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Business Combinations
12 Months Ended
Dec. 31, 2013
Business Combinations [Abstract]  
Business Combinations
Business Combinations
In 2012, the Company completed majority investments in two new Affiliates. The Company's purchase price allocations used financial models that included assumptions of market performance, net client cash flows and discount rates. The excess of the enterprise value over the net assets acquired was recorded as goodwill, of which 67.0%, 32.9% and 0.1% was attributed to the Company's Mutual Fund, High Net Worth and Institutional segments, respectively. The consideration paid (less net tangible assets acquired) is deductible for U.S. tax purposes over a 15-year life.
In connection with one of the investments, the Company is contingently liable to make payments of up to $75.0 million over the next three to five years upon the achievement of specified revenue targets.
The aggregate purchase price allocation for these investments is as follows:
 
Total
Consideration paid
$
417.8

Non-controlling interests
247.6

Contingent payment obligations
24.8

Enterprise value
$
690.2

 
 
Acquired client relationships
$
452.6

Tangible assets, net
11.7

Goodwill
225.9

 
$
690.2


Unaudited pro forma financial results are set forth below, giving consideration to the investments and acquisitions in 2012, as if such transactions occurred as of January 1, 2011, assuming the revenue sharing arrangements had been in effect for the entire period and after making certain other pro forma adjustments.
 
For the Years Ended December 31,
 
2011
 
2012
Revenue
$
1,810.9

 
$
1,881.0

Net income (controlling interest)
179.6

 
186.0

Earnings per share—basic
$
3.47

 
$
3.60

Earnings per share—diluted
$
3.39

 
$
3.51


Investments in new Affiliates contributed $88.0 million and $14.5 million to the Company's revenue and earnings, respectively, during 2012 and contributed $227.9 million and $32.1 million, respectively, during 2013.