Maryland | 52-2264646 | |
State of incorporation | IRS Employer Identification No. |
Common stock, $.20 par value per share | The NASDAQ Stock Market LLC | |
(Title of class) | (Name of exchange on which registered) |
Large accelerated filer x | Accelerated filer ¨ | |
Non-accelerated filer ¨ (do not check if smaller reporting company) | Smaller reporting company ¨ | |
Emerging growth company ¨ |
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ITEM 1B. | ||
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ITEM. | ||
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ITEM 7. | ||
ITEM 7A. | ||
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ITEM 9A. | ||
ITEM 9B. | ||
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ITEM 13. | ||
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ITEM 15. | ||
Item 1. | Business. |
(in millions, except per-share data) | 2016 | 2017 | Dollar change | Percentage change | |||||||||||
U.S. GAAP Basis | |||||||||||||||
Investment advisory fees | $ | 3,728.7 | $ | 4,287.7 | $ | 559.0 | 15.0 | % | |||||||
Net revenues | $ | 4,222.9 | $ | 4,793.0 | $ | 570.1 | 13.5 | % | |||||||
Operating expenses | $ | 2,489.5 | $ | 2,684.2 | $ | 194.7 | 7.8 | % | |||||||
Net operating income | $ | 1,733.4 | $ | 2,108.8 | $ | 375.4 | 21.7 | % | |||||||
Non-operating income | $ | 227.1 | $ | 396.3 | $ | 169.2 | 74.5 | % | |||||||
Net income attributable to T. Rowe Price Group | $ | 1,215.0 | $ | 1,497.8 | $ | 282.8 | 23.3 | % | |||||||
Diluted earnings per common share | $ | 4.75 | $ | 5.97 | $ | 1.22 | 25.7 | % | |||||||
Weighted average common shares outstanding assuming dilution | 250.3 | 245.1 | (5.2 | ) | (2.1 | )% | |||||||||
Adjusted(1) | |||||||||||||||
Operating expenses | $ | 2,416.8 | $ | 2,715.8 | $ | 299.0 | 12.4 | % | |||||||
Net income attributable to T. Rowe Price Group | $ | 1,148.9 | $ | 1,361.1 | $ | 212.2 | 18.5 | % | |||||||
Diluted earnings per common share | $ | 4.49 | $ | 5.43 | $ | .94 | 20.9 | % | |||||||
Assets under management (in billions) | |||||||||||||||
Average assets under management | $ | 778.2 | $ | 909.0 | $ | 130.8 | 16.8 | % | |||||||
Ending assets under management | $ | 810.8 | $ | 991.1 | $ | 180.3 | 22.2 | % |
U.S. financial intermediaries | EMEA & APAC financial intermediaries | Individual U.S. investors on a direct basis | U.S. retirement plan sponsors | Global institutions | ||||
U.S. Mutual Funds | SICAVs(1) / FCPs (2) | U.S. Mutual Funds | U.S. Mutual Funds | U.S. Mutual Funds | ||||
Collective Investment Trusts | Australian Unit Trusts (AUTS) | Separate Accounts | Collective Investment Trusts | Collective Investment Trusts | ||||
Subadvised Accounts | OEICs(3) | College Savings Plans | Separate Accounts | SICAVs(1) / FCPs (2) | ||||
Managed Accounts / Model Delivery | Cayman Funds | Model Delivery | Separate / Subadvised Accounts | |||||
College Savings Plans | Subadvised Accounts | Canadian Pension Pooled Funds |
Equity | Fixed income | Asset allocation | ||||||
U.S. | International / Global | U.S. | International / Global | U.S. / International / Global | ||||
Large-Cap: Growth, Core, Value | Global: All-Cap, Growth, Value | Aggregate Bond Index | Global Aggregate | Target Date/Custom Target Date | ||||
Mid-Cap: Growth, Core, Value | International Developed | Core Bond | Global Multi-Sector | Target Allocation | ||||
Small-Cap: Growth, Core, Value | International Small-Cap | Credit Opportunities | Global Dynamic Bond | Global Allocation | ||||
Quantitative Equity: Multi-Cap, Style Index | Emerging Markets: Global, Regional | Corporate | Global High Income | Managed Volatility | ||||
Tax Efficient | Europe | Bank Loan | Emerging Markets | Multi-Asset Solutions | ||||
Sectors | Japan | High Yield | International Developed | Real Assets | ||||
Australia | Stable Value | Global Corporate | Retirement Income | |||||
Asia (ex Japan) | Securitized | Global High Yield | ||||||
Treasury | Global Government | |||||||
Short Duration | ||||||||
Municipal |
Strategy | Year closed |
U.S. Mid-Cap Growth | 2010 |
U.S. Mid-Cap Value | 2010 |
High Yield Bond | 2012 |
U.S. Small-Cap Growth | 2013 |
U.S. Small-Cap Core | 2013 |
Capital Appreciation | 2014 |
Global Technology | 2017 |
2016 | 2017 | |||||
Assets under management by distribution channel | ||||||
Global intermediaries(1) | $ | 395.5 | $ | 496.9 | ||
Individual U.S. investors | 147.1 | 169.8 | ||||
U.S. retirement plan sponsors | 100.0 | 111.2 | ||||
Global institutions(1)(2) | 168.2 | 213.2 | ||||
Total assets under management | $ | 810.8 | $ | 991.1 | ||
(1) Includes U.S., EMEA, and APAC financial intermediaries and institutions,and (2) Includes T. Rowe Price investments in proprietary products, assets of the T. Rowe Price employee benefit plans, Private Asset Management accounts, and other. | ||||||
Assets under management by vehicle | ||||||
T. Rowe Price U.S. mutual funds | $ | 514.2 | $ | 606.3 | ||
Other investment products | ||||||
T. Rowe Price collective investment trusts | 57.7 | 88.9 | ||||
T. Rowe Price stable value and variable annuity products | 18.3 | 19.2 | ||||
T. Rowe Price SICAVs and other funds regulated outside the U.S. | 13.7 | 21.5 | ||||
Subadvised and separately managed accounts | 206.9 | 255.2 | ||||
Total other investment products | 296.6 | 384.8 | ||||
Total assets under management | $ | 810.8 | $ | 991.1 | ||
Assets under management by account type | ||||||
Defined contribution - investment only | $ | 255.4 | $ | 307.1 | ||
Defined contribution - recordkept assets | 97.2 | 103.6 | ||||
Other retirement and deferred annuity assets | 208.1 | 260.3 | ||||
Total retirement and tax deferred annuity assets | 560.7 | 671.0 | ||||
Other | 250.1 | 320.1 | ||||
Total assets under management | $ | 810.8 | $ | 991.1 | ||
Assets under management by asset class | ||||||
Equity | $ | 450.6 | $ | 564.1 | ||
Fixed income | 121.2 | 134.4 | ||||
Asset allocation | 239.0 | 292.6 | ||||
Total assets under management | $ | 810.8 | $ | 991.1 |
• | our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) of the Exchange Act as soon as reasonably practicable after we electronically file that material with, or furnish them to the SEC; |
• | our financial statement information from our periodic SEC filings in the form of XBRL data files that may be used to facilitate computer-assisted investor analysis; |
• | corporate governance information including our governance guidelines, committee charters, senior officer code of ethics and conduct, and other governance-related policies; |
• | other news and announcements that we may post from time to time that investors might find useful or interesting, including our monthly assets under management disclosure; and |
• | opportunities to sign up for email alerts and RSS feeds to have information pushed in real time. |
Item 1A. | Risk Factors. |
• | Investor Mobility. Our investors generally may withdraw their funds at any time, without advance notice and with little to no significant penalty. |
• | General Market Declines. A downturn in stock or bond prices would cause the value of assets under our management to decrease, and may also cause investors to withdraw their investments, thereby further decreasing the level of assets under our management. |
• | Investment Performance. If the investment performance of our managed investment portfolios is less than that of our competitors or applicable third-party benchmarks, we could lose existing and potential customers and suffer a decrease in assets under management. Institutional investors in particular consider changing investment advisers based upon poor relative investment performance. Individual investors in contrast are more likely to react to poor absolute investment performance. Prolonged periods of strong relative investment performance may result in capacity constraints within certain strategies, which in turn may negatively impact our ability to achieve strong investment results in subsequent periods. |
• | Investing Trends. Changes in investing trends and, in particular, investor preference for passive or alternative investment products, retirement savings trends, including the prevalence of defined contribution retirement plans and target date retirement products, may reduce interest in our products and may alter our mix of assets under management. |
• | Interest Rate Changes. Investor interest in and the valuation of our fixed income investment funds and portfolios are affected by changes in interest rates. |
• | International Exposure. Our managed investment portfolios may have significant investments in international markets that are subject to risk of loss from political or diplomatic developments, government policies, civil unrest, currency fluctuations, and changes in legislation related to foreign ownership. International markets, particularly emerging markets, which are often smaller, may not have the liquidity of established markets, may lack established regulations, and may experience significantly more volatility than established markets. |
• | expenses incurred in connection with our multi-year strategic plan to strengthen our long-term competitive position; |
• | variations in the level of total compensation expense due to, among other things, bonuses, stock-based awards, changes in employee benefit costs due to regulatory or plan design changes, changes in our employee count and mix, competitive factors, market performance, and inflation; |
• | changes in the level of our advertising and promotion expenses, including the costs of expanding investment advisory services to investors outside of the U.S. and further penetrating U.S. distribution channels; |
• | expenses and capital costs incurred to maintain and enhance our administrative and operating services infrastructure, such as technology assets, depreciation, amortization, and research and development; |
• | changes in the costs incurred for third-party vendors that perform certain administrative and operating services; |
• | a future impairment of investments recognized in our consolidated balance sheet; |
• | a future impairment of goodwill that is recognized in our consolidated balance sheet; |
• | unanticipated material fluctuations in foreign currency exchange rates applicable to the costs of our operations abroad; |
• | unanticipated costs incurred to protect investor accounts and client goodwill; and |
• | disruptions of third-party services such as communications, power, and mutual fund transfer agent, investment management, trading, and accounting systems. |
• | decreasing investment valuations in, and returns on, the investment portfolios that we manage, |
• | causing disruptions in national or global economies that decrease investor confidence and make investment products generally less attractive, |
• | incapacitating or inflicting losses of lives among our employees, |
• | interrupting our business operations or those of critical service providers, |
• | triggering technology delays or failures, and |
• | requiring substantial capital expenditures and operating expenses to remediate damage, replace our facilities, and restore our operations. |
• | difficulty in managing, operating, and marketing our international operations; |
• | fluctuations in currency exchange rates which may result in substantial negative effects on assets under our management, revenues, expenses, and assets in our U.S. dollar based financial statements; and |
• | significant adverse changes in international legal and regulatory environments. |
• | As part of the debate in Washington, D.C. and in state legislatures, there has been increasing focus on the framework of the U.S. retirement system. We could experience adverse business impacts if legislative and regulatory changes limit retirement plans to certain products and services, or favor certain investment vehicles, that we do not offer or are not core to our business. |
• | There remains uncertainty about the U.S. Department of Labor’s (DOL) final fiduciary rule. Further, in the wake of the DOL rules, there has been substantial regulatory and legislative activity at federal and state levels regarding standards of care for financial services firms, related to both retirement and taxable accounts. The ultimate action taken by the DOL, SEC or other applicable regulatory or legislative body may impact our business activities and increase our costs. |
• | The Federal Reserve Board has adopted final regulations related to non-bank Systemically Important Financial Institutions (SIFIs), and other jurisdictions are contemplating similar regulation. It has been suggested that large mutual funds, particularly money market funds, should be designated as SIFIs. We do not believe that mutual funds should be deemed SIFIs. Further, we do not believe SIFI designation was intended for traditional asset management businesses. However, if any T. Rowe Price fund or T. Rowe Price affiliate is deemed a SIFI, increased regulatory oversight would apply, which may include enhanced capital, liquidity, leverage, stress testing, resolution planning, and risk management requirements. |
• | The Commodity Futures Trading Commission has adopted certain amendments to its rules that would limit the ability of T. Rowe Price investment products to use commodities, futures, swaps, and other derivatives without additional registration. If our use of these products on behalf of client accounts increases so as to require registration, we would be subject to additional regulatory requirements and costs associated with registration. |
• | There has been increased global regulatory focus on the manner in which intermediaries are paid for distribution of mutual funds. Changes to long-standing market practices related to fees or enhanced disclosure requirements may negatively impact sales of mutual funds by intermediaries, especially if such requirements are not applied to other investment products. |
• | We remain subject to various state, federal and international laws and regulations related to data privacy and protection of data we maintain concerning our customers and employees. These requirements continue to evolve. For example, the European Union has adopted changes, effective in May 2018, which will, among other things, significantly increase the potential penalties for non-compliance. |
• | Global regulations on over the counter derivatives are evolving, including new and proposed regulations under The Dodd-Frank Wall Street Reform and Consumer Protection Act and European Market Infrastructure Regulation relating to central clearing counterparties, trade reporting, and repositories. In addition, the SEC has adopted new regulations that will require mutual funds to adopt liquidity risk management programs with specific requirements for measuring and reporting the liquidity of fund holdings. It also has proposed regulations detailing new exposure limits and asset coverage requirements for investments in derivatives, as well as adopting derivatives risk management programs. There remains uncertainty related to various requirements under these regulations and the exact manner in which they will impact current trading strategies for our clients. |
• | The revised Markets in Financial Instruments Directive (MiFID II Directive) and Regulation (MiFIR) (together “MiFID II”) applied across the European Union (“EU”) and member states of the European Economic Area beginning on January 3, 2018. Implementation of MiFID II has significantly impacted both the structure and operation of EU financial markets. Some of the main changes introduced under MiFID II include applying enhanced disclosure requirements, enhancing conduct of business and governance requirements, broadening the scope of pre and post trade transparency, increasing transaction reporting requirements, transforming the relationship between client commissions and research, and further regulation of trading venues. Although compliance with MiFID II will increase our costs, as we prepared for this by deciding in 2017 that we would pay for third-party investment research used by our UK-based investment manager, T. Rowe Price International Ltd, beginning in 2018. |
• | securities analysis, |
• | securities trading, |
• | portfolio management, |
• | customer service, |
• | accounting and internal financial reporting processes and controls, and |
• | regulatory compliance and reporting. |
• | seriously damage our reputation, |
• | allow competitors access to our proprietary business information, |
• | subject us to liability for a failure to safeguard client data, |
• | result in the termination of contracts by our existing customers, |
• | subject us to regulatory action, and |
• | require significant capital and operating expenditures to investigate and remediate the breach. |
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |
1st quarter | 2nd quarter | 3rd quarter | 4th quarter | ||||||||||||
2016 – High price | $ | 74.72 | $ | 79.00 | $ | 75.12 | $ | 78.95 | |||||||
Low price | $ | 63.57 | $ | 67.34 | $ | 64.76 | $ | 62.97 | |||||||
Cash dividends declared | $ | .54 | $ | .54 | $ | .54 | $ | .54 | |||||||
2017 – High price | $ | 77.08 | $ | 75.92 | $ | 91.19 | $ | 106.10 | |||||||
Low price | $ | 65.33 | $ | 67.60 | $ | 74.16 | $ | 89.38 | |||||||
Cash dividends declared | $ | .57 | $ | .57 | $ | .57 | $ | .57 |
Employee and non-employee director plans | Employee stock purchase plan | Total | |||||||
Exercise of outstanding options | 15,221,123 | — | 15,221,123 | ||||||
Settlement of outstanding restricted stock units | 5,635,197 | — | 5,635,197 | ||||||
Future issuances | 18,445,397 | 2,693,679 | 21,139,076 | ||||||
Total | 39,301,717 | 2,693,679 | 41,995,396 |
Month | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Maximum number of shares that may yet be purchased under the program | |||||||||
October | 297,191 | $ | 94.10 | — | 15,198,779 | ||||||||
November | 179,440 | $ | 97.76 | 15,000 | 15,183,779 | ||||||||
December | 345,219 | $ | 102.78 | — | 15,183,779 | ||||||||
Total | 821,850 | $ | 98.54 | 15,000 |
Item 6. | Selected Financial Data. |
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
(in millions, except per-share data) | |||||||||||||||||||
Net revenues | $ | 3,484 | $ | 3,982 | $ | 4,201 | $ | 4,223 | $ | 4,793 | |||||||||
Net operating income(1) | $ | 1,637 | $ | 1,891 | $ | 1,899 | $ | 1,733 | $ | 2,109 | |||||||||
Net income(1) | $ | 1,048 | $ | 1,230 | $ | 1,223 | $ | 1,254 | $ | 1,581 | |||||||||
Net income attributable to redeemable non-controlling interests(2) | $ | — | $ | — | $ | — | $ | 39 | $ | 83 | |||||||||
Net income attributable to T. Rowe Price Group(1) | $ | 1,048 | $ | 1,230 | $ | 1,223 | $ | 1,215 | $ | 1,498 | |||||||||
Adjusted net income attributable to T. Rowe Price Group(3) | $ | 1,009 | $ | 1,161 | $ | 1,160 | $ | 1,149 | $ | 1,361 | |||||||||
Per common share information | |||||||||||||||||||
Basic earnings | $ | 4.02 | $ | 4.68 | $ | 4.74 | $ | 4.85 | $ | 6.07 | |||||||||
Diluted earnings | $ | 3.90 | $ | 4.55 | $ | 4.63 | $ | 4.75 | $ | 5.97 | |||||||||
Adjusted diluted earnings(3) | $ | 3.76 | $ | 4.29 | $ | 4.39 | $ | 4.49 | $ | 5.43 | |||||||||
Cash dividends declared(4) | $ | 1.52 | $ | 1.76 | $ | 4.08 | $ | 2.16 | $ | 2.28 | |||||||||
Weighted-average common shares outstanding | 258.3 | 259.6 | 254.6 | 245.5 | 241.2 | ||||||||||||||
Weighted-average common shares outstanding assuming dilution | 266.3 | 267.4 | 260.9 | 250.3 | 245.1 |
December 31, | |||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Balance sheet data (in millions) | |||||||||||||||||||
Total assets | $ | 5,033 | $ | 5,644 | $ | 5,107 | $ | 6,225 | $ | 7,535 | |||||||||
Redeemable non-controlling interests | $ | — | $ | — | $ | — | $ | 687 | $ | 993 | |||||||||
Stockholders’ equity | $ | 4,818 | $ | 5,395 | $ | 4,762 | $ | 5,009 | $ | 5,824 | |||||||||
Assets under management (in billions) | $ | 692.4 | $ | 746.8 | $ | 763.1 | $ | 810.8 | $ | 991.1 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
S&P 500 Index | 21.8% |
NASDAQ Composite Index (excluding dividends) | 28.2% |
Russell 2000 Index | 14.7% |
MSCI EAFE (Europe, Australasia, and Far East) Index | 25.6% |
MSCI Emerging Markets Index | 37.8% |
Bloomberg Barclays U.S. Aggregate Bond Index | 3.5% |
JPMorgan Global High Yield Index | 8.3% |
Bloomberg Barclays Municipal Bond Index | 5.5% |
Bloomberg Barclays Global Aggregate Ex-U.S. Dollar Bond Index | 10.5% |
JPMorgan Emerging Markets Bond Index Plus | 8.3% |
Assets under management by investment product (in billions) | 2016 | 2017 | ||||||
T. Rowe Price U.S. mutual funds | $ | 514.2 | $ | 606.3 | ||||
Other investment products | 296.6 | 384.8 | ||||||
Total assets under management | $ | 810.8 | $ | 991.1 |
Assets under management by asset class (in billions) | 2016 | 2017 | ||||||
Equity | $ | 450.6 | $ | 564.1 | ||||
Fixed income | 121.2 | 134.4 | ||||||
Asset allocation | 239.0 | 292.6 | ||||||
Total assets under management | $ | 810.8 | $ | 991.1 |
(in billions) | T. Rowe Price U.S. mutual funds | Other investment products | Total | |||||||||
Assets under management at December 31, 2014 | $ | 477.6 | $ | 269.2 | $ | 746.8 | ||||||
Net cash flows before client transfers | 7.9 | (6.3 | ) | 1.6 | ||||||||
Client transfers | (6.5 | ) | 6.5 | — | ||||||||
Net cash flows after client transfers | 1.4 | .2 | 1.6 | |||||||||
Net market appreciation and income | 9.6 | 6.7 | 16.3 | |||||||||
Distributions not reinvested | (1.5 | ) | (.1 | ) | (1.6 | ) | ||||||
Change during the period | 9.5 | 6.8 | 16.3 | |||||||||
Assets under management at December 31, 2015 | 487.1 | 276 | 763.1 | |||||||||
Net cash flows before client transfers | .3 | (3.1 | ) | (2.8 | ) | |||||||
Client transfers | (4.9 | ) | 4.9 | — | ||||||||
Net cash flows after client transfers | (4.6 | ) | 1.8 | (2.8 | ) | |||||||
Net market appreciation and income | 31.7 | 18.8 | 50.5 | |||||||||
Distributions not reinvested | — | — | — | |||||||||
Change during the period | 27.1 | 20.6 | 47.7 | |||||||||
Assets under management at December 31, 2016 | 514.2 | 296.6 | 810.8 | |||||||||
Net cash flows before client transfers | 9.4 | 4.6 | 14.0 | |||||||||
Client transfers | (20.2 | ) | 20.2 | — | ||||||||
Net cash flows after client transfers | (10.8 | ) | 24.8 | 14.0 | ||||||||
Net market appreciation and income | 104.6 | 63.4 | 168.0 | |||||||||
Distributions not reinvested | (1.7 | ) | — | (1.7 | ) | |||||||
Change during the period | 92.1 | 88.2 | 180.3 | |||||||||
Assets under management at December 31, 2017 | $ | 606.3 | $ | 384.8 | $ | 991.1 |
(in billions) | 2015 | 2016 | 2017 | |||||||||
Net cash flows after client transfers by investment product | ||||||||||||
T. Rowe Price U.S. mutual funds | ||||||||||||
Stock and blended asset funds | $ | 1.5 | $ | (9.9 | ) | $ | (18.9 | ) | ||||
Bond funds | .3 | 4.7 | 6.9 | |||||||||
Money market funds | (.4 | ) | .6 | 1.2 | ||||||||
1.4 | (4.6 | ) | (10.8 | ) | ||||||||
Other investment products | ||||||||||||
Stock and blended assets | (3.8 | ) | (4.9 | ) | 12.1 | |||||||
Fixed income, money market, and stable value | 4.0 | 6.7 | 12.7 | |||||||||
.2 | 1.8 | 24.8 | ||||||||||
Total net cash flows after client transfers | $ | 1.6 | $ | (2.8 | ) | $ | 14.0 | |||||
Net cash flows after client transfers by asset class | ||||||||||||
Stock and blended asset | $ | (2.3 | ) | $ | (14.8 | ) | $ | (6.8 | ) | |||
Bond, money market, and stable value | 3.9 | 12.0 | 20.8 | |||||||||
Total net cash flows | $ | 1.6 | $ | (2.8 | ) | $ | 14.0 |
One year | Three years | Five years | 10 years | |
Outperformed Lipper averages | ||||
All Price Funds | 72% | 84% | 82% | 81% |
Asset allocation | 86% | 97% | 93% | 93% |
Top Lipper quartile | ||||
All Price Funds | 38% | 50% | 55% | 57% |
Asset allocation | 59% | 60% | 82% | 86% |
(in millions, except per-share data) | 2016 | 2017 | Dollar change | Percentage change | |||||||||||
U.S. GAAP basis | |||||||||||||||
Investment advisory fees | $ | 3,728.7 | $ | 4,287.7 | $ | 559.0 | 15.0 | % | |||||||
Net revenues | $ | 4,222.9 | $ | 4,793.0 | $ | 570.1 | 13.5 | % | |||||||
Operating expenses | $ | 2,489.5 | $ | 2,684.2 | $ | 194.7 | 7.8 | % | |||||||
Net operating income | $ | 1,733.4 | $ | 2,108.8 | $ | 375.4 | 21.7 | % | |||||||
Non-operating income | $ | 227.1 | $ | 396.3 | $ | 169.2 | 74.5 | % | |||||||
Net income attributable to T. Rowe Price Group | $ | 1,215.0 | $ | 1,497.8 | $ | 282.8 | 23.3 | % | |||||||
Diluted earnings per share on common stock of T. Rowe Price Group | $ | 4.75 | $ | 5.97 | $ | 1.22 | 25.7 | % | |||||||
Weighted average common shares outstanding assuming dilution | 250.3 | 245.1 | (5.2 | ) | (2.1 | )% | |||||||||
Adjusted non-GAAP basis(1) | |||||||||||||||
Operating expenses | $ | 2,416.8 | $ | 2,715.8 | $ | 299.0 | 12.4 | % | |||||||
Net income attributable to T. Rowe Price Group | $ | 1,148.9 | $ | 1,361.1 | $ | 212.2 | 18.5 | % | |||||||
Diluted earnings per share on common stock of T. Rowe Price Group | $ | 4.49 | $ | 5.43 | $ | .94 | 20.9 | % | |||||||
Assets under management (in billions) | |||||||||||||||
Average assets under management | $ | 778.2 | $ | 909.0 | $ | 130.8 | 16.8 | % | |||||||
Ending assets under management | $ | 810.8 | $ | 991.1 | $ | 180.3 | 22.2 | % |
(in millions) | Pre-tax operating expense | Pre-tax operating cash flow | |||||
2016 | $ | 66.2 | $ | (166.2 | ) | ||
2017 | (50.0 | ) | 150.0 | ||||
Total impact from Dell appraisal rights matter | $ | 16.2 | $ | (16.2 | ) |
2016 | 2017 | Dollar Change | |||||||||
Net investment income on non-consolidated T. Rowe Price investment products | |||||||||||
Net realized gains on dispositions of available-for-sale investments | $ | 53.0 | $ | 83.1 | $ | 30.1 | |||||
Ordinary and capital gain dividend distributions | 16.1 | 22.2 | 6.1 | ||||||||
Dividends and unrealized gains on investment products used to hedge the supplemental savings plan liability | — | 12.3 | 12.3 | ||||||||
Unrealized gains on equity method and other trading investments | 20.8 | 32.5 | 11.7 | ||||||||
Gains reclassified from accumulated other comprehensive income upon transfer of an available-for-sale sponsored investment portfolio to sponsored investment portfolios held as trading | — | 23.6 | 23.6 | ||||||||
Net gain recognized upon deconsolidation | 2.2 | .1 | (2.1 | ) | |||||||
Total investment income from non-consolidated T. Rowe Price investment products | 92.1 | 173.8 | 81.7 | ||||||||
Net investment income on consolidated T. Rowe Price investment products | 121.1 | 193.9 | 72.8 | ||||||||
Other investment income | 15.9 | 24.5 | 8.6 | ||||||||
Other income (expenses), including foreign currency gains and losses | (2.0 | ) | 4.1 | 6.1 | |||||||
Net non-operating income | $ | 227.1 | $ | 396.3 | $ | 169.2 |
(in millions) | 2016 | 2017 | |||||
Operating expenses reflected in net operating income | $ | (13.0 | ) | $ | (12.3 | ) | |
Net investment income reflected in non-operating income | 121.1 | 193.9 | |||||
Impact on income before taxes | $ | 108.1 | $ | 181.6 | |||
Net income attributable to our interest in the consolidated T. Rowe Price investment products | $ | 69.1 | $ | 98.2 | |||
Net income attributable to redeemable non-controlling interests (unrelated third-party investors) | 39.0 | 83.4 | |||||
Impact on income before taxes | $ | 108.1 | $ | 181.6 |
Statutory U.S. federal income tax rate | 35.0 | % | |
Impact of U.S. Tax Reform | 2.9 | % | |
State income taxes for current year, net of federal income tax benefits(1) | 3.9 | % | |
Net income attributable to redeemable non-controlling interests | (1.3 | )% | |
Net excess tax benefits from stock-based compensation plans activity | (3.0 | )% | |
Other items | (.6 | )% | |
Effective income tax rate | 36.9 | % |
(in millions, except per-share data) | 2015 | 2016 | Dollar change | Percentage change | |||||||||||
U.S. GAAP Basis | |||||||||||||||
Investment advisory fees | $ | 3,687.3 | $ | 3,728.7 | $ | 41.4 | 1.1 | % | |||||||
Net revenues | $ | 4,200.6 | $ | 4,222.9 | $ | 22.3 | .5 | % | |||||||
Operating expenses | $ | 2,301.7 | $ | 2,489.5 | $ | 187.8 | 8.2 | % | |||||||
Net operating income | $ | 1,898.9 | $ | 1,733.4 | $ | (165.5 | ) | (8.7 | )% | ||||||
Non-operating income(1) | $ | 103.5 | $ | 227.1 | $ | 123.6 | n/m | ||||||||
Net income attributable to T. Rowe Price Group | $ | 1,223.0 | $ | 1,215.0 | $ | (8.0 | ) | (.7 | )% | ||||||
Diluted earnings per common share | $ | 4.63 | $ | 4.75 | $ | .12 | 2.6 | % | |||||||
Weighted average common shares outstanding assuming dilution | 260.9 | 250.3 | (10.6 | ) | (4.1 | )% | |||||||||
Adjusted(2) | |||||||||||||||
Operating expenses | $ | 2,301.7 | $ | 2,416.8 | $ | 115.1 | 5.0 | % | |||||||
Net income attributable to T. Rowe Price Group | $ | 1,160.3 | $ | 1,148.9 | $ | (11.4 | ) | (1.0 | )% | ||||||
Diluted earnings per common share | $ | 4.39 | $ | 4.49 | $ | .10 | 2.3 | % | |||||||
Assets under management (in billions) | |||||||||||||||
Average assets under management | $ | 767.9 | $ | 778.2 | $ | 10.3 | 1.3 | % | |||||||
Ending assets under management | $ | 763.1 | $ | 810.8 | $ | 47.7 | 6.3 | % |
Operating expenses reflected in net operating income | $ | (13.0 | ) |
Net investment income reflected in non-operating income | 121.1 | ||
Impact on income before taxes | $ | 108.1 | |
Net income attributable to our interest in the consolidated T. Rowe Price investment products | $ | 69.1 | |
Net income attributable to redeemable non-controlling interests (unrelated third-party investors) | 39.0 | ||
Impact on income before taxes | $ | 108.1 |
2015 | 2016 | Dollar Change | |||||||||
Net investment income on non-consolidated T. Rowe Price investment products | |||||||||||
Net realized gains on dispositions of available-for-sale investments | $ | 56.5 | $ | 53.0 | $ | (3.5 | ) | ||||
Ordinary and capital gain dividend distributions | 39.7 | 16.1 | (23.6 | ) | |||||||
Other-than-temporary impairment | (4.8 | ) | — | 4.8 | |||||||
Unrealized gains (losses) on equity method and other trading investments | (2.6 | ) | 20.8 | 23.4 | |||||||
Net gain (losses) recognized upon deconsolidation | (5.8 | ) | 2.2 | 8.0 | |||||||
Total investment income from non-consolidated T. Rowe Price investment products | 83.0 | 92.1 | 9.1 | ||||||||
Net investment income on consolidated T. Rowe Price investment products | 1.5 | 121.1 | 119.6 | ||||||||
Other investment income | 22.3 | 15.9 | (6.4 | ) | |||||||
Other expenses, including foreign currency gains and losses | (3.3 | ) | (2.0 | ) | 1.3 | ||||||
Net non-operating income | $ | 103.5 | $ | 227.1 | $ | 123.6 |
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Operating expenses, GAAP basis | $ | 1,846.8 | $ | 2,091.2 | $ | 2,301.7 | $ | 2,489.5 | $ | 2,684.2 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Expenses of consolidated T. Rowe Price investment products, net of elimination of its related management fee(1) | — | — | — | (6.5 | ) | (6.7 | ) | ||||||||||||
Compensation expense related to market valuation changes in supplemental savings plan liability(2) | — | — | — | — | (11.7 | ) | |||||||||||||
Insurance recoveries (nonrecurring charge) related to Dell appraisal rights matter(4) | — | — | — | (66.2 | ) | 50.0 | |||||||||||||
Adjusted operating expenses | $ | 1,846.8 | $ | 2,091.2 | $ | 2,301.7 | $ | 2,416.8 | $ | 2,715.8 | |||||||||
Net income attributable to T. Rowe Price Group, GAAP basis | $ | 1,047.7 | $ | 1,229.6 | $ | 1,223.0 | $ | 1,215.0 | $ | 1,497.8 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Net income of consolidated T. Rowe Price investment products, net of redeemable non-controlling interests(1) | (4.5 | ) | — | (1.5 | ) | (69.1 | ) | (98.2 | ) | ||||||||||
Non-operating income of investments designated as an economic hedge of supplemental savings plan liability less related compensation expense(2) | — | — | — | — | (.6 | ) | |||||||||||||
Non-operating income, excluding impacts of consolidated T. Rowe Price investment products and investments designated as an economic hedge of supplemental savings plan liability(3) | (58.5 | ) | (112.2 | ) | (102.0 | ) | (106.0 | ) | (190.1 | ) | |||||||||
Nonrecurring charge (insurance recoveries) related to Dell appraisal rights matter(4) | — | — | — | 66.2 | (50.0 | ) | |||||||||||||
Income tax impacts of non-GAAP adjustments before tax reform(5) | 24.5 | 43.9 | 40.8 | 42.8 | 131.1 | ||||||||||||||
Impact of U.S. tax reform(6) | — | — | — | — | 71.1 | ||||||||||||||
Adjusted net income attributable to T. Rowe Price Group | $ | 1,009.2 | $ | 1,161.3 | $ | 1,160.3 | $ | 1,148.9 | $ | 1,361.1 | |||||||||
Diluted earnings per common share, GAAP basis | $ | 3.90 | $ | 4.55 | $ | 4.63 | $ | 4.75 | $ | 5.97 | |||||||||
Non-GAAP adjustments: | |||||||||||||||||||
Consolidated T. Rowe Price investment products(1) | (.01 | ) | — | (.01 | ) | (.16 | ) | (.24 | ) | ||||||||||
Non-operating income, excluding impacts of consolidated T. Rowe Price investment products and investments designated as an economic hedge of supplemental savings plan liability(3) | (.13 | ) | (.26 | ) | (.23 | ) | (.25 | ) | (.46 | ) | |||||||||
Nonrecurring charge (insurance recoveries) related to Dell appraisal rights matter(4) | — | — | — | .15 | (.12 | ) | |||||||||||||
Impact of U.S. tax reform(6) | — | — | — | — | .28 | ||||||||||||||
Adjusted diluted earnings per common share(7) | $ | 3.76 | $ | 4.29 | $ | 4.39 | $ | 4.49 | $ | 5.43 |
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Net investment income | $ | 4.5 | $ | — | $ | 1.5 | $ | 121.1 | $ | 193.9 | |||||||||
Operating expenses | — | — | — | (13.0 | ) | (12.3 | ) | ||||||||||||
Net income | 4.5 | — | 1.5 | 108.1 | 181.6 | ||||||||||||||
Less: net income attributable to redeemable non-controlling interests | — | — | — | 39.0 | 83.4 | ||||||||||||||
T. Rowe Price Group's portion of net income | $ | 4.5 | $ | — | $ | 1.5 | $ | 69.1 | $ | 98.2 |
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Non-operating income of investments designated as an economic hedge of supplemental savings plan liability | $ | — | $ | — | $ | — | $ | — | $ | 12.3 | |||||||||
Compensation expense from market valuation changes in supplemental savings plan liability | — | — | — | — | (11.7 | ) | |||||||||||||
Non-operating income of investments designated as an economic hedge of supplemental savings plan liability less compensation expense | $ | — | $ | — | $ | — | $ | — | $ | .6 |
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
Total non-operating income | $ | 63.0 | $ | 112.2 | $ | 103.5 | $ | 227.1 | $ | 396.3 | |||||||||
Less: net investment income of consolidated T. Rowe Price investment products | 4.5 | — | 1.5 | 121.1 | 193.9 | ||||||||||||||
Less: non-operating income from investments designated as an economic hedge of supplemental savings plan liability | — | — | — | — | 12.3 | ||||||||||||||
Total other non-operating income | $ | 58.5 | $ | 112.2 | $ | 102.0 | $ | 106.0 | $ | 190.1 |
(in millions) | Recurring dividend | Special dividend | Stock repurchases | Total cash returned to stockholders | |||||||||||
2015 | $ | 534.5 | $ | 524.5 | $ | 987.8 | $ | 2,046.8 | |||||||
2016 | 541.2 | — | 676.9 | 1,218.1 | |||||||||||
2017 | 562.6 | — | 458.1 | 1,020.7 | |||||||||||
Total | $ | 1,638.3 | $ | 524.5 | $ | 2,122.8 | $ | 4,285.6 |
(in millions) | 2016 | 2017 | ||||||
Cash and cash equivalents | $ | 1,204.9 | $ | 1,902.7 | ||||
Discretionary investments | 700.6 | 780.3 | ||||||
Total cash and discretionary investments | 1,905.5 | 2,683.0 | ||||||
Redeemable seed capital investments | 1,263.8 | 1,188.9 | ||||||
Investments used to hedge the supplemental savings plan liability | — | 268.2 | ||||||
Total cash and investments in T. Rowe Price products | $ | 3,169.3 | $ | 4,140.1 |
Interest Held by T. Rowe Price Group | |||||||||||||||||||||||||||||||
(in millions) | Cash and discretionary investments in T. Rowe Price products | Redeemable seed capital investments in T. Rowe Price products | Investments in T. Rowe Price products used to hedge supplemental savings plan | Total cash and investments in T. Rowe Price products | Investment in UTI and other investments | Total | Redeemable non-controlling interests | As reported on consolidated balance sheet 12/31/2017 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,902.7 | $ | — | $ | — | $ | 1,902.7 | $ | — | $ | 1,902.7 | $ | — | $ | 1,902.7 | |||||||||||||||
Investments | 669.7 | 299.8 | 268.2 | 1,237.7 | 239.6 | 1,477.3 | — | 1,477.3 | |||||||||||||||||||||||
Net assets of consolidated T. Rowe Price investment products | 110.6 | 889.1 | — | 999.7 | — | 999.7 | 992.8 | 1,992.5 | |||||||||||||||||||||||
$ | 2,683.0 | $ | 1,188.9 | $ | 268.2 | $ | 4,140.1 | $ | 239.6 | $ | 4,379.7 | $ | 992.8 | $ | 5,372.5 |
2016 | 2017 | ||||||||||||||||||||||||||||||
Cash flow attributable to T. Rowe Price Group | Cash flow attributable to consolidated T. Rowe Price investment products | Eliminations | As reported | Cash flow attributable to T. Rowe Price Group | Cash flow attributable to consolidated T. Rowe Price investment products | Eliminations | As reported | ||||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Net income | $ | 1,215.0 | $ | 108.1 | $ | (69.1 | ) | $ | 1,254.0 | $ | 1,497.8 | $ | 181.6 | $ | (98.2 | ) | $ | 1,581.2 | |||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | 133.4 | — | — | 133.4 | 143.6 | — | — | 143.6 | |||||||||||||||||||||||
Stock-based compensation expense | 161.6 | — | — | 161.6 | 152.0 | — | — | 152.0 | |||||||||||||||||||||||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products | (53.0 | ) | — | — | (53.0 | ) | (83.1 | ) | — | — | (83.1 | ) | |||||||||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | — | — | — | — | (23.6 | ) | — | — | (23.6 | ) | |||||||||||||||||||||
Net gains recognized on investments | (100.1 | ) | — | 69.1 | (31.0 | ) | (147.9 | ) | — | 98.2 | (49.7 | ) | |||||||||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | — | — | — | — | (218.6 | ) | — | — | (218.6 | ) | |||||||||||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | — | (1,297.9 | ) | — | (1,297.9 | ) | — | (1,492.9 | ) | — | (1,492.9 | ) | |||||||||||||||||||
Changes in accounts receivable and accrued revenue | (9.3 | ) | — | — | (9.3 | ) | (100.8 | ) | — | — | (100.8 | ) | |||||||||||||||||||
Changes in payables and accrued liabilities | 101.5 | 37.1 | — | 138.6 | 169.1 | 154.3 | — | 323.4 | |||||||||||||||||||||||
Other changes in assets and liabilities | (105.4 | ) | (13.9 | ) | (6.6 | ) | (125.9 | ) | 163.3 | (158.3 | ) | (7.0 | ) | (2.0 | ) | ||||||||||||||||
Net cash provided by (used in) operating activities | 1,343.7 | (1,166.6 | ) | (6.6 | ) | 170.5 | 1,551.8 | (1,315.3 | ) | (7.0 | ) | 229.5 | |||||||||||||||||||
Net cash provided by (used in) investing activities | (219.7 | ) | 41.4 | 284.5 | 106.2 | (33.9 | ) | (64.2 | ) | 137.1 | 39.0 | ||||||||||||||||||||
Net cash used in financing activities attributable to T. Rowe Price Group | (1,091.4 | ) | — | — | (1,091.4 | ) | (820.1 | ) | — | — | (820.1 | ) | |||||||||||||||||||
Net subscriptions received from redeemable non-controlling interest holders | — | 1,192.9 | (277.9 | ) | 915.0 | — | 1,411.7 | (130.1 | ) | 1,281.6 | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (1,091.4 | ) | 1,192.9 | (277.9 | ) | (176.4 | ) | (820.1 | ) | 1,411.7 | (130.1 | ) | 461.5 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | — | (2.1 | ) | — | (2.1 | ) | — | 5.3 | — | 5.3 | |||||||||||||||||||||
Net change in cash and cash equivalents during period | 32.6 | 65.6 | — | 98.2 | 697.8 | 37.5 | — | 735.3 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 1,172.3 | — | — | 1,172.3 | 1,204.9 | 65.6 | — | 1,270.5 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,204.9 | $ | 65.6 | $ | — | $ | 1,270.5 | $ | 1,902.7 | $ | 103.1 | $ | — | $ | 2,005.8 |
Total | 2018 | 2019-2020 | 2021-2022 | Later | |||||||||||||||
Noncancelable operating leases | $ | 263 | $ | 38 | $ | 70 | $ | 54 | $ | 101 | |||||||||
Other purchase commitments | 252 | 212 | 35 | 4 | 1 | ||||||||||||||
Total | $ | 515 | $ | 250 | $ | 105 | $ | 58 | $ | 102 |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. |
(in millions) | Fair value 12/31/2017 | Potential lower value | Potential loss | |||||||||||
Investments—available-for-sale | $ | 597.1 | $ | 531.1 | $ | 66.0 | 11 | % | ||||||
Investments—trading | $ | 363.2 | $ | 311.7 | $ | 51.5 | 14 | % | ||||||
Direct investment in consolidated T. Rowe Price investment products | $ | 999.7 | $ | 844.3 | $ | 155.4 | 16 | % |
Item 8. | Financial Statements and Supplementary Data. |
Page | |
Index to Financial Statements: | |
Consolidated Balance Sheets at December 31, 2016 and 2017 | |
Consolidated Statements of Income for each of the years in the three-year period ended December 31, 2017 | |
Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 2017 | |
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2017 | |
Consolidated Statements of Stockholders' Equity for each of the years in the three-year period ended December 31, 2017 | |
12/31/2016 | 12/31/2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 1,204.9 | $ | 1,902.7 | |||
Accounts receivable and accrued revenue | 455.1 | 556.7 | |||||
Investments | 1,257.5 | 1,477.3 | |||||
Assets of consolidated T. Rowe Price investment products ($1,446.1 million at December 31, 2016, and $1,839.6 million at December 31, 2017, related to variable interest entities) | 1,680.5 | 2,048.4 | |||||
Property and equipment, net | 615.1 | 652.0 | |||||
Goodwill | 665.7 | 665.7 | |||||
Other assets | 346.2 | 231.9 | |||||
Total assets | $ | 6,225.0 | $ | 7,534.7 | |||
LIABILITIES | |||||||
Accounts payable and accrued expenses | $ | 180.8 | $ | 215.5 | |||
Liabilities of consolidated T. Rowe Price investment products ($56.8 million at December 31, 2016, and $39.5 million at December 31, 2017, related to variable interest entities) | 65.6 | 55.9 | |||||
Accrued compensation and related costs | 92.6 | 108.5 | |||||
Supplemental savings plan liability | 150.9 | 269.3 | |||||
Income taxes payable | 39.3 | 68.3 | |||||
Total liabilities | 529.2 | 717.5 | |||||
Commitments and contingent liabilities | |||||||
Redeemable non-controlling interests | 687.2 | 992.8 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, undesignated, $.20 par value— authorized and unissued 20,000,000 shares | — | — | |||||
Common stock, $.20 par value—authorized 750,000,000; issued 244,784,000 shares at December 31, 2016, and 245,111,000 at December 31, 2017 | 49.0 | 49.0 | |||||
Additional capital in excess of par value | 654.5 | 846.1 | |||||
Retained earnings | 4,293.6 | 4,932.9 | |||||
Accumulated other comprehensive income (loss) | 11.5 | (3.6 | ) | ||||
Total permanent stockholders' equity | 5,008.6 | 5,824.4 | |||||
Total liabilities, redeemable non-controlling interests and permanent stockholders’ equity | $ | 6,225.0 | $ | 7,534.7 |
2015 | 2016 | 2017 | |||||||||
Revenues | |||||||||||
Investment advisory fees | $ | 3,687.3 | $ | 3,728.7 | $ | 4,287.7 | |||||
Administrative fees | 361.8 | 352.5 | 358.3 | ||||||||
Distribution and servicing fees | 151.5 | 141.7 | 147.0 | ||||||||
Net revenues | 4,200.6 | 4,222.9 | 4,793.0 | ||||||||
Operating expenses | |||||||||||
Compensation and related costs | 1,443.6 | 1,494.0 | 1,664.9 | ||||||||
Advertising and promotion | 79.7 | 79.9 | 92.0 | ||||||||
Distribution and servicing costs | 151.5 | 141.7 | 147.0 | ||||||||
Depreciation and amortization of property and equipment | 126.3 | 133.4 | 143.6 | ||||||||
Occupancy and facility costs | 159.2 | 172.8 | 194.9 | ||||||||
Other operating expenses | 341.4 | 401.5 | 491.8 | ||||||||
Nonrecurring charge (insurance recoveries) related to Dell appraisal rights matter | — | 66.2 | (50.0 | ) | |||||||
Total operating expenses | 2,301.7 | 2,489.5 | 2,684.2 | ||||||||
Net operating income | 1,898.9 | 1,733.4 | 2,108.8 | ||||||||
Non-operating income | |||||||||||
Net investment income on investments not consolidated | 105.3 | 108.0 | 198.3 | ||||||||
Net investment income on consolidated T. Rowe Price investment products | 1.5 | 121.1 | 193.9 | ||||||||
Other income (expense) | (3.3 | ) | (2.0 | ) | 4.1 | ||||||
Total non-operating income | 103.5 | 227.1 | 396.3 | ||||||||
Income before income taxes | 2,002.4 | 1,960.5 | 2,505.1 | ||||||||
Provision for income taxes | 779.4 | 706.5 | 923.9 | ||||||||
Net income | $ | 1,223.0 | $ | 1,254.0 | $ | 1,581.2 | |||||
Less: net income attributable to redeemable non-controlling interests | — | 39.0 | 83.4 | ||||||||
Net income attributable to T. Rowe Price Group | $ | 1,223.0 | $ | 1,215.0 | $ | 1,497.8 | |||||
Earnings per share on common stock of T. Rowe Price Group | |||||||||||
Basic | $ | 4.74 | $ | 4.85 | $ | 6.07 | |||||
Diluted | $ | 4.63 | $ | 4.75 | $ | 5.97 |
2015 | 2016 | 2017 | |||||||||
Net income | $ | 1,223.0 | $ | 1,254.0 | $ | 1,581.2 | |||||
Other comprehensive income (loss) | |||||||||||
Net unrealized holding gains (losses) on available-for-sale investments | (4.5 | ) | (1.0 | ) | 37.4 | ||||||
Reclassification of (gains) and losses in accumulated other comprehensive income to non-operating investment income: | |||||||||||
Capital gain distributions | (20.8 | ) | (6.0 | ) | (3.5 | ) | |||||
Net gains realized on dispositions determined using average cost | (56.5 | ) | (53.0 | ) | (83.1 | ) | |||||
Net unrealized gains recognized upon the transfer to trading investments | — | — | (23.6 | ) | |||||||
Other-than-temporary impairments | 4.8 | — | — | ||||||||
Total reclassification adjustments | (72.5 | ) | (59.0 | ) | (110.2 | ) | |||||
Total net unrealized holding losses recognized in other comprehensive income | (77.0 | ) | (60.0 | ) | (72.8 | ) | |||||
Currency translation adjustments | |||||||||||
Consolidated T. Rowe Price investment products—variable interest entities | (4.9 | ) | (9.5 | ) | 66.4 | ||||||
Reclassification losses (gains) recognized in non-operating investment income upon deconsolidation of certain T. Rowe Price investment products | 5.8 | (2.2 | ) | (.1 | ) | ||||||
Total currency translation adjustments of consolidated T. Rowe Price investment products—variable interest entities | .9 | (11.7 | ) | 66.3 | |||||||
Equity method investments | (8.1 | ) | (1.6 | ) | 2.6 | ||||||
Total currency translation adjustments | (7.2 | ) | (13.3 | ) | 68.9 | ||||||
Other comprehensive loss before income taxes | (84.2 | ) | (73.3 | ) | (3.9 | ) | |||||
Net deferred tax benefits | 34.4 | 28.2 | 10.0 | ||||||||
Total other comprehensive income (loss) | (49.8 | ) | (45.1 | ) | 6.1 | ||||||
Total comprehensive income | 1,173.2 | 1,208.9 | 1,587.3 | ||||||||
Less: comprehensive income attributable to redeemable non-controlling interests | — | 36.5 | 104.6 | ||||||||
Comprehensive income attributable to T. Rowe Price Group | $ | 1,173.2 | $ | 1,172.4 | $ | 1,482.7 |
2015 | 2016 | 2017 | |||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 1,223.0 | $ | 1,254.0 | $ | 1,581.2 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||
Depreciation and amortization of property and equipment | 126.3 | 133.4 | 143.6 | ||||||||
Stock-based compensation expense | 149.0 | 161.6 | 152.0 | ||||||||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products | (56.5 | ) | (53.0 | ) | (83.1 | ) | |||||
Gains recognized upon transfer of an investment in a T. Rowe Price mutual fund from available-for-sale to held as trading | — | — | (23.6 | ) | |||||||
Net gains recognized on other investments | (5.9 | ) | (31.0 | ) | (49.7 | ) | |||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | — | — | (218.6 | ) | |||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | (7.5 | ) | (1,297.9 | ) | (1,492.9 | ) | |||||
Changes in accounts receivable and accrued revenue | (3.2 | ) | (9.3 | ) | (100.8 | ) | |||||
Changes in payables and accrued liabilities | 98.2 | 138.6 | 323.4 | ||||||||
Other changes in assets and liabilities | 7.1 | (125.9 | ) | (2.0 | ) | ||||||
Net cash provided by (used in) operating activities | 1,530.5 | 170.5 | 229.5 | ||||||||
Cash flows from investing activities | |||||||||||
Purchases of available-for-sale T. Rowe Price investment products | (164.8 | ) | (.1 | ) | (16.9 | ) | |||||
Dispositions of available-for-sale T. Rowe Price investment products | 434.5 | 133.7 | 334.7 | ||||||||
Net cash of T. Rowe Price investment products on consolidation (deconsolidation) | — | 41.4 | (64.2 | ) | |||||||
Additions to property and equipment | (151.3 | ) | (148.3 | ) | (186.1 | ) | |||||
Other investing activity | (9.4 | ) | 79.5 | (28.5 | ) | ||||||
Net cash provided by (used in) investing activities | 109.0 | 106.2 | 39.0 | ||||||||
Cash flows from financing activities | |||||||||||
Repurchases of common stock | (987.8 | ) | (676.9 | ) | (458.1 | ) | |||||
Common share issuances under stock-based compensation plans | 73.5 | 126.3 | 201.1 | ||||||||
Dividends paid to common stock and equity-award holders | (1,059.0 | ) | (540.8 | ) | (563.1 | ) | |||||
Net subscriptions received from redeemable non-controlling interest holders | — | 915.0 | 1,281.6 | ||||||||
Net cash (used in) provided by financing activities | (1,973.3 | ) | (176.4 | ) | 461.5 | ||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | — | (2.1 | ) | 5.3 | |||||||
Net change in cash and cash equivalents during period | (333.8 | ) | 98.2 | 735.3 | |||||||
Cash and cash equivalents at beginning of year | 1,506.1 | 1,172.3 | 1,270.5 | ||||||||
Cash and cash equivalents at end of period, including $65.6 million at December 31, 2016, and $103.1 million at December 31, 2017, held by consolidated T. Rowe Price investment products | $ | 1,172.3 | $ | 1,270.5 | $ | 2,005.8 |
Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | Accumulated other comprehensive income (loss) | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balances at December 31, 2014 | 261,110 | $ | 52.2 | $ | 756.5 | $ | 4,450.1 | $ | 136.4 | $ | 5,395.2 | $ | — | |||||||||||||
Net income | — | — | — | 1,223.0 | — | 1,223.0 | — | |||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (49.8 | ) | (49.8 | ) | — | |||||||||||||||||
Dividends declared | — | — | — | (1,059.0 | ) | — | (1,059.0 | ) | — | |||||||||||||||||
Common stock-based compensation plans activity | ||||||||||||||||||||||||||
Shares issued upon option exercises | 2,471 | .5 | 84.0 | — | — | 84.5 | — | |||||||||||||||||||
Restricted shares issued, net of shares withheld for taxes | (180 | ) | — | (14.3 | ) | — | — | (14.3 | ) | — | ||||||||||||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 236 | — | (2.0 | ) | — | — | (2.0 | ) | — | |||||||||||||||||
Forfeiture of restricted awards | (59 | ) | — | — | — | — | — | — | ||||||||||||||||||
Net tax benefits | — | — | 23.2 | — | — | 23.2 | — | |||||||||||||||||||
Stock-based compensation expense | — | — | 149.0 | — | — | 149.0 | — | |||||||||||||||||||
Restricted stock units issued as dividend equivalents | — | — | .2 | (.2 | ) | — | — | — | ||||||||||||||||||
Common shares repurchased | (13,109 | ) | (2.6 | ) | (342.0 | ) | (643.2 | ) | — | (987.8 | ) | — | ||||||||||||||
Balances at December 31, 2015 | 250,469 | 50.1 | 654.6 | 3,970.7 | 86.6 | 4,762.0 | — | |||||||||||||||||||
Reclassification of T. Rowe Price investment products upon adoption of new accounting guidance on January 1, 2016 | — | — | — | 32.5 | (32.5 | ) | — | 672.7 | ||||||||||||||||||
Cumulative effect adjustment upon adoption of new stock-based compensation guidance on January 1, 2016 | — | — | 12.9 | (9.0 | ) | — | 3.9 | — | ||||||||||||||||||
Balances at January 1, 2016 | 250,469 | 50.1 | 667.5 | 3,994.2 | 54.1 | 4,765.9 | 672.7 | |||||||||||||||||||
Net income | — | — | — | 1,215.0 | — | 1,215.0 | 39.0 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (42.6 | ) | (42.6 | ) | (2.5 | ) | ||||||||||||||||
Dividends declared | — | — | — | (541.2 | ) | — | (541.2 | ) | — | |||||||||||||||||
Common stock-based compensation plans activity | ||||||||||||||||||||||||||
Shares issued upon option exercises | 4,140 | .8 | 148.7 | — | — | 149.5 | — | |||||||||||||||||||
Restricted shares issued, net of shares withheld for taxes | (178 | ) | — | (14.0 | ) | — | — | (14.0 | ) | — | ||||||||||||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 409 | .1 | (8.8 | ) | — | — | (8.7 | ) | — | |||||||||||||||||
Forfeiture of restricted awards | (61 | ) | — | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation expense | — | — | 161.6 | — | — | 161.6 | — | |||||||||||||||||||
Restricted stock units issued as dividend equivalents | — | — | .1 | (.1 | ) | — | — | — | ||||||||||||||||||
Common shares repurchased | (9,995 | ) | (2.0 | ) | (300.6 | ) | (374.3 | ) | — | (676.9 | ) | — | ||||||||||||||
Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | 945.3 | |||||||||||||||||||
Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | (967.3 | ) | ||||||||||||||||||
Balances at December 31, 2016 | 244,784 | $ | 49.0 | $ | 654.5 | $ | 4,293.6 | $ | 11.5 | $ | 5,008.6 | $ | 687.2 |
Common shares outstanding | Common stock | Additional capital in excess of par value | Retained earnings | Accumulated other comprehensive income (loss) | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balances at December 31, 2016 | 244,784 | $ | 49.0 | $ | 654.5 | $ | 4,293.6 | $ | 11.5 | $ | 5,008.6 | $ | 687.2 | |||||||||||||
Net income | — | — | — | 1,497.8 | — | 1,497.8 | 83.4 | |||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | (15.1 | ) | (15.1 | ) | 21.2 | |||||||||||||||||
Dividends declared | — | — | — | (562.6 | ) | — | (562.6 | ) | — | |||||||||||||||||
Common stock-based compensation plans activity | ||||||||||||||||||||||||||
Shares issued upon option exercises | 6,339 | 1.2 | 251.0 | — | — | 252.2 | — | |||||||||||||||||||
Restricted shares withheld for taxes, net of shares issued | (170 | ) | — | (19.2 | ) | — | — | (19.2 | ) | — | ||||||||||||||||
Shares issued upon vesting of restricted stock units, net of shares withheld for taxes | 789 | .1 | (31.3 | ) | — | — | (31.2 | ) | — | |||||||||||||||||
Forfeiture of restricted awards | (19 | ) | — | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation expense | — | — | 152.0 | — | — | 152.0 | — | |||||||||||||||||||
Restricted stock units issued as dividend equivalents | — | — | .2 | (.2 | ) | — | — | — | ||||||||||||||||||
Common shares repurchased | (6,612 | ) | (1.3 | ) | (161.1 | ) | (295.7 | ) | — | (458.1 | ) | — | ||||||||||||||
Net subscriptions into T. Rowe Price investment products | — | — | — | — | — | — | 1,243.7 | |||||||||||||||||||
Net deconsolidations of T. Rowe Price investment products | — | — | — | — | — | — | (1,042.7 | ) | ||||||||||||||||||
Balances at December 31, 2017 | 245,111 | $ | 49.0 | $ | 846.1 | $ | 4,932.9 | $ | (3.6 | ) | $ | 5,824.4 | $ | 992.8 |
Weighted-average | |||||||
2015 | 2016 | ||||||
Grant-date fair value per option awarded | $ | 17.35 | $ | 10.62 | |||
Assumptions used: | |||||||
Expected life in years | 7.0 | 6.8 | |||||
Expected volatility | 27 | % | 20 | % | |||
Dividend yield | 2.4 | % | 2.5 | % | |||
Risk-free interest rate | 1.9 | % | 1.6 | % |
NOTE 1 | – CASH EQUIVALENTS. |
NOTE 2 | – INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. |
(in millions) | 2015 | 2016 | 2017 | ||||||||
T. Rowe Price U.S. mutual funds | |||||||||||
Stock and blended asset | $ | 2,241.9 | $ | 2,228.1 | $ | 2,570.9 | |||||
Bond and money market | 426.0 | 477.3 | 501.0 | ||||||||
2,667.9 | 2,705.4 | 3,071.9 | |||||||||
Other investment products | |||||||||||
Stock and blended asset | 862.2 | 850.3 | 1,009.4 | ||||||||
Bond, money market, and stable value | 157.2 | 173.0 | 206.4 | ||||||||
1,019.4 | 1,023.3 | 1,215.8 | |||||||||
Total | $ | 3,687.3 | $ | 3,728.7 | $ | 4,287.7 |
(in billions) | Average during | As of December 31, | |||||||||||||||||
2015 | 2016 | 2017 | 2016 | 2017 | |||||||||||||||
T. Rowe Price U.S. mutual funds | |||||||||||||||||||
Stock and blended asset | $ | 387.8 | $ | 386.1 | $ | 447.5 | $ | 401.3 | $ | 480.5 | |||||||||
Bond and money market | 105.8 | 109.4 | 121.0 | 112.9 | 125.8 | ||||||||||||||
493.6 | 495.5 | 568.5 | 514.2 | 606.3 | |||||||||||||||
Other investment products | |||||||||||||||||||
Stock and blended asset | 210.3 | 211.1 | 256.4 | 220.8 | 291.9 | ||||||||||||||
Bond, money market, and stable value | 64.0 | 71.6 | 84.1 | 75.8 | 92.9 | ||||||||||||||
274.3 | 282.7 | 340.5 | 296.6 | 384.8 | |||||||||||||||
Total | $ | 767.9 | $ | 778.2 | $ | 909.0 | $ | 810.8 | $ | 991.1 |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Administrative fees | $ | 292.8 | $ | 277.3 | $ | 283.1 | |||||
Distribution and servicing fees | $ | 151.5 | $ | 141.7 | $ | 147.0 |
(in millions) | 2016 | 2017 | |||||
T. Rowe Price investment products held as available-for-sale | $ | 709.0 | $ | 597.1 | |||
Equity method investments | |||||||
T. Rowe Price investment products | 252.3 | 277.4 | |||||
26% interest in UTI Asset Management Company Limited (India) | 140.9 | 155.8 | |||||
Investment partnerships | 5.3 | 4.8 | |||||
Trading investments | |||||||
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability | — | 268.2 | |||||
T. Rowe Price investment products | 75.4 | 95.0 | |||||
Cost method investments | 73.6 | 78.0 | |||||
U.S. Treasury note | 1.0 | 1.0 | |||||
Total | $ | 1,257.5 | $ | 1,477.3 |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Net increase (decrease) in assets of consolidated T. Rowe Price investment products | $ | (20.3 | ) | $ | (1,342.8 | ) | $ | (1,397.2 | ) | ||
Net increase (decrease) in liabilities of consolidated T. Rowe Price investment products | $ | — | $ | (37.3 | ) | $ | (153.1 | ) | |||
Net increase (decrease) in redeemable non-controlling interests | $ | — | $ | (967.3 | ) | $ | (1,042.6 | ) | |||
Gains (losses) recognized upon deconsolidation | $ | (5.8 | ) | $ | 2.2 | $ | .1 |
Aggregate cost | Unrealized holding | Aggregate fair value | |||||||||||||
(in millions) | gains | losses | |||||||||||||
December 31, 2016 | |||||||||||||||
Stock and blended asset funds | $ | 162.9 | $ | 88.0 | $ | (1.9 | ) | $ | 249.0 | ||||||
Bond funds | 463.3 | 1.7 | (5.0 | ) | 460.0 | ||||||||||
Total | $ | 626.2 | $ | 89.7 | $ | (6.9 | ) | $ | 709.0 | ||||||
December 31, 2017 | |||||||||||||||
Stock and blended asset funds | $ | 106.7 | $ | 14.1 | $ | — | $ | 120.8 | |||||||
Bond funds | 480.5 | .3 | (4.5 | ) | 476.3 | ||||||||||
Total | $ | 587.2 | $ | 14.4 | $ | (4.5 | ) | $ | 597.1 |
(in millions) | Number of holdings | Unrealized holding losses | Aggregate fair value | |||||||
December 31, 2016 | ||||||||||
Less than 12 months | 8 | $ | (4.2 | ) | $ | 328.1 | ||||
12 months or more | 2 | (2.7 | ) | 169.5 | ||||||
Total | 10 | $ | (6.9 | ) | $ | 497.6 | ||||
December 31, 2017 | ||||||||||
Less than 12 months | 2 | $ | (.4 | ) | $ | 213.2 | ||||
12 months or more | 2 | (4.1 | ) | 191.5 | ||||||
Total | 4 | $ | (4.5 | ) | $ | 404.7 |
(in millions) | 2016 | 2017 | |||||
Investment carrying values | $ | 149.2 | $ | 129.2 | |||
Unfunded capital commitments | 46.4 | 38.8 | |||||
Uncollected investment advisory and administrative fees | 5.9 | 7.7 | |||||
$ | 201.5 | $ | 175.7 |
(in millions) | Level 1 | Level 2 | |||||
December 31, 2016 | |||||||
Cash equivalents | $ | 1,052.3 | $ | — | |||
T. Rowe Price investment products held as available-for-sale | 709.0 | — | |||||
T. Rowe Price investment products held as trading | 60.3 | 15.1 | |||||
Total | $ | 1,821.6 | $ | 15.1 | |||
December 31, 2017 | |||||||
Cash equivalents | $ | 1,726.4 | $ | — | |||
T. Rowe Price investment products held as available-for-sale | 597.1 | — | |||||
T. Rowe Price investment products held as trading | 345.8 | 17.4 | |||||
Total | $ | 2,669.3 | $ | 17.4 |
December 31, 2016 | December 31, 2017 | ||||||||||||||||||||||
(in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||
Cash and cash equivalents(1) | $ | 10.3 | $ | 55.3 | $ | 65.6 | $ | 7.1 | $ | 96.0 | $ | 103.1 | |||||||||||
Investments(2) | 219.3 | 1,340.6 | 1,559.9 | 188.8 | 1,725.7 | 1,914.5 | |||||||||||||||||
Other assets | 4.8 | 50.2 | 55.0 | 12.9 | 17.9 | 30.8 | |||||||||||||||||
Total assets | 234.4 | 1,446.1 | 1,680.5 | 208.8 | 1,839.6 | 2,048.4 | |||||||||||||||||
Liabilities | 8.8 | 56.8 | 65.6 | 16.4 | 39.5 | 55.9 | |||||||||||||||||
Net assets | $ | 225.6 | $ | 1,389.3 | $ | 1,614.9 | $ | 192.4 | $ | 1,800.1 | $ | 1,992.5 | |||||||||||
Attributable to T. Rowe Price Group | $ | 156.1 | $ | 771.6 | $ | 927.7 | $ | 131.6 | $ | 868.1 | $ | 999.7 | |||||||||||
Attributable to redeemable non-controlling interests | 69.5 | 617.7 | 687.2 | 60.8 | 932.0 | 992.8 | |||||||||||||||||
$ | 225.6 | $ | 1,389.3 | $ | 1,614.9 | $ | 192.4 | $ | 1,800.1 | $ | 1,992.5 |
2016 | 2017 | ||||||||||||||||||||||
(in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||
Operating expenses reflected in net operating income | $ | (1.6 | ) | $ | (11.4 | ) | $ | (13.0 | ) | $ | (1.1 | ) | $ | (11.2 | ) | $ | (12.3 | ) | |||||
Net investment income reflected in non-operating income | 22.5 | 98.6 | 121.1 | 18.8 | 175.1 | 193.9 | |||||||||||||||||
Impact on income before taxes | $ | 20.9 | $ | 87.2 | $ | 108.1 | $ | 17.7 | $ | 163.9 | $ | 181.6 | |||||||||||
Net income attributable to T. Rowe Price Group | $ | 15.0 | $ | 54.1 | $ | 69.1 | $ | 13.3 | $ | 84.9 | $ | 98.2 | |||||||||||
Net income attributable to redeemable non-controlling interests | 5.9 | 33.1 | 39.0 | 4.4 | 79.0 | 83.4 | |||||||||||||||||
$ | 20.9 | $ | 87.2 | $ | 108.1 | $ | 17.7 | $ | 163.9 | $ | 181.6 |
2016 | 2017 | ||||||||||||||||||||||
(in millions) | Voting interest entities | Variable interest entities | Total | Voting interest entities | Variable interest entities | Total | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | (80.1 | ) | $ | (1,086.5 | ) | $ | (1,166.6 | ) | $ | (33.0 | ) | $ | (1,282.3 | ) | $ | (1,315.3 | ) | |||||
Net cash provided by (used in) investing activities | 21.6 | 19.8 | 41.4 | (9.0 | ) | (55.2 | ) | (64.2 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 68.8 | 1,124.1 | 1,192.9 | 38.8 | 1,372.9 | 1,411.7 | |||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | — | (2.1 | ) | (2.1 | ) | — | 5.3 | 5.3 | |||||||||||||||
Net change in cash and cash equivalents during period | 10.3 | 55.3 | 65.6 | (3.2 | ) | 40.7 | 37.5 | ||||||||||||||||
Cash and cash equivalents at beginning of year | — | — | — | 10.3 | 55.3 | 65.6 | |||||||||||||||||
Cash and cash equivalents at end of year | $ | 10.3 | $ | 55.3 | $ | 65.6 | $ | 7.1 | $ | 96.0 | $ | 103.1 |
(in millions) | Level 1 | Level 2 | |||||
December 31, 2016 | |||||||
Assets | |||||||
Cash equivalents | $ | 8.8 | $ | .8 | |||
Equity securities | 281.8 | 325.3 | |||||
Fixed income securities | — | 918.1 | |||||
Other investments | .4 | 34.3 | |||||
$ | 291.0 | $ | 1,278.5 | ||||
Liabilities | $ | (.6 | ) | $ | (13.6 | ) | |
December 31, 2017 | |||||||
Assets | |||||||
Cash equivalents | $ | 6.2 | $ | .7 | |||
Equity securities | 536.0 | 667.5 | |||||
Fixed income securities | — | 687.4 | |||||
Other investments | 1.3 | 22.3 | |||||
$ | 543.5 | $ | 1,377.9 | ||||
Liabilities | $ | (.1 | ) | $ | (13.7 | ) |
(in millions) | 2016 | 2017 | |||||
Computer and communications software and equipment | $ | 704.0 | $ | 824.4 | |||
Buildings and improvements | 422.0 | 442.5 | |||||
Leasehold improvements | 108.2 | 121.0 | |||||
Furniture and other equipment | 158.3 | 168.9 | |||||
Land | 40.3 | 37.4 | |||||
Leased land | 2.7 | 2.7 | |||||
1,435.5 | 1,596.9 | ||||||
Less accumulated depreciation and amortization | 820.4 | 944.9 | |||||
Total | $ | 615.1 | $ | 652.0 |
NOTE 7 | – INCOME TAXES. |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Current income taxes | |||||||||||
U.S. federal | $ | 669.5 | $ | 573.7 | $ | 708.1 | |||||
State and local | 134.3 | 105.8 | 131.0 | ||||||||
Foreign | 18.9 | 13.5 | 13.1 | ||||||||
Deferred income taxes (tax benefits) | (43.3 | ) | 13.5 | 71.7 | |||||||
Total | $ | 779.4 | $ | 706.5 | $ | 923.9 |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Property and equipment | $ | (2.3 | ) | $ | 3.2 | $ | (3.9 | ) | |||
Stock-based compensation | (14.6 | ) | 1.3 | 72.4 | |||||||
Accrued compensation | (.9 | ) | (1.7 | ) | 1.2 | ||||||
Supplemental savings plan liability | (27.4 | ) | (30.9 | ) | (8.3 | ) | |||||
Other-than-temporary impairments of available-for-sale investments | (.4 | ) | 10.0 | 7.3 | |||||||
Unrealized holding gains recognized in non-operating income | (2.4 | ) | 31.6 | 10.7 | |||||||
Other | 4.7 | — | (7.7 | ) | |||||||
Total deferred income taxes (tax benefits) | $ | (43.3 | ) | $ | 13.5 | $ | 71.7 |
2015 | 2016 | 2017 | ||||||
Statutory U.S. federal income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
Impact of U.S. tax reform | — | — | 2.9 | |||||
State income taxes for current year, net of federal income tax benefits(1) | 4.3 | 3.8 | 3.9 | |||||
Net income attributable to redeemable non-controlling interests | — | (.7 | ) | (1.3 | ) | |||
Net excess tax benefits from stock-based compensation plans activity | — | (1.7 | ) | (3.0 | ) | |||
Other items | (.4 | ) | (.4 | ) | (.6 | ) | ||
Effective income tax rate | 38.9 | % | 36.0 | % | 36.9 | % |
(in millions) | 2016 | 2017 | |||||
Deferred tax liabilities | |||||||
Property and equipment | $ | (39.2 | ) | $ | (35.3 | ) | |
Net unrealized holding gains recognized in income | (43.2 | ) | (53.9 | ) | |||
Net unrealized holding gains on investments held as available-for-sale | (33.4 | ) | (3.1 | ) | |||
Other | (27.5 | ) | (18.9 | ) | |||
(143.3 | ) | (111.2 | ) | ||||
Deferred tax assets | |||||||
Stock-based compensation | 165.1 | 92.7 | |||||
Asset impairments | 16.1 | 8.8 | |||||
Accrued compensation | 5.6 | 4.4 | |||||
Supplemental savings plan | 58.3 | 66.6 | |||||
Currency translation adjustment | 23.0 | 2.2 | |||||
Other | 7.7 | 6.8 | |||||
275.8 | 181.5 | ||||||
Net deferred tax asset | $ | 132.5 | $ | 70.3 |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Balance at beginning of year | $ | 5.6 | $ | 5.8 | $ | 6.2 | |||||
Changes in tax positions related to | |||||||||||
Current year | .7 | .6 | 1.5 | ||||||||
Prior years | 1.8 | — | .1 | ||||||||
Expired statute of limitations | (2.3 | ) | (.2 | ) | (.2 | ) | |||||
Balance at end of year | $ | 5.8 | $ | 6.2 | $ | 7.6 |
NOTE 8 | – STOCKHOLDERS' EQUITY. |
NOTE 9 | – STOCK-BASED COMPENSATION. |
Options | Weighted- average exercise price | Weighted-average remaining contractual term in years | ||||||
Outstanding at December 31, 2016 | 24,364,322 | $ | 61.90 | |||||
Exercised | (8,977,164 | ) | $ | 53.04 | ||||
Forfeited | (126,404 | ) | $ | 75.16 | ||||
Expired | (39,631 | ) | $ | 76.06 | ||||
Outstanding at December 31, 2017 | 15,221,123 | $ | 66.98 | 5.1 | ||||
Exercisable at December 31, 2017 | 11,140,190 | $ | 63.79 | 4.5 |
Restricted shares | Restricted stock units | Weighted- average fair value | |||||||
Nonvested at December 31, 2016 | 931,508 | 4,634,461 | $ | 72.19 | |||||
Time-based grants | 17,022 | 2,026,176 | $ | 100.24 | |||||
Performance-based grants | — | 114,454 | $ | 101.79 | |||||
Vested (value at vest date was $164.5 million) | (455,958 | ) | (1,111,857 | ) | $ | 71.77 | |||
Forfeited | (19,457 | ) | (106,323 | ) | $ | 72.32 | |||
Nonvested at December 31, 2017 | 473,115 | 5,556,911 | $ | 82.37 |
First quarter 2018 | $ | 47.3 | |
Second quarter 2018 | 46.7 | ||
Third quarter 2018 | 46.0 | ||
Fourth quarter 2018 | 40.3 | ||
Total 2018 | 180.3 | ||
2019 through 2023 | 176.1 | ||
Total | $ | 356.4 |
NOTE 10 | – EARNINGS PER SHARE CALCULATIONS. |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Net income attributable to T. Rowe Price Group | $ | 1,223.0 | $ | 1,215.0 | $ | 1,497.8 | |||||
Less: net income allocated to outstanding restricted stock and stock unit holders | 16.1 | 25.5 | 33.9 | ||||||||
Net income allocated to common stockholders | $ | 1,206.9 | $ | 1,189.5 | $ | 1,463.9 | |||||
Weighted-average common shares | |||||||||||
Outstanding | 254.6 | 245.5 | 241.2 | ||||||||
Outstanding assuming dilution | 260.9 | 250.3 | 245.1 |
(in millions) | 2015 | 2016 | 2017 | |||||
Weighted-average outstanding stock options excluded | 6.4 | 9.9 | 5.0 |
NOTE 11 | – OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. |
(in millions) | 2015 | 2016 | 2017 | ||||||||
Net deferred tax benefits (income taxes) on: | |||||||||||
Net unrealized holding gains or losses | $ | 5.1 | $ | .6 | $ | (14.6 | ) | ||||
Reclassification adjustments recognized in the provision for income taxes: | |||||||||||
Capital gain distributions | 7.9 | 2.4 | 1.4 | ||||||||
Net gains realized on dispositions | 20.7 | 20.9 | 32.5 | ||||||||
Net gains recognized upon transfer to trading investments | — | — | 9.2 | ||||||||
Other-than-temporary impairments | (1.9 | ) | — | — | |||||||
Net deferred tax benefits (income taxes) on net unrealized holding gains or losses | 31.8 | 23.9 | 28.5 | ||||||||
Currency translation adjustments | 3.8 | 3.5 | (18.5 | ) | |||||||
Reclassification adjustment recognized in the provision for income taxes upon deconsolidation of T. Rowe Price investment product | (1.2 | ) | .8 | — | |||||||
Total deferred tax benefits (income taxes) on currency translation adjustments | 2.6 | 4.3 | (18.5 | ) | |||||||
Total net deferred tax benefits (income taxes) | $ | 34.4 | $ | 28.2 | $ | 10.0 |
Currency translation adjustments | ||||||||||||||||||||
(in millions) | Net unrealized holding gains | Equity method investments | Consolidated T. Rowe Price investment products - variable interest entities | Total currency translation adjustments | Total | |||||||||||||||
Balances at December 31, 2014 | $ | 165.5 | $ | (25.7 | ) | $ | (3.4 | ) | $ | (29.1 | ) | $ | 136.4 | |||||||
Other comprehensive income (loss) before reclassifications and income taxes | (4.5 | ) | (8.1 | ) | (4.9 | ) | (13.0 | ) | (17.5 | ) | ||||||||||
Reclassification adjustments recognized in non-operating income | (72.5 | ) | — | 5.8 | 5.8 | (66.7 | ) | |||||||||||||
(77.0 | ) | (8.1 | ) | .9 | (7.2 | ) | (84.2 | ) | ||||||||||||
Net deferred tax benefits (income taxes) | 31.8 | 2.9 | (.3 | ) | 2.6 | 34.4 | ||||||||||||||
Other comprehensive income (loss) | (45.2 | ) | (5.2 | ) | .6 | (4.6 | ) | (49.8 | ) | |||||||||||
Balances at December 31, 2015 | 120.3 | (30.9 | ) | (2.8 | ) | (33.7 | ) | 86.6 | ||||||||||||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (32.0 | ) | (.5 | ) | — | (.5 | ) | (32.5 | ) | |||||||||||
Balance at January 1, 2016 | 88.3 | (31.4 | ) | (2.8 | ) | (34.2 | ) | 54.1 | ||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | (7.0 | ) | (1.6 | ) | (7.0 | ) | (8.6 | ) | (15.6 | ) | ||||||||||
Reclassification adjustments recognized in non-operating income | (53.0 | ) | — | (2.2 | ) | (2.2 | ) | (55.2 | ) | |||||||||||
(60.0 | ) | (1.6 | ) | (9.2 | ) | (10.8 | ) | (70.8 | ) | |||||||||||
Net deferred tax benefits (income taxes) | 23.9 | .7 | 3.6 | 4.3 | 28.2 | |||||||||||||||
Other comprehensive income (loss) | (36.1 | ) | (.9 | ) | (5.6 | ) | (6.5 | ) | (42.6 | ) | ||||||||||
Balances at December 31, 2016 | 52.2 | (32.3 | ) | (8.4 | ) | (40.7 | ) | 11.5 | ||||||||||||
Other comprehensive income (loss) before reclassifications and income taxes | 37.4 | 2.6 | 45.2 | 47.8 | 85.2 | |||||||||||||||
Reclassification adjustments recognized in non-operating income | (110.2 | ) | — | (.1 | ) | (.1 | ) | (110.3 | ) | |||||||||||
(72.8 | ) | 2.6 | 45.1 | 47.7 | (25.1 | ) | ||||||||||||||
Net deferred tax benefits (income taxes) | 28.5 | (.9 | ) | (17.6 | ) | (18.5 | ) | 10.0 | ||||||||||||
Other comprehensive income (loss) | (44.3 | ) | 1.7 | 27.5 | 29.2 | (15.1 | ) | |||||||||||||
Balances at December 31, 2017 | $ | 7.9 | $ | (30.6 | ) | $ | 19.1 | $ | (11.5 | ) | $ | (3.6 | ) |
NOTE 14 | – OTHER DISCLOSURES. |
2016 | 2017 | ||||||||||||||||||||||||||||||
(in millions) | Cash flow attributable to T. Rowe Price Group | Cash flow attributable to consolidated T. Rowe Price investment products | Eliminations | As reported | Cash flow attributable to T. Rowe Price Group | Cash flow attributable to consolidated T. Rowe Price investment products | Eliminations | As reported | |||||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||||||
Net income | $ | 1,215.0 | $ | 108.1 | $ | (69.1 | ) | $ | 1,254.0 | $ | 1,497.8 | $ | 181.6 | $ | (98.2 | ) | $ | 1,581.2 | |||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||||||||||||||||
Depreciation and amortization of property and equipment | 133.4 | — | — | 133.4 | 143.6 | — | — | 143.6 | |||||||||||||||||||||||
Stock-based compensation expense | 161.6 | — | — | 161.6 | 152.0 | — | — | 152.0 | |||||||||||||||||||||||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products | (53.0 | ) | — | — | (53.0 | ) | (83.1 | ) | — | — | (83.1 | ) | |||||||||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | — | — | — | — | (23.6 | ) | — | — | (23.6 | ) | |||||||||||||||||||||
Net gains recognized on investments | (100.1 | ) | — | 69.1 | (31.0 | ) | (147.9 | ) | — | 98.2 | (49.7 | ) | |||||||||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | — | — | — | — | (218.6 | ) | — | — | (218.6 | ) | |||||||||||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | — | (1,297.9 | ) | — | (1,297.9 | ) | — | (1,492.9 | ) | — | (1,492.9 | ) | |||||||||||||||||||
Changes in accounts receivable and accrued revenue | (9.3 | ) | — | — | (9.3 | ) | (100.8 | ) | — | — | (100.8 | ) | |||||||||||||||||||
Changes in payables and accrued liabilities | 101.5 | 37.1 | — | 138.6 | 169.1 | 154.3 | — | 323.4 | |||||||||||||||||||||||
Other changes in assets and liabilities | (105.4 | ) | (13.9 | ) | (6.6 | ) | (125.9 | ) | 163.3 | (158.3 | ) | (7.0 | ) | (2.0 | ) | ||||||||||||||||
Net cash provided by (used in) operating activities | 1,343.7 | (1,166.6 | ) | (6.6 | ) | 170.5 | 1,551.8 | (1,315.3 | ) | (7.0 | ) | 229.5 | |||||||||||||||||||
Net cash provided by (used in) investing activities | (219.7 | ) | 41.4 | 284.5 | 106.2 | (33.9 | ) | (64.2 | ) | 137.1 | 39.0 | ||||||||||||||||||||
Net cash used in financing activities attributable to T. Rowe Price Group | (1,091.4 | ) | — | — | (1,091.4 | ) | (820.1 | ) | — | — | (820.1 | ) | |||||||||||||||||||
Net subscriptions received from redeemable non-controlling interest holders | — | 1,192.9 | (277.9 | ) | 915.0 | — | 1,411.7 | (130.1 | ) | 1,281.6 | |||||||||||||||||||||
Net cash provided by (used in) financing activities | (1,091.4 | ) | 1,192.9 | (277.9 | ) | (176.4 | ) | (820.1 | ) | 1,411.7 | (130.1 | ) | 461.5 | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | — | (2.1 | ) | — | (2.1 | ) | — | 5.3 | — | 5.3 | |||||||||||||||||||||
Net change in cash and cash equivalents during period | 32.6 | 65.6 | — | 98.2 | 697.8 | 37.5 | — | 735.3 | |||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 1,172.3 | — | — | 1,172.3 | 1,204.9 | 65.6 | — | 1,270.5 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,204.9 | $ | 65.6 | $ | — | $ | 1,270.5 | $ | 1,902.7 | $ | 103.1 | $ | — | $ | 2,005.8 |
NOTE 16 | – SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). |
Net revenues | Net income(2) | Net income attributable to T. Rowe Price Group(2) | Basic earnings on common stock(1) | Diluted earnings on common stock(1),(2) | ||||||||||||||
(in millions) | (per share) | |||||||||||||||||
2016 | ||||||||||||||||||
1st quarter | $ | 994.1 | $ | 313.3 | $ | 304.1 | $ | 1.21 | $ | 1.18 | ||||||||
2nd quarter | $ | 1,044.7 | $ | 211.2 | $ | 203.3 | $ | .81 | $ | .79 | ||||||||
3rd quarter | $ | 1,092.9 | $ | 362.7 | $ | 327.8 | $ | 1.30 | $ | 1.28 | ||||||||
4th quarter | $ | 1,091.2 | $ | 366.8 | $ | 379.8 | $ | 1.53 | $ | 1.50 | ||||||||
2017 | ||||||||||||||||||
1st quarter | $ | 1,113.6 | $ | 400.4 | $ | 385.9 | $ | 1.56 | $ | 1.54 | ||||||||
2nd quarter | $ | 1,171.6 | $ | 390.0 | $ | 373.9 | $ | 1.52 | $ | 1.50 | ||||||||
3rd quarter | $ | 1,221.7 | $ | 404.2 | $ | 390.9 | $ | 1.59 | $ | 1.56 | ||||||||
4th quarter | $ | 1,286.1 | $ | 386.6 | $ | 347.1 | $ | 1.40 | $ | 1.37 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
Item 10. | Directors, Executive Officers and Corporate Governance. |
Item 11. | Executive Compensation. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Item 14. | Principal Accountant Fees and Services. |
Item 15. | Exhibits, Financial Statement Schedules. |
The following documents are filed as part of this report. | |||
(1) | Financial Statements: See Item 8 of Part II of this report. | ||
(2) | Financial Statement Schedules: None. | ||
(3) | The following exhibits required by Item 601 of Regulation S-K are filed herewith, except for Exhibit 32 that is furnished herewith. Management contracts and compensatory plans and arrangements are identified with an asterisk (*). | ||
3(i) | |||
3(ii) | |||
10.01.1 | |||
10.01.2 | |||
10.01.3 | |||
10.02 | |||
10.03 | |||
10.04 | |||
10.05 | |||
10.08 | * | ||
10.08.1 | * | ||
10.10 | * | ||
10.13.1 | * | ||
10.13.2 | * | ||
10.13.3 | * | ||
10.14.1 | * | ||
10.14.2 | * | ||
10.14.3 | * | ||
10.15 | * | ||
10.15.1 | * | ||
10.15.2 | * | ||
10.15.3 | * | ||
10.15.4 | * | ||
10.16 | * | ||
10.17 | |||
10.18.1 | * | ||
10.18.2 | * | ||
10.18.3 | * | ||
10.18.4 | * | ||
10.18.5 | * | ||
10.18.6 | * |
10.18.7 | * | ||
10.18.8 | * | ||
10.18.9 | * | ||
10.18.10 | * | ||
10.18.11 | * | ||
10.19 | * | ||
10.19.1 | * | ||
10.19.2 | * | ||
10.21 | * | ||
10.22 | * | ||
10.22.1 | * | ||
10.23 | * | ||
10.23.1 | * | ||
21 | |||
23 | |||
31(i).1 | |||
31(i).2 | |||
32 | |||
101 | The following series of unaudited XBRL-formatted documents are collectively included herewith as Exhibit 101. The financial information is extracted from T. Rowe Price Group’s consolidated financial statements and notes that are included in this Form 10-K Report. | ||
101.INS XBRL Instance Document (File name: trow-20171231.xml). | |||
101.SCH XBRL Taxonomy Extension Schema Document (File name: trow-20171231.xsd). | |||
101.CAL XBRL Taxonomy Calculation Linkbase Document (File name: trow-20171231_cal.xml). | |||
101.LAB XBRL Taxonomy Label Linkbase Document (File name: trow-20171231_lab.xml). | |||
101.PRE XBRL Taxonomy Presentation Linkbase Document (File name: trow-20171231_pre.xml). | |||
101.DEF XBRL Taxonomy Definition Linkbase Document (File name: trow-20171231_def.xml). |
Subsidiary companies (1) | Place of incorporation |
T. Rowe Price Advisory Services, Inc. | Maryland |
T. Rowe Price Associates, Inc. | Maryland |
TRP Suburban, Inc. | Maryland |
TRP Suburban Second, Inc. | Maryland |
TRP Colorado Springs, LLC | Maryland |
TRP Office Florida, LLC | Maryland |
T. Rowe Price Trust Company | Maryland |
T. Rowe Price Investment Services, Inc. | Maryland |
T. Rowe Price Services, Inc. | Maryland |
T. Rowe Price Retirement Plan Services, Inc. | Maryland |
T. Rowe Price (Canada), Inc. | Maryland |
TRPH Corporation | Maryland |
T. Rowe Price Capital Appreciation & Income Fund, Inc. | Maryland |
T. Rowe Price International Funds, Inc. | Maryland |
T. Rowe Price Institutional Income Funds, Inc. | Maryland |
T. Rowe Price Institutional International Funds, Inc. | Maryland |
T. Rowe Price Quantitative Management Funds, Inc. | Maryland |
T. Rowe Price Index Trust, Inc. | Maryland |
T. Rowe Price Multi-Sector Account Portfolios, Inc. | Maryland |
T. Rowe Price Multi-Strategy Total Return Fund, Inc. | Maryland |
T. Rowe Price Total Return Fund, Inc. | Maryland |
T. Rowe Price Intermediate Tax-Free High Yield Fund, Inc. | Maryland |
T. Rowe Price Funds SICAV | Luxembourg |
T. Rowe Price International Ltd | United Kingdom |
T. Rowe Price Hong Kong Limited | Hong Kong |
T. Rowe Price Singapore Private Ltd. | Singapore |
T. Rowe Price (Switzerland) GmbH | Switzerland |
T. Rowe Price (Luxembourg) Management Sarl | Luxembourg |
1. | I have reviewed this Form 10-K Annual Report for the fiscal year ended December 31, 2017 of T. Rowe Price Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
1. | I have reviewed this Form 10-K Annual Report for the fiscal year ended December 31, 2017 of T. Rowe Price Group, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Feb. 14, 2018 |
Jun. 30, 2017 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2017 | ||
Entity Registrant Name | PRICE T ROWE GROUP INC | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 17.4 | ||
Entity Common Stock, Shares Outstanding (shares) | 244,444,519 | ||
Entity Central Index Key | 0001113169 | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets of consolidated T. Rowe Price investment products | $ 2,048.4 | $ 1,680.5 |
Liabilities of consolidated T. Rowe Price investment products | $ 55.9 | $ 65.6 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares outstanding (in shares) | 245,111,000 | 244,784,000 |
Common stock, shares issued (in shares) | 245,111,000 | 244,784,000 |
Variable interest entities [Member] | ||
Assets of consolidated T. Rowe Price investment products | $ 1,839.6 | $ 1,446.1 |
Liabilities of consolidated T. Rowe Price investment products | $ 39.5 | $ 56.8 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Net income | [1] | $ 1,581.2 | $ 1,254.0 | $ 1,223.0 | |
Other comprehensive income (loss) | |||||
Net unrealized holding gains (losses) on available-for-sale investments | 37.4 | (1.0) | (4.5) | ||
Reclassification of (gains) and losses in accumulated other comprehensive income to non-operating investment income: | |||||
Capital gain distributions | (3.5) | (6.0) | (20.8) | ||
Net gains realized on dispositions determined using average cost | (83.1) | (53.0) | (56.5) | ||
Net unrealized gains recognized upon the transfer to trading investments | (23.6) | 0.0 | 0.0 | ||
Other-than-temporary impairments | 0.0 | 0.0 | 4.8 | ||
Total reclassification adjustments | (110.2) | (59.0) | (72.5) | ||
Total net unrealized holding losses recognized in other comprehensive income | (72.8) | (60.0) | (77.0) | ||
Total currency translation adjustments | 68.9 | (13.3) | (7.2) | ||
Other comprehensive loss before income taxes | (3.9) | (73.3) | (84.2) | ||
Net deferred tax benefits | 10.0 | 28.2 | 34.4 | ||
Total other comprehensive income (loss) | 6.1 | (45.1) | (49.8) | ||
Total comprehensive income | 1,587.3 | 1,208.9 | 1,173.2 | ||
Less: comprehensive income attributable to redeemable non-controlling interests | 104.6 | 36.5 | 0.0 | ||
Comprehensive income attributable to T. Rowe Price Group | 1,482.7 | 1,172.4 | 1,173.2 | ||
Variable interest entities [Member] | |||||
Reclassification of (gains) and losses in accumulated other comprehensive income to non-operating investment income: | |||||
Consolidated T. Rowe Price investment products—variable interest entities | 66.4 | (9.5) | (4.9) | ||
Reclassification losses (gains) recognized in non-operating investment income upon deconsolidation of certain T. Rowe Price investment products | (0.1) | (2.2) | 5.8 | ||
Total currency translation adjustments | 66.3 | (11.7) | 0.9 | ||
Equity method investments [Member] | |||||
Reclassification of (gains) and losses in accumulated other comprehensive income to non-operating investment income: | |||||
Total currency translation adjustments | $ 2.6 | $ (1.6) | $ (8.1) | ||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Cash flows from operating activities | ||||||
Net income | [1] | $ 1,581.2 | $ 1,254.0 | $ 1,223.0 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||||
Depreciation and amortization of property and equipment | [1] | 143.6 | 133.4 | 126.3 | ||
Stock-based compensation expense | [1] | 152.0 | 161.6 | 149.0 | ||
Realized gains on dispositions of available-for-sale T. Rowe Price investment products | [1] | (83.1) | (53.0) | (56.5) | ||
Gains recognized upon transfer of an investment in a T. Rowe Price mutual fund from available-for-sale to held as trading | [1] | (23.6) | 0.0 | 0.0 | ||
Net gains recognized on other investments | [1] | (49.7) | (31.0) | (5.9) | ||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | [1] | (218.6) | 0.0 | 0.0 | ||
Net change in trading securities held by consolidated T. Rowe Price investment products | [1] | (1,492.9) | (1,297.9) | (7.5) | ||
Changes in accounts receivable and accrued revenue | [1] | (100.8) | (9.3) | (3.2) | ||
Changes in payables and accrued liabilities | [1] | 323.4 | 138.6 | 98.2 | ||
Other changes in assets and liabilities | [1] | (2.0) | (125.9) | 7.1 | ||
Net cash provided by (used in) operating activities | [1] | 229.5 | 170.5 | 1,530.5 | ||
Cash flows from investing activities | ||||||
Purchases of available-for-sale T. Rowe Price investment products | [1] | (16.9) | (0.1) | (164.8) | ||
Dispositions of available-for-sale T. Rowe Price investment products | [1] | 334.7 | 133.7 | 434.5 | ||
Net cash of T. Rowe Price investment products on consolidation (deconsolidation) | [1] | (64.2) | 41.4 | 0.0 | ||
Additions to property and equipment | [1] | (186.1) | (148.3) | (151.3) | ||
Other investing activity | [1] | (28.5) | 79.5 | (9.4) | ||
Net cash provided by (used in) investing activities | [1] | 39.0 | 106.2 | 109.0 | ||
Cash flows from financing activities | ||||||
Repurchases of common stock | [1] | (458.1) | (676.9) | (987.8) | ||
Common share issuances under stock-based compensation plans | [1] | 201.1 | 126.3 | 73.5 | ||
Dividends paid to common stock and equity-award holders | [1] | (563.1) | (540.8) | (1,059.0) | ||
Net subscriptions received from redeemable non-controlling interest holders | [1] | 1,281.6 | 915.0 | 0.0 | ||
Net cash (used in) provided by financing activities | [1] | 461.5 | (176.4) | (1,973.3) | ||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | [1] | 5.3 | (2.1) | 0.0 | ||
Net change in cash and cash equivalents during period | [1] | 735.3 | 98.2 | (333.8) | ||
Cash and cash equivalents at beginning of year | [1] | 1,270.5 | 1,172.3 | 1,506.1 | ||
Cash and cash equivalents at end of year | [1] | $ 2,005.8 | $ 1,270.5 | $ 1,172.3 | ||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Cash and cash equivalents | $ 1,902.7 | $ 1,204.9 |
Consolidated T. Rowe Price investment products [Member] | ||
Cash and cash equivalents | $ 103.1 | $ 65.6 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands |
Total |
Common stock [Member] |
Additional capital in excess of par value [Member] |
Retained earnings [Member] |
Accumulated other comprehensive income (loss) [Member] |
Restricted shares [Member] |
Restricted shares [Member]
Common stock [Member]
|
Restricted shares [Member]
Additional capital in excess of par value [Member]
|
Restricted stock units [Member] |
Restricted stock units [Member]
Common stock [Member]
|
Restricted stock units [Member]
Additional capital in excess of par value [Member]
|
New accounting pronouncement, early adoption, effect [Member] |
New accounting pronouncement, early adoption, effect [Member]
Additional capital in excess of par value [Member]
|
New accounting pronouncement, early adoption, effect [Member]
Retained earnings [Member]
|
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Balances (in shares) at Dec. 31, 2014 | 261,110 | |||||||||||||
Balances at Dec. 31, 2014 | $ 5,395,200 | $ 52,200 | $ 756,500 | $ 4,450,100 | $ 136,400 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,223,000 | 1,223,000 | ||||||||||||
Other comprehensive income (loss), net of tax | (49,800) | (49,800) | ||||||||||||
Dividends declared | (1,059,000) | (1,059,000) | ||||||||||||
Common stock-based compensation plans activity | ||||||||||||||
Shares issued upon option exercises (shares) | 2,471 | |||||||||||||
Shares issued upon option exercises | 84,500 | $ 500 | 84,000 | |||||||||||
Shares issued, net of shares withheld for taxes (shares) | (180) | 236 | ||||||||||||
Shares issued, net of shares withheld for taxes | $ (14,300) | $ (14,300) | $ (2,000) | $ (2,000) | ||||||||||
Forfeiture of restricted awards (shares) | (59) | |||||||||||||
Net tax benefits | 23,200 | 23,200 | ||||||||||||
Stock-based compensation expense | 149,000 | 149,000 | ||||||||||||
Restricted stock units issued as dividend equivalents | 0 | 200 | (200) | |||||||||||
Common shares repurchased (shares) | (13,109) | |||||||||||||
Common shares repurchased | (987,800) | $ (2,600) | (342,000) | (643,200) | ||||||||||
Balances (in shares) at Dec. 31, 2015 | 250,469 | |||||||||||||
Balances at Dec. 31, 2015 | 4,762,000 | $ 50,100 | 654,600 | 3,970,700 | 86,600 | |||||||||
Beginning balances attributable to redeemable non-controlling interests at Dec. 31, 2014 | 0 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Net income attributable to redeemable non-controlling interests | 0 | |||||||||||||
Ending balances attributable to redeemable non-controlling interests at Dec. 31, 2015 | 0 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Cumulative effect of adopting new accounting guidance | Accounting standards update 2015-2 [Member] | 32,500 | (32,500) | ||||||||||||
Cumulative effect of adopting new accounting guidance | Accounting standards update 2016-9 [Member] | $ 3,900 | $ 12,900 | $ (9,000) | |||||||||||
Balances, Adjusted | 4,765,900 | $ 50,100 | 667,500 | 3,994,200 | 54,100 | |||||||||
Balances, Adjusted | Accounting standards update 2015-2 [Member] | 54,100 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Reclassification of T. Rowe Price investment products upon adoption of new accounting guidance on January 1, 2016 | Accounting standards update 2015-2 [Member] | 672,700 | |||||||||||||
Balances attributable to redeemable non-controlling interest, adjusted | 672,700 | |||||||||||||
Net income | 1,215,000 | 1,215,000 | ||||||||||||
Other comprehensive income (loss), net of tax | (42,600) | (42,600) | ||||||||||||
Dividends declared | (541,200) | (541,200) | ||||||||||||
Shares issued upon option exercises (shares) | 4,140 | |||||||||||||
Shares issued upon option exercises | 149,500 | $ 800 | 148,700 | |||||||||||
Shares issued, net of shares withheld for taxes (shares) | (178) | 409 | ||||||||||||
Shares issued, net of shares withheld for taxes | (14,000) | (14,000) | (8,700) | $ 100 | (8,800) | |||||||||
Forfeiture of restricted awards (shares) | (61) | |||||||||||||
Stock-based compensation expense | 161,600 | 161,600 | ||||||||||||
Restricted stock units issued as dividend equivalents | 0 | 100 | (100) | |||||||||||
Common shares repurchased (shares) | (9,995) | |||||||||||||
Common shares repurchased | (676,900) | $ (2,000) | (300,600) | (374,300) | ||||||||||
Balances (in shares) at Dec. 31, 2016 | 244,784 | |||||||||||||
Balances at Dec. 31, 2016 | 5,008,600 | $ 49,000 | 654,500 | 4,293,600 | 11,500 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Net income attributable to redeemable non-controlling interests | 39,000 | |||||||||||||
Other comprehensive loss, net of tax, attributable to reedemable non-controlling interests | (2,500) | |||||||||||||
Net subscriptions into T. Rowe Price investment products | 945,300 | |||||||||||||
Net deconsolidations of T. Rowe Price investment products | (967,300) | |||||||||||||
Ending balances attributable to redeemable non-controlling interests at Dec. 31, 2016 | 687,200 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 1,497,800 | 1,497,800 | ||||||||||||
Other comprehensive income (loss), net of tax | (15,100) | (15,100) | ||||||||||||
Dividends declared | (562,600) | (562,600) | ||||||||||||
Common stock-based compensation plans activity | ||||||||||||||
Shares issued upon option exercises (shares) | 6,339 | |||||||||||||
Shares issued upon option exercises | 252,200 | $ 1,200 | 251,000 | |||||||||||
Shares issued, net of shares withheld for taxes (shares) | (170) | 789 | ||||||||||||
Shares issued, net of shares withheld for taxes | $ (19,200) | $ (19,200) | $ (31,200) | $ 100 | $ (31,300) | |||||||||
Forfeiture of restricted awards (shares) | (19) | |||||||||||||
Forfeiture of restricted awards | 0 | $ 0 | 0 | |||||||||||
Stock-based compensation expense | 152,000 | 152,000 | ||||||||||||
Restricted stock units issued as dividend equivalents | 0 | 200 | (200) | |||||||||||
Common shares repurchased (shares) | (6,612) | |||||||||||||
Common shares repurchased | (458,100) | $ (1,300) | (161,100) | (295,700) | ||||||||||
Balances (in shares) at Dec. 31, 2017 | 245,111 | |||||||||||||
Balances at Dec. 31, 2017 | 5,824,400 | $ 49,000 | $ 846,100 | $ 4,932,900 | $ (3,600) | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Net income attributable to redeemable non-controlling interests | 83,400 | |||||||||||||
Other comprehensive loss, net of tax, attributable to reedemable non-controlling interests | 21,200 | |||||||||||||
Net subscriptions into T. Rowe Price investment products | 1,243,700 | |||||||||||||
Net deconsolidations of T. Rowe Price investment products | (1,042,700) | |||||||||||||
Ending balances attributable to redeemable non-controlling interests at Dec. 31, 2017 | $ 992,800 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. T. Rowe Price Group, Inc. derives its consolidated revenues and net income primarily from investment advisory services that its subsidiaries provide to individual and institutional investors in the T. Rowe Price U.S. mutual funds and other investment products, including separately managed accounts, subadvised funds, and other T. Rowe Price products. We also provide our investment advisory clients with related administrative services, including distribution, mutual fund transfer agent, accounting and shareholder services; participant recordkeeping and transfer agent services for defined contribution retirement plans; brokerage, and trust services. Investment advisory revenues depend largely on the total value and composition of assets under our management. Accordingly, fluctuations in financial markets and in the composition of assets under management impact our revenues and results of operations. BASIS OF PREPARATION. These consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States. These principles require that we make certain estimates and assumptions. Actual results may vary from our estimates. In 2017, we recognized in our income tax provision a non-recurring charge of $71.1 million to reflect the estimated effect of the U.S. tax law changes enacted on December 22, 2017. The charge is a reasonable estimate based on current interpretation of the tax law changes and includes $18.9 million for the remeasurement of our deferred tax assets and liabilities, and a $52.2 million tax liability for the mandatory deemed repatriation of foreign sourced net earnings. We will continue to evaluate the impact of the tax law changes on our estimates and expectations due to changes in our interpretations of the law, assumptions used in applying the law, and additional guidance concerning the law that may be issued. We will report any applicable adjustments to these estimates in 2018 after our estimates are finalized. Refer to Note 7 for more information on the impact of tax reform on our 2017 financial statements and effective tax rate. NEWLY ISSUED BUT NOT YET ADOPTED ACCOUNTING GUIDANCE. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 — Revenue from Contracts with Customers, and subsequently has issued several related accounting standard updates clarifying several aspects of ASU 2014-09, including technical corrections and improvements (ASC 606). The standard update provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. It contains principles to apply to determine the measurement of revenue and the timing of when it is recognized. We will adopt the new standard on its effective date, January 1, 2018, using the retrospective approach with adjustments to each prior period. We concluded that the new standards do not materially change the timing of revenue recognition. However, the presentation of certain revenue related expenses totaling about $60 million in 2016 and 2017 will change from being recognized net against the related revenues to being reported within operating expenses. Additionally, we plan to enhance disclosures in accordance with the standard's disclosure requirements in 2018. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 — Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This standard update addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We will adopt the new standard on its effective date, January 1, 2018. Upon adoption, we will reclassify net unrealized holding gains recognized on investments in T. Rowe Price products totaling $7.9 million from accumulated other comprehensive income to retained earnings. After January 1, 2018, the change in the fair value of investments in T. Rowe Price investment products previously accounted for as available-for-sale investments will be recognized in our consolidated income statement rather than our consolidated statement of comprehensive income. The impact upon implementation of the standard on our investments without a readily determinable fair value is not material. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 — Leases (Topic 842). The standard update seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standards update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this standard will have on our financial position and results of operations. We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our consolidated financial statements, including guidance which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation. CONSOLIDATION. Our consolidated financial statements include the accounts of all subsidiaries and T. Rowe Price investment products in which we have a controlling interest. We are generally deemed to have a controlling interest when we own the majority of a voting interest entity (VOE) or are deemed to be the primary beneficiary of a variable interest entity (VIE). We perform an analysis of our investments to determine if the investment entity is a VOE or VIE. Our analysis involves judgment and considers several factors, including an entity’s legal organization, capital structure, the rights of the equity investment holders, our ownership interest in the entity, and our contractual involvement with the entity. We continually review and reconsider our VOE or VIE conclusions upon the occurrence of certain events, such as changes to our ownership interest, changes to an entity’s legal structure, or amendments to governing documents. Upon consolidation of T. Rowe Price investment products, we retain the specialized investment company accounting principles of the underlying funds. All material accounts and transactions between consolidated entities are eliminated in consolidation. Variable interest entities VIEs are entities that, by design: (i) lack sufficient equity to permit the entity to finance its activities independently or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, the obligation to absorb the entity’s losses, or the rights to receive the entity’s residual returns. We consolidate a VIE when we are the primary beneficiary, which is the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the VIE that could potentially be significant. Our Luxembourg-based SICAV funds and other T. Rowe Price investment products regulated outside the U.S. were determined to be VIEs. Along with VIEs that we consolidate, we also hold variable interests in other VIEs, including several investment partnerships that are not consolidated because we are not the primary beneficiary. Redeemable non-controlling interests We recognize redeemable non-controlling interests for the portion of the net assets of our consolidated T. Rowe Price investment products held by unrelated third-party investors as their interest is convertible to cash and other assets at their option. As such, we reflect redeemable non-controlling interests as temporary equity in our consolidated balance sheets. Investments in T. Rowe Price money market mutual funds We do not consider our investments in T. Rowe Price money market mutual funds when performing our consolidation analysis as the guidance provides a scope exception for interests in entities that are required to comply with, or operate in accordance with, requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. CASH EQUIVALENTS. Cash equivalents consist primarily of short-term, highly liquid investments in T. Rowe Price money market mutual funds. The cost of these funds is equivalent to fair value. INVESTMENTS. T. Rowe Price investment products that are accounted for as available-for-sale investments have been made for both general corporate investment purposes and to provide seed capital for newly formed products. These investments are carried at fair value using the quoted closing net asset value (NAV) per share of each fund as of the balance sheet date. Changes in net unrealized holding gains or losses on these investments are recognized in other comprehensive income. We review the carrying amount of each investment on a quarterly basis and recognize an impairment charge in non-operating investment income whenever an unrealized loss is considered other than temporary. In determining whether a holding is other-than-temporarily impaired, we consider various factors, including the duration of time it has existed, the severity of the impairment, any subsequent changes in value, and our intent and ability to hold the investment for a period of time sufficient for an anticipated recovery in fair value. Subject to the other considerations noted above, we believe a holding with an unrealized loss that has persisted daily throughout the six months between quarter-ends is generally presumed to have an other-than-temporary impairment. We may also recognize an other-than-temporary impairment if particular circumstances of the underlying investment do not warrant our belief that a near-term recovery is possible. Equity method investments consist of investments in entities, including T. Rowe Price investment products, for which we have the ability to exercise significant influence over the operating and financial policies of the investee. The carrying values of these investments are adjusted to reflect our proportionate share of the investee's net income or loss, any unrealized gain or loss resulting from the translation of foreign-denominated financial statements into U.S. dollars, and dividends received. Our proportionate share of income or loss is included in non-operating income in our consolidated statements of income. As permitted under existing accounting guidance, we adopted a policy by which we recognize our share of UTI Asset Management Company Limited’s (UTI) earnings on a quarter lag as current financial information is not available in a timely manner. The basis difference between our carrying value and our proportionate share of UTI’s book value is primarily related to consideration paid in excess of the stepped-up basis of assets and liabilities on the date of purchase. Cost method investments consist of investments in entities for which we do not exercise significant influence over the operating and financial policies of the investee. We evaluate our equity and cost method investments for impairment when events or changes in circumstances indicate that the carrying value of the investment exceeds its fair value, and the decline in fair value is other than temporary. T. Rowe Price investment products held as trading include seed and discretionary investments in mutual funds and separately managed account products that are carried at fair value. These investments are valued in accordance with the valuation and pricing policy used to value our assets under management and as further described in the Revenue Recognition section below. Investments held by consolidated T. Rowe Price investment products are considered trading securities that are carried at fair value with corresponding changes in the investments’ fair values reflected in non-operating income in our consolidated statements of income. These investments are valued in accordance with the valuation and pricing policy used to value our assets under management and further described in the Revenue Recognition section below. CONCENTRATION OF RISK. Concentration of credit risk in accounts receivable is believed to be minimal in that our clients generally have substantial assets, including those in the investment portfolios that we manage for them. Our investments held as trading expose us to market risk, that is, the potential future loss of value that would result from a decline in the fair value of each investment or its underlying net assets. The underlying holdings of our assets under management are also subject to market risk, which may arise from changes in equity prices, credit ratings, foreign currency exchange rates, and interest rates. PROPERTY AND EQUIPMENT. Property and equipment is stated at cost net of accumulated depreciation and amortization computed using the straight-line method. Provisions for depreciation and amortization are based on the following weighted-average estimated useful lives: computer and communications software and equipment, 3 years; buildings and improvements, 32 years; leasehold improvements, 8 years; furniture and other equipment, 7 years; and leased land, 99 years. GOODWILL. We evaluate the carrying amount of goodwill in our consolidated balance sheets for possible impairment on an annual basis in the third quarter of each year using a fair value approach. Our evaluations have indicated that no impairment exists. We internally conduct, manage, and report our operations as one investment advisory business. We do not have distinct operating segments or components that separately constitute a business. Accordingly, we attribute goodwill to a single reportable business segment and reporting unit—our investment advisory business. REVENUE RECOGNITION. Fees for investment advisory services, which are based on a percentage of assets under management, and related administrative services that we provide to investment advisory clients, including the T. Rowe Price U.S. mutual funds and other investment products, are recognized in the period that our services are provided. Our assets under management are valued in accordance with a valuation and pricing policy that defines the valuation and pricing processes for each major type of investment held in T. Rowe Price U.S. mutual funds and other investment products. Fair values used in our processes are primarily determined from quoted market prices; prices furnished by dealers who make markets in such securities; or from data provided by an independent pricing service that considers yield or price of investments of comparable quality, coupon, maturity, and type. Investments for which market prices are not readily available are not a material portion of our total assets under management. Distribution and servicing fees earned from 12b-1 plans of the Advisor Class, R Class, and Variable Annuity II Class shares of certain T. Rowe Price U.S. mutual funds are recognized in the period that they are earned, which is the same period that the related products recognize their expense. These fees are offset entirely by the distribution and servicing costs paid to third-party financial intermediaries that source the assets of these share classes. We provide all services to the T. Rowe Price U.S. mutual funds under contracts that are subject to periodic review and approval by the funds’ Boards. Regulations require that the funds’ shareholders also approve material changes to investment advisory contracts. Taxes billed to our clients based on our fees for services rendered are not included in revenues. ADVERTISING. Costs of advertising are expensed the first time that the advertising takes place. STOCK-BASED COMPENSATION. We maintain three stockholder-approved employee long-term incentive plans (2012 Long-Term Incentive Plan, 2004 Stock Incentive Plan, and 2001 Stock Incentive Plan, collectively the LTI Plans) and two stockholder-approved non-employee director plans (2007 Non-Employee Director Equity Plan and 2017 Non-Employee Director Equity Plan, collectively the Director Plans). We believe that our stock-based compensation programs align the interests of our employees and directors with those of our common stockholders. As of December 31, 2017, a total of 18,445,397 shares were available for future grant under the 2012 Long-Term Incentive Plan and the 2017 Non-Employee Director Equity Plan (2017 Plan). Under our LTI Plans, we have issued restricted shares and restricted stock units to employees that settle in shares of our common stock after vesting. Vesting of these awards is based on the individual continuing to render service over an average 5.0 year graded schedule. All restricted shareholders and restricted stock unitholders receive non-forfeitable cash dividends and cash dividend equivalents, respectively, on our dividend payable date. We are also authorized to grant qualified incentive and nonqualified fixed stock options with a maximum term of 10 years. We have not granted options to employees since 2015. We grant performance-based restricted stock units to certain executive officers in which the number of restricted stock units ultimately retained is determined based on achievement of certain performance thresholds. The number of restricted stock units retained is also subject to the same time-based vesting requirement as the other restricted stock units described above. Cash dividend equivalents are accrued and paid to the holders of performance-based restricted stock units only after the performance period has lapsed and the performance thresholds have been met. Under the Director Plans, we may grant options with a maximum term of 10 years, restricted shares, and restricted stock units to non-employee directors. Under the 2017 Plan, awards generally vest over one year and, in the case of restricted stock units, are settled upon the non-employee directors’ departure from the Board. For restricted shares, cash dividends are accrued and paid on only after the award vests. Restricted stock unit holders receive dividend equivalents in the form of unvested stock units that vest over the same period as the underlying award. We did not grant options to non-employee directors in 2017. We recognize the grant-date fair value of these awards as compensation expense ratably over the awards' requisite service period. Compensation expense recognized for performance-based restricted shares and units includes an estimate regarding the probability of the performance thresholds being met. Both time-based and performance-based units are valued on the grant-date using the closing market price of our common stock. The expense recognized prior to 2016 includes an estimate of awards that will be forfeited. Upon implementation of the new stock-based compensation accounting guidance in 2016, we elected to account for forfeitures as they occur. We used the following inputs to the Black-Scholes option-pricing model to estimate the fair value of each option granted in 2015 and 2016.
Our expected life assumptions are based on the vesting period for each option grant and our historical experience with respect to the average holding period from vesting to option exercise. The assumptions for expected volatility are based on historical experience for the same periods as our expected lives. Dividend yields are based on recent historical experience and future expectations. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as our expected lives. EARNINGS PER SHARE. We compute our basic and diluted earnings per share under the two-class method, which considers our outstanding restricted shares and stock units, on which we pay non-forfeitable dividends as if they were a separate class of stock. COMPREHENSIVE INCOME. The components of comprehensive income are presented in a separate statement following our consolidated statements of income and include net income, the change in net unrealized security holding gains (losses), and the change in our currency translation adjustments. The currency translation adjustments result from translating our proportionate share of the financial statements of UTI, our equity method investment, and certain consolidated T. Rowe Price investment products into U.S. dollars. Assets and liabilities are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using weighted-average exchange rates for the period. The changes in accumulated balances of each component of other comprehensive income, the deferred tax impacts of each component, and information about significant items reclassified out of accumulated other comprehensive income are presented in the notes to the financial statements. The notes also indicate the line item of our consolidated statements of income to which the significant reclassifications were recognized. |
CASH EQUIVALENTS. |
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Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS | CASH EQUIVALENTS. Cash equivalent investments in the T. Rowe Price money market mutual funds aggregate $1,052.3 million at December 31, 2016, and $1,726.4 million at December 31, 2017. Dividends earned on these investments totaled $.2 million in 2015, $.3 million in 2016, and $9.1 million in 2017. |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. |
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Information about Receivables, Revenues, and Services [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES | INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. Accounts receivable from T. Rowe Price investment products, including the T. Rowe Price U.S. mutual funds, for advisory fees and advisory-related administrative services aggregate $303.1 million at December 31, 2016, and $365.3 million at December 31, 2017. Revenues from advisory services provided under agreements with the T. Rowe Price U.S. mutual funds and other investment products include:
Other investment products include advisory revenues of $367.8 million, $386.0 million, and $478.2 million for the year ended December 31, 2015, 2016, and 2017, respectively, that were earned on other T. Rowe Price products. During 2015 and 2016, we voluntarily waived $47.6 million and $10.5 million, respectively, in money market related fees, including advisory fees and fund expenses in order to maintain a positive yield for investors. Money market related fee waivers were immaterial in 2017. The following table summarizes the assets under management on which we earned advisory fees.
Investors that we serve are primarily domiciled in the U.S.; investment advisory clients outside the U.S. account for 4.7% and 5.8% of our assets under management at December 31, 2016 and 2017, respectively. The following table summarizes the other fees we earned from the T. Rowe Price U.S. mutual funds.
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INVESTMENTS. |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS. The carrying values of investments we do not consolidate at December 31 are as follows:
At the end of the second quarter of 2017, we made the decision to economically hedge the market exposure associated with our supplemental savings plan liability with certain T. Rowe Price investment products. In order to fund the hedge portfolio, we used the proceeds from the sale of certain T. Rowe Price investment products held as available-for-sale as well as designated a T. Rowe Price U.S. mutual fund that was held as available-for-sale. During the last three years, certain T. Rowe Price investment products in which we provided initial seed capital at the time of formation were deconsolidated, as we no longer had a controlling interest. Depending on our ownership interest, we are now reporting our residual interests in these T. Rowe Price investment products as either equity method or available-for-sale investments. Additionally, during 2016 and 2017, certain T. Rowe Price investment products that were being accounted for as equity method investments were consolidated, as we regained a controlling interest. The net impact of these changes on our consolidated balance sheets and income statements as of the dates the portfolios were deconsolidated or reconsolidated is detailed below.
The losses and gains recognized upon deconsolidation were the result of reclassifying currency translation adjustments accumulated on certain T. Rowe Price investment products with non-USD functional currencies from accumulated other comprehensive income to non-operating income. T. ROWE PRICE INVESTMENT PRODUCTS - AVAILABLE-FOR-SALE These investments include:
The following table details the number of holdings, the unrealized holding losses, and the aggregate fair value of T. Rowe Price investment products held as available-for-sale with unrealized losses categorized by the length of time they have been in a continuous unrealized loss position:
In addition to the duration of the impairments, we reviewed the severity of the impairment as well as our intent and ability to hold the investments for a period of time sufficient for an anticipated recovery in fair value. Accordingly, impairment of these investment holdings was considered temporary at December 31, 2016 and 2017. Dividends, excluding capital gain distributions, earned on these investments totaled $18.1 million in 2015, $8.7 million in 2016, and $8.2 million in 2017. VARIABLE INTEREST ENTITIES. Our investments at December 31, 2016 and 2017, include interests in variable interest entities that we do not consolidate as we are not deemed the primary beneficiary. Our maximum risk of loss related to our involvement with these entities is as follows:
The unfunded capital commitments totaling $46.4 million and $38.8 million at December 31, 2016 and 2017, respectively, relate primarily to investment partnerships in which we have an existing investment. In addition to such amounts, a percentage of prior distributions may be called under certain circumstances. |
FAIR VALUE MEASUREMENTS. |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS. We determine the fair value of our cash equivalents and certain investments using the following broad levels of inputs as defined by related accounting standards: Level 1 – quoted prices in active markets for identical securities. Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources. Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. We do not value any investments using Level 3 inputs. These levels are not necessarily an indication of the risk or liquidity associated with our investments. There have been no transfers between the levels. The following table summarizes our investments that are recognized in our consolidated balance sheets using fair value measurements determined based on the differing levels of inputs.
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CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. |
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Consolidated Sponsored Investment Portfolios [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS | CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. The T. Rowe Price investment products that we consolidate in our consolidated financial statements are generally those products we provided initial seed capital at the time of their formation and have a controlling interest. Our T. Rowe Price U.S. mutual funds are considered voting interest entities, while those regulated outside the U.S. are considered variable interest entities. The following table details the net assets of the consolidated T. Rowe Price investment products:
(1)Cash and cash equivalents includes $8.8 million and $6.2 million at December 31, 2016 and 2017, respectively, of investments in T. Rowe Price money market mutual funds. (2)Investments include $4.2 million and $15.0 million at December 31, 2016 and 2017, respectively, of T. Rowe Price investment products. Although we can redeem our net interest in these T. Rowe Price investment products at any time, we cannot directly access or sell the assets held by these products to obtain cash for general operations. Additionally, the assets of these investment products are not available to our general creditors. Since third-party investors in these investment products have no recourse to our credit, our overall risk related to the net assets of consolidated T. Rowe Price investment products is limited to valuation changes associated with our net interest. We, however, are required to recognize the valuation changes associated with all underlying investments held by these products in our consolidated statements of income and disclose the portion attributable to third-party investors as net income attributable to redeemable non-controlling interests. The operating results of the consolidated T. Rowe Price investment products, are reflected in our consolidated statements of income as follows:
The operating expenses of these consolidated products are reflected in other operating expenses. In preparing our consolidated financial statements, we eliminated operating expenses of $6.5 million and $5.6 million in 2016 and 2017, respectively, against the investment advisory and administrative fees earned from these products. The net investment income reflected in non-operating income includes dividend and interest income and realized and unrealized gains and losses on the underlying securities held by the consolidated T. Rowe Price investment products. The table below details the impact of these consolidated investment products on the individual lines of our consolidated statements of cash flows as follows:
The net cash provided by financing activities during 2016 and 2017, includes $277.9 million and $130.1 million, respectively, of net subscriptions we made into the consolidated T. Rowe Price investment products, net of dividends received. These cash flows were eliminated in consolidation. FAIR VALUE MEASUREMENTS. We determine the fair value of investments held by consolidated T. Rowe Price investment products using the following broad levels of inputs as defined by related accounting standards: Level 1 – quoted prices in active markets for identical securities. Level 2 – observable inputs other than Level 1 quoted prices including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. These inputs are based on market data obtained from independent sources. Level 3 – unobservable inputs reflecting our own assumptions based on the best information available. The value of investments using Level 3 inputs is insignificant. These levels are not necessarily an indication of the risk or liquidity associated with these investment holdings. There have been no material transfers between the levels during 2016 and 2017. The following table summarizes the investment holdings held by our consolidated T. Rowe Price investment products using fair value measurements determined based on the differing levels of inputs.
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PROPERTY AND EQUIPMENT. |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT. Property and equipment at December 31 consists of:
Compensation and related costs attributable to the development of computer software for internal use totaling $22.3 million in 2015, $28.9 million in 2016, and $62.3 million in 2017 have been capitalized. We occupy certain office facilities and lease computer and other equipment under noncancelable operating leases. Related rental expense was $31.1 million in 2015, $32.8 million in 2016, and $36.0 million in 2017. Future minimum payments under these leases aggregate $37.8 million in 2018, $37.2 million in 2019, $32.9 million in 2020, $29.6 million in 2021, $24.6 million in 2022, and $100.5 million in later years. |
INCOME TAXES. |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES. The provision for income taxes consists of:
Our income tax provision for 2017 includes a non-recurring charge of $71.1 million to reflect the effect of the U.S. tax law changes enacted on December 22, 2017. The recognized charge is our reasonable estimate based on current interpretation of the tax law changes and includes $18.9 million for the remeasurement of our deferred tax assets and liabilities, and a $52.2 million U.S. federal and state tax charge for the mandatory deemed repatriation of foreign sourced net earnings. The federal tax portion will be payable over the next 8 years. We will continue to evaluate the impact of the tax law changes on our estimates and expectations due to changes in our interpretations of the law, assumptions used in applying the law, and additional guidance concerning the law that may be issued. We will report any applicable adjustments to these estimates in 2018 after our estimates are finalized. Deferred income taxes and benefits arise from temporary differences between taxable income for financial statement and income tax return purposes. The deferred income taxes (tax benefits) recognized as part of our provision for income taxes is related to:
The following table reconciles the statutory federal income tax rate to our effective income tax rate.
(1)In 2017, state income benefits totaling (.4)% are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity. The amounts were not material in 2015 and 2016. The net deferred tax assets recognized in our consolidated balance sheets in other assets as of December 31 relate to the following:
We have not recognized a state deferred tax liability for unremitted earnings of our foreign subsidiaries as T. Rowe Price intends to indefinitely reinvest these earnings outside the U.S. The unremitted earnings of these subsidiaries are estimated to be approximately $604 million at December 31, 2017. If these earnings were distributed to the U.S. in the form of dividends or otherwise, or if any of the entities were sold or otherwise transferred, we would be subject to state and local income taxes. Determination of the amount of the unrecognized deferred state liability related to these earnings is not practicable. Other assets include tax refund receivables of $8.1 million at December 31, 2016, and $43.2 million at December 31, 2017. Cash outflows from operating activities include net income taxes paid of $778.6 million in 2015, $680.6 million in 2016, and $857.7 million in 2017. Additional income tax benefit arising from stock-based compensation plans activity totaling $23.2 million in 2015, $31.6 million in 2016, and $75.5 million in 2017 reduced the amount of income taxes that would have otherwise been payable. The income tax benefits for 2016 and 2017 were recognized in the income tax provision compared with additional paid in capital in 2015. The following table summarizes the changes in our unrecognized tax benefits.
If recognized, these tax benefits would affect our effective tax rate; however, we do not expect that unrecognized tax benefits for tax positions taken with respect to 2017 and prior years will significantly change in 2018. The U.S. has concluded examinations related to federal tax obligations through the year 2015. A net interest payable related to our unrecognized tax benefits of $1.2 million at December 31, 2016, and $1.5 million at December 31, 2017, are recognized in our consolidated balance sheets. Our accounting policy with respect to interest and penalties arising from income tax settlements is to recognize them as part of our provision for income taxes. Interest recognized as part of our provision for income taxes was not material. |
STOCKHOLDERS' EQUITY. |
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Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS' EQUITY. SHARE REPURCHASES. The Board of Directors has authorized the future repurchase of up to 15,183,779 common shares as of December 31, 2017. DIVIDENDS. Regular cash dividends declared per share were $2.08 in 2015, $2.16 in 2016, and $2.28 in 2017. A $2.00 per share special dividend was also declared and paid during 2015. RESTRICTED CAPITAL. Our consolidated stockholders' equity at December 31, 2017, includes about $142 million that is restricted as to use by various regulations and agreements arising in the ordinary course of our business. |
STOCK-BASED COMPENSATION. |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION. SHARES AUTHORIZED FOR STOCK-BASED COMPENSATION PROGRAMS. At December 31, 2017, a total of 39,301,717 shares of unissued common stock were authorized for issuance under our stock-based compensation plans. Additionally, a total of 2,693,679 shares are authorized for issuance under a plan whereby substantially all employees may acquire common stock through payroll deductions at prevailing market prices. STOCK OPTIONS. The following table summarizes the status of, and changes in, our stock options during 2017.
Compensation and related costs includes a charge for stock option-based compensation expense of $63.7 million in 2015, $44.9 million in 2016, and $28.1 million in 2017. The total intrinsic value of options exercised was $108.1 million in 2015, $150.5 million in 2016, and $293.0 million in 2017. At December 31, 2017, the aggregate intrinsic value of in-the-money options outstanding was $577.6 million, including $458.3 million related to options exercisable. RESTRICTED SHARES AND STOCK UNITS. The following table summarizes the status of, and changes in, our nonvested restricted shares and restricted stock units during 2017.
Nonvested at December 31, 2017, includes 7,200 performance-based restricted shares and 407,808 performance-based restricted stock units. These nonvested performance-based restricted shares and units include 7,200 shares and 293,354 units for which the performance period has lapsed and the performance threshold has been met. Compensation and related costs includes expenses for restricted shares and restricted stock units of $85.3 million in 2015, $116.7 million in 2016, and $124.0 million in 2017. At December 31, 2017, non-employee directors held 78,286 vested stock units that will convert to common shares upon their separation from the Board. FUTURE STOCK-BASED COMPENSATION EXPENSE. The following table presents the compensation expense (in millions) to be recognized over the remaining vesting periods of the stock-based awards outstanding at December 31, 2017. Estimated future compensation expense will change to reflect future grants changes in the probability of performance thresholds being met, and adjustments for actual forfeitures.
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EARNINGS PER SHARE CALCULATIONS. |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE CALCULATIONS | EARNINGS PER SHARE CALCULATIONS. The following table presents the reconciliation of net income attributable to T. Rowe Price Group to net income allocated to our common stockholders and the weighted-average shares that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflect the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested.
The following table shows the weighted-average outstanding stock options that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive.
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OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. |
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OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. The following table presents the impact of the components of other comprehensive income or loss on deferred tax benefits (income taxes).
The changes in each component of accumulated other comprehensive income (loss), including reclassification are presented below.
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DELL APPRAISAL RIGHTS MATTER. |
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Dec. 31, 2017 | |
Unusual or Infrequent Items, or Both [Abstract] | |
DELL APPRAISAL RIGHTS MATTER | DELL APPRAISAL RIGHTS MATTER. In 2016, we paid $166.2 million to compensate certain T. Rowe Price mutual funds, trusts, separately managed accounts, and subadvised clients (collectively, Clients) for the denial of their appraisal rights by the Delaware Chancery Court (Court) in connection with the 2013 leveraged buyout of Dell, Inc. (Dell). The Court ruled on May 11, 2016, that the Clients could not pursue an appraisal of any shares they held that were voted in favor of the Dell merger. The appraisal statute governing the transaction required the record holder to vote against or abstain from voting on the transaction in order to assert appraisal rights. After previously voting against prior transaction proposals, the voting instructions submitted on behalf of the Clients in connection with voting on the final proposed transaction were incorrectly submitted in favor of the transaction. On May 31, 2016, the Court determined that the fair value of Dell at the time of the merger was $17.62 per share, as opposed to the $13.75 price offered in the transaction. As a result, any shareholder perfecting appraisal rights is entitled to a payment at $17.62 per share plus statutory interest from the date the Dell transaction closed subject to possible appeal of the Court’s decision. The compensation to Clients was intended to make them whole for the voting discrepancy that resulted in the denial of their appraisal rights. On December 30, 2016, we entered into a settlement agreement for $100.0 million with our insurance carrier for insurance proceeds related to this matter. We recognized the proceeds as a reduction to the $166.2 million nonrecurring charge that we recognized earlier in 2016 and received the proceeds in January 2017. We received an additional $50 million in insurance proceeds from other insurance carriers in early 2017 and recognized a related reduction in operating expenses. In accordance with the compensation payment, the Clients agreed that in the event the findings made by the Court regarding the fair value of Dell or the amount of interest to be applied were modified by a final, non-appealable judgment, T. Rowe Price and the Clients would make an appropriate adjustment between themselves, calculated in a manner that is consistent with the methodology used to compensate Clients. In December 2016, several parties, including Dell and the successful appraisal petitioners, filed appeals to the Delaware Supreme Court to challenge the Court’s valuation ruling. On December 14, 2017, the Delaware Supreme Court reversed the Court's judgment and remanded the case for further proceedings. It is not clear how the Court will eventually rule and what the ultimate valuation will be, although the Supreme Court’s opinion suggests that the deal price of $13.75 may be the ultimate outcome. Once the Court enters a final, non-appealable judgment, Clients will be required to repay any overpayment using the methodology used to calculate the original payment. We estimate that the first $15.2 million reclaimed from our Clients would be paid back to T. Rowe Price Group. We would then be required to repay any additional reclaimed funds to our insurers in a specific order. |
COMMITMENTS AND CONTINGENCIES. |
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Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES. On February 14, 2017, T. Rowe Price Group, Inc., T. Rowe Price Associates, Inc., T. Rowe Price Trust Company, current and former members of the management committee, and trustees of the T. Rowe Price U.S. Retirement Program were named as defendants in a lawsuit filed in the United States District Court for the District of Maryland. The lawsuit alleges breaches of ERISA’s fiduciary duty and prohibited transaction provisions on behalf of a class of all participants and beneficiaries of the T. Rowe Price 401(k) Plan from February 14, 2011, to the time of judgment. The plaintiffs are seeking certification of the complaint as a class action. T. Rowe Price believes the claims are without merit and is vigorously defending the action. This matter is in the early stages of litigation and we cannot predict the eventual outcome or whether it will have a material negative impact on our financial results, or estimate the possible loss or range of loss that may arise from any negative outcome. On April 27, 2016, certain shareholders in the T. Rowe Price Blue Chip Growth Fund, T. Rowe Price Capital Appreciation Fund, T. Rowe Price Equity Income Fund, T. Rowe Price Growth Stock Fund, T. Rowe Price International Stock Fund, T. Rowe Price High Yield Fund, T. Rowe Price New Income Fund and T. Rowe Price Small Cap Stock Fund (the “Funds”) filed a Section 36(b) complaint under the caption Zoidis v. T. Rowe Price Assoc., Inc., against T. Rowe Price Associates, Inc. (“T. Rowe Price”) in the United States District Court for the Northern District of California. The complaint alleges that the management fees for the identified funds are excessive because T. Rowe Price charges lower advisory fees to subadvised clients with funds in the same strategy. The complaint seeks to recover the allegedly excessive advisory fees received by T. Rowe Price in the year preceding the start of the lawsuit, along with investments’ returns and profits. In the alternative, the complaint seeks the rescission of each fund’s investment management agreement and restitution of any allegedly excessive management fees. T. Rowe Price believes the claims are without merit and is vigorously defending the action. This matter is in the early stages of litigation and we cannot predict the eventual outcome or whether it will have a material negative impact on our financial results, or estimate the possible loss or range of loss that may arise from any negative outcome. In addition to the matters discussed above, various claims against us arise in the ordinary course of business, including employment-related claims. In the opinion of management, after consultation with counsel, the likelihood of an adverse determination in one or more of these pending ordinary course of business claims that would have a material adverse effect on our financial position or results of operations is remote. |
OTHER DISCLOSURES. |
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Dec. 31, 2017 | |
Other Disclosures [Abstract] | |
OTHER DISCLOSURES. | OTHER DISCLOSURES. RETIREMENT PLANS. Compensation and related costs includes expense recognized for our defined contribution retirement plans of $74.9 million in 2015, $80.7 million in 2016, and $89.4 million in 2017. SUPPLEMENTAL SAVINGS PLAN. The Supplemental Savings Plan provides certain senior officers the opportunity to defer receipt of up to 100% of their cash incentive compensation earned for a respective calendar year during which services are provided. The amounts deferred are adjusted in accordance with the hypothetical investments chosen by the officer from a list of mutual funds. The officer can initially defer these amounts for a period of two to 15 years. For 2015, 2016 and 2017, senior officers elected to defer $72.8 million, $83.4 million, and $95.5 million, respectively. |
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT | SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. The following table summarizes the cash flows that are attributable to T. Rowe Price Group, our consolidated T. Rowe Price investment products, and the related eliminations required in preparing the statement.
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SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). |
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Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited) | SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited).
(1)The sums of quarterly earnings per share may not equal annual earnings per share because the computations are done independently. (2)The second quarter of 2016 includes a nonrecurring operating charge of $166.2 million, or $.39 in diluted earnings per share, related to our decision to compensate certain clients in regard to the Dell appraisal rights matter. In the fourth quarter of 2016, we recognized an offset to this charge for a related insurance recovery of $100 million, or $.24 in diluted earnings per share. During the first quarter of 2017, we recognized an additional $50 million in insurance recoveries, or $.12 in diluted earnings per share relating to the Dell matter. For more details related to the Dell appraisal rights matter, see Note 12 to the consolidated financial statements. During the fourth quarter of 2017, we recognized a nonrecurring charge of $71.1 million related to the U.S. tax law changes that were enacted on December 22, 2017. See Note 7 to the consolidated financial statements for further details. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of preparation - basis of accounting | These consolidated financial statements have been prepared by our management in accordance with accounting principles generally accepted in the United States. |
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Basis of preparation - use of estimates | These principles require that we make certain estimates and assumptions. Actual results may vary from our estimates. |
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Newly issued but not yet adopted accounting guidance | In May 2014, the FASB issued Accounting Standards Update No. 2014-09 — Revenue from Contracts with Customers, and subsequently has issued several related accounting standard updates clarifying several aspects of ASU 2014-09, including technical corrections and improvements (ASC 606). The standard update provides a single, comprehensive revenue recognition model for all contracts with customers to improve comparability within industries, across industries, and across capital markets. It contains principles to apply to determine the measurement of revenue and the timing of when it is recognized. We will adopt the new standard on its effective date, January 1, 2018, using the retrospective approach with adjustments to each prior period. We concluded that the new standards do not materially change the timing of revenue recognition. However, the presentation of certain revenue related expenses totaling about $60 million in 2016 and 2017 will change from being recognized net against the related revenues to being reported within operating expenses. Additionally, we plan to enhance disclosures in accordance with the standard's disclosure requirements in 2018. In January 2016, the FASB issued Accounting Standards Update No. 2016-01 — Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This standard update addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments and requires a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. We will adopt the new standard on its effective date, January 1, 2018. Upon adoption, we will reclassify net unrealized holding gains recognized on investments in T. Rowe Price products totaling $7.9 million from accumulated other comprehensive income to retained earnings. After January 1, 2018, the change in the fair value of investments in T. Rowe Price investment products previously accounted for as available-for-sale investments will be recognized in our consolidated income statement rather than our consolidated statement of comprehensive income. The impact upon implementation of the standard on our investments without a readily determinable fair value is not material. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 — Leases (Topic 842). The standard update seeks to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The standards update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact this standard will have on our financial position and results of operations. We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our consolidated financial statements, including guidance which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operation. |
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Consolidation | Our consolidated financial statements include the accounts of all subsidiaries and T. Rowe Price investment products in which we have a controlling interest. We are generally deemed to have a controlling interest when we own the majority of a voting interest entity (VOE) or are deemed to be the primary beneficiary of a variable interest entity (VIE). We perform an analysis of our investments to determine if the investment entity is a VOE or VIE. Our analysis involves judgment and considers several factors, including an entity’s legal organization, capital structure, the rights of the equity investment holders, our ownership interest in the entity, and our contractual involvement with the entity. We continually review and reconsider our VOE or VIE conclusions upon the occurrence of certain events, such as changes to our ownership interest, changes to an entity’s legal structure, or amendments to governing documents. Upon consolidation of T. Rowe Price investment products, we retain the specialized investment company accounting principles of the underlying funds. All material accounts and transactions between consolidated entities are eliminated in consolidation. Variable interest entities VIEs are entities that, by design: (i) lack sufficient equity to permit the entity to finance its activities independently or (ii) have equity holders that do not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance, the obligation to absorb the entity’s losses, or the rights to receive the entity’s residual returns. We consolidate a VIE when we are the primary beneficiary, which is the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the entity or the right to receive benefits from the VIE that could potentially be significant. Our Luxembourg-based SICAV funds and other T. Rowe Price investment products regulated outside the U.S. were determined to be VIEs. Along with VIEs that we consolidate, we also hold variable interests in other VIEs, including several investment partnerships that are not consolidated because we are not the primary beneficiary. Redeemable non-controlling interests We recognize redeemable non-controlling interests for the portion of the net assets of our consolidated T. Rowe Price investment products held by unrelated third-party investors as their interest is convertible to cash and other assets at their option. As such, we reflect redeemable non-controlling interests as temporary equity in our consolidated balance sheets. Investments in T. Rowe Price money market mutual funds We do not consider our investments in T. Rowe Price money market mutual funds when performing our consolidation analysis as the guidance provides a scope exception for interests in entities that are required to comply with, or operate in accordance with, requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. |
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Cash equivalents | Cash equivalents consist primarily of short-term, highly liquid investments in T. Rowe Price money market mutual funds. The cost of these funds is equivalent to fair value. |
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Available-for-sale sponsored investment portfolios | T. Rowe Price investment products that are accounted for as available-for-sale investments have been made for both general corporate investment purposes and to provide seed capital for newly formed products. These investments are carried at fair value using the quoted closing net asset value (NAV) per share of each fund as of the balance sheet date. Changes in net unrealized holding gains or losses on these investments are recognized in other comprehensive income. We review the carrying amount of each investment on a quarterly basis and recognize an impairment charge in non-operating investment income whenever an unrealized loss is considered other than temporary. In determining whether a holding is other-than-temporarily impaired, we consider various factors, including the duration of time it has existed, the severity of the impairment, any subsequent changes in value, and our intent and ability to hold the investment for a period of time sufficient for an anticipated recovery in fair value. Subject to the other considerations noted above, we believe a holding with an unrealized loss that has persisted daily throughout the six months between quarter-ends is generally presumed to have an other-than-temporary impairment. We may also recognize an other-than-temporary impairment if particular circumstances of the underlying investment do not warrant our belief that a near-term recovery is possible. |
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Equity and cost method investments | Equity method investments consist of investments in entities, including T. Rowe Price investment products, for which we have the ability to exercise significant influence over the operating and financial policies of the investee. The carrying values of these investments are adjusted to reflect our proportionate share of the investee's net income or loss, any unrealized gain or loss resulting from the translation of foreign-denominated financial statements into U.S. dollars, and dividends received. Our proportionate share of income or loss is included in non-operating income in our consolidated statements of income. As permitted under existing accounting guidance, we adopted a policy by which we recognize our share of UTI Asset Management Company Limited’s (UTI) earnings on a quarter lag as current financial information is not available in a timely manner. The basis difference between our carrying value and our proportionate share of UTI’s book value is primarily related to consideration paid in excess of the stepped-up basis of assets and liabilities on the date of purchase. Cost method investments consist of investments in entities for which we do not exercise significant influence over the operating and financial policies of the investee. We evaluate our equity and cost method investments for impairment when events or changes in circumstances indicate that the carrying value of the investment exceeds its fair value, and the decline in fair value is other than temporary. |
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Investments held as trading | T. Rowe Price investment products held as trading include seed and discretionary investments in mutual funds and separately managed account products that are carried at fair value. These investments are valued in accordance with the valuation and pricing policy used to value our assets under management and as further described in the Revenue Recognition section below. Investments held by consolidated T. Rowe Price investment products are considered trading securities that are carried at fair value with corresponding changes in the investments’ fair values reflected in non-operating income in our consolidated statements of income. These investments are valued in accordance with the valuation and pricing policy used to value our assets under management and further described in the Revenue Recognition section below. |
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Property and equipment | Property and equipment is stated at cost net of accumulated depreciation and amortization computed using the straight-line method. Provisions for depreciation and amortization are based on the following weighted-average estimated useful lives: computer and communications software and equipment, 3 years; buildings and improvements, 32 years; leasehold improvements, 8 years; furniture and other equipment, 7 years; and leased land, 99 years. |
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Goodwill | We evaluate the carrying amount of goodwill in our consolidated balance sheets for possible impairment on an annual basis in the third quarter of each year using a fair value approach. Our evaluations have indicated that no impairment exists. We internally conduct, manage, and report our operations as one investment advisory business. We do not have distinct operating segments or components that separately constitute a business. Accordingly, we attribute goodwill to a single reportable business segment and reporting unit—our investment advisory business. |
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Revenue recognition | Fees for investment advisory services, which are based on a percentage of assets under management, and related administrative services that we provide to investment advisory clients, including the T. Rowe Price U.S. mutual funds and other investment products, are recognized in the period that our services are provided. Our assets under management are valued in accordance with a valuation and pricing policy that defines the valuation and pricing processes for each major type of investment held in T. Rowe Price U.S. mutual funds and other investment products. Fair values used in our processes are primarily determined from quoted market prices; prices furnished by dealers who make markets in such securities; or from data provided by an independent pricing service that considers yield or price of investments of comparable quality, coupon, maturity, and type. Investments for which market prices are not readily available are not a material portion of our total assets under management. Distribution and servicing fees earned from 12b-1 plans of the Advisor Class, R Class, and Variable Annuity II Class shares of certain T. Rowe Price U.S. mutual funds are recognized in the period that they are earned, which is the same period that the related products recognize their expense. These fees are offset entirely by the distribution and servicing costs paid to third-party financial intermediaries that source the assets of these share classes. We provide all services to the T. Rowe Price U.S. mutual funds under contracts that are subject to periodic review and approval by the funds’ Boards. Regulations require that the funds’ shareholders also approve material changes to investment advisory contracts. Taxes billed to our clients based on our fees for services rendered are not included in revenues. |
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Advertising | Costs of advertising are expensed the first time that the advertising takes place. |
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Stock-based compensation | We maintain three stockholder-approved employee long-term incentive plans (2012 Long-Term Incentive Plan, 2004 Stock Incentive Plan, and 2001 Stock Incentive Plan, collectively the LTI Plans) and two stockholder-approved non-employee director plans (2007 Non-Employee Director Equity Plan and 2017 Non-Employee Director Equity Plan, collectively the Director Plans). We believe that our stock-based compensation programs align the interests of our employees and directors with those of our common stockholders. As of December 31, 2017, a total of 18,445,397 shares were available for future grant under the 2012 Long-Term Incentive Plan and the 2017 Non-Employee Director Equity Plan (2017 Plan). Under our LTI Plans, we have issued restricted shares and restricted stock units to employees that settle in shares of our common stock after vesting. Vesting of these awards is based on the individual continuing to render service over an average 5.0 year graded schedule. All restricted shareholders and restricted stock unitholders receive non-forfeitable cash dividends and cash dividend equivalents, respectively, on our dividend payable date. We are also authorized to grant qualified incentive and nonqualified fixed stock options with a maximum term of 10 years. We have not granted options to employees since 2015. We grant performance-based restricted stock units to certain executive officers in which the number of restricted stock units ultimately retained is determined based on achievement of certain performance thresholds. The number of restricted stock units retained is also subject to the same time-based vesting requirement as the other restricted stock units described above. Cash dividend equivalents are accrued and paid to the holders of performance-based restricted stock units only after the performance period has lapsed and the performance thresholds have been met. Under the Director Plans, we may grant options with a maximum term of 10 years, restricted shares, and restricted stock units to non-employee directors. Under the 2017 Plan, awards generally vest over one year and, in the case of restricted stock units, are settled upon the non-employee directors’ departure from the Board. For restricted shares, cash dividends are accrued and paid on only after the award vests. Restricted stock unit holders receive dividend equivalents in the form of unvested stock units that vest over the same period as the underlying award. We did not grant options to non-employee directors in 2017. We recognize the grant-date fair value of these awards as compensation expense ratably over the awards' requisite service period. Compensation expense recognized for performance-based restricted shares and units includes an estimate regarding the probability of the performance thresholds being met. Both time-based and performance-based units are valued on the grant-date using the closing market price of our common stock. The expense recognized prior to 2016 includes an estimate of awards that will be forfeited. Upon implementation of the new stock-based compensation accounting guidance in 2016, we elected to account for forfeitures as they occur. We used the following inputs to the Black-Scholes option-pricing model to estimate the fair value of each option granted in 2015 and 2016.
Our expected life assumptions are based on the vesting period for each option grant and our historical experience with respect to the average holding period from vesting to option exercise. The assumptions for expected volatility are based on historical experience for the same periods as our expected lives. Dividend yields are based on recent historical experience and future expectations. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as our expected lives. |
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Earnings per share | We compute our basic and diluted earnings per share under the two-class method, which considers our outstanding restricted shares and stock units, on which we pay non-forfeitable dividends as if they were a separate class of stock. |
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Comprehensive income | The components of comprehensive income are presented in a separate statement following our consolidated statements of income and include net income, the change in net unrealized security holding gains (losses), and the change in our currency translation adjustments. The currency translation adjustments result from translating our proportionate share of the financial statements of UTI, our equity method investment, and certain consolidated T. Rowe Price investment products into U.S. dollars. Assets and liabilities are translated into U.S. dollars using year-end exchange rates, and revenues and expenses are translated using weighted-average exchange rates for the period. The changes in accumulated balances of each component of other comprehensive income, the deferred tax impacts of each component, and information about significant items reclassified out of accumulated other comprehensive income are presented in the notes to the financial statements. The notes also indicate the line item of our consolidated statements of income to which the significant reclassifications were recognized. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumptions used in option pricing model and grant date fair value of options | We used the following inputs to the Black-Scholes option-pricing model to estimate the fair value of each option granted in 2015 and 2016.
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INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about Receivables, Revenues, and Services [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of revenues from advisory services | Revenues from advisory services provided under agreements with the T. Rowe Price U.S. mutual funds and other investment products include:
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Components of assets under management | The following table summarizes the assets under management on which we earned advisory fees.
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Components of other fees | The following table summarizes the other fees we earned from the T. Rowe Price U.S. mutual funds.
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INVESTMENTS. (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconsolidated investments | The carrying values of investments we do not consolidate at December 31 are as follows:
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Net impact of deconsolidation and consolidation on condensed consolidated balance sheets and income statements | The net impact of these changes on our consolidated balance sheets and income statements as of the dates the portfolios were deconsolidated or reconsolidated is detailed below.
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Available-for-sale T. Rowe Price investment products | These investments include:
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Continuous unrealized loss positions | The following table details the number of holdings, the unrealized holding losses, and the aggregate fair value of T. Rowe Price investment products held as available-for-sale with unrealized losses categorized by the length of time they have been in a continuous unrealized loss position:
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Maximum risk of loss related to investments in variable interest entities | Our maximum risk of loss related to our involvement with these entities is as follows:
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FAIR VALUE MEASUREMENTS. (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements summary | The following table summarizes our investments that are recognized in our consolidated balance sheets using fair value measurements determined based on the differing levels of inputs.
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CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Tables) |
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Consolidated Sponsored Investment Portfolios [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets of consolidated T. Rowe Price investment portfolios | The following table details the net assets of the consolidated T. Rowe Price investment products:
(1)Cash and cash equivalents includes $8.8 million and $6.2 million at December 31, 2016 and 2017, respectively, of investments in T. Rowe Price money market mutual funds. (2)Investments include $4.2 million and $15.0 million at December 31, 2016 and 2017, respectively, of T. Rowe Price investment products. |
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Operating results of consolidated T. Rowe Price investment portfolios | The operating results of the consolidated T. Rowe Price investment products, are reflected in our consolidated statements of income as follows:
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Cash flows of consolidated T. Rowe Price investment portfolios | The table below details the impact of these consolidated investment products on the individual lines of our consolidated statements of cash flows as follows:
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Fair values of investments held by consolidated T. Rowe Price investment portfolios | The following table summarizes the investment holdings held by our consolidated T. Rowe Price investment products using fair value measurements determined based on the differing levels of inputs.
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PROPERTY AND EQUIPMENT. (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment summary | Property and equipment at December 31 consists of:
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INCOME TAXES. (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedules of provision for income taxes and deferred income taxes (tax benefits) | The deferred income taxes (tax benefits) recognized as part of our provision for income taxes is related to:
The provision for income taxes consists of:
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Schedule of effective income tax rate reconciliation | The following table reconciles the statutory federal income tax rate to our effective income tax rate.
(1)In 2017, state income benefits totaling (.4)% are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity. The amounts were not material in 2015 and 2016. |
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Schedule of deferred tax assets and liabilities | The net deferred tax assets recognized in our consolidated balance sheets in other assets as of December 31 relate to the following:
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Schedule of unrecognized tax benefits | The following table summarizes the changes in our unrecognized tax benefits.
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STOCK-BASED COMPENSATION. (Tables) |
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Rollforward of stock options | The following table summarizes the status of, and changes in, our stock options during 2017.
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Rollforward of nonvested restricted shares and restricted stock units | The following table summarizes the status of, and changes in, our nonvested restricted shares and restricted stock units during 2017.
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Future stock-based compensation expense | The following table presents the compensation expense (in millions) to be recognized over the remaining vesting periods of the stock-based awards outstanding at December 31, 2017. Estimated future compensation expense will change to reflect future grants changes in the probability of performance thresholds being met, and adjustments for actual forfeitures.
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EARNINGS PER SHARE CALCULATIONS. (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share reconciliation | The following table presents the reconciliation of net income attributable to T. Rowe Price Group to net income allocated to our common stockholders and the weighted-average shares that are used in calculating the basic and diluted earnings per share on our common stock. Weighted-average common shares outstanding assuming dilution reflect the potential dilution, determined using the treasury stock method, that could occur if outstanding stock options were exercised and non-participating stock awards vested.
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Anti-dilutive securities | The following table shows the weighted-average outstanding stock options that are excluded from the calculation of diluted earnings per common share as the inclusion of such shares would be anti-dilutive.
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OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Tables) |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of the components of other comprehensive income on deferred tax benefits (income taxes) | The following table presents the impact of the components of other comprehensive income or loss on deferred tax benefits (income taxes).
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Changes in accumulated other comprehensive income | The changes in each component of accumulated other comprehensive income (loss), including reclassification are presented below.
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SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary consolidating cash flow statement | The following table summarizes the cash flows that are attributable to T. Rowe Price Group, our consolidated T. Rowe Price investment products, and the related eliminations required in preparing the statement.
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SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplementary quarterly financial data |
(1)The sums of quarterly earnings per share may not equal annual earnings per share because the computations are done independently. (2)The second quarter of 2016 includes a nonrecurring operating charge of $166.2 million, or $.39 in diluted earnings per share, related to our decision to compensate certain clients in regard to the Dell appraisal rights matter. In the fourth quarter of 2016, we recognized an offset to this charge for a related insurance recovery of $100 million, or $.24 in diluted earnings per share. During the first quarter of 2017, we recognized an additional $50 million in insurance recoveries, or $.12 in diluted earnings per share relating to the Dell matter. For more details related to the Dell appraisal rights matter, see Note 12 to the consolidated financial statements. During the fourth quarter of 2017, we recognized a nonrecurring charge of $71.1 million related to the U.S. tax law changes that were enacted on December 22, 2017. See Note 7 to the consolidated financial statements for further details. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Basis of presentation) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
|
Accounting Policies [Abstract] | ||
Income tax provision related to the tax law changes | $ 71.1 | $ 71.1 |
Income tax provision related to remeasurement of deferred tax assets and liabilities | 18.9 | |
Income tax provision related to mandatory deemed repatriation of foreign sourced net earnings | $ 52.2 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Newly issued but not yet adopted accounting guidance) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Jan. 01, 2018 |
Dec. 31, 2014 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reclassification of revenue related expenses to operating expenses | $ 2,684.2 | $ 2,489.5 | $ 2,301.7 | ||||||||||
Reclassification of revenue related expenses from revenue to operating expenses | $ 1,286.1 | $ 1,221.7 | $ 1,171.6 | $ 1,113.6 | $ 1,091.2 | $ 1,092.9 | $ 1,044.7 | $ 994.1 | 4,793.0 | 4,222.9 | 4,200.6 | ||
Reclassification of unrealized holding gains recognized on investments from AOCI to retained earnings | 5,824.4 | 5,008.6 | 5,824.4 | 5,008.6 | 4,762.0 | $ 5,395.2 | |||||||
Pro forma [Member] | ASU 2014-09 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reclassification of revenue related expenses to operating expenses | 60.0 | 60.0 | |||||||||||
Reclassification of revenue related expenses from revenue to operating expenses | 60.0 | 60.0 | |||||||||||
Net unrealized holding gains or losses [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reclassification of unrealized holding gains recognized on investments from AOCI to retained earnings | $ 7.9 | $ 52.2 | $ 7.9 | $ 52.2 | $ 120.3 | $ 165.5 | |||||||
Subsequent event [Member] | Net unrealized holding gains or losses [Member] | ASU 2016-01 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reclassification of unrealized holding gains recognized on investments from AOCI to retained earnings | $ (7.9) | ||||||||||||
Subsequent event [Member] | Retained earnings [Member] | ASU 2016-01 [Member] | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Reclassification of unrealized holding gains recognized on investments from AOCI to retained earnings | $ 7.9 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Investments) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Duration of fund holding unrealized loss between quarter-ends generally presumed to represent other than temporary impairment | 6 months |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Property and equipment) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Computer and communications software and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Buildings and improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 32 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Furniture and other equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Leased land [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 99 years |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Goodwill) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017
reporting_unit
Segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of distinct operating segments through which we internally conduct and manage our operations | 1 |
Number of distinct operating segments through which we report our operations | 1 |
Number of reportable business segments and units to which goodwill is attributed (reporting unit) | reporting_unit | 1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (Stock-based compensation) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017
share_based_compensation_plan
shares
|
Dec. 31, 2016
$ / shares
|
Dec. 31, 2015
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Grant-date fair value per option awarded (in dollars per share) | $ / shares | $ 10.62 | $ 17.35 | |
Stock compensation plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant (shares) | shares | 18,445,397 | ||
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected life in years | 6 years 9 months | 7 years | |
Expected volatility | 20.00% | 27.00% | |
Dividend yield | 2.50% | 2.40% | |
Risk-free interest rate | 1.60% | 1.90% | |
Employee stock-based compensation programs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stockholder-approved plans (plans) | 3 | ||
Employee stock-based compensation programs [Member] | Restricted shares and restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Graded vesting period | 5 years | ||
Employee stock-based compensation programs [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years | ||
Non-employee director plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stockholder-approved plans (plans) | 2 | ||
Graded vesting period | 1 year | ||
Non-employee director plans [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term | 10 years |
CASH EQUIVALENTS. (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Cash and Cash Equivalents [Abstract] | |||
Cash equivalent investments in T. Rowe Price money market mutual funds | $ 1,726.4 | $ 1,052.3 | |
Money market mutual funds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Dividends earned on money market mutual funds | $ 9.1 | $ 0.3 | $ 0.2 |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Receivables) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $ 556.7 | $ 455.1 |
T.Rowe Price U.S. mutual funds [Member] | ||
Receivables from sponsored mutual funds | ||
Accounts receivable for advisory fees and advisory-related administrative services | $ 365.3 | $ 303.1 |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Investment Advisory Services) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenue and Services [Line Items] | |||
Revenues from advisory services | $ 4,287.7 | $ 3,728.7 | $ 3,687.3 |
Average assets under management | 909,000.0 | 778,200.0 | 767,900.0 |
Period end assets under management | 991,100.0 | 810,800.0 | |
T. Rowe Price U.S. mutual funds [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 3,071.9 | 2,705.4 | 2,667.9 |
Average assets under management | 568,500.0 | 495,500.0 | 493,600.0 |
Period end assets under management | 606,300.0 | 514,200.0 | |
T. Rowe Price U.S. mutual funds [Member] | Stock and blended asset [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 2,570.9 | 2,228.1 | 2,241.9 |
Average assets under management | 447,500.0 | 386,100.0 | 387,800.0 |
Period end assets under management | 480,500.0 | 401,300.0 | |
T. Rowe Price U.S. mutual funds [Member] | Bond and money market [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 501.0 | 477.3 | 426.0 |
Average assets under management | 121,000.0 | 109,400.0 | 105,800.0 |
Period end assets under management | 125,800.0 | 112,900.0 | |
Other investment products [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 1,215.8 | 1,023.3 | 1,019.4 |
Average assets under management | 340,500.0 | 282,700.0 | 274,300.0 |
Period end assets under management | 384,800.0 | 296,600.0 | |
Other investment products [Member] | Stock and blended asset [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 1,009.4 | 850.3 | 862.2 |
Average assets under management | 256,400.0 | 211,100.0 | 210,300.0 |
Period end assets under management | 291,900.0 | 220,800.0 | |
Other investment products [Member] | Bond, money market, and stable value [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | 206.4 | 173.0 | 157.2 |
Average assets under management | 84,100.0 | 71,600.0 | 64,000.0 |
Period end assets under management | 92,900.0 | 75,800.0 | |
Other T. Rowe Price investment products [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | $ 478.2 | 386.0 | 367.8 |
Waived money market related fees [Member] | |||
Revenue and Services [Line Items] | |||
Revenues from advisory services | $ 10.5 | $ 47.6 |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Revenues and Services Concentration) (Details) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Outside U.S. [Member] | Assets under management [Member] | Investment advisory clients [Member] | Geographic concentration [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 5.80% | 4.70% |
INFORMATION ABOUT RECEIVABLES, REVENUES, AND SERVICES. (Other Fees Earned from Sponsored U.S. Mutual Funds) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Revenue and Services [Line Items] | |||
Administrative fees | $ 358.3 | $ 352.5 | $ 361.8 |
Distribution and servicing fees | 147.0 | 141.7 | 151.5 |
T. Rowe Price U.S. mutual funds [Member] | |||
Revenue and Services [Line Items] | |||
Administrative fees | 283.1 | 277.3 | 292.8 |
Distribution and servicing fees | $ 147.0 | $ 141.7 | $ 151.5 |
INVESTMENTS. (Investments) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investment [Line Items] | |||
T. Rowe Price investment products held as available-for-sale | $ 597.1 | $ 709.0 | |
Cost method investments | 78.0 | 73.6 | |
U.S. Treasury note | 1.0 | 1.0 | |
Total | 1,477.3 | 1,257.5 | |
Gains (losses) recognized upon deconsolidation | 396.3 | 227.1 | $ 103.5 |
T. Rowe Price investment products [Member] | |||
Investment [Line Items] | |||
Equity method investments | 277.4 | 252.3 | |
Trading investments | 95.0 | 75.4 | |
T. Rowe Price investment products designated as an economic hedge of supplemental savings plan liability [Member] | |||
Investment [Line Items] | |||
Trading investments | 268.2 | 0.0 | |
Interest in UTI Asset Management Company Limited (India) [Member] | |||
Investment [Line Items] | |||
Equity method investments | $ 155.8 | $ 140.9 | |
Equity method investment (ownership percentage) | 26.00% | 26.00% | |
Investment partnerships [Member] | |||
Investment [Line Items] | |||
Equity method investments | $ 4.8 | $ 5.3 | |
Currency translation adjustments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Investment [Line Items] | |||
Gains (losses) recognized upon deconsolidation | 0.1 | 2.2 | (5.8) |
Assets [Member] | |||
Investment [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | 1,397.2 | 1,342.8 | 20.3 |
Liability [Member] | |||
Investment [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | (153.1) | (37.3) | 0.0 |
Redeemable non-controlling interest [Member] | |||
Investment [Line Items] | |||
Net increase (decrease) in assets, liabilities, and redeemable noncontrolling interest | $ (1,042.6) | $ (967.3) | $ 0.0 |
INVESTMENTS. (T. Rowe Price Investment Product - Available for Sale) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | $ 587.2 | $ 626.2 |
Unrealized holding gains | 14.4 | 89.7 |
Unrealized holding losses | (4.5) | (6.9) |
Aggregate fair value | 597.1 | 709.0 |
Stock and blended asset funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | 106.7 | 162.9 |
Unrealized holding gains | 14.1 | 88.0 |
Unrealized holding losses | 0.0 | (1.9) |
Aggregate fair value | 120.8 | 249.0 |
Bond funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Aggregate cost | 480.5 | 463.3 |
Unrealized holding gains | 0.3 | 1.7 |
Unrealized holding losses | (4.5) | (5.0) |
Aggregate fair value | $ 476.3 | $ 460.0 |
INVESTMENTS. (Unrealized Losses on Available-For-Sale T. Rowe Price Investment Portfolios) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
security
|
Dec. 31, 2016
USD ($)
security
|
---|---|---|
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions [Abstract] | ||
Number of holdings with unrealized holding losses less than 12 months (number of securities) | security | 2 | 8 |
Number of holdings with unrealized holding losses 12 months or more (number of securities) | security | 2 | 2 |
Total number of holdings with unrealized holding losses (number of securities) | security | 4 | 10 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Unrealized holding losses of holdings that were in a continuous loss for less than 12 months | $ (0.4) | $ (4.2) |
Unrealized holding losses of holdings that were in a continuous loss for 12 months or more | (4.1) | (2.7) |
Total unrealized holding losses of holdings that were in a continuous loss | (4.5) | (6.9) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Aggregate fair value of holdings with unrealized holding losses for less than 12 months | 213.2 | 328.1 |
Aggregate fair value of holdings with unrealized holding losses for 12 months or more | 191.5 | 169.5 |
Total aggregate fair value of holdings with unrealized holding losses | $ 404.7 | $ 497.6 |
INVESTMENTS. (Dividends) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Dividends excluding capital gain distributions [Member] | Available-for-sale sponsored investment portfolios [Member] | |||
Net Investment Income [Line Items] | |||
Dividends | $ 8.2 | $ 8.7 | $ 18.1 |
INVESTMENTS. (Variable Interest Entities) (Details) - Variable interest entity, not primary beneficiary [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Investment carrying values | $ 129.2 | $ 149.2 |
Unfunded capital commitments | 38.8 | 46.4 |
Uncollected investment advisory and administrative fees | 7.7 | 5.9 |
Maximum risk of loss related to nonconsolidated variable interest entities | $ 175.7 | $ 201.5 |
FAIR VALUE MEASUREMENTS. (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
T. Rowe Price investment products held as available-for-sale | $ 597.1 | $ 709.0 |
Level 1 [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,726.4 | 1,052.3 |
T. Rowe Price investment products held as available-for-sale | 597.1 | 709.0 |
T. Rowe Price investment products held as trading | 345.8 | 60.3 |
Total | 2,669.3 | 1,821.6 |
Level 2 [Member] | Fair value, measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.0 | 0.0 |
T. Rowe Price investment products held as available-for-sale | 0.0 | 0.0 |
T. Rowe Price investment products held as trading | 17.4 | 15.1 |
Total | $ 17.4 | $ 15.1 |
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Net Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,902,700 | $ 1,204,900 | ||
Investments | 1,477,300 | 1,257,500 | ||
Other assets | 231,900 | 346,200 | ||
Total assets | 7,534,700 | 6,225,000 | ||
Liabilities | 717,500 | 529,200 | ||
Attributable to redeemable non-controlling interests | 992,800 | 687,200 | $ 0 | $ 0 |
Consolidated T. Rowe Price investment products [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 103,100 | 65,600 | ||
Net assets | 1,992,500 | 1,614,900 | ||
Attributable to redeemable non-controlling interests | 992,800 | 687,200 | ||
Attributable to T. Rowe Price Group | 999,700 | 927,700 | ||
Consolidated T. Rowe Price investment products [Member] | Reportable entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 103,100 | 65,600 | 0 | |
Investments | 1,914,500 | 1,559,900 | ||
Other assets | 30,800 | 55,000 | ||
Total assets | 2,048,400 | 1,680,500 | ||
Liabilities | 55,900 | 65,600 | ||
Net assets | 1,992,500 | 1,614,900 | ||
Voting interest entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net assets | 192,400 | 225,600 | ||
Attributable to redeemable non-controlling interests | 60,800 | 69,500 | ||
Attributable to T. Rowe Price Group | 131,600 | 156,100 | ||
Voting interest entities [Member] | Reportable entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 7,100 | 10,300 | 0 | |
Investments | 188,800 | 219,300 | ||
Other assets | 12,900 | 4,800 | ||
Total assets | 208,800 | 234,400 | ||
Liabilities | 16,400 | 8,800 | ||
Net assets | 192,400 | 225,600 | ||
Variable interest entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Net assets | 1,800,100 | 1,389,300 | ||
Attributable to redeemable non-controlling interests | 932,000 | 617,700 | ||
Attributable to T. Rowe Price Group | 868,100 | 771,600 | ||
Variable interest entities [Member] | Reportable entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 96,000 | 55,300 | $ 0 | |
Investments | 1,725,700 | 1,340,600 | ||
Other assets | 17,900 | 50,200 | ||
Total assets | 1,839,600 | 1,446,100 | ||
Liabilities | 39,500 | 56,800 | ||
Net assets | 1,800,100 | 1,389,300 | ||
T.Rowe Price U.S. mutual funds [Member] | Consolidated T. Rowe Price investment products [Member] | Reportable entities [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 6,200 | 8,800 | ||
Investments | $ 15,000 | $ 4,200 |
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Operating Results) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating expenses | $ (2,684.2) | $ (2,489.5) | $ (2,301.7) | ||||||||
Income before income taxes | 2,505.1 | 1,960.5 | 2,002.4 | ||||||||
Net income attributable to redeemable non-controlling interests | 83.4 | 39.0 | 0.0 | ||||||||
Investment advisory and administrative fees | $ (1,286.1) | $ (1,221.7) | $ (1,171.6) | $ (1,113.6) | $ (1,091.2) | $ (1,092.9) | $ (1,044.7) | $ (994.1) | (4,793.0) | (4,222.9) | $ (4,200.6) |
Consolidation eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating expenses | 5.6 | 6.5 | |||||||||
Investment advisory and administrative fees | 5.6 | 6.5 | |||||||||
Consolidated T. Rowe Price investment products [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Income before income taxes | 181.6 | 108.1 | |||||||||
Net income attributable to T. Rowe Price Group | 98.2 | 69.1 | |||||||||
Net income attributable to redeemable non-controlling interests | 83.4 | 39.0 | |||||||||
Consolidated T. Rowe Price investment products [Member] | Reportable entities [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating expenses | (12.3) | (13.0) | |||||||||
Net investment non-operating income | 193.9 | 121.1 | |||||||||
Income before income taxes | 181.6 | 108.1 | |||||||||
Voting interest entities [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Income before income taxes | 17.7 | 20.9 | |||||||||
Net income attributable to T. Rowe Price Group | 13.3 | 15.0 | |||||||||
Net income attributable to redeemable non-controlling interests | 4.4 | 5.9 | |||||||||
Voting interest entities [Member] | Reportable entities [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating expenses | (1.1) | (1.6) | |||||||||
Net investment non-operating income | 18.8 | 22.5 | |||||||||
Income before income taxes | 17.7 | 20.9 | |||||||||
Variable interest entities [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Income before income taxes | 163.9 | 87.2 | |||||||||
Net income attributable to T. Rowe Price Group | 84.9 | 54.1 | |||||||||
Net income attributable to redeemable non-controlling interests | 79.0 | 33.1 | |||||||||
Variable interest entities [Member] | Reportable entities [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating expenses | (11.2) | (11.4) | |||||||||
Net investment non-operating income | 175.1 | 98.6 | |||||||||
Income before income taxes | $ 163.9 | $ 87.2 |
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Statement of Cash Flows) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | [1] | $ 229.5 | $ 170.5 | $ 1,530.5 | ||
Net cash provided by (used in) investing activities | [1] | 39.0 | 106.2 | 109.0 | ||
Net cash provided by (used in) financing activities | [1] | 461.5 | (176.4) | (1,973.3) | ||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | [1] | 5.3 | (2.1) | 0.0 | ||
Net change in cash and cash equivalents during period | [1] | 735.3 | 98.2 | (333.8) | ||
Cash and cash equivalents at beginning of year | 1,204.9 | |||||
Cash and cash equivalents at end of year | 1,902.7 | 1,204.9 | ||||
Consolidation eliminations [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (7.0) | (6.6) | ||||
Net cash provided by (used in) investing activities | 137.1 | 284.5 | ||||
Net cash provided by (used in) financing activities | (130.1) | (277.9) | ||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 0.0 | 0.0 | ||||
Net change in cash and cash equivalents during period | 0.0 | 0.0 | ||||
Consolidated T. Rowe Price investment products [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Cash and cash equivalents at beginning of year | 65.6 | |||||
Cash and cash equivalents at end of year | 103.1 | 65.6 | ||||
Consolidated T. Rowe Price investment products [Member] | Reportable entities [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (1,315.3) | (1,166.6) | ||||
Net cash provided by (used in) investing activities | (64.2) | 41.4 | ||||
Net cash provided by (used in) financing activities | 1,411.7 | 1,192.9 | ||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 5.3 | (2.1) | ||||
Net change in cash and cash equivalents during period | 37.5 | 65.6 | ||||
Cash and cash equivalents at beginning of year | 65.6 | 0.0 | ||||
Cash and cash equivalents at end of year | 103.1 | 65.6 | 0.0 | |||
Voting interest entities [Member] | Reportable entities [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (33.0) | (80.1) | ||||
Net cash provided by (used in) investing activities | (9.0) | 21.6 | ||||
Net cash provided by (used in) financing activities | 38.8 | 68.8 | ||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 0.0 | 0.0 | ||||
Net change in cash and cash equivalents during period | (3.2) | 10.3 | ||||
Cash and cash equivalents at beginning of year | 10.3 | 0.0 | ||||
Cash and cash equivalents at end of year | 7.1 | 10.3 | 0.0 | |||
Variable interest entities [Member] | Reportable entities [Member] | ||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||
Net cash provided by (used in) operating activities | (1,282.3) | (1,086.5) | ||||
Net cash provided by (used in) investing activities | (55.2) | 19.8 | ||||
Net cash provided by (used in) financing activities | 1,372.9 | 1,124.1 | ||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 5.3 | (2.1) | ||||
Net change in cash and cash equivalents during period | 40.7 | 55.3 | ||||
Cash and cash equivalents at beginning of year | 55.3 | 0.0 | ||||
Cash and cash equivalents at end of year | $ 96.0 | $ 55.3 | $ 0.0 | |||
|
CONSOLIDATED T. ROWE PRICE INVESTMENT PRODUCTS. (Fair Value Measurements) (Details) - Fair value, measurements, recurring [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,726.4 | $ 1,052.3 |
Trading investments | 345.8 | 60.3 |
Total | 2,669.3 | 1,821.6 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.0 | 0.0 |
Trading investments | 17.4 | 15.1 |
Total | 17.4 | 15.1 |
Consolidated T. Rowe Price investment products [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 6.2 | 8.8 |
Total | 543.5 | 291.0 |
Liabilities | (0.1) | (0.6) |
Consolidated T. Rowe Price investment products [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0.7 | 0.8 |
Total | 1,377.9 | 1,278.5 |
Liabilities | (13.7) | (13.6) |
Consolidated T. Rowe Price investment products [Member] | Equity securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 536.0 | 281.8 |
Consolidated T. Rowe Price investment products [Member] | Equity securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 667.5 | 325.3 |
Consolidated T. Rowe Price investment products [Member] | Fixed income securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 0.0 | 0.0 |
Consolidated T. Rowe Price investment products [Member] | Fixed income securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 687.4 | 918.1 |
Consolidated T. Rowe Price investment products [Member] | Other investments [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | 1.3 | 0.4 |
Consolidated T. Rowe Price investment products [Member] | Other investments [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading investments | $ 22.3 | $ 34.3 |
PROPERTY AND EQUIPMENT. (Owned) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,596.9 | $ 1,435.5 | |
Less accumulated depreciation and amortization | 944.9 | 820.4 | |
Total | 652.0 | 615.1 | |
Computer and communications software and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 824.4 | 704.0 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 442.5 | 422.0 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 121.0 | 108.2 | |
Furniture and other equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 168.9 | 158.3 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 37.4 | 40.3 | |
Leased land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2.7 | 2.7 | |
Compensation and related costs attributable to the development of computer software for internal use [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, additions | $ 62.3 | $ 28.9 | $ 22.3 |
PROPERTY AND EQUIPMENT. (Leased) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | |||
Rental expense | $ 36.0 | $ 32.8 | $ 31.1 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Future minimum operating lease payments, due in 2018 | 37.8 | ||
Future minimum operating lease payments, due in 2019 | 37.2 | ||
Future minimum operating lease payments, due in 2020 | 32.9 | ||
Future minimum operating lease payments, due in 2021 | 29.6 | ||
Future minimum operating lease payments, due in 2022 | 24.6 | ||
Future minimum operating lease payments, due in later years | $ 100.5 |
INCOME TAXES. (Provision for Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
U.S. federal | $ 708.1 | $ 573.7 | $ 669.5 |
State and local | 131.0 | 105.8 | 134.3 |
Foreign | 13.1 | 13.5 | 18.9 |
Deferred income taxes (tax benefits) | 71.7 | 13.5 | (43.3) |
Total | $ 923.9 | $ 706.5 | $ 779.4 |
INCOME TAXES. (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Unremitted earnings of foreign subsidiaries | $ 604.0 | $ 604.0 | ||
Tax refund receivables | 43.2 | 43.2 | $ 8.1 | |
Net income taxes paid | 857.7 | 680.6 | $ 778.6 | |
Additional income tax benefit arising from stock-based compensation | $ 23.2 | |||
Net tax benefits reducing income tax provision | 75.5 | 31.6 | ||
Net interest payable related to unrecognized tax benefits | 1.5 | 1.5 | $ 1.2 | |
Income tax provision related to the tax law changes | $ 71.1 | 71.1 | ||
Income tax provision related to remeasurement of deferred tax assets and liabilities | 18.9 | |||
Income tax provision related to mandatory deemed repatriation of foreign sourced net earnings | $ 52.2 |
INCOME TAXES. (Deferred Income Taxes (Tax Benefits)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Property and equipment | $ (3.9) | $ 3.2 | $ (2.3) |
Stock-based compensation | 72.4 | 1.3 | (14.6) |
Accrued compensation | 1.2 | (1.7) | (0.9) |
Supplemental savings plan liability | (8.3) | (30.9) | (27.4) |
Other-than-temporary impairments of available-for-sale investments | 7.3 | 10.0 | (0.4) |
Unrealized holding gains recognized in non-operating income | 10.7 | 31.6 | (2.4) |
Other | (7.7) | 0.0 | 4.7 |
Total deferred income taxes (tax benefits) | $ 71.7 | $ 13.5 | $ (43.3) |
INCOME TAXES. (Effective Income Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Impact of U.S. tax reform | 2.90% | 0.00% | 0.00% |
State income taxes for current year, net of federal income tax benefits | 3.90% | 3.80% | 4.30% |
Net income attributable to redeemable non-controlling interests | (1.30%) | (0.70%) | (0.00%) |
Net excess tax benefits from stock-based compensation plans activity | (3.00%) | (1.70%) | (0.00%) |
Other items | (0.60%) | (0.40%) | (0.40%) |
Effective income tax rate | 36.90% | 36.00% | 38.90% |
State income tax benefit related to redeemable non-controlling interests and stock-based compensation | (0.40%) |
INCOME TAXES. (Net Deferred Tax Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred tax liabilities | ||
Property and equipment | $ (35.3) | $ (39.2) |
Net unrealized holding gains recognized in income | (53.9) | (43.2) |
Net unrealized holding gains on investments held as available-for-sale | (3.1) | (33.4) |
Other | (18.9) | (27.5) |
Total deferred tax liabilities | (111.2) | (143.3) |
Deferred tax assets | ||
Stock-based compensation | 92.7 | 165.1 |
Asset impairments | 8.8 | 16.1 |
Accrued compensation | 4.4 | 5.6 |
Supplemental savings plan | 66.6 | 58.3 |
Currency translation adjustment | 2.2 | 23.0 |
Other | 6.8 | 7.7 |
Total deferred tax assets | 181.5 | 275.8 |
Net deferred tax asset | $ 70.3 | $ 132.5 |
INCOME TAXES. (Changes in Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 6.2 | $ 5.8 | $ 5.6 |
Changes in tax positions related to current year | 1.5 | 0.6 | 0.7 |
Changes in tax positions related to prior years | 0.1 | 0.0 | 1.8 |
Changes in tax positions related to expired statute of limitations | (0.2) | (0.2) | (2.3) |
Balance at end of year | $ 7.6 | $ 6.2 | $ 5.8 |
STOCKHOLDERS' EQUITY. (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Stockholders' Equity Note [Line Items] | |||
Common shares authorized for future repurchase (shares) | 15,183,779 | ||
Restricted stockholders' equity | $ 142 | ||
Regular cash dividend [Member] | |||
Stockholders' Equity Note [Line Items] | |||
Cash dividends declared per share | $ 2.28 | $ 2.16 | $ 2.08 |
Special cash dividend [Member] | |||
Stockholders' Equity Note [Line Items] | |||
Cash dividends declared per share | 2 | ||
Cash dividends paid per share | $ 2 |
STOCK-BASED COMPENSATION. (Details) |
Dec. 31, 2017
shares
|
---|---|
Stock compensation plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock authorized for issuance (in shares) | 39,301,717 |
Employee stock purchase [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares of common stock authorized for issuance (in shares) | 2,693,678.7850 |
STOCK-BASED COMPENSATION. (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at December 31, 2016 (in shares) | 24,364,322 | ||
Exercised (in shares) | (8,977,164) | ||
Forfeited (in shares) | (126,404) | ||
Expired (in shares) | (39,631) | ||
Outstanding at December 31, 2017 (in shares) | 15,221,123 | 24,364,322 | |
Exercisable at December 31, 2017 (in shares) | 11,140,190 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-average exercise price of options outstanding at December 31, 2016 (in dollars per share) | $ 61.90 | ||
Weighted-average exercise price of options exercised (in dollars per share) | 53.04 | ||
Weighted-average exercise price of options forfeited (in dollars per share) | 75.16 | ||
Weighted-average exercise price of options expired (in dollars per share) | 76.06 | ||
Weighted-average exercise price of options outstanding at December 31, 2017 (in dollars per share) | 66.98 | $ 61.90 | |
Weighted-average exercise price of options exercisable at December 31, 2017 (in dollars per share) | $ 63.79 | ||
Weighted-average remaining contractual term in years, outstanding | 5 years 1 month | ||
Weighted-average remaining contractual term in years, exercisable | 4 years 6 months | ||
Total intrinsic value of options exercised | $ 293.0 | $ 150.5 | $ 108.1 |
Aggregate intrinsic value of in-the-money options outstanding | 577.6 | ||
Aggregate intrinsic value of options exercisable | 458.3 | ||
Compensation and related costs [Member] | Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Stock-based compensation expense | $ 28.1 | $ 44.9 | $ 63.7 |
STOCK-BASED COMPENSATION. (Restricted Shares and Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2016 (in dollars per share) | $ 72.19 | ||
Weighted-average fair value of restricted shares and restricted stock units vested (in dollars per share) | 71.77 | ||
Weighted-average fair value of restricted shares and restricted stock units forfeited (in dollars per share) | 72.32 | ||
Weighted-average fair value of nonvested restricted shares and restricted stock units at December 31, 2017 (in dollars per share) | $ 82.37 | $ 72.19 | |
Value at vest date | $ 164.5 | ||
Vested stock units (in shares) | 78,286 | ||
Time-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $ 100.24 | ||
Performance-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average fair value of restricted shares and restricted stock units granted (in dollars per share) | $ 101.79 | ||
Restricted shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at December 31, 2016 (in shares) | 931,508 | ||
Vested (in shares) | (455,958) | ||
Forfeited (in shares) | (19,457) | ||
Nonvested at December 31, 2017 (in shares) | 473,115 | 931,508 | |
Restricted shares [Member] | Time-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants (in shares) | 17,022 | ||
Restricted shares [Member] | Performance-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants (in shares) | 0 | ||
Nonvested at December 31, 2017 (in shares) | 7,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested shares where performance threshold has been met (in shares) | 7,200 | ||
Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested at December 31, 2016 (in shares) | 4,634,461 | ||
Vested (in shares) | (1,111,857) | ||
Forfeited (in shares) | (106,323) | ||
Nonvested at December 31, 2017 (in shares) | 5,556,911 | 4,634,461 | |
Restricted stock units [Member] | Time-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants (in shares) | 2,026,176 | ||
Restricted stock units [Member] | Performance-based [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants (in shares) | 114,454 | ||
Nonvested at December 31, 2017 (in shares) | 407,808 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Nonvested shares where performance threshold has been met (in shares) | 293,354 | ||
Compensation and related costs [Member] | Restricted shares and restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Stock-based compensation expense | $ 124.0 | $ 116.7 | $ 85.3 |
STOCK-BASED COMPENSATION. (Future Stock-Based Compensation Expense) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
First quarter 2018 | $ 47.3 |
Second quarter 2018 | 46.7 |
Third quarter 2018 | 46.0 |
Fourth quarter 2018 | 40.3 |
Total 2018 | 180.3 |
2019 through 2023 | 176.1 |
Total | $ 356.4 |
EARNINGS PER SHARE CALCULATIONS. (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to T. Rowe Price Group | $ 347.1 | $ 390.9 | $ 373.9 | $ 385.9 | $ 379.8 | $ 327.8 | $ 203.3 | $ 304.1 | $ 1,497.8 | $ 1,215.0 | $ 1,223.0 |
Less: net income allocated to outstanding restricted stock and stock unit holders (basic) | 33.9 | 25.5 | 16.1 | ||||||||
Less: net income allocated to outstanding restricted stock and stock unit holders (diluted) | 33.9 | 25.5 | 16.1 | ||||||||
Net income allocated to common stockholders (basic) | 1,463.9 | 1,189.5 | 1,206.9 | ||||||||
Net income allocated to common stockholders (diluted) | $ 1,463.9 | $ 1,189.5 | $ 1,206.9 | ||||||||
Weighted-average common shares | |||||||||||
Outstanding (in shares) | 241.2 | 245.5 | 254.6 | ||||||||
Outstanding assuming dilution (in shares) | 245.1 | 250.3 | 260.9 | ||||||||
Weighted-average outstanding stock options excluded (in shares) | 5.0 | 9.9 | 6.4 |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Deferred Tax Benefits (Income Taxes)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Net unrealized holding gains or losses [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on other comprehensive income before reclassifications | $ (14.6) | $ 0.6 | $ 5.1 |
Total net deferred tax benefits (income taxes) | 28.5 | 23.9 | 31.8 |
Capital gain distributions [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 1.4 | 2.4 | 7.9 |
Net gains realized on dispositions [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 32.5 | 20.9 | 20.7 |
Net gains recognized upon transfer to trading investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 9.2 | 0.0 | 0.0 |
Other-than-temporary impairments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 0.0 | 0.0 | (1.9) |
Currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net deferred tax benefits (income taxes) on other comprehensive income before reclassifications | (18.5) | 3.5 | 3.8 |
Net deferred tax benefits (income taxes) on reclassifications from AOCI | 0.0 | 0.8 | (1.2) |
Total net deferred tax benefits (income taxes) | (18.5) | 4.3 | 2.6 |
Total accumulated other comprehensive income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total net deferred tax benefits (income taxes) | $ 10.0 | $ 28.2 | $ 34.4 |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | $ 5,008.6 | $ 4,762.0 | $ 5,395.2 |
Balances, Adjusted | 4,765.9 | ||
Other comprehensive income (loss) | (15.1) | (42.6) | (49.8) |
Balances | 5,824.4 | 5,008.6 | 4,762.0 |
Net unrealized holding gains [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | 52.2 | 120.3 | 165.5 |
Other comprehensive income (loss) before reclassifications and income taxes | 37.4 | (7.0) | (4.5) |
Reclassification adjustments recognized in non-operating income | (110.2) | (53.0) | (72.5) |
Other comprehensive income (loss), before taxes | (72.8) | (60.0) | (77.0) |
Net deferred tax benefits (income taxes) | 28.5 | 23.9 | 31.8 |
Other comprehensive income (loss) | (44.3) | (36.1) | (45.2) |
Balances | 7.9 | 52.2 | 120.3 |
Net unrealized holding gains [Member] | Accounting standards update 2015-2 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (32.0) | ||
Balances, Adjusted | 88.3 | ||
Currency translation adjustments [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | (40.7) | (33.7) | (29.1) |
Other comprehensive income (loss) before reclassifications and income taxes | 47.8 | (8.6) | (13.0) |
Reclassification adjustments recognized in non-operating income | (0.1) | (2.2) | 5.8 |
Other comprehensive income (loss), before taxes | 47.7 | (10.8) | (7.2) |
Net deferred tax benefits (income taxes) | (18.5) | 4.3 | 2.6 |
Other comprehensive income (loss) | 29.2 | (6.5) | (4.6) |
Balances | (11.5) | (40.7) | (33.7) |
Currency translation adjustments [Member] | Accounting standards update 2015-2 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (0.5) | ||
Balances, Adjusted | (34.2) | ||
Currency translation adjustments [Member] | Equity method investments [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | (32.3) | (30.9) | (25.7) |
Other comprehensive income (loss) before reclassifications and income taxes | 2.6 | (1.6) | (8.1) |
Reclassification adjustments recognized in non-operating income | 0.0 | 0.0 | 0.0 |
Other comprehensive income (loss), before taxes | 2.6 | (1.6) | (8.1) |
Net deferred tax benefits (income taxes) | (0.9) | 0.7 | 2.9 |
Other comprehensive income (loss) | 1.7 | (0.9) | (5.2) |
Balances | (30.6) | (32.3) | (30.9) |
Currency translation adjustments [Member] | Equity method investments [Member] | Accounting standards update 2015-2 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (0.5) | ||
Balances, Adjusted | (31.4) | ||
Currency translation adjustments [Member] | Consolidated T. Rowe Price investment products - variable interest entities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | (8.4) | (2.8) | (3.4) |
Other comprehensive income (loss) before reclassifications and income taxes | 45.2 | (7.0) | (4.9) |
Reclassification adjustments recognized in non-operating income | (0.1) | (2.2) | 5.8 |
Other comprehensive income (loss), before taxes | 45.1 | (9.2) | 0.9 |
Net deferred tax benefits (income taxes) | (17.6) | 3.6 | (0.3) |
Other comprehensive income (loss) | 27.5 | (5.6) | 0.6 |
Balances | 19.1 | (8.4) | (2.8) |
Currency translation adjustments [Member] | Consolidated T. Rowe Price investment products - variable interest entities [Member] | Accounting standards update 2015-2 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | 0.0 | ||
Balances, Adjusted | (2.8) | ||
Total accumulated other comprehensive income [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances | 11.5 | 86.6 | 136.4 |
Balances, Adjusted | 54.1 | ||
Other comprehensive income (loss) before reclassifications and income taxes | 85.2 | (15.6) | (17.5) |
Reclassification adjustments recognized in non-operating income | (110.3) | (55.2) | (66.7) |
Other comprehensive income (loss), before taxes | (25.1) | (70.8) | (84.2) |
Net deferred tax benefits (income taxes) | 10.0 | 28.2 | 34.4 |
Other comprehensive income (loss) | (15.1) | (42.6) | (49.8) |
Balances | $ (3.6) | $ 11.5 | 86.6 |
Total accumulated other comprehensive income [Member] | Accounting standards update 2015-2 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Reclassification of accumulated other comprehensive income to retained earnings upon adoption of the new consolidation accounting guidance | (32.5) | ||
Balances, Adjusted | $ 54.1 |
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE INCOME. (Reclassification Adjustments) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operating income | $ (396.3) | $ (227.1) | $ (103.5) |
Provision for income taxes | 923.9 | 706.5 | 779.4 |
Net unrealized holding gains or losses [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operating income | (110.2) | (53.0) | (72.5) |
Capital gain distributions [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for income taxes | 1.4 | 2.4 | 7.9 |
Net gains realized on dispositions [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for income taxes | 32.5 | 20.9 | 20.7 |
Net gains recognized upon transfer to trading investments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for income taxes | 9.2 | 0.0 | 0.0 |
Other-than-temporary impairments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Provision for income taxes | 0.0 | 0.0 | (1.9) |
Currency translation adjustments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operating income | (0.1) | (2.2) | 5.8 |
Provision for income taxes | 0.0 | 0.8 | (1.2) |
Total accumulated other comprehensive income [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operating income | (110.3) | (55.2) | (66.7) |
Variable interest entities [Member] | Currency translation adjustments [Member] | Reclassification out of accumulated other comprehensive income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Non-operating income | $ (0.1) | $ (2.2) | $ 5.8 |
DELL APPRAISAL RIGHTS MATTER. (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 30, 2016 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Dell appraisal rights matter [Member] | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Nonrecurring charge related to Dell appraisal rights matter | $ 166.2 | $ 166.2 | ||||
Court determined fair value per share at time of Dell merger (in dollars per share) | $ 17.62 | |||||
Price offered per share in Dell merger (in dollars per share) | 13.75 | |||||
Payment per share for any shareholder perfecting appraisal rights (in dollars per share) | $ 17.62 | |||||
Insurance proceeds | $ 100.0 | $ 50.0 | $ 100.0 | |||
Dell appraisal rights matter [Member] | ||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||
Unrecorded gain contingency | $ 15.2 |
OTHER DISCLOSURES. (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Expense recognized for defined contribution retirement plans | $ 89.4 | $ 80.7 | $ 74.9 |
Senior officers [Member] | Supplemental Savings Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Supplemental Savings Plan, minimum deferral period | 2 years | ||
Supplemental Savings Plan, maximum deferral period | 15 years | ||
Amount of cash incentive compensation senior officers elected to defer | $ 95.5 | $ 83.4 | $ 72.8 |
Maximum [Member] | Senior officers [Member] | Supplemental Savings Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Deferral percentage of cash incentive compensation | 100.00% |
SUPPLEMENTARY CONSOLIDATING CASH FLOW STATEMENT. (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||
Net income | $ 386.6 | $ 404.2 | $ 390.0 | $ 400.4 | $ 366.8 | $ 362.7 | $ 211.2 | $ 313.3 | $ 1,581.2 | [1] | $ 1,254.0 | [1] | $ 1,223.0 | [1] | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||
Depreciation and amortization of property and equipment | [1] | 143.6 | 133.4 | 126.3 | |||||||||||||
Stock-based compensation expense | [1] | 152.0 | 161.6 | 149.0 | |||||||||||||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | [1] | (83.1) | (53.0) | (56.5) | |||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | [1] | (23.6) | 0.0 | 0.0 | |||||||||||||
Net gains recognized on investments | [1] | (49.7) | (31.0) | (5.9) | |||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | [1] | (218.6) | 0.0 | 0.0 | |||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | [1] | (1,492.9) | (1,297.9) | (7.5) | |||||||||||||
Changes in accounts receivable and accrued revenue | [1] | (100.8) | (9.3) | (3.2) | |||||||||||||
Changes in payables and accrued liabilities | [1] | 323.4 | 138.6 | 98.2 | |||||||||||||
Other changes in assets and liabilities | [1] | (2.0) | (125.9) | 7.1 | |||||||||||||
Net cash provided by (used in) operating activities | [1] | 229.5 | 170.5 | 1,530.5 | |||||||||||||
Net cash provided by (used in) investing activities | [1] | 39.0 | 106.2 | 109.0 | |||||||||||||
Net cash provided by (used in) financing activities | [1] | 461.5 | (176.4) | (1,973.3) | |||||||||||||
Net subscriptions received from redeemable non-controlling interest holders | [1] | 1,281.6 | 915.0 | 0.0 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | [1] | 5.3 | (2.1) | 0.0 | |||||||||||||
Net change in cash and cash equivalents during period | [1] | 735.3 | 98.2 | (333.8) | |||||||||||||
Cash and cash equivalents at beginning of year | [1] | 1,270.5 | 1,172.3 | 1,270.5 | 1,172.3 | 1,506.1 | |||||||||||
Cash and cash equivalents at end of year | [1] | 2,005.8 | 1,270.5 | 2,005.8 | 1,270.5 | 1,172.3 | |||||||||||
Consolidation eliminations [Member] | |||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||
Net income | (98.2) | (69.1) | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||
Depreciation and amortization of property and equipment | 0.0 | 0.0 | |||||||||||||||
Stock-based compensation expense | 0.0 | 0.0 | |||||||||||||||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | 0.0 | 0.0 | |||||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | 0.0 | 0.0 | |||||||||||||||
Net gains recognized on investments | 98.2 | 69.1 | |||||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | 0.0 | 0.0 | |||||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | 0.0 | 0.0 | |||||||||||||||
Changes in accounts receivable and accrued revenue | 0.0 | 0.0 | |||||||||||||||
Changes in payables and accrued liabilities | 0.0 | 0.0 | |||||||||||||||
Other changes in assets and liabilities | (7.0) | (6.6) | |||||||||||||||
Net cash provided by (used in) operating activities | (7.0) | (6.6) | |||||||||||||||
Net cash provided by (used in) investing activities | 137.1 | 284.5 | |||||||||||||||
Net cash provided by (used in) financing activities | (130.1) | (277.9) | |||||||||||||||
Net subscriptions received from redeemable non-controlling interest holders | (130.1) | (277.9) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 0.0 | 0.0 | |||||||||||||||
Net change in cash and cash equivalents during period | 0.0 | 0.0 | |||||||||||||||
Cash and cash equivalents at beginning of year | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||
Cash and cash equivalents at end of year | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
Attributable to T. Rowe Price Group [Member] | Reportable entities [Member] | |||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||
Net income | 1,497.8 | 1,215.0 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||
Depreciation and amortization of property and equipment | 143.6 | 133.4 | |||||||||||||||
Stock-based compensation expense | 152.0 | 161.6 | |||||||||||||||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | (83.1) | (53.0) | |||||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | (23.6) | 0.0 | |||||||||||||||
Net gains recognized on investments | (147.9) | (100.1) | |||||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | (218.6) | 0.0 | |||||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | 0.0 | 0.0 | |||||||||||||||
Changes in accounts receivable and accrued revenue | (100.8) | (9.3) | |||||||||||||||
Changes in payables and accrued liabilities | 169.1 | 101.5 | |||||||||||||||
Other changes in assets and liabilities | 163.3 | (105.4) | |||||||||||||||
Net cash provided by (used in) operating activities | 1,551.8 | 1,343.7 | |||||||||||||||
Net cash provided by (used in) investing activities | (33.9) | (219.7) | |||||||||||||||
Net cash provided by (used in) financing activities | [1] | (820.1) | (1,091.4) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 0.0 | 0.0 | |||||||||||||||
Net change in cash and cash equivalents during period | 697.8 | 32.6 | |||||||||||||||
Cash and cash equivalents at beginning of year | 1,204.9 | 1,172.3 | 1,204.9 | 1,172.3 | |||||||||||||
Cash and cash equivalents at end of year | 1,902.7 | 1,204.9 | 1,902.7 | 1,204.9 | 1,172.3 | ||||||||||||
Consolidated T. Rowe Price investment products [Member] | Reportable entities [Member] | |||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||
Net income | 181.6 | 108.1 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||||||||
Depreciation and amortization of property and equipment | 0.0 | 0.0 | |||||||||||||||
Stock-based compensation expense | 0.0 | 0.0 | |||||||||||||||
Realized gains on dispositions of available-for-sale sponsored investment portfolios | 0.0 | 0.0 | |||||||||||||||
Gains recognized upon transfer of an available-for-sale T. Rowe Price investment products to T. Rowe Price investment products held as trading | 0.0 | 0.0 | |||||||||||||||
Net gains recognized on investments | 0.0 | 0.0 | |||||||||||||||
Investments in T. Rowe Price mutual funds held as trading to economically hedge supplemental savings plan liability | 0.0 | 0.0 | |||||||||||||||
Net change in trading securities held by consolidated T. Rowe Price investment products | (1,492.9) | (1,297.9) | |||||||||||||||
Changes in accounts receivable and accrued revenue | 0.0 | 0.0 | |||||||||||||||
Changes in payables and accrued liabilities | 154.3 | 37.1 | |||||||||||||||
Other changes in assets and liabilities | (158.3) | (13.9) | |||||||||||||||
Net cash provided by (used in) operating activities | (1,315.3) | (1,166.6) | |||||||||||||||
Net cash provided by (used in) investing activities | (64.2) | 41.4 | |||||||||||||||
Net cash provided by (used in) financing activities | 1,411.7 | 1,192.9 | |||||||||||||||
Net subscriptions received from redeemable non-controlling interest holders | 1,411.7 | 1,192.9 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents of consolidated T. Rowe Price investment products | 5.3 | (2.1) | |||||||||||||||
Net change in cash and cash equivalents during period | 37.5 | 65.6 | |||||||||||||||
Cash and cash equivalents at beginning of year | $ 65.6 | $ 0.0 | 65.6 | 0.0 | |||||||||||||
Cash and cash equivalents at end of year | $ 103.1 | $ 65.6 | $ 103.1 | $ 65.6 | $ 0.0 | ||||||||||||
|
SUPPLEMENTARY QUARTERLY FINANCIAL DATA (Unaudited). (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2016 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||
Net revenues | $ 1,286.1 | $ 1,221.7 | $ 1,171.6 | $ 1,113.6 | $ 1,091.2 | $ 1,092.9 | $ 1,044.7 | $ 994.1 | $ 4,793.0 | $ 4,222.9 | $ 4,200.6 | ||||||
Net income | 386.6 | 404.2 | 390.0 | 400.4 | 366.8 | 362.7 | 211.2 | 313.3 | 1,581.2 | [1] | 1,254.0 | [1] | 1,223.0 | [1] | |||
Net income attributable to T. Rowe Price Group | $ 347.1 | $ 390.9 | $ 373.9 | $ 385.9 | $ 379.8 | $ 327.8 | $ 203.3 | $ 304.1 | $ 1,497.8 | $ 1,215.0 | $ 1,223.0 | ||||||
Basic earnings on common stock (in dollars per share) | $ 1.40 | $ 1.59 | $ 1.52 | $ 1.56 | $ 1.53 | $ 1.30 | $ 0.81 | $ 1.21 | $ 6.07 | $ 4.85 | $ 4.74 | ||||||
Diluted earnings per share (in dollars per share) | $ 1.37 | $ 1.56 | $ 1.50 | 1.54 | 1.50 | $ 1.28 | 0.79 | $ 1.18 | $ 5.97 | $ 4.75 | $ 4.63 | ||||||
Income tax provision related to the tax law changes | $ 71.1 | $ 71.1 | |||||||||||||||
Dell appraisal rights matter [Member] | |||||||||||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||||||||||
Diluted earnings per share (in dollars per share) | $ 0.12 | $ 0.24 | $ 0.39 | ||||||||||||||
Nonrecurring charge related to Dell appraisal rights matter | $ 166.2 | $ 166.2 | |||||||||||||||
Insurance proceeds | $ 100.0 | $ 50.0 | $ 100.0 | ||||||||||||||
|
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