77,130 |
Noncontrolling interests |  |  | 59 |  |  |  | — |  |  |  | (1,999 | ) |  |  | (1,940 | )
Net income (loss) attributable to the Company |  | $ | 75,190 |  |  | $ | 5,313 |  |  | $ | (5,313 | ) |  | $ | 75,190 |
For the Year Ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Before Consolidation of Investment Products |  |  | Consolidated Sponsored Investment Products |  |  | Eliminations and Adjustments (a) |  |  | Balances as Reported in Consolidated Statement of Operations |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Total operating revenues |  | $ | 279,919 |  |  | $ | — |  |  | $ | 167 |  |  | $ | 280,086 |
Total operating expenses |  |  | 219,326 |  |  |  | 148 |  |  |  | 167 |  |  |  | 219,641 |
Operating income (loss) |  |  | 60,593 |  |  |  | (148 | ) |  |  | — |  |  |  | 60,445 |
Total other non-operating income (expense) |  |  | 4,106 |  |  |  | 2,649 |  |  |  | (2,397 | ) |  |  | 4,358 |
Income (loss) before income tax expense |  |  | 64,699 |  |  |  | 2,501 |  |  |  | (2,397 | ) |  |  | 64,803 |
Income tax expense |  |  | 27,030 |  |  |  | — |  |  |  | — |  |  |  | 27,030 |
Net income (loss) |  |  | 37,669 |  |  |  | 2,501 |  |  |  | (2,397 | ) |  |  | 37,773 |
Noncontrolling interests |  |  | 3 |  |  |  | — |  |  |  | (104 | ) |  |  | (101 | )
Allocation of earnings to preferred stockholders |  |  | (64 | ) |  |  | — |  |  |  | — |  |  |  | (64 | )
Net income (loss) attributable to the Company |  | $ | 37,608 |  |  | $ | 2,501 |  |  | $ | (2,501 | ) |  | $ | 37,608 |
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest.
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring by fair value hierarchy level were as follows:
As of December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  | $ | — |  |  | $ | 135,050 |  |  | $ | 1,065 |  |  | $ | 136,115 |
Equity securities |  |  | 82,417 |  |  |  | 18,120 |  |  |  | — |  |  |  | 100,537 |
Derivatives |  |  | 154 |  |  |  | 227 |  |  |  | — |  |  |  | 381 |
Total Assets Measured at Fair Value |  | $ | 82,571 |  |  | $ | 153,397 |  |  | $ | 1,065 |  |  | $ | 237,033 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | 191 |  |  | $ | — |  |  | $ | — |  |  | $ | 191 |
Short sales |  |  | 7,491 |  |  |  | 674 |  |  |  | — |  |  |  | 8,165 |
Total Liabilities Measured at Fair Value |  | $ | 7,682 |  |  | $ | 674 |  |  | $ | — |  |  | $ | 8,356 |
As of December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
($ in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  | $ | — |  |  | $ | 47,114 |  |  | $ | — |  |  | $ | 47,114 |
Equity securities |  |  | 91,940 |  |  |  | — |  |  |  | — |  |  |  | 91,940 |
Total Assets Measured at Fair Value |  | $ | 91,940 |  |  | $ | 47,114 |  |  | $ | — |  |  | $ | 139,054 |
Consolidated Sponsored Investment Products [Member] |
Reconciliation of Assets Related to Consolidated Sponsored Investment Products | The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value.
|  | Level 3 Debt securities (a) |
Balance at December 31, 2013 |  | $ | — |
Purchases |  |  | 1,119 |
Sales |  |  | — |
Paydowns |  |  | (3 | )
Change in unrealized gain/loss |  |  | (51 | )
Balance at December 31, 2014 |  | $ | 1,065 |
(a) | None of the securities were internally fair valued at December 31, 2014.

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