Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefit Plans

Schedule of plans assets and benefit obligations

Our plan assets, benefit obligations and funded status as of the December 31 measurement date were as follows (in millions):

	December 31,
	2019		2018
Change in plan assets:
Fair value of plan assets as of January 1	$	849.5	$	941.8
Return on plan assets		100.1		(11.1)
Employer contributions		2.0		12.5
Benefits paid		(14.8)		(14.7)
Settlements		(25.4)		(24.0)
Foreign currency translation		34.5		(55.0)
Fair value of plan assets as of December 31		945.9		849.5
Change in benefit obligation:
Benefit obligation as of January 1		(613.3)		(719.1)
Service cost		(0.8)		(1.2)
Interest cost		(17.4)		(17.3)
Settlements		25.4		24.0
Plan amendments		—		(3.9)
Benefits paid		14.8		14.7
Actuarial gain (loss)		(86.8)		47.6
Foreign currency translation		(25.1)		41.9
Benefit obligation as of December 31		(703.2)		(613.3)
Funded status as of year-end		242.7		236.2
Tax at source		(33.1)		(33.4)
Net retirement benefit asset recognized in the Consolidated Balance Sheets	$	209.6	$	202.8

Schedule of retirement benefit asset recognized in the Consolidated Balance Sheets

Amounts recognized on our Consolidated Balance Sheet, net of tax at source as of December 31, 2019 and 2018, consist of the following (in millions):

	December 31,
	2019		2018
Retirement benefit assets recognized in the Consolidated Balance Sheets:
Janus Henderson Group UK Pension Scheme	$	214.0	$	206.5
Retirement benefit obligations recognized in the Consolidated Balance Sheets:
Janus Henderson Group unapproved pension scheme		(4.4)		(3.7)
Net retirement benefit asset recognized in the Consolidated Balance Sheets	$	209.6	$	202.8

Schedule of key assumptions used in determining the defined benefit obligation

	December 31,
	2019		2018
Discount rate	2.1	%	2.9	%
Inflation - salaries	2.5	%	2.5	%
Inflation - Retail Price Index ("RPI")	3.0	%	3.1	%
Inflation - Consumer Price Index ("CPI")	1.9	%	2.0	%
Pension increases (RPI capped at 5% per annum ("p.a."))	2.9	%	3.0	%
Pension increases (RPI capped at 2.5% p.a.)	2.0	%	2.1	%
Life expectancy of male aged 60 at accounting date	28.3		28.2
Life expectancy of male aged 60 in 15 years time	29.3		29.2

Schedule of fair values of the JHGPS plan assets

The fair values of the JHGPS plan assets as of December 31, 2019 and 2018, by major asset class, are as follows (in millions):

	December 31,
	2019		2018
Cash and cash equivalents	$	3.7	$	6.4
Money market instruments		78.1		21.6
Forward foreign exchange contracts		—		0.3
Bulk annuity policy		395.8		—
Fixed income investments		261.4		623.2
Equity investments		206.9		198.0
Total assets at fair value	$	945.9	$	849.5

Schedule of plan assets at fair value on a recurring basis

The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2019 (in millions):

	Fair value measurements using:
	Quoted prices in
	active markets for
	and liabilities		Significant other		Significant
	identical assets		observable inputs		unobservable inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Cash and cash equivalents	$	3.7	$	—	$	—	$	3.7
Money market instruments		—		78.1		—		78.1
Bulk annuity contract		—		—		395.8		395.8
Fixed income investments		261.4		—		—		261.4
Equity investments		206.9		—		—		206.9
Total	$	472.0	$	78.1	$	395.8	$	945.9

The following table presents JHGPS plan assets at fair value on a recurring basis as of December 31, 2018 (in millions):

	Fair value measurements using:
	Quoted prices in
	active markets for
	and liabilities		Significant other		Significant
	identical assets		observable inputs		unobservable inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Cash and cash equivalents	$	6.4	$	—	$	—	$	6.4
Money market instruments		—		21.6		—		21.6
Forward foreign exchange contracts		0.3		—		—		0.3
Fixed income investments		619.0		4.2		—		623.2
Equity investments		—		198.0		—		198.0
Total	$	625.7	$	223.8	$	—	$	849.5

Schedule of actuarial gains and losses

Cumulative amounts recognized in accumulated other comprehensive income and the actuarial gain, net of tax deducted at source, credited to other comprehensive income for the years ended December 31, 2019 and 2018, are shown below (in millions):

	December 31,
	2019		2018
Opening accumulated unamortized actuarial gain	$	24.7	$	21.0
Current year actuarial gain (loss)		(5.5)		14.4
Tax at source on current year actuarial gain (loss)		0.9		(6.5)
Current year prior service cost		0.4		(3.7)
Release of actuarial gain due to settlement event		(2.1)		(1.1)
Release of tax at source due to settlement event		0.7		0.6
Closing accumulated unamortized actuarial gain	$	19.1	$	24.7

Schedule of components of net periodic benefit credit

The components of net periodic benefit cost in respect of defined benefit plans for the years ended December 31, 2019, 2018 and 2017, include the following (in millions):

	December 31,
	2019		2018		2017
Service cost	$	(0.8)	$	(1.2)	$	(1.2)
Settlement gain		2.1		1.6		1.6
Interest cost		(17.4)		(17.3)		(19.2)
Amortization of prior service cost		(0.4)		—		—
Expected return on plan assets		18.6		21.3		20.3
Net periodic benefit credit		2.1		4.4		1.5
Contributions to money purchase section		(7.9)		(8.0)		(7.4)
Total cost	$	(5.8)	$	(3.6)	$	(5.9)

Schedule of key assumptions used in determining the net periodic benefit cost

The following key assumptions were used in determining the net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017 (in millions):

	December 31,
	2019		2018		2017
Discount rate	2.9	%	2.6	%	2.9	%
Inflation — salaries	2.5	%	2.5	%	2.5	%
Inflation — RPI	3.1	%	3.1	%	3.2	%
Inflation — CPI	2.0	%	2.0	%	2.1	%
Pension increases (RPI capped at 5% p.a.)	3.0	%	3.0	%	3.0	%
Pension increases (RPI capped at 2.5% p.a.)	2.1	%	2.1	%	2.1	%
Expected return on plan assets	2.5	%	2.5	%	2.6	%
Amortization period for net actuarial gains at beginning of the year	10.0		11.0		11.0

Schedule of expected future cash flows

The expected future benefit payments for our pension plan are as follows (in millions):

2020	$	22.9
2021	$	20.1
2022	$	22.0
2023	$	23.7
2024	$	25.0
2025-2029	$	131.1