NEWS RELEASE

T. ROWE PRICE GROUP REPORTS SECOND QUARTER 2023 RESULTS

BALTIMORE (July 28, 2023) - T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) today reported its results for the second quarter of 2023.

▪Quarter end assets under management of $1.40 trillion

▪Net client outflows of $20.0 billion

▪Diluted earnings per common share (EPS) of $2.06; Adjusted diluted EPS of $2.02

▪Returned $323 million to stockholders mostly from the recurring quarterly dividend

Rob Sharps, chief executive officer and president, commented, "While equity outflows continued in the second quarter, we saw improved performance in a number of important investment strategies. Stronger equity markets helped lift revenue from first quarter levels, and we identified substantial cost savings that will allow us to meaningfully slow expense growth while continuing to pursue our strategic initiatives."

Financial Highlights

	Three months ended
(in millions, except per-share data)	6/30/2023		6/30/2022		Change		3/31/2023		Change
U.S. GAAP basis
Investment advisory fees	$	1,430.8	$	1,496.7	(4.4)	%	$	1,391.8	2.8	%
Capital allocation-based income(1) (2)	$	38.7	$	(126.3)	n/m		$	16.9	n/m
Net revenues	$	1,610.2	$	1,513.0	6.4	%	$	1,537.6	4.7	%
Operating expenses	$	1,076.7	$	844.4	27.5	%	$	1,053.4	2.2	%
Net operating income	$	533.5	$	668.6	(20.2)	%	$	484.2	10.2	%
Non-operating income (loss)(2)	$	106.2	$	(279.9)	n/m		$	135.4	n/m
Net income attributable to T. Rowe Price	$	476.4	$	339.6	40.3	%	$	421.5	13.0	%
Diluted earnings per common share	$	2.06	$	1.46	41.1	%	$	1.83	12.6	%
Weighted average common shares outstanding assuming dilution	225.2		227.9		(1.2)	%	225.2		—	%
Adjusted basis(3)
Operating expenses	$	1,026.2	$	947.3	8.3	%	$	1,022.5	0.4	%
Operating expenses, excluding accrued carried interest compensation	$	1,010.5	$	992.5	1.8	%	$	1,013.9	(0.3)	%
Net operating income	$	596.6	$	579.7	2.9	%	$	528.0	13.0	%
Non-operating income (loss)(2)	$	31.8	$	(30.6)	n/m		$	30.8	n/m
Net income attributable to T. Rowe Price	$	466.5	$	417.7	11.7	%	$	389.4	19.8	%
Diluted earnings per common share	$	2.02	$	1.79	12.8	%	$	1.69	19.5	%
Assets under management (in billions)
Average assets under management	$	1,357.4	$	1,407.1	(3.5)	%	$	1,322.9	2.6	%
Ending assets under management	$	1,399.4	$	1,309.7	6.8	%	$	1,341.7	4.3	%
Investment advisory effective fee rate (bps)	42.3		42.7		(0.9)	%	42.7		(0.9)	%

(1) Capital allocation-based income represents the change in accrued carried interest.

(2) The percentage change is not meaningful (n/m).

(3) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.

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Assets Under Management

During Q2 2023, assets under management (AUM) increased $57.7 billion to $1.40 trillion. The components of the change in AUM, by asset class, are shown in the table below.

	Three months ended 6/30/2023
(in billions)	Equity		Fixed income, including money market		Multi-asset(1)		Alternatives(2)		Total
Assets under management at beginning of period	$	695.1	$	170.4	$	431.9	$	44.3	$	1,341.7
Net cash flows(3)	(19.5)		(1.9)		1.6		(0.2)		(20.0)
Net market appreciation and gains(4)	56.6		0.8		19.7		0.6		77.7
Change during the period	37.1		(1.1)		21.3		0.4		57.7
Assets under management at June 30, 2023	$	732.2	$	169.3	$	453.2	$	44.7	$	1,399.4

(1)     The underlying AUM of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.

(2) The alternatives asset class includes strategies authorized to invest more than 50% of its holdings in private credit, leveraged loans, mezzanine, real assets/CRE, structured products, stressed/distressed, non-investment grade CLOs, special situations, business development companies, or that have absolute return as its investment objective. Generally, only those strategies with longer than daily liquidity are included. Unfunded capital commitments as of June 30, 2023 were

$12.2 billion and are not reflected in fee basis AUM above.

(3)    Alternatives net cash flows include $0.4 billion in outflows that represent investment manager-driven distributions.

(4) Includes net distributions not reinvested of $0.2 billion.

Investors domiciled outside the United States accounted for 8.9% of the firm's AUM at June 30, 2023, 8.9% at March 31, 2023 and 9.1% at December 31, 2022.

The firm provides participant accounting and plan administration for retirement plans that invest in the firm's U.S. mutual funds and collective investment trusts, as well as funds managed outside of the firm's complex. As of June 30, 2023, the firm's assets under administration were $243 billion, of which$147 billion were assets we manage.

In recent years, the firm began offering non-discretionary advisory services through model delivery and multi-asset solutions for providers to implement. The firm records the revenue earned on these services in administrative fees. The assets under advisement in these portfolios, predominantly in the United States, were $9 billion at

June 30, 2023.

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Financial Results Highlights

Net Revenues

	Three months ended
(in millions)	6/30/2023		6/30/2022		% Change		3/31/2023		% Change
Investment advisory fees
Equity	$	862.3	$	941.0	(8.4)	%	$	833.9	3.4	%
Fixed income, including money market	100.0		109.9		(9.0)	%	102.4		(2.3)	%
Multi-asset	391.3		377.5		3.7	%	386.0		1.4	%
Alternatives	77.2		68.3		13.0	%	69.5		11.1	%
Total investment advisory fees	$	1,430.8	$	1,496.7	(4.4)	%	$	1,391.8	2.8	%
Capital allocation-based income(1)	$	38.7	$	(126.3)	n/m		$	16.9	n/m
Administrative, distribution, and servicing fees	140.7		142.6		(1.3)	%	128.9		9.2	%
Net revenues	$	1,610.2	$	1,513.0	6.4	%	$	1,537.6	4.7	%
Average AUM (in billions):
Equity	$	703.4	$	769.6	(8.6)	%	$	687.0	2.4	%
Fixed income, including money market	170.4		174.8		(2.5)	%	169.6		0.5	%
Multi-asset	439.0		420.2		4.5	%	422.2		4.0	%
Alternatives	44.6		42.5		4.9	%	44.1		1.1	%
Average AUM	$	1,357.4	$	1,407.1	(3.5)	%	$	1,322.9	2.6	%

(1)The Capital allocation-based income represents the change in accrued carried interest. The percentage change is not meaningful (n/m).

Net revenues earned in Q2 2023 were $1.6 billion, an increase of 6.4% from Q2 2022 primarily driven by an increase in accrued carried interest in Q2 2023. The change in accrued carried interest in Q2 2022 reduced net revenues. The increase in accrued carried interest in 2023 was partially offset by lower investment advisory fee revenue as lower overall markets and net outflows reduced average assets under management. In comparison to Q1 2023, net revenues increased 4.7% driven primarily by higher investment advisory fees on higher average assets under management and higher capital allocation-based income.

▪The investment advisory fee annualized effective fee rate of 42.3 basis points in Q2 2023 decreased from 42.7 basis points earned in Q2 2022 and in Q1 2023. In comparison with Q2 2022, the annualized effective fee rate was primarily driven by a mix shift toward lower fee asset classes and vehicles as a result of overall market declines and net outflows over the last twelve months.

▪Capital allocation-based income in Q2 2023 of $38.7 million includes $51.0 million in additional accrued carried interest, partially offset by $12.3 million in acquisition-related non-cash amortization. Comparatively, the Q2 2022 amount reduced net revenues by $126.3 million. The Q2 2022 amount includes $113.0 million in market-related reductions of accrued carried interest and $13.3 million in non-cash amortization.

A portion of the capital allocation-based income is passed through as compensation and recognized in compensation and related costs with the unpaid amount reported as non-controlling interest on the consolidated balance sheet. For detail of the quarterly change in accrued carried interest, which is reported as part of investments on the consolidated balance sheet, and related non-controlling interest, see the applicable tables at the end of this release.

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Operating Expenses

	Three months ended
(in millions)	6/30/2023		6/30/2022		% Change		3/31/2023		% Change
Compensation, benefits, and related costs	$	591.0	$	589.8	0.2	%	$	593.3	(0.4)	%
Acquisition-related retention agreements	13.6		18.0		(24.4)	%	14.2		(4.2)	%
Capital allocation-based income compensation(1)	10.6		(50.9)		n/m		3.5		n/m
Supplemental savings plan(1)	33.0		(93.5)		n/m		42.5		n/m
Total compensation and related costs	648.2		463.4		39.9	%	653.5		(0.8)	%
Distribution and servicing	67.8		75.7		(10.4)	%	71.5		(5.2)	%
Advertising and promotion	22.9		21.4		7.0	%	25.8		(11.2)	%
Product and recordkeeping related costs	77.7		76.3		1.8	%	72.1		7.8	%
Technology, occupancy, and facility costs	154.7		134.3		15.2	%	146.6		5.5	%
General, administrative, and other	100.0		96.4		3.7	%	107.5		(7.0)	%
Change in fair value of contingent consideration	(23.2)		(50.3)		(53.9)	%	(49.6)		(53.2)	%
Acquisition-related amortization and impairment costs	28.6		27.2		5.1	%	26.0		10.0	%
Total operating expenses	$	1,076.7	$	844.4	27.5	%	$	1,053.4	2.2	%
Total adjusted operating expenses(2)	$	1,026.2	$	947.3	8.3	%	$	1,022.5	0.4	%

(1) The percentage change is not meaningful (n/m).

(2) See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.

Operating expenses were $1,076.7 million, an increase of 27.5% compared with Q2 2022 and an increase of 2.2% compared with Q1 2022. On a non-GAAP basis, adjusted operating expenses in Q2 2023 were $1,026.2 million, a 8.3% increase over Q2 2022 and a 0.4% increase compared with Q1 2023. The increase in adjusted operating expenses in Q2 2023 was largely driven by higher accrued carried interest-related compensation as the amount in Q2 2022 reduced operating expenses.

▪Compensation, benefits, and related costs in Q2 2023 of $591.0 million increased slightly from Q2 2022 as higher salaries and related benefits were almost completely offset by a lower interim bonus accrual and other employee-related costs. Compensation, benefits, and related costs in Q2 2023 declined $2.3 million from Q1 2023, primarily reflecting lower employee-related benefits. The firm employed 7,903 associates at June 30, 2023, an increase of 0.4% from the end of 2022 and an increase of 1.7% from June 30, 2022.

▪Distribution and servicing costs in Q2 2023 of $67.8 million declined $7.9 million from Q2 2022, primarily driven by lower average AUM in certain SICAV share classes.

▪Technology, occupancy, and facility costs in Q2 2023 of $154.7 million increased $20.4 million from Q2 2022, primarily due to increased office facility costs, mainly related to rent expense associated with a new UK facility we expect to occupy later this year, and higher costs from the firm's ongoing investment in its technology capabilities, including hosted solution licenses and depreciation.

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Non-operating income (loss)

(in millions)	Three months ended
	6/30/2023		6/30/2022		3/31/2023
Net gains (losses) from non-consolidated T. Rowe Price investment products
Cash and discretionary investments
Dividend income	$	25.5	$	2.8	$	20.2
Market-related gains (losses) and equity in earnings (losses)	6.3		(33.4)		10.6
Total net gains (losses) from cash and discretionary investments	31.8		(30.6)		30.8
Seed capital investments
Dividend income	0.4		0.2		0.5
Market-related gains (losses) and equity in earnings (losses)	14.4		(40.6)		15.1
Net gains recognized upon deconsolidation	—		5.2		—
Investments used to hedge the supplemental savings plan liability	33.6		(96.4)		44.7
Total net gains (losses) from non-consolidated T. Rowe Price investment products	80.2		(162.2)		91.1
Other investment income (loss)	8.9		(7.7)		2.8
Net gains (losses) on investments	89.1		(169.9)		93.9
Net gains (losses) on consolidated sponsored investment portfolios	24.4		(104.6)		45.4
Other losses, including foreign currency losses	(7.3)		(5.4)		(3.9)
Non-operating income (loss)	$	106.2	$	(279.9)	$	135.4

▪On a non-GAAP basis, non-operating income (loss) comprises the investment gains/losses generated from the firm's cash and discretionary investment portfolio. The net investment gains on this portfolio totaled $31.8 million in Q2 2023, compared with net investment losses of $30.6 million in the 2022 period, and net investment gains of $30.8 million in Q1 2023.

Income taxes

The following reconciles the statutory federal income tax rate to the firm's effective tax rate for the second quarter and six months ended 2023 and 2022:

	Three months ended				Six months ended
	6/30/2023		6/30/2022		6/30/2023		6/30/2022
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes for current year, net of federal income tax benefits(1)	2.8		3.9		2.9		3.5
Net (income) losses attributable to redeemable non-controlling interests(2)	(0.3)		2.7		(0.3)		1.1
Net excess tax benefits from stock-based compensation plans activity	(0.2)		(0.5)		(0.3)		(0.5)
Other items, including valuation allowances	1.5		(1.1)		3.4		(0.2)
Effective income tax rate	24.8	%	26.0	%	26.7	%	24.9	%

(1) State income tax benefits are reflected in the total benefits for net income attributable to redeemable non-controlling interests and stock-based compensation plans activity.

(2) Net income attributable to redeemable non-controlling interest represents the portion of earnings held in the firm's consolidated investment products, which are not taxable to the firm despite being included in pre-tax income.

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▪The firm's non-GAAP effective tax rate was 25.8% for Q2 2023, compared with 23.9% for Q2 2022. The Q2 2023 pre-tax income includes losses in certain foreign jurisdictions in which no associated tax benefit was recognized in the income tax provision.

▪The firm estimates that its effective tax rate for the full year 2023 will be in the range of 26% to 30%, on a U.S. GAAP basis, and 26.5% to 29.5%, on a non-GAAP basis.

Other Matters

The financial results presented in this release are unaudited. The firm expects to file its Form 10-Q Quarterly Report for the second quarter of 2023 with the U.S. Securities and Exchange Commission later today. The Form 10-Q will include additional information on the firm's unaudited consolidated financial statements at June 30, 2023.

Certain statements in this earnings release may represent “forward-looking information,” including information relating to anticipated changes in revenues, our operations, expenses, earnings, liquidity, cash flows and capital expenditures, industry or market conditions, amount or composition of assets under management, regulatory developments, changes in our effective fee rate, demand for and pricing of our products, new products and services, net income and earnings per common share, tax rates, general economic conditions, future transactions, our strategic initiatives, general economic conditions, dividends, stock repurchases, and other market conditions. For a discussion concerning risks and other factors that could affect future results, see the firm's 2022 Annual Report on Form 10-K.

Founded in 1937, Baltimore-based T. Rowe Price (troweprice.com) is a global investment management organization that provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The organization also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

Webcast Information

Chief Executive Officer and President, Rob Sharps, and Chief Financial Officer, Jen Dardis, will provide an update on business performance, review financial results, and answer questions on a webcast to be held on Friday, July 28, 2023 from 8:00 - 8:45 AM (Eastern Time). To access the webcast or to obtain dial in instructions to ask a question, please visit investors.troweprice.com.

Supplemental materials will be available on the company's investor relations website shortly before the start of the call. A replay of the webcast will be available on the company's investor relations website shortly after the event.

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CONTACTS:

Public Relations	Investor Relations
Jeanne Moore	Linsley Carruth
443-938-0463	410-345-3717
jeanne.moore@troweprice.com	linsley.carruth@troweprice.com

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Unaudited Consolidated Statements of Income
(in millions, except per-share amounts)
		Three months ended						Six months ended
Revenues		6/30/2023		6/30/2022		3/31/2023		6/30/2023		6/30/2022
	Investment advisory fees	$	1,430.8	$	1,496.7	$	1,391.8	$	2,822.6	$	3,158.8
	Capital allocation-based income	38.7		(126.3)		16.9		55.6		(81.9)
	Administrative, distribution, and servicing fees	140.7		142.6		128.9		269.6		299.1
	Net revenues	1,610.2		1,513.0		1,537.6		3,147.8		3,376.0
Operating expenses
	Compensation, benefits, and related costs	591.0		589.8		593.3		1,184.3		1,185.7
	Acquisition-related retention agreements	13.6		18.0		14.2		27.8		37.2
	Capital allocation-based income compensation	10.6		(50.9)		3.5		14.1		(33.4)
	Supplemental savings plan	33.0		(93.5)		42.5		75.5		(144.5)
	Total compensation and related costs	648.2		463.4		653.5		1,301.7		1,045.0
	Distribution and servicing	67.8		75.7		71.5		139.3		161.6
	Advertising and promotion	22.9		21.4		25.8		48.7		44.8
	Product and recordkeeping related costs	77.7		76.3		72.1		149.8		156.7
	Technology, occupancy, and facility costs	154.7		134.3		146.6		301.3		268.2
	General, administrative, and other	100.0		96.4		107.5		207.5		195.2
	Contingent consideration fair value adjustments	(23.2)		(50.3)		(49.6)		(72.8)		(95.8)
	Acquisition-related amortization and impairment costs	28.6		27.2		26.0		54.6		54.3
	Total operating expenses	1,076.7		844.4		1,053.4		2,130.1		1,830.0
Net operating income		533.5		668.6		484.2		1,017.7		1,546.0
Non-operating income (loss)
Net gains (losses) on investments		89.1		(169.9)		93.9		183.0		(259.8)
Net gains (losses) on consolidated investment products		24.4		(104.6)		45.4		69.8		(206.0)
Other losses		(7.3)		(5.4)		(3.9)		(11.2)		(12.6)
Total non-operating income (loss)		106.2		(279.9)		135.4		241.6		(478.4)
Income before income taxes		639.7		388.7		619.6		1,259.3		1,067.6
Provision for income taxes		158.5		100.9		177.9		336.4		265.4
Net income		481.2		287.8		441.7		922.9		802.2
	Less: net income (loss) attributable to redeemable non-controlling interests	4.8		(51.8)		20.2		25.0		(105.3)
Net income attributable to T. Rowe Price		476.4		339.6		421.5		897.9		907.5
	Less: net income allocated to outstanding restricted stock and stock unit holders	11.6		7.4		10.5		22.1		20.4
Net income allocated to T. Rowe Price common stockholders		$	464.8	$	332.2	$	411.0	$	875.8	$	887.1
Earnings per share
	Basic	$	2.07	$	1.47	$	1.83	$	3.90	$	3.90
	Diluted	$	2.06	$	1.46	$	1.83	$	3.89	$	3.88
Weighted-average common shares
	Outstanding	224.4		226.7		224.4		224.4		227.5
	Outstanding assuming dilution	225.2		227.9		225.2		225.2		228.8
	Summary of Adjusted Basis(1)	Three months ended						Six months ended
	(in millions, except per-share data)	6/30/2023		6/30/2022		3/31/2023		6/30/2023		6/30/2022
	Operating expenses	$	1,026.2	$	947.3	$	1,022.5	$	2,048.7	$	1,986.4
	Operating expenses, excluding accrued carried interest compensation	$	1,010.5	$	992.5	$	1,013.9	$	2,024.4	$	2,008.5
	Net operating income	$	596.6	$	579.7	$	528.0	$	1,124.6	$	1,417.7
	Non-operating income (loss)	$	31.8	$	(30.6)	$	30.8	$	62.6	$	(54.4)
	Net income attributable to T. Rowe Price	$	466.5	$	417.7	$	389.4	$	855.9	$	1,034.6
	Diluted earnings per common share	$	2.02	$	1.79	$	1.69	$	3.71	$	4.42
	(1)See the reconciliation to the comparable U.S. GAAP measures at the end of this earnings release.

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Assets Under Management	Six months ended 6/30/2023
(in billions)	Equity		Fixed income, including money market		Multi-asset(1)		Alternatives(2)		Total
Assets under management at beginning of period	$	664.2	$	167.0	$	400.1	$	43.4	$	1,274.7
Net cash flows(3)	(43.0)		(1.8)		8.7		—		(36.1)
Net market appreciation and gains(4)	111.0		4.1		44.4		1.3		160.8
Change during the period	68.0		2.3		53.1		1.3		124.7
Assets under management at June 30, 2023	$	732.2	$	169.3	$	453.2	$	44.7	$	1,399.4

(1)     The underlying AUM of the multi-asset portfolios have been aggregated and presented in this category and not reported in the equity and fixed income columns.

(2) The alternatives asset class includes strategies authorized to invest more than 50% of its holdings in private credit, leveraged loans, mezzanine, real assets/CRE, structured products, stressed/distressed, non-investment grade CLOs, special situations, business development companies, or that have absolute return as its investment objective. Generally, only those strategies with longer than daily liquidity are included.

(3)    Alternatives net cash flows include $0.8 billion in outflows that represent investment manager-driven distributions.

(4) Includes net distributions not reinvested of $0.4 billion.

Net Revenues	Six months ended
(in millions)	6/30/2023		6/30/2022		% Change
Investment advisory fees
Equity	$	1,696.2	$	2,027.0	(16.3)	%
Fixed income, including money market	202.4		216.5		(6.5)	%
Multi-asset	777.3		782.1		(0.6)	%
Alternatives	146.7		133.2		10.1	%
Total investment advisory fees	$	2,822.6	$	3,158.8	(10.6)	%
Capital allocation-based income	55.6		(81.9)		167.9	%
Administrative, distribution, and servicing fees	269.6		299.1		(9.9)	%
Net revenues	$	3,147.8	$	3,376.0	(6.8)	%
Average AUM (in billions):
Equity	$	695.2	$	827.7	(16.0)	%
Fixed income, including money market	170.0		176.3		(3.6)	%
Multi-asset	430.7		436.9		(1.4)	%
Alternatives	44.3		42.1		5.2	%
Average AUM	$	1,340.2	$	1,483.0	(9.6)	%

Non-Operating Income (Loss)
(in millions)	Six months ended
	6/30/2023		6/30/2022
Net gains (losses) from non-consolidated T. Rowe Price investment products
Cash and discretionary investments
Dividend income	$	45.7	$	3.6
Market-related gains (losses) and equity in earnings (losses)	16.9		(58.0)
Total net gains (losses) from cash and discretionary investments	62.6		(54.4)
Seed capital investments
Dividend income	0.9		0.4
Market-related gains (losses) and equity in earnings (losses)	29.5		(63.4)
Net gains recognized upon deconsolidation	—		6.8
Investments used to hedge the supplemental savings plan liability	78.3		(151.7)
Total net gains (losses) from non-consolidated T. Rowe Price investment products	171.3		(262.3)
Other investment income	11.7		2.5
Net gains (losses) on investments	183.0		(259.8)
Net gains (losses) on consolidated sponsored investment portfolios	69.8		(206.0)
Other losses, including foreign currency losses	(11.2)		(12.6)
Non-operating income (loss)	$	241.6	$	(478.4)

9

The following table summarizes the cash flows for the six months ended 2023 that are attributable to T. Rowe Price Group, our consolidated sponsored investment products, and the related eliminations required.

	Six months ended
	6/30/2023
(in millions)	Cash flow attributable to T. Rowe Price		Cash flow attributable to consolidated T. Rowe Price investment products		Elims		As reported
Cash flows from operating activities
Net income (loss)	$	897.9	$	62.4	$	(37.4)	$	922.9
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation, amortization and impairments of property, equipment and software	117.9		—		—		117.9
Amortization and impairment of acquisition-related assets and retention agreements	97.9		—		—		97.9
Fair value remeasurement of contingent liability	(72.8)		—		—		(72.8)
Stock-based compensation expense	115.4		—		—		115.4
Net (gains) losses recognized on investments	(253.0)		—		37.4		(215.6)
Net redemptions in sponsored investment products used to economically hedge supplemental savings plan liability	18.4		—		—		18.4
Net change in trading securities held by consolidated sponsored investment products	—		(414.5)		—		(414.5)
Other changes	339.3		1.4		(3.8)		336.9
Net cash provided by (used in) operating activities	1,261.0		(350.7)		(3.8)		906.5
Net cash provided by (used in) investing activities	(163.5)		(17.8)		45.4		(135.9)
Net cash provided by (used in) financing activities	(603.4)		325.0		(41.6)		(320.0)
Effect of exchange rate changes on cash and cash equivalents of consolidated sponsored investment products	—		0.9		—		0.9
Net change in cash and cash equivalents during period	494.1		(42.6)		—		451.5
Cash and cash equivalents at beginning of year	1,755.6		119.1		—		1,874.7
Cash and cash equivalents at end of period	$	2,249.7	$	76.5	$	—	$	2,326.2

Unaudited Condensed Consolidated Balance Sheet Information (in millions)	As of
	6/30/2023		12/31/2022
Cash and cash equivalents	$	2,249.7	$	1,755.6
Accounts receivable and accrued revenue	761.4		748.7
Investments	2,718.4		2,539.2
Assets of consolidated sponsored investment products	1,946.1		1,603.4
Operating lease assets	261.6		279.4
Property, equipment and software, net	771.2		755.7
Goodwill and intangible assets	3,220.2		3,272.6
Other assets	692.8		688.7
Total assets	12,621.4		11,643.3
Supplemental savings plan liability	817.3		761.2
Contingent consideration	23.0		95.8
Total other liabilities, includes $71.7 at June 30, 2023, and $89.1 at December 31, 2022, from consolidated sponsored investment products	1,330.0		1,099.4
Non-controlling interests*	1,187.3		847.4
Stockholders' equity attributable to T. Rowe Price Group, Inc., 224.3 common shares outstanding at June 30, 2023 and 224.3 common shares outstanding at December 31, 2022	$	9,263.8	$	8,839.5

* This includes both redeemable and non-redeemable non-controlling interest in consolidated entities.

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The following tables detail changes in our investments in affiliated private investment funds - carried interest and non-controlling interest in consolidated entities.

	Three months ended				Six months ended
Investments in affiliated private investment funds - carried interest	6/30/2023		6/30/2022		6/30/2023		6/30/2022
Balance at beginning of period	$	483.8	$	642.1	$	467.8	$	609.8
Capital allocation-based income:
Change in accrued carried interest	51.0		(113.0)		80.2		(55.4)
Acquisition-related amortization	(12.3)		(13.3)		(24.6)		(26.5)
Net realized distributions	(8.3)		(8.6)		(9.2)		(20.7)
Balance at end of period	$	514.2	$	507.2	$	514.2	$	507.2

	Three months ended				Six months ended
Non-controlling interests (NCI) in consolidated entities	6/30/2023		6/30/2022		6/30/2023		6/30/2022
Balance at beginning of period	$	194.4	$	272.2	$	190.7	$	248.7
Capital allocation-based income compensation:
Change in accrued carried interest compensation	15.7		(45.2)		24.3		(22.1)
Acquisition-related amortization	(5.1)		(5.7)		(10.2)		(11.3)
Net distributions	(2.9)		(12.5)		(2.7)		(6.5)
Balance at end of period	$	202.1	$	208.8	$	202.1	$	208.8

Non-GAAP Information and Reconciliation

The firm believes the non-GAAP financial measures below provide relevant and meaningful information to investors about its core operating results. These measures have been established in order to increase transparency for the purpose of evaluating the firm's core business, for comparing current results with prior period results, and to enable more appropriate comparison with industry peers. However, non-GAAP financial measures should not be considered as a substitute for financial measures calculated in accordance with U.S. GAAP and may be calculated differently by other companies.

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The following schedules reconcile U.S. GAAP financial measures to non-GAAP financial measures for the three months ended June 30, 2023 and 2022 and March 31, 2023.

	Three months ended 6/30/2023
	Operating expenses		Net operating income		Non-operating income (loss)		Provision (benefit) for income taxes(6)		Net income attributable to T. Rowe Price		Diluted earnings per share(7)
U.S. GAAP Basis (FS line item)	$	1,076.7	$	533.5	$	106.2	$	158.5	$	476.4	$	2.06
Non-GAAP adjustments:
Acquisition-related non-GAAP adjustments:
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs)	5.1		7.2		—		0.1		7.1		0.03
Acquisition-related retention arrangements(1) (Compensation and related costs)	(13.6)		13.6		—		(0.1)		13.7		0.06
Contingent consideration(1)	23.2		(23.2)		—		2.5		(25.7)		(0.11)
Intangible assets amortization and impairments(1)	(28.6)		28.6		—		0.4		28.2		0.12
Total acquisition-related non-GAAP adjustments	(13.9)		26.2		—		2.9		23.3		0.10
Supplemental savings plan liability(3) (Compensation and related costs)	(33.0)		33.0		(33.6)		0.2		(0.8)		—
Consolidated T. Rowe Price investment products(4)	(3.6)		3.9		(24.4)		0.5		(16.2)		(0.07)
Other non-operating income(5)	—		—		(16.4)		(0.2)		(16.2)		(0.07)
Adjusted Non-GAAP Basis	$	1,026.2	$	596.6	$	31.8	$	161.9	$	466.5	$	2.02

	Three months ended 6/30/2022
	Operating expenses		Net operating income		Non-operating income (loss)		Provision (benefit) for income taxes(6)		Net income attributable to T. Rowe Price		Diluted earnings per share(7)
U.S. GAAP Basis (FS line item)	$	844.4	$	668.6	$	(279.9)	$	100.9	$	339.6	$	1.46
Non-GAAP adjustments:
Acquisition-related non-GAAP adjustments:
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs)	5.7		7.6		—		2.0		5.6		0.03
Acquisition-related retention arrangements(1) (Compensation and related costs)	(18.0)		18.0		—		4.6		13.4		0.06
Contingent consideration(1)	50.3		(50.3)		—		(13.5)		(36.8)		(0.16)
Intangible assets amortization and impairments(1)	(27.2)		27.2		—		7.2		20.0		0.09
Transaction costs(2) (General, admin and other)	(0.1)		0.1		—		—		0.1		—
Total acquisition-related non-GAAP adjustments	10.7		2.6		—		0.3		2.3		0.02
Supplemental savings plan liability(3) (Compensation and related costs)	93.5		(93.5)		96.4		0.6		2.3		—
Consolidated T. Rowe Price investment products(4)	(1.3)		2.0		104.6		14.7		40.1		0.17
Other non-operating income(5)	—		—		48.3		14.9		33.4		0.14
Adjusted Non-GAAP Basis	$	947.3	$	579.7	$	(30.6)	$	131.4	$	417.7	$	1.79

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	Three months ended 3/31/2023
	Operating expenses		Net operating income		Non-operating income (loss)		Provision (benefit) for income taxes(6)		Net income attributable to T. Rowe Price		Diluted earnings per share(7)
U.S. GAAP Basis (FS line item)	$	1,053.4	$	484.2	$	135.4	$	177.9	$	421.5	$	1.83
Non-GAAP adjustments:
Acquisition-related non-GAAP adjustments:
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs)	5.1		7.2		—		1.5		5.7		0.02
Acquisition-related retention arrangements(1) (Compensation and related costs)	(14.2)		14.2		—		3.1		11.1		0.05
Contingent consideration(1)	49.6		(49.6)		—		(10.5)		(39.1)		(0.17)
Intangible assets amortization and impairments(1)	(26.0)		26.0		—		5.6		20.4		0.09
Total acquisition-related non-GAAP adjustments	14.5		(2.2)		—		(0.3)		(1.9)		(0.01)
Supplemental savings plan liability(3) (Compensation and related costs)	(42.5)		42.5		(44.7)		(0.5)		(1.7)		(0.01)
Consolidated T. Rowe Price investment products(4)	(2.9)		3.5		(45.4)		(4.6)		(17.1)		(0.07)
Other non-operating income(5)	—		—		(14.5)		(3.1)		(11.4)		(0.05)
Adjusted Non-GAAP Basis	$	1,022.5	$	528.0	$	30.8	$	169.4	$	389.4	$	1.69

The following schedules reconcile certain U.S. GAAP financial measures for the six months ended June 30, 2023 and 2022.

	Six months ended 6/30/2023
	Operating expenses		Net operating income		Non-operating income (loss)		Provision (benefit) for income taxes(6)		Net income attributable to T. Rowe Price		Diluted earnings per share(7)
U.S. GAAP Basis (FS line item)	$	2,130.1	$	1,017.7	$	241.6	$	336.4	$	897.9	$	3.89
Non-GAAP adjustments:
Acquisition-related non-GAAP adjustments:
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs)	10.2		14.4		—		1.6		12.8		0.06
Acquisition-related retention arrangements(1) (Compensation and related costs)	(27.8)		27.8		—		3.0		24.8		0.11
Contingent consideration(1)	72.8		(72.8)		—		(8.0)		(64.8)		(0.28)
Intangible assets amortization and impairments(1)	(54.6)		54.6		—		6.0		48.6		0.21
Total acquisition-related non-GAAP adjustments	0.6		24.0		—		2.6		21.4		0.10
Supplemental savings plan liability(3) (Compensation and related costs)	(75.5)		75.5		(78.3)		(0.3)		(2.5)		(0.01)
Consolidated T. Rowe Price investment products(4)	(6.5)		7.4		(69.8)		(4.1)		(33.3)		(0.14)
Other non-operating income(5)	—		—		(30.9)		(3.3)		(27.6)		(0.13)
Adjusted Non-GAAP Basis	$	2,048.7	$	1,124.6	$	62.6	$	331.3	$	855.9	$	3.71

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	Six months ended 6/30/2022
	Operating expenses		Net operating income		Non-operating income (loss)		Provision (benefit) for income taxes(6)		Net income attributable to T. Rowe Price		Diluted earnings per share(7)
U.S. GAAP Basis (FS line item)	$	1,830.0	$	1,546.0	$	(478.4)	$	265.4	$	907.5	$	3.88
Non-GAAP adjustments:
Acquisition-related non-GAAP adjustments:
Investment and NCI amortization and impairments(1) (Capital allocation-based income and Compensation and related costs)	11.3		15.2		—		7.3		7.9		0.04
Acquisition-related retention arrangements(1) (Compensation and related costs)	(37.2)		37.2		—		10.0		27.2		0.11
Contingent consideration(1)	95.8		(95.8)		—		(31.7)		(64.1)		(0.28)
Intangible assets amortization and impairments(1)	(54.3)		54.3		—		18.0		36.3		0.16
Transaction costs(2) (General, admin and other)	(0.8)		0.8		—		0.3		0.5		—
Total acquisition-related non-GAAP adjustments	14.8		11.7		—		3.9		7.8		0.03
Supplemental savings plan liability(3) (Compensation and related costs)	144.5		(144.5)		151.7		2.3		4.9		0.02
Consolidated T. Rowe Price investment products(4)	(2.9)		4.5		206.0		35.0		70.2		0.30
Other non-operating income(5)	—		—		66.3		22.1		44.2		0.19
Adjusted Non-GAAP Basis	$	1,986.4	$	1,417.7	$	(54.4)	$	328.7	$	1,034.6	$	4.42

(1)These non-GAAP adjustments remove the impact of acquisition-related amortization and costs including amortization of intangible assets, the recurring fair value remeasurements of the contingent consideration liability, amortization of acquired investments and non-controlling interest basis differences, and amortization of compensation-related arrangements. Management believes adjusting for these charges helps the reader's ability to understand the firm's core operating results and to increase comparability period to period.

(2)    This non-GAAP adjustment removes acquisition-related transaction costs. Management believes adjusting for these charges helps the reader's ability to understand the firm's core operating results and to increase comparability period to period.

(3)This non-GAAP adjustment removes the compensation expense impact from market valuation changes in the supplemental savings plan liability and the related net gains (losses) on investments designated as economic hedges against the related liability. Amounts deferred under the supplemental savings plan are adjusted for appreciation (depreciation) of hypothetical investments chosen by participants. The firm uses T. Rowe Price investment products to economically hedge the exposure to these market movements. Management believes it is useful to offset the non-operating investment income (loss) recognized on the economic hedges against the related compensation expense and remove the net impact to help the reader's ability to understand the firm's core operating results and to increase comparability period to period.

(4)These non-GAAP adjustments remove the impact that the consolidated sponsored investment products have on the firm's U.S. GAAP consolidated statements of income. Specifically, the firm adds back the operating expenses and subtracts the investment income of the consolidated sponsored investment products. The adjustment to operating expenses represents the operating expenses of the consolidated products, net of the elimination of related management and administrative fees. The adjustment to net income attributable to T. Rowe Price represents the net income of the consolidated products, net of redeemable non-controlling interests. Management believes the consolidated sponsored investment products may impact the reader’s ability to understand the firm's core operating results.

(5)This non-GAAP adjustment represents the other non-operating income (loss) and the net gains (losses) earned on the firm's non-consolidated investment portfolio that are not designated as economic hedges of the supplemental savings plan liability and that are not part of the cash and discretionary investment portfolio. Management retains the investment gains recognized on the non-consolidated cash and discretionary investments as these assets and related income (loss) are considered part of the firm's core operations. Management believes adjusting for these non-operating income (loss) items helps the reader’s ability to understand the firm's core operating results and increases comparability to prior years. Additionally, management does not emphasize the impact of the portion of non-operating income (loss) removed when managing and evaluating the firm's performance.

14

(6)The income tax impacts were calculated in order to achieve an overall year-to-date non-GAAP effective tax rate of 27.9% and 24.1%, respectively. As such, the non-GAAP effective tax rate for the three months ended June 30, 2023 and 2022 was 25.8% and 23.9%, respectively. The firm estimates that its effective tax rate for the full-year 2023 on a non-GAAP basis will be in the range of 26.5% to 29.5%.

(7)This non-GAAP measure was calculated by applying the two-class method to adjusted net income attributable to T. Rowe Price Group divided by the weighted-average common shares outstanding assuming dilution. The calculation of adjusted net income allocated to common stockholders is as follows:

	Three months ended						Six months ended
	6/30/2023		6/30/2022		3/31/2023		6/30/2023		6/30/2022
Adjusted net income attributable to T. Rowe Price	$	466.5	$	417.7	$	389.4	$	855.9	$	1,034.6
Less: adjusted net income allocated to outstanding restricted stock and stock unit holders	11.4		9.3		9.6		21.0		23.3
Adjusted net income allocated to common stockholders	$	455.1	$	408.4	$	379.8	$	834.9	$	1,011.3

15