Variable Interest Entities and Consolidated Sponsored Investment Products (Tables)

12 Months Ended

Sep. 30, 2012

Variable Interest Entities [Abstract]

Schedule of balances of consolidated VIEs and consolidated SIPs

The balances of consolidated VIEs and consolidated SIPs included in the Company's consolidated balance sheets were as follows:



	2012						2011
(in millions)	Consolidated						Consolidated
as of September 30,	VIEs		SIPs		Total		VIEs		SIPs		Total
Assets
Cash and cash equivalents	$	224.3	$	42.8	$	267.1	$	88.2	$	81.5	$	169.7
Receivables	2.7		23.7		26.4		12.0		15.3		27.3
Investments	984.1		1,046.6		2,030.7		822.6		945.7		1,768.3
Loans receivable, net	—		—		—		149.4		—		149.4
Other assets	—		0.7		0.7		17.8		0.8		18.6
Total Assets	$	1,211.1	$	1,113.8	$	2,324.9	$	1,090.0	$	1,043.3	$	2,133.3
Liabilities
Accounts payable and accrued expenses	$	—	$	21.8	$	21.8	$	—	$	14.2	$	14.2
Debt, at fair value	1,100.9		—		1,100.9		871.2		—		871.2
Debt	—		110.2		110.2		164.2		134.9		299.1
Other liabilities	61.9		8.5		70.4		32.3		8.5		40.8
Total liabilities	1,162.8		140.5		1,303.3		1,067.7		157.6		1,225.3
Redeemable Noncontrolling Interests	—		26.7		26.7		—		18.6		18.6
Stockholders' Equity
Nonredeemable noncontrolling interests	—		556.8		556.8		—		575.1		575.1
Other equity	48.3		389.8		438.1		22.3		292.0		314.3
Total stockholders' equity	48.3		946.6		994.9		22.3		867.1		889.4
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity	$	1,211.1	$	1,113.8	$	2,324.9	$	1,090.0	$	1,043.3	$	2,133.3

Schedule of assets and liabilities of the Collateralized Loan Obligations carried at fair value

The assets and liabilities of the CLOs are carried at fair value. Changes in the fair values were as follows:



(in millions)	2012			2011
for the fiscal years ended September 30,	2012			2011
Net gains from changes in fair value of assets	$	90.9		$	34.0
Net losses from changes in fair value of liabilities	(65.3		)	(114.0		)
Total net gains (losses)	$	25.6		$	(80.0	)

Unpaid principal balance and fair value of investments and debt of CLOs

The following table presents the unpaid principal balance and fair values of investments, including investments 90 days or more past due, and debt of the CLOs:



(in millions)	Total Investments			Investments 90 Days or More Past Due			Long-term Debt
as of September 30, 2012	Total Investments			Investments 90 Days or More Past Due			Long-term Debt
Unpaid principal balance	$	996.1		$	7.2		$	1,186.5
Excess unpaid principal over fair value	(12.0		)	(6.7		)	(85.6		)
Fair value	$	984.1		$	0.5		$	1,100.9

as of September 30, 2011
Unpaid principal balance	$	887.8		$	21.6		$	1,044.9
Excess unpaid principal over fair value	(65.2		)	(10.2		)	(173.7		)
Fair value	$	822.6		$	11.4		$	871.2

Schedule of changes in allowance for loan losses for the securitization trusts

Changes in the allowance for loan losses for the securitization trusts were as follows:



(in millions)
for the fiscal years ended September 30,	2012			2011
Balance at beginning of year	$	5.7		$	—
Adjustment for adoption of new consolidation guidance	—			14.3
Provision for loan losses	0.2			0.4
Charge-offs	(5.7		)	(14.6		)
Recoveries	2.4			5.6
Deconsolidation of securitization trust	(2.6		)	—
Balance at End of Year	$	—		$	5.7
Total loan charge-offs, net of recoveries, as a percentage of simple monthly average loans receivable	3.73		%	3.93		%
Allowance for loan losses as a percentage of loans receivable	N/A			3.68		%

Schedule of investments of consolidated VIEs and consolidated SIPs

Investments of consolidated VIEs and consolidated SIPs consisted of the following:



	2012						2011
(in millions)	Consolidated						Consolidated
as of September 30,	VIEs		SIPs		Total		VIEs		SIPs		Total
Investment securities, trading	$	—	$	194.4	$	194.4	$	—	$	361.1	$	361.1
Other debt securities	984.1		317.5		1,301.6		822.6		323.2		1,145.8
Other equity securities	—		534.7		534.7		—		261.4		261.4
Total Investments	$	984.1	$	1,046.6	$	2,030.7	$	822.6	$	945.7	$	1,768.3

Schedule of debt of consolidated VIEs and consolidated SIPs

Debt of consolidated VIEs and consolidated SIPs consisted of the following:



(dollars in millions)	2012		Effective Interest Rate		2011		Effective Interest Rate
as of September 30,	2012		Effective Interest Rate		2011		Effective Interest Rate
Debt of consolidated VIEs:
Debt of CLOs, at fair value, due fiscal years 2016-2024	$	1,100.9	1.48	%	$	871.2	1.20	%
Debt of securitization trusts, due fiscal years 2013-2016	—		N/A		164.2		5.86	%
	1,100.9				1,035.4
Debt of consolidated SIPs due fiscal years 2013-2018	110.2		4.20	%	134.9		5.29	%
Total Debt	$	1,211.1			$	1,170.3

Schedule of contractual maturities for debt of consolidated VIEs and consolidated SIPs

At September 30, 2012, contractual maturities for debt of consolidated VIEs and consolidated SIPs were as follows:



(in millions)
for the fiscal years ending September 30,
2013	$	46.5
2014	1.9
2015	—
2016	22.0
2017	14.9
Thereafter	1,125.8
Total	$	1,211.1

Schedule of balances of assets and liabilities of consolidated VIEs and consolidated SIPs measured at fair value on a recurring basis

The tables below present the balances of assets and liabilities of consolidated VIEs and consolidated SIPs measured at fair value on a recurring basis.



(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2012	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents of consolidated VIEs	$	—	$	224.3	$	—	$	224.3
Receivables of consolidated VIEs	—		2.7		—		2.7
Investments of consolidated VIEs	—		984.1		—		984.1
Investments of consolidated SIPs
Debt securities	6.3		49.3		317.5		373.1
Equity securities	145.9		0.6		527.0		673.5
Total Assets Measured at Fair Value	$	152.2	$	1,261.0	$	844.5	$	2,257.7
Liabilities
Debt of consolidated VIEs	$	—	$	1,033.0	$	67.9	$	1,100.9
Other liabilities of consolidated VIEs	—		61.9		—		61.9
Total Liabilities Measured at Fair Value	$	—	$	1,094.9	$	67.9	$	1,162.8



(in millions)	Level 1		Level 2		Level 3		Total
as of September 30, 2011	Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents of consolidated VIEs	$	14.7	$	73.5	$	—	$	88.2
Receivables of consolidated VIEs	—		12.0		—		12.0
Investments of consolidated VIEs	—		820.7		1.9		822.6
Investments of consolidated SIPs
Debt securities	5.2		198.8		324.9		528.9
Equity securities	127.0		6.1		283.7		416.8
Total Assets Measured at Fair Value	$	146.9	$	1,111.1	$	610.5	$	1,868.5
Liabilities
Debt of consolidated VIEs	$	—	$	787.3	$	83.9	$	871.2
Other liabilities of consolidated VIEs	—		32.3		—		32.3
Total Liabilities Measured at Fair Value	$	—	$	819.6	$	83.9	$	903.5

Schedule of changes in Level 3 assets and liabilities of consolidated VIEs and consolidated SIPs

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for fiscal years 2012, 2011 and 2010 were as follows:



(in millions)	Investments of Consolidated VIEs			Investments of Consolidated SIPs						Total Level 3 Assets			Debt of Consolidated VIEs
for the fiscal year ended September 30, 2012	Investments of Consolidated VIEs			Debt			Equity			Total Level 3 Assets			Debt of Consolidated VIEs
Balance at October 1, 2011	$	1.9		$	324.9		$	283.7		$	610.5		$	(83.9	)
Realized and unrealized gains (losses) included in investment and other income, net	(1.2		)	(31.2		)	13.1			(19.3		)	(5.0		)
Purchases	—			63.0			312.0			375.0			—
Sales	(1.4		)	(33.1		)	(78.8		)	(113.3		)	—
Settlements	—			—			—			—			23.8
Consolidation of variable interest entity	—			—			—			—			(4.6		)
Transfers into Level 3	1.6			—			—			1.6			—
Transfers out of Level 3	(0.9		)	—			—			(0.9		)	—
Effect of exchange rate changes	—			(6.1		)	(3.0		)	(9.1		)	1.8
Balance at September 30, 2012	$	—		$	317.5		$	527.0		$	844.5		$	(67.9	)
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at September 30, 2012	$	—		$	2.9		$	3.8		$	6.7		$	(4.0	)



(in millions)	Investments of Consolidated VIEs		Investments of Consolidated SIPs			Total Level 3 Assets			Debt of Consolidated VIEs
for the fiscal year ended September 30, 2011	Investments of Consolidated VIEs		Investments of Consolidated SIPs			Total Level 3 Assets			Debt of Consolidated VIEs
Balance at October 1, 2010	$	—	$	3.3		$	3.3		$	—
Adjustment for adoption of new consolidation guidance	1.8		—			1.8			(71.4		)
Realized and unrealized gains (losses) included in investment and other income, net	0.1		(1.3		)	(1.2		)	(45.6		)
Purchases, sales and settlements, net	—		14.1			14.1			36.7
Consolidation adjustment	—		593.1			593.1			—
Transfers out of Level 3, net	—		(0.6		)	(0.6		)	—
Effect of exchange rate changes	—		—			—			(3.6		)
Balance at September 30, 2011	$	1.9	$	608.6		$	610.5		$	(83.9	)
Change in unrealized gains (losses) included in net income relating to assets and liabilities held at September 30, 2011	$	0.1	$	0.3		$	0.4		$	(45.6	)



(in millions)	Investments of Consolidated SIPs
for the fiscal year ended September 30, 2010	Investments of Consolidated SIPs
Balance at October 1, 2009	$	2.1
Realized and unrealized gains (losses) included in investment and other income, net	(1.1		)
Purchases, sales and settlements, net	2.8
Transfers out of Level 3, net	(0.5		)
Total Level 3 Assets at September 30, 2010	$	3.3
Change in unrealized gains included in net income relating to assets held at September 30, 2010	$	0.1

Schedule of valuation techniques and significant unobservable inputs used in Level 3 fair value measurements

The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets at September 30, 2012 were as follows:



(in millions)	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Debt securities	$	317.5	Discounted cash flow	Discount rate	4.9%–25.6% (11.8%)
				Risk premium	0.0%–7.3% (2.1%)
Equity securities	144.4		Market comparable companies	EBITDA multiple	5.5–8.6 (7.3)
				Discount for lack of marketability	15.0%–30.0% (22.1%)
	47.4		Discounted cash flow	Discount rate	12.0%–15.0% (14.8%)
				Discount for lack of marketability	0.0%–50.0% (27.8%)
	21.0		Market pricing	Price to book value ratio	1.7

Schedule of financial instruments of consolidated VIEs and consolidated SIPs not measured at fair value

Financial instruments of consolidated VIEs and consolidated SIPs that were not measured at fair value were as follows:



(in millions)	September 30, 2012					September 30, 2011
(in millions)	Carrying Value		Estimated Fair Value		Fair Value Level	Carrying Value		Estimated Fair Value
Financial Assets
Cash and cash equivalents of consolidated SIPs	$	42.8	$	42.8	1	$	81.5	$	81.5
Loans receivable of consolidated VIEs, net	—		$	—	N/A	$	149.4	$	153.2
Financial Liabilities
Debt of consolidated VIEs	$	—	$	—	N/A	$	164.2	$	167.9
Debt of consolidated SIPs	110.2		113.0		3	134.9		117.0

Schedule of Variable Interest Entities

The carrying values of the investment management and related service fees receivable from and the equity ownership interests in these VIEs included in the Company's consolidated balance sheets at September 30, 2012 and 2011 are set forth below. These amounts represent the Company's maximum exposure to loss from these VIEs.



(in millions)
as of September 30,	2012		2011
Receivables	$	43.8	$	42.2
Investments	199.7		176.7
Total	$	243.5	$	218.9